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STRATEGIES FOR GROWTH MARKETERS IN B2B CUSTOMER ENGAGEMENT TECHNOLOGIES, CHOICES AND PRODUCTIVITY IN THE CURRENT AND EMERGING ENGAGEMENT ECONOMY. report march 2018
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  • STRATEGIES FOR GROWTH MARKETERS IN B2B CUSTOMER ENGAGEMENT

    TECHNOLOGIES, CHOICES AND PRODUCTIVITY IN THE

    CURRENT AND EMERGING ENGAGEMENT ECONOMY.

    report

    march 2018

  • FOREWARD

    The Engagement Economy - the reality that

    we consume and market in today is a fast

    unravelling era where everyone and everything

    is connected.

    Consumer expectations have shifted to expect

    more from the brands and vendors they buy

    from - they seek a more personal relationship

    that offers them value wherever they are and

    whenever they are ready to engage.

    In response, marketers have had to rapidly

    transform their growth strategies, methods, and

    tactics in order to stay relevant and be

    productive.

    This white paper explores the evolving

    changes and strategic options for Growth

    Marketers in B2B markets.

    For our purposes, B2B will include firms that

    operate primarily in business to consumer (B2C)

    markets but also interact with wholesalers and

    distributors.

    INDEX

    1 UNDERSTANDING B2B

    2A CLIMATE OF GROWTH

    3CONNECTING MARKET INSIGHTS AND ANTICIPATED GROWTH

    4KEY GROWTH TAKEAWAYS

    5BUILDING A B2B DIGITAL CUSTOMER ENGAGEMENT STRATEGY FOR GROWTH

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  • 02

    03

    05

    06

    01AWARENESS

    CONSIDERATION

    IMPLEMENTATION

    04SUPPORT

    LOYALTY

    ADVOCACY

    Awareness and Consideration

    Implementation and Support

    Loyalty and Advocacy

    INITIAL

    DURING

    AFTER

    B2B refers to business markets in which firms,

    institutions or governments that acquire goods

    and services either for their own use, to

    incorporate into the products or services that

    they produce or for resale along with other

    products and services to other firms, institutions

    or governments.

    Source: Business Market Management

    Understanding, Delivering and Creating Value by James

    Anderson, James Narus and Das Narayandas, 2009.

    UNDERSTANDINGB2B

    THE B2B CUSTOMER ENGAGEMENT IN A FIRM

    CAN BE CATOGRISED INTO THREE TYPES

    CUSTOMER ENGAGEMENT

    1

    4

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    Note: These roles may not be mutually exclusive.

    For instance, in some organisations, a decision

    maker may also be a user. Similarly a user may

    also be an influencer.

    B2B markets have their own unique characteristics:

    CHARACTERISTICS OFB2B MARKETS

    Complexity in terms of the deals, contracts and technologies involved.

    Large spends and often risky transactions.

    A small number of customers can account for a large percentage of a company's revenue.

    Suppliers and customers work closely together for an extended period of time.

    The B2B buying process comprises multiple participants:

    Decision-Makers Those who make the choice of supplier / service provider.

    Influencers Those who do not make the actual decision, but provide significant

    input that influences the decision.

    End Users Those that actually use the product or service provided.

    Upbeat investor sentiment, exciting new

    technologies and vibrant user habits are

    driving positive growth energies in the

    B2B space.

    Advancements in technology - particularly in

    the digital sphere - is enabling B2B players to

    stabilize their investments and plan ahead. The

    rise of the smart phone (and the flourish of apps

    that is accompanying it) has translated into

    perceptible revenue boost for small and

    medium scale enterprises (M-SME), as well as

    startups, in the B2B arena. In a data driven

    universe, programmatic advertising a trend

    that has been gathering steam in recent times

    is slated to provide the extra confidence brands

    need to make more investments in 2018. Social

    media is another arena where brands are

    expecting to shine, and are upping their

    investment ante. Ahead-of-the-curve

    technologies and approaches like Artificial

    Learning, Mixed Reality (a blend of Virtual

    reality and Augment reality) and Machine

    Learning are unlocking new possibilities across

    the customer journey for marketers. The overall

    buoyancy across the domain is, unquestionably,

    sweet music for a B2B marketer's ear.

