PREPARE FOR THE B2B E-COMMERCE REVOLUTION:
FEATURING FINDINGS FROM FORRESTER RESEARCH’S “STATE OF B2B E-COMMERCE” GLOBAL STUDY & LESSONS LEARNED FROM BDI
December 6, 2013
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Event Sponsors: Produced by:
Download handouts (PDF) :
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AGENDA
• Introduction – 5 minutes • Andy Hoar – 20 minutes • Steve Grzymkowski, BDI – 10 minutes • Panel dialog (Tom Gale moderator) - 10 minutes • Audience Q&A via Chat – 15 minutes
Download handouts (PDF) :
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Speakers
Tom Gale - Moderating Modern Distribution Management
Andy Hoar
Forrester’s Research
Steve Grzymkowski
BDI
Online and Mobile Are Transforming
B2B Commerce
Andy Hoar Senior Analyst, Forrester Research
December 6, 2013
Seminal Research on B2B eCommerce
© 2013 Forrester Research, Inc. Reproduction Prohibited
Key Findings
© 2013 Forrester Research, Inc. Reproduction Prohibited
Key Findings
›Self-service tools are fundamentally changing the way B2B customers interact with companies.
© 2013 Forrester Research, Inc. Reproduction Prohibited
Key Findings
›Self-service tools are fundamentally changing the way B2B customers interact with companies.
›Selling online and on mobile represent a significant new opportunity for B2B companies.
© 2013 Forrester Research, Inc. Reproduction Prohibited
Key Findings
›Self-service tools are fundamentally changing the way B2B customers interact with companies.
›Selling online and on mobile represent a significant new opportunity for B2B companies.
›B2B companies that wait too long to implement eCommerce assume a big risk.
New B2B Customer Behavior
62% of B2Bs: eCommerce has fundamentally changed the way customers interact with us
Base: 353 online B2B companies around the world
B2B Customers Want Self-Service Tools
Base: 353 online B2B companies around the world
B2B Customers Want Self-Service Tools
Base: 353 online B2B companies around the world
Research Online
62%
Global
B2B Customers Want Self-Service Tools
Base: 353 online B2B companies around the world
Research Online
62%
Global
Support Online
58%
Global
B2B Customers Want Self-Service Tools
Base: 353 online B2B companies around the world
Research Online Buy On Phone
51% 62%
Global Global
Support Online
58%
Global
62%
52%
54%
52%
Research
Buy
Research
Buy
Majority Of B2B Customers Use Mobile Devices To Research And Buy Products Online
Base: 353 online B2B companies around the world
2011 2016
Mobile 4% 26%
Desktop 96% 74%
0%
20%
40%
60%
80%
100%
120%
% o
f T
ota
l
Business Internet Traffic
Mobile Will Represent 26% by 2016
2011
Source: Cisco VNI May 2012
2016
Significant New Opportunity
B2B Over Twice the Size of B2C
Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B eCommerce for 2013
$252bn
$559bn
Twice As Many Companies Believe B2B Online Will Grow Faster Than B2B Offline
“What do you expect your fastest growing sales channel to be in the next year?”
16%
6% Next 12 months
Direct to business partners online Direct to business partners offline
Base: 353 online B2B companies around the world
Online-Only Customers Are More Active Than Offline-Only Customers
Base: 353 online B2B companies around the world
Online-Only Customers Are More Active Than Offline-Only Customers
Base: 353 online B2B companies around the world
+1
Add items to order
59%
Online-Only Customers Are More Active Than Offline-Only Customers
Base: 353 online B2B companies around the world
+1
Add items to order Order at a
higher frequency
59% 56%
Online-Only Customers Have Higher AOVs Than Offline-Only Customers
Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,
156 B2B companies that have been selling online for five years or more)
Online-Only Customers Have Higher AOVs Than Offline-Only Customers
Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,
156 B2B companies that have been selling online for five years or more)
37%
Global
Online-Only Customers Have Higher AOVs Than Offline-Only Customers
Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online,
156 B2B companies that have been selling online for five years or more)
37%
Global
52%
More than ¼ sales online
Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline
Base: 353 online B2B companies around the world
Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline
Base: 353 online B2B companies around the world
54%
Global
Can Reach Customers More Effectively With Cross-Sell And Up-sell Offers Online vs. Offline
Base: 353 online B2B companies around the world
47%
EMEA
54%
Global
B2B Companies Can More Effectively Build Loyalty Online Than Offline
Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.
