BtoB in CRM

B2B AND CRM

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WHAT IS B2B

Business-to-Business. A tangible sample

E-commerce & B2B

Communication Market Race Outcomes Satisfaction

Similarities B2B/CRM

Increasing hub services Customer Research / Data Mining Technology as an Enabler Testing & Evaluating for Marketing Meet unpredictable growth & demand

Differences B2B/CRM

Customers Software Capabilities Design Philosophies Parties Involved Their Natures

Benefits of Integration

B2B expected to grow from 250 Billion in 2000 to 2.7 trillion in 2004.

Improved Efficiency Improved Quality Access to Supply Chain Complementing Features

CRM – B2B integration strategiesStrategy 1: Embedded

“Collaborative CRM”: real time, people based customer support other than telephone and face to face

Web co-browsing, chat, instant messaging, application or desktop sharing

Better option in most cases

Considerations before adopting

Knowledge of CRM and B2B Costs and Benefits Long term internet model Compatibility Separation technology Future implications

Strategy 2: Two separate modules

Data exchange is critical Suggested four tiered B2B architecture

Efficient, cost-effective and better performance

Database access, storage and management

Transaction processing and connection to the server

E-commerce-related logic and business decisions

HTML page and client forms

Separate CRM module

Presentation components Business logic components Data access components Integrations with back office

Current issues and future trends

Market, technology and economy B2B, CRM functionality Further facilitation of CRM Access to global market More attention to CRM-B2B

Integration of B2B and CRM will continue Offers organizations many benefits Feasibility is important Organizations can not be confined to internal

processes

E-commerce

E-commerce is made up by a complex of links between individual participants in the given commercial

BUSINESS CONSUMER

BUSINESS B2B C2B

CONSUMER B2C C2C

E-commerce definition and types of E-commerce

E-commerce is a subset of e-business, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.

B2B (Business-to-Business)Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

The term "business-to-business" was originally coined to describe the electronic communications between businesses or enterprises in order to distinguish it from the communications between

businesses and consumers

Types of E-commerce

B2C (Business-to-Consumer)Describes activities of businesses serving end consumers with products and/or services

An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be considered (B2B) transactions

. C2B (Consumer-to-Business)

A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.

Types of E-commerce C2C (Consumer-to-Consumer)

There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce.

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous.

Seven Basic Differences Between CRM In the B2C World and CRM In the B2B

World

1) In the B2B world, you have relationships within relationships, and that is what you are alluding to, when the contact is the actual person. Keep in mind that corporations have no brains and make no decision by themselves. They are only legal fictions.

2) In B2B you have just a few large customers, big organizations. And that means the statistical tools that are useful in B2C CRM are largely not relevant in B2B CRM.

3) The third difference is account development selling.Meaning by that is, organizations are complex, and it's much more beneficial for you to think of a B2B company becoming a customer gradually.


World

4) The fourth difference is channel complexity. In the B2B world, the channel distribution process can be extremely complex.

5) Another difference is what we call knowledge-based selling. Because the products and services sold in a B2B context are often highly complex, it's advantageous to base the sales process on educating and training the customers, much more so in B2B than in B2C CRM


World

6) In the B2B CRM world, purchases are likely to be more infrequent and farther between. This characterizes a lot of business to business operations, and in many B2B companies, a large amount of effort is allocated in the CRM space to create a continuous service stream that surrounds the occasional sale of products, so that you have opportunities with customers to maintain your relationships with them.

7) In the B2B space, it makes a great deal of sense to help clients manage themselves If you're selling to a business, one of the principal issues that any business is always wrestling with is, "How do I better manage my business?" And to the extent you can fashion your customer relationship initiatives in such a way that will help a business manage itself, that's a very high-value offering.

Case:Migros(B2B CRM in Migros)

General Idea

Share of Informations

&Ideas + Communication

environment + The integration of

applications between buyers and sellers

+ MarketPlace

Better Service

+

Decrease in costs

+

Increase in Sales

+

Efficiency

+

Effective strategies

Mission:Migros has a mission to create a e-platform

for Migros and its suppliers to decrease costs and

to integrate operations of supply chain.

Vision:Migros has a vision of making B2B an

indispensable platform for organizations.

B2B:What do they get?

*Suppliers provide flow of orders and transfer of

invoices to Migros

*Migros provide Sales and Store Informations,

Market informations to suppliers.

Results of B2B• Integration of B2B and CRM will continue• Offers organizations many benefits• Feasibility is important• Organizations can not be confined to internal processes Results of B2B in Migros

*Easy access to informations*Valid data*Valid supply planning*Decrease in costs of distrubition*Planning of logistics*Effective management of stocks*Increase in Sales*Development of work durations

We foresee; An environment in which buyers and

sellers are interconnected by exchanges that provide instantaneous information to decision-makers in enterprises as well as consumers.

The emergence of the real-time organization in which every bit of information, from time cards to financial statements, is updated in real time.