5 Symptoms That Your Company Needs a B2B eCommerce Solution
Although it is now impossible to ignore the driving force of ecommerce, some companies might still wonder if it’s all worth the effort. If you belong to one of those companies, then the short answer is yes, and the longer version can be found below.
Let’s cover the five telltale symptoms that your company needs to go digital now.
FOMO
On the one hand, before embarking on the online journey, it makes sense to wait for your competitors to go online and observe how successful they become. On the other hand, you might be aware of the pitfalls behind such a strategy: ecommerce is not an area that can be easily overtaken if available opportunities are missed. Because B2B ecommerce is such a fast-developing industry, there are no conventional playbooks and standard recipes prescribingaction plans. This means that whoever blazes a trail will gain much richer insights that cannot be captured even with the forced investment infusions. In Virto Commerce, we’ve seen companies whose main motivation was their competitors’ beginning activities online.
Key takeaway: competitive pressure is one of the major factors contributing to companies looking to expand operations online.
Customer loyalty and customer base leaking
Suppose you see that your competitors’ online endeavors are proving successful. You hea more and more good reviews from customers and onlookers about your competitor. In that case, it means that your competitor’s customer loyalty and, as a result, its customer base, is growing while yours is quite possibly already dwindling even if at the moment it looks as if unchanged. Some of your customers might decide to try your competitor’s solution, find it comfortable, and eventually switch. We often hear claims from customers that contracts, mutual respect, and relationships are far more important than a better solution elsewhere. In practice, that’s rarely the case, because if a customer’s solution works well and helps customers cut back on some of their expenses, then there’s a fair chance they would prefer the convenience and cost-savings over friendship with you.
Key takeaway: It makes perfect sense that a supplier who offers a convenient B2B ecommerce platform, where customers can look up prices and remaining stock in real-time, will woo away your existing or potential customers over time.
Information overload
If processing orders, storing large volumes of data, and managing hundreds of contracts turns into a time and labor-consuming nightmare, it may be time to start a digital transformation,if you don’t have enough time or money to digitize all of your business operations, start small and digitize your catalog. You will almost immediately see the benefits (and convenience) the online catalog offers. Suppose you have an extensive physical catalog; in that case, it is quite possible that your customers barely know what you sell. However, if you digitize it and make it searchable, you allow your customers to familiarize themselves with the abundance of products or services you offer. This can lead to an unexpected boost in sales of products your customers didn’t know you have.
Suppose your business has a high order frequency with customers placing orders daily or weekly. Every order is an effort of multiple people; in that case, it makes perfect sense to start digitizing order processing to save on associated overheads.
Key takeaway: If your business is no longer capable of dealing with information overload or order frequency, it is time to digitize your business. For an organic user adoption, start by gradually digitizing single specific processes or business functions.
Side note: We’ve written an excellent piece on self-serve portals covering some of the basic steps of gradual digital transformations that you might find useful.
Access to customer data
If you are a manufacturer who doesn’t have access to your end customers (because of the multiple middlemen in a supply chain) but feels the need of getting to know them, gathering feedback, or accumulating other customer data, you may consider setting up a D2C-like online store or a loyalty portal to access that information. The decision to get access to customer data is very sensible; after all, having access to your customers enables you to make intelligent business decisions that will positively affect your business operations and increase customer satisfaction. If you set up a D2C-like store, you’ll eliminate all the middlemen and regain the margin you previously shared with retailers. In the case of a loyalty portal, you can get your customer data in exchange for any possible benefits. For example, Bosch Thermotechnik, a Virto Commerce customer, has set up a (similar to the one discussed above) loyalty portal. Customers register the Bosch equipment they purchased and receive loyalty points in return, which they later use on the portal to buy other products from Bosch partners. This way, Bosch has obtained valuable consumer data, which it now uses to forecast demand, receive complaints, and gather feedback.
Key takeaway: Having a B2B ecommerce platform means having access to invaluable customer data, a priceless resource for decision making.
Unlock new revenue streams
There’s a common understanding that having an ecommerce solution more easily opens up pathways to new markets, industries, and as a result, unlocks new revenue streams. We have written a series of articles on the subject, and although, they are mainly intended for those with a mature B2B ecommerce solution, you might find it handy in case you’re still considering whether or not to go online.
Unlocking New Revenue Streams in B2B eCommerce: the Major Paradigm
D2C as a New Revenue Stream in B2B eCommerce
Unlocking New Revenue Streams: Entering New Markets
Unlocking New Revenue Streams: Acquiring Digital Competitors
Unlocking New Revenue Streams in B2B: Creating a New Vertical B2B portal
Unlocking New Revenue Streams: Extending Catalog through Direct Integration with Suppliers
Unlocking New Revenue Streams: Connecting to Third Party Marketplaces
Unlocking New Revenue Streams: Creating Your Own B2B Marketplace
Key takeaway: If you want to explore new market opportunities, having a B2B ecommerce platform will make the process easier and smoother.