    A CLIMATE OF GROWTH

    2

  • THE SMEs AND THE

    INVESTMENTS IN B2B ARE

    WAVING TRENDS IN THE

    CHINESE MARKET WHICH

    DRIVES THEM TO BE THE

    KING OF B2B.

    Developing countries in Asia such as India,

    China, and Indonesia are the key spots for

    B2B market growth. Here, B2B and B2C e-

    commerce markets are recording significant

    growth trends.

    MARKET REGIONSKEY B2B

    China's B2B e-commerce market, in particular,

    has shown remarkable growth escalation (fueled

    in no small measure by its SME segment) and

    in 2020, it is slated to surpass that of the US to

    emerge as a market leader globally.

    In January 2018, US will pose a significant

    growth in investment in the B2B startups and

    California will be the gold crust.

    In January 2018, Microsoft and Accenture have

    initiated their plans to invest in Indian B2B startups.

    They have partnered to focus on enterprise

    startups and to help them to get access to their

    latest technologies. It will help to enhance the

    adoption of cloud services in IoT, big data,

    advanced analytics and cognitive services.

    IN 2018B2B INVESTMENT

    For example, Bonfire Ventures closes a $60

    million to invest in B2B startups. Such ignition

    in the investments will force B2B players to

    gear themselves to a greater level.

    PERCENTAGE OF B2B SALES

    IN 2020E ($ BILLION)

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    Source:

    https://techcrunch.com/2018/01/29/bonfire-ventures-

    closes-60-million-to-invest-in-socal-b2b-startups/

    Source:

    https://economictimes.indiatimes.com/small-

    biz/startups/microsoft-accenture-partner-to-help-indian-b2b-

    startups/articleshow/62484610.cms

  • GLOBAL B2B E-COMMERCE SALES PERCENTAGE OF B2B E-COMMERCE SALES IN 2020E ($ BILLION) IN 2020E ($ BILLION)

    US29%

    China31%

    Other Countries40%

    The B2B E-commerce sales in the global market are growing at a super-fast growth rate

    of nearly 20% and it is visible that the market players

    will play around with the new opportunities.

    USCHINA 2000

    2000

    40004000

    60006000

    80008000

    GLOBAL

    2020E

    19001900

    21002100

    67006700

    PERCENTAGE OF B2B E-COMMERCE SALES IN 2020E ($ BILLION)

    PERCENTAGE OF B2B SALES IN 2020E ($ BILLION)

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  • New technologies and competitors are

    transforming the product, experience and

    service terrain. It is estimated that nearly

    3/4rthof B2B consumers expect and anticipate

    their brands to engage with them in real-time

    networks. Customer engagement therefore

    plays a critical role and strongly impacts the

    B2B business ecosystem. The good news is that

    the modern B2B consumer is aware and

    empowered making switching easier and

    paving the way for growth. Adopting

    consistently customer-centered strategies

    based on market insights will help B2B

    companies erase bugs and bottlenecks along

    the customer experience and acquisition

    process, making possible advanced business

    performance, and sustained business growth.

    Buyers and customers are making decisions

    using the latest digital technologies and tools.

    The dynamic growth of digital capabilities in our

    day to day life is equipping both B2B customers

    and B2B brands to aim for and set new

    expectations. The better a brand leverages new

    technology, therefore, the nimbler will it grow.

    Expectations have no limit, but priorities do.

    Customer expectations are evolving and this

    makes understanding and prioritizing their needs

    is critical for business growth. Market priorities

    will drive the players to rank their customers and

    vice versa. Expertise in digitization and the

    willingness to explore, experiment and adapt will

    get B2B players in the Wish-List of their

    customers. With a never-before pitara of options

    and avenues, there's never been a better time to

    be a B2B marketer or brand.

    It is evident that the growth of digitization is driving

    growth in the B2B sphere, causing leaders to take

    notice. According to news resources, Anil Ambani is

    planning for a new RCom which will be a B2B company

    with half of its revenue coming from abroad.

