Michael Chuma, director of global product management at Digital River explains the steps you should take to help you achieve the same seamless online buying experience you get in B2C.
When it comes to making corporate purchases online, it’s no secret that B2B buyers have come to expect the same conveniences they enjoy during their personal eshopping experiences. With Forrester Research conservatively estimating nearly $560 billion in B2B ecommerce transactions in 2013, B2B companies are facing immense pressure to deliver this kind of consumer-friendly online purchasing experience.
Having a multichannel presence that includes selling direct via ecommerce is proving extremely lucrative for many B2B firms. Ecommerce enables companies to migrate offline business buyers to a more cost-effective, self-serve environment. By moving more sales to an online portal, the company can also realise cost savings – freeing valuable financial resources that can fund different areas of the business.
From offline to online
However, launching an ecommerce strategy without upsetting existing offline channel relationships is a real challenge that requires balancing the concerns of referral and resale partners with the needs of end-customers. Aside from channel conflict, internal resistance can also make the transition difficult.
The key to successfully making this transition is understanding how the three main components – direct to buyer, reseller enablement and long-tail channel enablement – can work together in a symbiotic (and harmonic) programme that balances the needs of all three. Follow these tips to build a successful ecommerce model for your online B2B business:
1. Focus on user experience.
When developing a direct online presence,create an engaging, interactive experience that spells out business benefits, offers reviews and provides an easy, intuitive purchase process.
2. Begin with subscriptions and renewals.
Online renewal portals provide the visibility and account management businesses want, while leaving the first-sale opportunity to resellers.
3. Concentrate on ‘closed’ niches.
SMBs and educational institutions often feel left out by the traditional reseller model that seems to focus on high-volume, high-average-order customers. Providing a direct sales channel for these niche customers that suits their unique needs can be a very lucrative move.
4. Determine your revenue and reseller landscape.
Understanding how and where channel revenue is currently generated will help determine who needs to be involved and what challenges you’re likely to encounter.
5. Define where the ‘power’ resides.
Organisational harmony is just as important as channel harmony. Know what part of the organisation is responsible for each revenue stream and properly align your online B2B commerce programme with your corporate structure.
6. Determine your objective.
What exactly are you trying to achieve? Analysing your exact sales and marketing objectives – and whether your B2B tactics support those goals – will help you create a more successful strategy.
7. Phased rollout to build momentum.
A graduated rollout with measurable deliverables at each stage allows you to build a consistent track record for success. Small successes build upon one another to demonstrate business value, fuel momentum and generate buy-in from internal groups that might be sceptical of a direct B2B sales strategy.
8. Find a channel champion.
Identify a key reseller ally who supports the addition of the direct channel. Call upon this channel champion to not only provide valuable advice along the way, but also to become an advocate for a direct B2B sales plan.
9. Analyse your technology ecosystem and its future.
A direct online sales programme can be a major undertaking. Engage the IT department early on to determine whether sufficient staff and budget resources exist. Work with the team to determine what vendors and technologies might be needed to supplement internal resources and sustain the effort.
10. Be sensitive to compensation concerns.
Direct online sales can have an impact on compensation for sales teams, partners and resellers. Recognise that the change may be difficult for some and plan to provide a form of commission to help shorten and smooth the transition. Utilise available tools to create your compensation programme. For example, after the initial sale is complete, have your ecommerce provider track future purchases by that customer and manage the commission payouts. Or, organise your CRM tool to link customers with the sales representative who maintains that relationship.
Developing a direct online sales programme requires carefully balancing business buyers’ needs with those of the existing channel partners and internal stakeholders.
Consider partnering with a technology provider who understands the challenges, and has a proven record for overcoming them. The right technology and a smart plan can make the transition much smoother and more successful.