A Forrester Consulting
Thought Leadership Paper
Commissioned By hybris
Online And Mobile Are
Transforming B2B
Commerce
Firms That Act Now Will Gain
Appreciably, Companies That Don’t
Will Fall Farther Behind
October 2013
Table Of Contents
Executive Summary ....................................................................................... 1
The Web Is Changing How B2B Companies Transact With Customers .... 2
B2B Customers Are Establishing A New B2B Buyer Journey ................... 2
Selling Online And On Mobile Represents A Significant New Opportunity3
Demand Is Growing Rapidly For Web-Based Self-Service Capabilities .... 6
Managing A Dynamic B2B Commerce Business Presents Challenges..... 7
Key Recommendations ................................................................................. 8
Appendix A: Methodology ............................................................................. 9
Appendix C: Demographics .......................................................................... 9
Appendix C: Endnotes................................................................................. 11
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1
asking them for new and better self-service tools to make
buying more convenient.
Executive Summary
B2B commerce is experiencing a reformation. A new onlinedriven and omni-channel-centric paradigm has emerged —
one in which the longer and more often B2B companies sell
online, the more pronounced and disproportionate the
positive results are.
A profound shift in customer behavior from offline to online
channels is fundamentally changing the way in which B2B
companies interact with, sell products and services to, and
build loyalty with their B2B customers. In short, online and
mobile are radically remaking the B2B commerce
proposition.
In May 2013, hybris commissioned a study by
Forrester Consulting to explore what impact online and
mobile is having on how B2B companies sell their products
and services. To that end, Forrester Consulting surveyed
717 B2B companies across North America, EMEA, and
Asia Pacific — including 353 companies currently selling
direct to businesses online.
KEY FINDINGS
Forrester’s study yielded three key findings:
›
Selling online and on mobile devices represents a
significant new opportunity for B2B companies. B2B
companies are finding that selling online drives higher
revenue and builds greater loyalty with customers.
Forrester’s research shows that online-only and omnichannel B2B customers have higher average order
values (AOVs) and are more likely to add items to orders,
order in bulk, and make repeat purchases than offlineonly B2B customers. B2B companies also find it easier to
build loyalty with online-only B2B customers than with
offline-only B2B customers by leveraging targeted crosssell and upsell offers.
›
Self-service tools are changing the way in which B2B
customers interact with companies. Demand is
growing rapidly for web-based self-service eCommerce
capabilities that allow B2B customers to research, make,
and service their purchases from a PC, laptop, or mobile
device. In a new world of 24x7x365 “whenever and
wherever” commerce, B2B customers are increasingly
demanding tools and technologies capable of serving
them on their own terms. A majority of B2B companies in
Forrester’s research indicated that their customers are
›
B2B companies that wait too long to implement
eCommerce assume a big risk. Every day that B2B
companies fail to offer a compelling B2B eCommerce
experience, they fall farther behind more advanced
competitors. Specifically, they risk losing market share to
B2B rivals already executing an eCommerce strategy and
B2B versions of consumer websites that have recently
emerged in the B2B space. For B2B distributors and
wholesalers in particular that rely on adding value as
middlemen, failing to exploit online and mobile as leading
channels for driving customer engagement represents an
existential threat to their businesses.
2
The Web Is Changing How B2B
Companies Transact With
Customers
The Web changed B2C commerce, and now it’s
fundamentally changing B2B commerce. Like B2C
consumers, B2B customers are increasingly performing
their product research online. As a result, the days of B2B
customers starting their research by fingering through paper
catalogs are dying. In fact, 69% of B2B companies currently
selling direct to business partners online expect to stop
publishing their print catalogs altogether within the next five
FIGURE 1
The Majority Of B2B Companies Are Ending Print
Catalogs Within Five Years
years (see Figure 1).The Web represents an entirely new,
interactive buying experience that print catalogs simply
cannot rival.
