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COMMERCE VIEWPOINT: ONLINE TRADING IN B2B

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For many B2B organisations, trading online is a new and challenging arena. Wherever they find

themselves on the digital maturity spectrum they can all take some valuable lessons from their more

digitally seasoned B2C cousins.

Irrespective of channel, delivering an excellent customer experience is no longer a lofty ambition for

B2B brands – it’s a commercial requirement.

As best practice cascades from B2C to B2B, B2Bs could be forgiven for thinking that many of the

fundamental differences with B2C are being diluted. In most respects that’s not the case. Many key

distinctions prevail.

This Salmon guide serves as a valuable checkpoint on the characteristics specific to B2B - in

particular the B2B customer. It also presents the main recommendations for B2B decision-makers in a

digital-first world, and highlights some of the most important risks.

INTRODUCTION

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THE CUSTOMER IS THE KEY DIFFERENTIATOR

B2B commerce is challenging. Yet many software vendors and technology delivery partners struggle

to understand why. Salmon has delivered numerous global B2B platforms at scale, and highlights the

distinct nature of the B2B customer as arguably the over-riding factor.

Within B2B, customers:

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• Can be individuals, companies, or both.

• Can negotiate bespoke price agreements.

This is a potentially complex area, since

customers can be very diverse, and

agreements can vary according to volume,

date, order history and geographic location.

• Are likely to want to pay using credit terms.

B2Bs need a way to verify new customers

before orders are placed; B2Cs rarely need

to do this.

Supporting your B2B customer is fundamentally different to B2C.

• May want bespoke catalogues, or access to

an exclusive product range.

• May have to record their order in an ERP

system. This means online ordering needs

to be attractive enough to override any

perceived inconvenience. Alternatively, B2Bs

could ensure their website integrates with

the ERP or the website integrates with the

ERP.

• May want to control the spend of buyers

within their procurement organisation. And

this, in turn, drives the need for electronic

procurement.

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Salmon has more than 25 years’ experience in providing robust technical design. Its solutions

architecturally scale and address the needs of both businesses and end customers.

Within B2B, technical design has various complexities. In our experience working across B2B and

various B2C retail sectors, B2B has several distinct differences that merit deeper investigation.

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IMPORTANT FACTORS IN B2B TECHNICAL DESIGN

Watch our video to see how digital technologies are enhancing B2B.

These include:

Contract Pricing – Organisations need to decide

whether to model pricing in the front-end or

back-end. Typically it’s the latter, which means

exposing price to the customer, without being

overly dependent on the back-end for availability.

Organisations – B2Bs need to look at account

management, including the people who manage

accounts, and the ways in which they are

structured and governed.

Global factors – Jointly, we need to assess a

range of variables: single or multi-instance, local

management of content and catalogue, latency,

data privacy, data migration and rollout.

Integration – Different back-end systems

(including ERP) must be handled appropriately

for different regions. Generally, this is achieved

using a middleware tier, often leveraging an

enterprise service bus layer (ESB), and possibly

an operational data store (ODS).

Single code base – B2Bs must build functionality

to minimise differences across regions. That

means creating configurations that are flexible

giving the business maximum agility, regardless

of whether channels are operated centrally or

locally.

Functional features – Specific B2B features

need to be handled, such as quote requests,

parts lists, electronic procurement, entitlement

(including payment, shipping and catalogue),

workflow and approvals, and spend control

systems.

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DRIVING CHANNEL SHIFT

CX in B2B matters. Indeed, we’re starting to see

research (such as a 2016 SiriusDecisions study)

that puts customer experience above price and

the actual offering in B2B buying decisions.

With customer expectations influenced by

Amazon-type CX, moving customers from offline

to online may become a commercial imperative.

Yet enabling this shift can be challenging,

especially if the offline process works well.

To drive channel shift behaviour and migrate

customers towards transacting online, you

could deploy a set of sophisticated digital tools.

These tools can help differentiate you from the

competition.

You’ll also need richer capabilities to be able to

market and create sales lead opportunities, and

encourage more participation in any kind of B2B

community.

First we need to recognise the usage needs of

the customer.

Overleaf on the left are the most common use

cases that sellers should look to capitalise on.