B2B Companies Can More Effectively Build Loyalty Online Than Offline
44%
Global
Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.
B2B Companies Can More Effectively Build Loyalty Online Than Offline
65%
More than ¼ sales online
44%
Global
Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
› Revenue upside
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
› Revenue upside
› Cost savings (including profitable only online)
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
› Revenue upside
› Cost savings (including profitable only online)
› Loyalty building
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
› Revenue upside
› Cost savings (including profitable only online)
› Loyalty building
› International growth
© 2013 Forrester Research, Inc. Reproduction Prohibited
Opportunities
› Revenue upside
› Cost savings (including profitable only online)
› Loyalty building
› International growth
› Category specialization (e.g. Akron Hardware)
Traditional B2B Ecosystem (e.g. Dri-Eaz Industrial Dehumidifier)
Offline Dist
Brand Manu
Buyers
Production
Distribution
Consumption
New B2B Ecosystem
Production
Distribution
Consumption
New B2B Ecosystem
Online and Offline Dist
Distributors (private label)
Brand Manu
Buyers
Production
Distribution
Consumption
New B2B Ecosystem
Online and Offline Dist
Distributors (private label)
Brand Manu
Buyers
Production
Distribution
Consumption
B2C Offline
B2C Online
B2B Online
Pure Play Dist
New B2B Ecosystem
Online and Offline Dist
Distributors (private label)
Brand Manu
Buyers
Production
Distribution
Consumption
B2C Offline
B2C Online
B2B Online
Pure Play Dist
New B2B Ecosystem
Online and Offline Dist
Distributors (private label)
Brand Manu
Buyers
Production
Distribution
Consumption
B2C Offline
B2C Online
B2B Online
Pure Play Dist
Next Steps -- POST
Next Steps -- POST
• People: Identify key customer segments and envision 2016
Next Steps -- POST
• People: Identify key customer segments and envision 2016
• Objectives: Set clear and aligned goals
Next Steps -- POST
• People: Identify key customer segments and envision 2016
• Objectives: Set clear and aligned goals
• Strategies: Employ “ACTIVE” strategies
Next Steps -- POST
• People: Identify key customer segments and envision 2016
• Objectives: Set clear and aligned goals
• Strategies: Employ “ACTIVE” strategies
• Technologies: Enable successful outcomes
© 2013 Forrester Research, Inc. Reproduction Prohibited 52
BDI
• Industrial Distributor with 192 global branch operations in the U.S., Canada,
Mexico, Europe and Asia, BDI services manufacturing companies throughout the
world. Commitments to customer service, technical expertise and quality
products have been our trademark for success for more than 75 years
› Industries
• Automotive, Ethanol, Consumer Food
Processing, Food Machinery, Grain
Processing, Meat & Poultry Processing,
Fluid Power, Medical, OEM Specialty
Services, Oil and Gas, Package Handling,
Paper Processing, Power Generation,
Waste Water
› Products
• Mechanical & Electrical Power
Transmission, Bearings, Linear Motion
Control, Material Handling, Fluid Power,
Industrial Supplies, Bulk Chemicals,
Retaining/Locking Products, Industrial
Hoses & Fittings, Industrial Tools,
Adhesives, Sealants, Lubricants, Safety
and Sealing Devices
© 2013 Forrester Research, Inc. Reproduction Prohibited 53
BDI
• Have been accepting e-Commerce orders for over 10 years
• Rolling out SAP, starting in Eastern Europe
• Replatforming e-Commerce on top of SAP with Hybris and Endeca
• Multi-lingual
• Multi-currency
• Developed by Rosetta
• Recently started first pilot in Hungary
• Poland/Slovakia/Canada/US to follow
PREPARE FOR THE B2B E-COMMERCE REVOLUTION:
FEATURING FINDINGS FROM FORRESTER RESEARCH’S “STATE OF B2B E-COMMERCE” GLOBAL STUDY & LESSONS LEARNED FROM BDI
Download handouts (PDF) :
www.mdm.com/slides
Event Sponsors: Produced by:
Questions? Download handouts (PDF) : www.mdm.com/slides or contact [email protected]