conquering the b2b ecommerce challenge

Conquering the B2B Commerce Challenge: Stop Navel Gazing and Get Out of Your Own Way

Mike Chuma, Director of Global Product Management

Digital River, Inc.

Omphaloskepsis noun \ˌäm(p)-fə-lō-ˈskep-səs\

navel gazing

Source: some proud parent posting to the “interwebs”

B2B is the Next E-Commerce Frontier …

Globally, Goldman Sachs predicts nearly $1 trillion in e-

commerce transactions by 2013*

Many B2B companies project e-commerce will comprise 50% of

total sales**

In the U.S., B2B e-commerce is growing by over 34%

compound annual growth rate**

*Source: JP Morgan Chase (Goldman Sachs) “Nothing but Net: 2011 Internet Investment Guide,” January 3, 2011

**Source: Forrester “B2B E-Commerce: Going From Surviving To Thriving By Adopting Proven B2C Principles,” May 1, 2012

Business Buying is Changing…

Enterprises

=

shifting stance

Business Technology Selection

=

centrally controlled

Technologies

=

more independent

and robust

Market Driven / User Controlled

“The way I interact with a large corporation in a B2B

relationship has to keep pace with the way I can view

product and research on sites like Amazon.com.”

7

- Andrew Christmann, Gartner Blog Respondent

B2B Customer Expectations are Changing…

B2B eCommerce Trends, Endeca Survey for eCommerce, 2011

+70% of B2B influenced by B2C

B2B Customer Expectations are Changing…

B2B eCommerce Trends, Endeca Survey for eCommerce, 2011

20% said online was more influential

The Stages Of B2B E-Commerce Maturity

June 2012, “Evaluating Your B2B E-Commerce Development”

keeping up with your customer …

organizations still

determining their strategy

few Best Practices

B2C driving B2B innovation

11 Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012

“We’re still convincing people in our own company

about the value of selling online.”

- Director of E-Business, distributor

What’s holding you back?

Question: What are the top three major obstacles to advancing B2B e-commerce in your company? (Check as many as three).

Source: B2B magazine: B2B e-commerce Barometer, August 2011

lack of resources

budget constraints

requires 1:1 selling

not management priority

1

2

3

4

navigate

your

channels

13

Me

(mildly concerned…)

Enabling the Channel Ecosystem

Direct to Buyer

Reseller Enablement

Long Tail Channel Enablement

go direct first…

> focus on user experience

> subscriptions and renewals

> find your niches

Transition to Customer Centric Capabilities Framework

Post-Sales Sales Customer

Acquisition Prospect

• Contextual marketing

• SEO

• SEM

• Loyalty management

• Partner marketing

• Product reviews

• Search and display

• Social media

• Robust email

• Product configurators

• Catalogue management

• Pricing (volume, tiered)

• Product recommendations

• Product reviews

• Partner portals

• Partner sales management

• Customer support

integrations

• License renewals

• Maintenance renewals

• Complex subscription

types and models

B2C vs B2B: Core Capabilities

B2B payments: line of credit and PO

Enhanced estimates

Reseller pricing and discounts

CRM integration (salesforce.com)

Buyer management and hierarchy

Advanced eligibility management

Advanced pricing and promotions Partner, reseller, distributor and key

account stores

mitigate channel conflict

18

“Whereas, before we had a tough relationship

with sales, we work cooperatively with them now.”

19

- Director of E-Business, multi-channel company

Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012

20 Photo courtesy of Bob Estes

balancing

act

Tips to Manage the Shift

21

Determine your revenue and reseller

landscape

Define where the “power” resides

Analyze, analyze, analyze

Perception is reality

Build your business case so its parts can

act independently

Find an internal champion

Know your current technology

ecosystem and it’s future

Find your “channel champion”

Be aware, be sensitive

Things to remember…

• B2B e-commerce market is the next frontier

• B2B buyer behavior is evolving

• When managing channel shift stay focused

• Mitigating channel conflict requires balance, analysis and

engagement

22

Q&A

Mike Chuma

Director, Global Product Management

Digital River, Inc.

mchuma@digitalriver.com

mobile. +1.952.769.7101

twitter. @mchuma

LinkedIn. /in/mikechuma

who’s good….

24

focus on user experience

Circa 2002 Circa 2012

Source: “Conquering the B2B E-Commerce Challenge”, Digital River Whitepaper Series, February 2012

focus on user experience

focus on user experience

enable your resellers

focus on a niche