    AND ANTICIPATED GROWTH CONNECTING MARKET INSIGHTS

    INDIA'S TIME IS HERE

    BEFORE ORCHESTRATING A NEW STRATEGY FOR CUSTOMER ENGAGEMENT A GROWTH MARKETER HAS TO UNDERSTAND THE FOLLOWING FACTORS DRIVING CHANGES IN B2B CUSTOMER EXPECTATIONS

    #1 DIGITIZATION IS DRIVING GROWTH FOR B2B CUSTOMERS

    Changing B2B customer expectations are

    dramatically impacted their buying process. In

    exchange for brand loyalty, they desire a more

    convenient, versatile and engaging digital

    buying experience at every step of the

    purchase funnel. The momentum is shifting with

    technology, and B2B players are expected to

    get acclimatized to the modern era of data

    science driven digitalization.

    #2 B2B CUSTOMER EXPECTATIONS ARE CHANGING

    IMPORTANT FACTORS FOR B2B GROWTH

    India is expected to become the world's

    fastest growing E-commerce market, driven

    by robust investment in the sector and rapid

    increase in the number of internet users.

    Various agencies have high expectations

    about the growth of Indian e-commerce

    markets. Online retail is expected to be at par

    with the physical stores in the next five years

    and has grown 23 per cent to $17.8 billion in

    2017. India's B2B e-commerce market is

    expected to reach US$ 700 billion by 2020.

    Indian e-commerce sales are expected to

    reach US$ 120 billion by 2020 from US$ 30

    billion in FY2016. Further, India's e-commerce

    market is expected to reach US$ 220 billion in

    terms of gross merchandise value (GMV) and

    530 million shoppers by 2025, powered by

    faster speeds on reliable telecom networks,

    quicker adoption of online services and better

    variety as well as convenience in service.

    The Engagement Quality Factors

    that are expected by the B2B customers

    includes the following

    Creativity and consulting skills

    Professionalism

    Understanding of customers business & industry

    Subject matter and solution expertise

    Social and communication skills

    3

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    Source:

    https://www.maritzcx.com/blog/b2c-influence-b2b-

    customer-expectations/

    Source:

    http://www.moneycontrol.com/news/telecom/new-

    rcom-would-be-a-b2b-company-with-half-its-revenues-

    coming-from-overseas-anil-ambani-2469141.html

  • Customer experience is today the cornerstone

    of a B2B firm's strategy. More two-way

    engagement is happening across channels like

    email, chat, podcasts and online communities

    than ever before. The emergence of formalized

    programs is also catalyzing growth prospects in

    a company. Nearly 1/3rdof B2B firms are

    actively adopting customer centricity to re-

    mould their organization's internal and external

    strategy. Seamless flow of services and rust

    free customer relationship are emerging as key

    factors guiding growth trends in a targeted

    market place. Personalized digital experiences

    are breaking down traditional walls between

    B2B brands and their customers, breeding new

    grounds of trust.

    Perfecting the B2B customer experience is

    an ongoing transformation and an evolving

    challenge for companies, and those with

    an open-ness for hard and consistent

    learnings will emerge as preferred choices

    for users, and will be able to establish both

    domain leadership and growth.

    Today B2B consumers are using more channels to

    engage with their vendors. Now B2B customers are

    more likely to use email, chat, podcasts, and online

    communities than ever before.

    #3 CX-CUSTOMER EXPERIENCES IS THE NEW PRIME PERFORMANCE AREA #4 BIGGEST CHALLENGES FOR CUSTOMER ENGAGEMENT

    4% 5% 5%7%

    9% 10%11%

    19%

    25%

    28%

    35%

    60%

    79%

    AugmentedReality

    Other VirtualReality

    Games Webinars/Podcasts

    Blogs Videos Forums Mobile Apps

    Chat SocialMedia

    Website E-mail

    80

    70

    60

    50

    40

    30

    20

    10

    0

    DIGITAL CHANNELUSED TO INITIATE ENGAGEMENT WITH BRANDS

    In addition to the above, other challenges specific to ROI are:

    60

    40

    20

    0

    EngagementTools

    OrganisationalKnowledge

    Ability to Measure ROI

    Budget Allocation

    ExecutiveSupport

    BIGGEST CHALLENGES TO CUSTOMER ENGAGEMENT

    Marketers around the world agree that the number one challenge they face is related to the

    choice of the right engagement tools along with demonstrating Return On Investment.

    Given the market shift towards digital forms of engagement, refining how marketers track and

    measure consumer behaviour will help companies become more effective at demonstrating

    the impact of their efforts.

    Lack of team alignment.

