Discussions about eCommerce frequently focus solely on the B2C market—how retail customers seek, purchase, and review products and services. However, this adoption of eCommerce has migrated over to B2B commerce, altering enterprise business models and increasing attention on online buying.
Because consumers are increasingly comfortable purchasing products of many types online in their daily lives, they are now more willing to explore online procurement in business environments. Business buyers not only have a higher comfort level with eCommerce, but also higher expectations for a seamless, user-friendly customer experience.
eCommerce Poses Challenges for Distributors
In the 2014 Distribution Industry Outlook survey by NetSuite (The 2014 Distribution Industry Outlook, NetSuite, 2014), more intense online competition was cited as a top concern among respondents. In some cases, distributors were concerned about B2C companies entering their respective wholesale markets. As a result of this threat, 36% of respondents indicated that improving eCommerce capabilities is a top concern, coming in behind revenue growth, launching new products, and expanding the sales force. Improving eCommerce functionality was also cited by 40% of respondents as a top technology priority.
eCommerce challenges for distributors tend to run the gamut—from displaying product information, images, graphics, and logos (22%) to deploying adequate technical functionality (46%) (2015 Survey by Advantage Business Media). For those companies that have implemented eCommerce, improving the customer experience is a key objective.
Although revenue from eCommerce is increasing year over year for the companies that have enabled online sales, more than half of distributors surveyed still receive less than 5% of their revenue from online transactions (Gale, Bein, Polletta, Bennett, “2016 State of E-Commerce in Distribution.” Copyright 2016 by Gale Media, Inc.). However, enterprises can benefit from initiating or expanding their eCommerce presence, such as the ability to target new geographies and direct-to-consumer markets. Risks that companies may encounter include the ability to address geographical nuances and the need to be available to customers 24x7x365. A poor online customer experience can reflect poorly on your brand.
Leapfrog Over the Competition!
With sales transactions moving online more rapidly every year, distributors must embrace eCommerce to remain competitive. Using the experience of enterprises that have already ventured into this territory can help you navigate the learning curve more quickly. You may even be able to “leapfrog” over competitors by doing things right from the beginning instead of having to experiment and test incrementally as you go.
In our opinion, that means first addressing your product information, a key component for succeeding at online sales, prior to deploying any eCommerce solution. Having consistent and accurate product information available to your sales representatives, dealer network, and marketing channels is an essential part of creating a great customer experience, building trust with customers, and providing information they are looking for where and when they want to connect with you.
Put Your Product Information First
Chances are, “product information management” is already taking place in your organization, although you may not actually call it that. In fact, your product information may not be actively or efficiently managed, instead residing in disparate systems, documents, spreadsheets, and databases. A lack of proactive management of product information can result in “information silos” that can affect the quality and timeliness of your product information. Therefore, identifying all of these sources of product information and determining how to effectively manage and maintain it will serve you well as you embark on your eCommerce efforts.
While poor product content can result in product returns, shopping cart abandonment, and reduced customer loyalty, a product information strategy can provide a number of benefits. By putting your product information first and making it central to your eCommerce initiative, you can increase the confidence of the sales organization and customers in your online information, provide control over information displayed on channel sites, and improve the efficiency of your go-to-market process. In addition, as you deploy additional systems to enable eCommerce and web content management, making use of your information will be organized and easy.
Kathryn Zwack, Senior Content Marketing Manager North America, inRiver
Working in today’s digital era, it is central to focus on the customer experience, and to place the customers at the center of your business. There is a lot of talk about omni-channel, multi-channel or cross-channel, but all these different names come from skilled spin doctors that just display a software vendor’s perspective. If we just go to ourselves as consumers, we do not think in terms of channels - we want the full story on the products, regardless of where we consume them, to be able to make an informed choice (or at least that is what think we do). If you have read the fantastic book "Thinking, Fast and Slow" by Daniel Kahneman, you know that we have two systems that operate how we make choices. It is System 1 that takes most of our decisions - based on feelings and not based on rationality - which is why the story and the experience of the products affects us when making a purchase decision. We all know that this consumer journey is not linear by any means. We browse for information, and expect to find good, solid product offerings and brand experience when we meet a brand in different contexts. This applies both to our personal life as to our professional life, and gives brands and retailers a whole new challenge: to have all these stories i.e content ready for all customer touch points, wherever and whenever the customers expect it. We at inRiver hear different versions of this every time we talk with our customers.
How do you then reach to that point of efficiency for your Product Experience Management (PXM)? What we try to do with the PXM concept is to marry three different domains - PIM, DAM and MRM. Bringing the best from each of these domains into our platform, and focusing on the following three aspects is a good start:
Content – Facilitate for others to supply quality content, and make sure you have quality content on all your products to enable your products to tell a story
Context - Create the right stories for the right touch points, making sure that you are attracting, converting, and retaining your customers no matter where you meet them (store, digital, magazine etc).
Conversion – Take control of how your products and assortments are performing in the different customer touch points, showing clearly if you really are delivering that product experience, or if you should refine your content further.
By working with your products and focusing on these three aspects, you will make sure all your products are telling a story in all your customer touch points. Also, when working consistently with your product stories, you will find that this boosts the effect of other marketing technologies. Securing that every product that is online has the correct story to tell, and that the product is segmented with the right facets to make sure it shows up in the right contexts gives an exponential effect.
So make sure all your products are telling a story….
-- Jimmy Ekbäck, CTO --