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Conquering the B2B Commerce Challenge: Stop Navel Gazing and Get Out of Your Own Way
Mike Chuma, Director of Global Product Management
Digital River, Inc.
Omphaloskepsis noun \ˌäm(p)-fə-lō-ˈskep-səs\
navel gazing
Source: some proud parent posting to the “interwebs”
B2B is the Next E-Commerce Frontier …
Globally, Goldman Sachs predicts nearly $1 trillion in e-
commerce transactions by 2013*
Many B2B companies project e-commerce will comprise 50% of
total sales**
In the U.S., B2B e-commerce is growing by over 34%
compound annual growth rate**
*Source: JP Morgan Chase (Goldman Sachs) “Nothing but Net: 2011 Internet Investment Guide,” January 3, 2011
**Source: Forrester “B2B E-Commerce: Going From Surviving To Thriving By Adopting Proven B2C Principles,” May 1, 2012
Business Buying is Changing…
Enterprises
=
shifting stance
Business Technology Selection
=
centrally controlled
Technologies
=
more independent
and robust
Market Driven / User Controlled
“The way I interact with a large corporation in a B2B
relationship has to keep pace with the way I can view
product and research on sites like Amazon.com.”
7
- Andrew Christmann, Gartner Blog Respondent
B2B Customer Expectations are Changing…
B2B eCommerce Trends, Endeca Survey for eCommerce, 2011
+70% of B2B influenced by B2C
B2B Customer Expectations are Changing…
B2B eCommerce Trends, Endeca Survey for eCommerce, 2011
20% said online was more influential
The Stages Of B2B E-Commerce Maturity
June 2012, “Evaluating Your B2B E-Commerce Development”
keeping up with your customer …
organizations still
determining their strategy
few Best Practices
B2C driving B2B innovation
11 Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012
“We’re still convincing people in our own company
about the value of selling online.”
- Director of E-Business, distributor
What’s holding you back?
Question: What are the top three major obstacles to advancing B2B e-commerce in your company? (Check as many as three).
Source: B2B magazine: B2B e-commerce Barometer, August 2011
lack of resources
budget constraints
requires 1:1 selling
not management priority
1
2
3
4
navigate
your
channels
13
Me
(mildly concerned…)
Enabling the Channel Ecosystem
Direct to Buyer
Reseller Enablement
Long Tail Channel Enablement
go direct first…
> focus on user experience
> subscriptions and renewals
> find your niches
Transition to Customer Centric Capabilities Framework
Post-Sales Sales Customer
Acquisition Prospect
• Contextual marketing
• SEO
• SEM
• Loyalty management
• Partner marketing
• Product reviews
• Search and display
• Social media
• Robust email
• Product configurators
• Catalogue management
• Pricing (volume, tiered)
• Product recommendations
• Product reviews
• Partner portals
• Partner sales management
• Customer support
integrations
• License renewals
• Maintenance renewals
• Complex subscription
types and models
B2C vs B2B: Core Capabilities
B2B payments: line of credit and PO
Enhanced estimates
Reseller pricing and discounts
CRM integration (salesforce.com)
Buyer management and hierarchy
Advanced eligibility management
Advanced pricing and promotions Partner, reseller, distributor and key
account stores
mitigate channel conflict
18
“Whereas, before we had a tough relationship
with sales, we work cooperatively with them now.”
19
- Director of E-Business, multi-channel company
Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012
20 Photo courtesy of Bob Estes
balancing
act
Tips to Manage the Shift
21
Determine your revenue and reseller
landscape
Define where the “power” resides
Analyze, analyze, analyze
Perception is reality
Build your business case so its parts can
act independently
Find an internal champion
Know your current technology
ecosystem and it’s future
Find your “channel champion”
Be aware, be sensitive
Things to remember…
• B2B e-commerce market is the next frontier
• B2B buyer behavior is evolving
• When managing channel shift stay focused
• Mitigating channel conflict requires balance, analysis and
engagement
22
Q&A
Mike Chuma
Director, Global Product Management
Digital River, Inc.
mobile. +1.952.769.7101
twitter. @mchuma
LinkedIn. /in/mikechuma
who’s good….
24
focus on user experience
Circa 2002 Circa 2012
Source: “Conquering the B2B E-Commerce Challenge”, Digital River Whitepaper Series, February 2012
focus on user experience
focus on user experience
enable your resellers
focus on a niche