    Departments operate in silos, which leads to an inconsistent user experience such as not

    knowing what customers have done online to follow up effectively offline.

    Marketing spends on sales force versus digital.

    Marketing dollars are spent on training the sales force and empowering them with tools to interact

    with customers, as opposed to online engagement.

    Passive to non-existent lead management.

    Leads are captured on B2B sites, but responses are automated instead of customized, and there

    is little to no further follow-up.

    Source:

    https://www.b2binternational.com/publications/six-

    steps-to-b2b-customer-experience-excellence/

    Source: https://www.marketingprofs.com/charts/2017/32661/the-engagement-gap-how-b2b-and-b2c-firms-are-missing-the-markb

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  • 4DEFINING METRICS

    In a recent Bain and Co. survey of 290

    executives in B2B industries across 11 countries,

    two-thirds of respondents said customers are

    less loyal than they used to be. The challenge

    of building loyal B2B customers is compounded

    by the complicated channel structures of B2B

    industries, with their concentrated buyer

    communities, large accounts and with many

    people influencing the relationship.

    Despite the challenges, some B2B companies

    have managed to earn strong loyalty. In our

    experience, what B2B loyalty leaders have in

    common is their ability to deliver on customer

    centricity and ensure continuous improvements:

    Many of them use the Net Promoter System

    (NPS), a closed-loop feedback mechanism

    designed to help companies increase

    promoters and reduce the number of detractors

    among customers. Short, frequent NPS surveys

    after key interactions, such as a new contract

    negotiation, can help identify aspects that

    delight or annoy customers. When companies

    market to distributors or other intermediaries,

    NPS provides valuable feedback from retailers

    and end users, as well as from distributors and

    direct customers.

    BUILDING A B2B DIGITAL CUSTOMER ENGAGEMENT STRATEGY FOR GROWTH

    Almost all marketers have a strategy in place

    for engaging customers.As per surveys, the top

    global metrics marketers use to track

    engagement are effectiveness, customer

    experience and efficiency. Marketers globally

    agree on their key metrics and the order of

    importance. Marketers in the US prioritize

    retention and loyalty metrics, while internal

    alignment for customer initiatives is focused

    around aligning customer service and support

    while for the sales teams, it is critical to notice

    that the lowest alignment score is for executive

    leadership. Aligning these stakeholders around

    the customer is not only a critical function for

    the business, but a strategic function for

    marketers as they cement their role as

    visionary, impactful business leaders and

    advisors in their organization and industry.

    Personalized communication is a key aspect of

    innovative engagements for B2B customers.

    Monitoring social media and personalizing

    content are the engagement methods most

    marketers follow today and are also the

    approaches marketers believe will have the

    greatest impact on customer engagement.

    Marketers are focussing on automation and

    integration as these capabilities enable

    marketers and their strategies to scale.

    Marketers are also expected to explore and

    adopt more advanced technologies in the

    future. Marketers are looking to their

    engagement solutions to automate a variety of

    marketing activities to more effectively engage

    with consumers. The following graph shows the

    future technologies which will lead in

    engagement for marketers.

    STRATEGIC OPTIONS & METHODS

    FOR DEPLOYING AN EFFECTIVE, EFFICIENT

    & CX DRIVEN CUSTOMER ENGAGEMENTS

    If you gather the data, focus on making things

    easy & relevant, deliver messages that

    resonate with their world (not just your own),

    you get people over the bridge to what we call

    a Commerce Moment.

    What's Next?

    should be the question any B2B

    company should ask to start building

    their new CE & CX strategy.

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    Source:http://resources.elixiter.com/i/868811-the-state-of-engagement-2017-marketo/27?m4=

    Source:http://resources.elixiter.com/i/868811-the-state-of-engagement-2017-marketo/77?m4=

  • JourneyMapping

    MachineLearning

    BehaviourTracking

    AdaptiveCampaigns

    CombiningAnalysis

    PredictiveAnalysis

    PresenceTechnology

    IntegratingEngagement

    AutomatedMeasurement

    AutomatedDelivery

    PersonalizingMessaging

    MonitoringSocial Media

    50

    40

    30

    20

    10

    0

    ENGAGEMENTMETHODSFOR MARKETERS

    DEFINING METRICS 1. Reboot Approach:

    The data shows that while marketers see the

    value and importance of consumer and

    customer engagement, they simply aren't

    hitting the mark.

