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What B2B Organizations Are Doing to Make The Grade
PAUL DEMERY Managing Editor, B2B E-Commerce Internet Retailer MODERATOR
ANDY HOAR Principal Analyst Forrester Research, Inc.
JUSTIN KING B2B eCommerce Evangelist and Strategist Oracle
The B2B Opportunity $1,200.00
(in billions of U.S. dollars)
$1,000.00 $800.00 $600.00 $780 Billion to $1 .13 Trillion
$400.00
$200.00
$304.91 Billion
$0.00
Retail e-commerce, U.S., 2014
B2B e-commerce, U.S. (estimated)
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POLL #1 How long has your B2B organization sold online? A. 0-2 years B. 3-5 years C. 6-10 years D. More than 10 years
Benchmarking B2B eCommerce: 3rd Annual B2B Sell-Side Survey Andy Hoar Principal Analyst September 3, 2015
Highlights More buying online…more channel shift
Still falling well short of the “Amazon-like experience” Sales & Marketing: benchmarks continue trending positive eComm IT spending: increasing, but priorities are shifting B2B companies are making progress on mobile
Measurement is not keeping pace!
© 2014 Forrester Research, Inc. Reproduction Prohibited
9
Growing # of B2B Customers Buying Online “What percentage of your B2B customers do you expect to be buying from you online in 3 years? (Select one)”
0 to 10%
3%
11% to 24%
17%
25% to 49%
27%
50% to 74%
23%
75% or more Don't Know
27% 3%
Base: 118 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
10
B2B Matching Competitors But Not Amazon “How would you rate your company’s B2B website customer experience vs…” (Select one)
…
…Your B2B competitors Better
46%
Comparable Worse
36% 18%
Better Comparable Worse
20% 17% 63%
Base: 89 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
11
72% Of IT Systems Can’t Support Amazon-Like Customer Experience
28% of B2B eCommerce professionals say that their current B2B eCommerce technology systems can support an “Amazon-like” customer experience Base: 116 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
12
Sales & Marketing Benchmarks
Direction of Benchmarks “Please compare the performance of the following metrics in 2015 to 2014. (Select only one answer per question)” Increasing
Average Order Value (AOV) for online orders Conversion rate Average number of lines/online order
Staying the same 50% 42% 37%
Decreasing 31% 39% 42%
13% 8% 5%
Note: “Don’t know” and “N/A” responses not shown Base: 92 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
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Conversion
B2B
8.1%
B2C
2.6%
Base: 105 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey Source: “The State Of Retailing Online 2015: Key Metrics, Initiatives, And Mobile Benchmarks” report. © 2014 Forrester Research, Inc. Reproduction Prohibited
15
Interactive Marketing Tactics That Produce The Highest ROI vs.
B2B
60%
SEO
49%
Email to house list
40%
SEM Email to prospect list
Product listing ads
24% 14%
B2C (2013) 75%
SEM
52%
SEO Affiliate programs
35%
Remarketing in display ads
20%
Online marketplaces
17%
Bases: 91 B2B eBusiness professionals; 65 online retailers Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey; “The State Of Retailing Online 2013,” a Shop.org study conducted by Forrester Research © 2014 Forrester Research, Inc. Reproduction Prohibited
16
Technology Spending Benchmarks
In the next 18 months, 45% of B2B eCommerce professionals will change or upgrade their B2B eCommerce platform technology solution Base: 117 B2B eBusiness professionals © 2014 Forrester Research, Inc. Reproduction Source: Forrester/Internet Retailer Prohibited Q2 2015 Global B2B Sell-Side Survey
18
B2B eCommerce Tech Budgets Are Increasing 73% of B2B eCommerce
professionals expect increasing budgets for technology in the next year
While only 3% expect smaller budgets for technology Base: 115 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
19
Relatively High Technology Spending In B2B B2B eCommerce professionals expect to spend about 6% of online sales on technology (including app licenses, fees, and resources) in the next year
Base: 121 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
20
2016 Technology Investment Priorities (select all) “What are your technology investment priorities for 2016? (Select all that apply)”
58%
eCommerce Platform
38%
Web Content management tools
51%
Back-End Integration (including Order…
44%
Mobile sites and apps Product Content management tools
35% 39%
Multi-channel Integration Site Governance
24%
Base: 120 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
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Additional Benchmarks
61% of B2B companies have a mobile strategy
Base: 197 B2B eBusiness professionals Source: Forrester/Internet Retailer Q2 2015 Global B2B Sell-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
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“Don’t Know” What is your average customer service cost per B2B online order? (Select one).
#1 answer: 33% “Don’t know” What is your current B2B website shopping cart abandonment rate? (Select one)
#1 answer: 28% “Don’t know” Please compare the performance of the following metrics in 2015 to 2014: Average net promoter score. #1 answer: 33% “Don’t know”
Key Takeaways 1. Digital-first is here to stay…more channel shift is coming 2. The “Amazon standard” still eludes most B2B companies 3. The pace of eCommerce IT spending is accelerating, but priorities are shifting 4. Companies are making progress on mobile 5. Measurement is crucial !!!
Thank you Andy Hoar Principal Analyst Serving eBusiness & Channel Strategy Professionals
[email protected] @andyhoar1
POLL #2
What are your technology investment priorities for 2016? (Select all that apply)
A. Change or upgrade eCommerce platform B. Back-end Integration C. Mobile sites and apps D. Multi-channel integration E. Web/Product Content management tools
B2B Commerce Point of View Justin King, B2B Commerce Strategist
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Using Customer Info. Drives Better Customer Experience Which parts of your ERP system do you wish to provide more access to your customers through your online/mobile channels? Order Status
Payments Invoices / Accounts Receivable Inventory availability
Product Configurations Contracts / Terms and Conditions Supply Chain 0% •
20%
40%
60%
80%
Base: 108 B2B eBusiness professionals Source: Oracle Survey on B2B Commerce Trends 2015, Feb 2015
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
29
Time-to-Market Expectation vs. Reality Gap: New Products
80% 65%
of companies say it takes them at least 1 week to add new products and up to 8 weeks or more
want adding products to take no more than 1-2 days
Actual Today: 1 week to 8+ weeks Desired: 1-2 days Desired: 4-8 hours 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% •
Base: 108 B2B eBusiness professionals Source: Oracle Survey on B2B Commerce Trends 2015, Feb 2015
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
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Time-to-Market Expectation vs Reality Gap: Pricing
84% 62%
of companies say it takes them at least 1 week to add new pricing, contracts, or approval workflows, up to 8 weeks or more. want adding products to take no more than 1-2 days (or 4-8 hours)
Actual Today: 1 week to 8+ weeks
84%
Desired: 1-2 days
29%
Desired: 4-8 hours
33%
0% •
20%
40%
60%
80%
100%
Base: 108 B2B eBusiness professionals Source: Oracle Survey on B2B Commerce Trends 2015, Feb 2015
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
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