They can do this in two ways: by leveraging

existing B2B platform features, or creating

customised capabilities and functionality. On the

right are features that offer possible solutions.

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Received signals

Manage demand

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Tyre sensors could relay data on tyre condition to the manufacturer to help it anticipate demand for new tyres and

allocate stock accordingly. [Watch Video]

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A customer wants to buy direct from the

website having used browser tools to find

suitable items

A customer wants to buy direct from the

website having browsed the online sales

catalogue

A customer wants to buy from the website

using spend control capabilities

A customer wants to buy from the website

using a pre-determined list of items that they

have prepared

A customer wants to view and manage their

organisation, account and invoicing through

self-service tools on the website

A customer wants to buy from the website via a

means of electronic procurement

Implement browser tools like a part finder,

integrated browser search or a browser toolbar

Implement dynamic sales categories and enrich

the onsite search capabilities for merchandising

Implement a budget and workflow approval

system with buyer organisation controls

Implement a quick order form feature or the

ability for customers to upload a list of products

Implement self-service capabilities for handling

organisation management, quote management,

requisition lists, saved orders and invoicing

Implement integration with the customer’s

internal procurement system such as a round-

trip catalogue. This would allow buyers to search

inventory for available items, and build shopping

carts that connect to their own internal systems

for approval and order creation. Alternatively,

send customers custom product catalogues

electronically via FTP or expose a set of web

services using APIs to give access to your

offering.

CUSTOMER USE CASES HOW B2B ORGANISATIONS COULD RESPOND

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CREATING HOLISTIC CHANGE

While customer experience is a vital component in successful channel shift, there are internal

challenges that need to be overcome too.

If you’re aiming for your customers to go digital by default, you need your staff to do the same.

Inevitably, some people will embrace a move to online more readily than others. There needs to be

an acknowledgement and management of risks and resistance, and a focus both strategically and at

an individual level.

Managing Morale During Disruption

A shift towards online can leave some sales teams feeling like their efforts are no longer as critical

as they once were. Indeed, in some cases, people feel digital transformation pushes them firmly into

second place. Channel shift is just one component of transformation, but it can bring those concerns

to the fore for the first time.

This cultural resistance to change is not unique to B2B, but is part of a wider operational perception

that the status quo is the safer option. This can hinder or derail even the most well-planned channel

shift initiative.

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Salmon believes that organisational change is vital too, and here’s why:

• During a move to online, there may be a perceived negative impact of digital on legacy

processes. Recognising this is the first step to addressing the internal, ingrained cultural barriers

to success. In fact, digital provides an opportunity to address these previously prohibitive legacy

issues, and to enable change.

• Re-purposing roles is crucial. Channel shift must be seen as a benefit to individuals, not just the

wider business, and individuals need a renewed role that validates those concerns.

• A recognition of skills diversity is key. Many people, particularly in sales, will feel threatened

by the advance of digital over a role they previously owned themselves. Users ‘on the ground’

may feel they lack the necessary skills, or may feel that digital is making their contribution less

important. If training is unaddressed, this can create a cultural shockwave.

Salmon believes that channel shift can only be achieved with a dual focus on organisational change.

Otherwise, fragmented transformation can present a considerable challenge.

HOW CAN SALMON HELP?

Salmon has delivered high-impact B2B ecommerce strategies and solutions including global

platforms for companies such as Avnet, Premier Farnell, Celesio, DFS, Domestic & General and Audi

UK. By applying winning experiences from our consumer clients, Salmon empowers B2B customers

to create standout experiences. Contact Salmon to discuss how we can do this for you.

Click for more Salmon B2B resources.

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©2016 Salmon Ltd. All rights reserved. All company and product names, brands and symbols mentioned herein are brand names and/or registered trademarks of their respective owners.

For more information,email: info@salmon.comor visit: www.salmon.com

ABOUT SALMON

Salmon is a global digital commerce consultancy – the largest in WPP’s network of companies. We define and deliver market-changing solutions and customer journeys for the world’s leading brands.

Established in 1989, with operations in London, New York, Melbourne and Beijing, Salmon clients include Argos, Audi UK, DFS, Halfords, Lloyds Pharmacy, Premier Farnell, Sainsbury’s and Selfridges.