According to Forrester’s research, 89 percent of firms reported that implementing e-Commerce strategies brought up annual company revenue by about 55 percent on average. Furthermore, the average order value was increased by 31 percent for about 81 percent of respondents, while 88 percent reported 30 percent higher profitability per order.
The Forrester study explored what impact e-Commerce has on how B2B companies sell their products and services and found that a fundamental transformation is happening in how businesses are acquiring and retaining customers in this market. In fact, US B2B e-commerce revenue has now more than doubled that of B2C – with $559 billion annually in sales. The research also showed that B2B players that fail to embrace online and mobile as leading channels risk losing market share in the short and medium term, and sustainable competitive advantage in the long-term.
By any measure, B2B e-Commerce is a rapidly expanding and increasingly important market, Executives should leverage this exponential growth by investing in infrastructure that exploits the process. An innovative digital marketing and e-commerce platform allows companies to:
- Sell more at a lower cost
- Lower customer acquisition cost
- Increase average sale and add lifetime value
- Manage and handle transactions for less than traditional ordering systems
- Increase customer engagement
- Improve customer loyalty for customers who initially buy offline
- Increase opportunities to build loyalty through multiple channels
- Transform sales efficiency
- Keep the sales force focused on high-value sales
- Cut the expense of supporting and servicing already-acquired customers
The business upside to B2B e-Commerce is fundamental: an effective B2B e-Commerce platform allows companies to sell more at a lower cost, and, consequently, transform sales efficiency. With Amazon Supply and Google Shopping for Suppliers now targeting suppliers in the B2B space, the landscape of the market has changed. Increased competition has led to growing price pressure, while simultaneously creating an opportunity for higher margins, increased profitability, and opportunities to develop deeper relationships with customers.
Business customers’ expectations:
- instant results
- quick access to desired products and information
- easy-to-navigate formatting and presentation,
- ability to compare products and pricing
have raised the bar in the online B2B market, making consumer-like digital experiences an imperative. Early adopters are likely to derive greater customer engagement, and, thus, more efficiency and profit.
In addition, the B2C experience of companies like Amazon and Google – and their addition of B2B pipelines – signals that changes are coming to the B2B marketplace. It is incumbent upon B2B executives to tap into e-Commerce as an essential channel for doing business. Revenue, cost of doing business and loyalty demand an effective e-Commerce channel.
Developing clear business objectives for an e-Commerce effort, and taking the steps necessary to build this channel, will streamline the purchasing process, improve the customer journey, add sales efficiency and boost customer retention.
Delaying the launch of a successful, fully-integrated B2B e-Commerce platform will leave a company trailing aggressive competitors who are looking to cut cost of sales while increasing customer convenience, customer loyalty and margins.
Bottom line – for a business to survive and thrive in today’s marketplace, it is essential for them to develop an effective B2B e-Commerce marketing strategy!
For more B2B marketing strategy tips, call e-MaxCommerce now at (502) 251-3510.