    2. Co-ordinate Data with Insights:

    Consumers' use of different channels makes

    it imperative that marketers listen and

    respond to their activities in real time.

    However, to effectively engage consumers,

    marketers must address the number one

    barrier to effective engagement - tools.

    Marketers today operate marketing

    technology stacks made up of disparate point

    solutions that offer uncoordinated metrics

    and data. To succeed, marketers need to shift

    their mind-set and identify a customized suite

    of tools, solutions, and platforms that work

    specifically for their challenges and

    mandates. This will enable them to

    successfully co-ordinate disparate touch

    points and engagements, and translate them

    into actionable insights.

    3. Structure, Buy-In and Align

    to Succeed at Scale:

    As marketing leads the charge in

    understanding what true engagement means

    for an organization's consumers, it's more

    critical than ever that organizational structure,

    alignment, and buy-in's are seamlessly

    synergized for quicker decision making and

    more effective implementation.

    4. Stay Tuned for the Next:

    While Growth marketers as a tribe tend to

    focus on the more popular channels that

    consumers are using to engage, it's critical

    that they keep one eye on innovative

    experiences and technologies emerging on

    the horizon to both gain first mover

    advantage.

    Marketers also need their solution suite

    to provide analytics and reporting to

    demonstrate ROI and continue to refine

    their effectiveness. The biggest barriers

    to improving customer engagement are

    related to tools, so it is not surprising that

    marketer satisfaction with their

    engagement solutions is low across

    many aspects.

    While you may already have identified

    takeaways specifically relevant and

    critical to your organization, here are four

    key insights we see as important trends

    in the market and as opportunities for all

    marketers looking to succeed in the

    Engagement Economy:

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    SOURAV CHATTERJEE Technology Strategyand

    TONY ANTON JOSEPH

    PRAKHAR SRIVASTAVA

    JAYJIT DASGUPTA

    MOHIT AHUJA

    Research and Consulting Diagnostics and Analysis Content and Editing Design and Creative

    I N A S S O C I A T I O N W I T H

    thestrategycouncil .com

    B2B companies committed to providing

    engaging customer experiences throughout the

    lifecycle will stand a much better chance at

    generating game-changing ROI than those who

    adopt a half-hearted approach.

    A structured strategy with predetermined KPIs

    and the right digital tools can make all the

    difference in becoming the next leader in the

    B2B market.

    With the right data and insights, marketers can

    accurately and immersively understand

    consumer signals and translate those into

    strategies that deliver relevant, personalized

    activities and consistent, measurable impact.

    Growth marketers reveal that their Number

    One challenge to customer engagement was

    engagement tools. Marketers need to move

    beyond single purpose tools to multi-purpose

    engagement platforms that facilitate the

    seamless flow of data and can coordinate

    disparate elements in a future-facing Growth

    Marketing Stack.

    TAKEAWAYSKEY GROWTH

    5

    The B2B market is increasing in market value

    worldwide. The number of trends is

    multiplying. A rapidly changing terrain along

    with developments in data collection and

    market tools are generating never-before

    momentum and dynamic new opportunities

    for B2B marketers, who are re-aligning their

    strategies accordingly. For B2B brands and

    firms, building a seamless and customized

    digital customer engagement strategy has

    emerged key to hitting business goals and

    dominating global markets.

    ABSTRACT

    B2B Business to business

    B2C Business to customer

    C2C Customer to customer

    CE Customer engagement

    CX Customer experience

    GMV Gross merchandise value

    IoT Internet of Things

    KPI Key performance indicator

    NPS Net promoter system

    ROI Return on investment

    SME Small and medium scale enterprises

    ABBREVIATIONS USED

    REPORTPREPARED BY

  • Copyright 2018 Turkblue Management Pvt. Ltd. All rights reserved.

    As disruptive growth evangelists,

    TBM GROWTH brings leaders, innovators

    and entrepreneurs under a single roof to

    fire debate, stoke research and inspire

    initiatives on all things growth.

    As result-first business partners,

    we offer specialized expertise at every

    phase of the business cycle to help

    organizations, entrepreneurs and leaders

    leverage opportunity, negotiate change

    and experience multi-dimensional growth.

    Turkblue Management Pvt. Ltd.

    [email protected] tbmgrowth.com

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