In fact, by a ratio of more than to 1, B2B companies that
Forrester surveyed across the globe said that “buying from
us online has fundamentally changed the way our
customers interact with us” (see Figure 2). And among
those B2B companies that derive more than 25% of their
total B2B revenue online, the ratio increases to nearly 11 to
1 (76% to 7%).The more B2B companies sell online and the
longer they sell online, the more they say that the Web is
fundamentally transforming their relationships with their B2B
customers.1
FIGURE 2
eCommerce Is Fundamentally Changing B2B
Commerce
Base: 225 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
2
B2B Customers Are Establishing A
New B2B Buyer Journey
Today’s B2B customers are emulating B2C consumers and
fundamentally transitioning their browsing and buying into
online and mobile environments. This dramatic shift— from
traditional top-of-the-funnel activity based on searching print
catalogs and talking to sales representatives, to starting the
browse process by performing digital searches— is
remaking the B2B buyer journey. In fact, Forrester’s
research shows that no less than a sea change in B2B
buyer behavior is taking place, one reflective of a continuing
shift in decision-making power in organizations away from
central authorities and toward end users. According to B2B
companies around the world that currently sell direct to
business partners online, today’s B2B end user customers
are:
›
›
Browsing and buying on B2C and B2C-like B2B
websites. Fifty percent of B2B companies currently
selling direct to business partners online indicated that
their end user B2B customers are using either consumer
websites or B2B versions of consumer websites to
purchase products or services for their companies (see
Figure 3). Similarly, nearly one-half of B2B companies
said that their customers are “starting” their research at
2
consumer websites. Further, Forrester’s research shows
that the more B2B companies sell online, the more likely
their customers are to shop in these nontraditional
3
channels.
Using mobile devices to research and buy online.
Forrester’s research shows that 54% of B2B companies
selling online report that their customers are using
smartphones to research purchases, and 52% say that
their customers are using smartphones to actually buy
online (see Figure 4). Similarly, majorities of B2B
companies report that their customers are using tablets to
research and buy products and services. Further, the
more B2B companies sell online, the more likely their
customers are to use tablets and smartphones to buy
4
products and services. Clearly, mobile is emerging as an
important channel for B2B companies — both in the
awareness and brand-building phase as well as at the
point of decision. But unlike three years ago when the
iPhone was just starting to take hold and the iPad had just
been invented, B2B companies today must acknowledge
that hundreds of millions of smartphones and tablets have
penetrated the corporate world. This emerging reality is
forcing B2B companies to develop and execute their
mobile strategy in parallel with their online strategy.
FIGURE 3
50% Of B2B Companies Say Their Customers Use
B2C And B2B Websites To Buy For Work
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
FIGURE 4
B2B Customers Are Using Mobile Devices To
Research And Buy Products Online
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
3
Selling Online And On Mobile
Represents A Significant New
Opportunity
FIGURE 5
Twice As Many Companies Believe Their B2B
Online Channel Will Grow Faster Than Their B2B
Offline Channel
Twice as many companies expect their B2B online sales
channel be their fastest growing sales channel as those that
expect their B2B offline channel to be their fastest growing
sales channel within the next six years (see Figure 5). With
usually reliable channels seeing business slow, and new
channels seeing business grow, B2B companies are now
being forced to rethink core tenets of their online strategies.
Research conducted for this report, as well as research
Forrester published in early 2013, indicates that B2B
companies enjoy a net benefit from migrating offline
customers online.
Specifically, this study shows that B2B customers that buy
online are more active buyers and have higher AOVs than
customers that buy exclusively offline. In addition, research
demonstrates that B2B customers are more easily
influenced online and are more loyal in key circumstances
than offline-only customers. In contrast to pure offline B2B
customers, online and omni-channel B2B customers are:
›
More likely to engage in value-added buying activity
than offline customers. Forrester’s research shows that
by large margins, online-only customers are more likely
than offline-only customers to add items to orders, order
in bulk, and make repeat purchases (see Figure 6). In
addition, B2B companies report that they earn higher
AOVs from online-only customers than from offline-only
customers. Across the board, greater numbers of B2B
companies say that they earn higher AOVs the more they
sell online, the longer they sell online, and the more
channels in which they sell. As B2B customers
increasingly research products and services online, B2B
companies that have well-developed online and mobile
strategies will be far better positioned to take advantage
of the revenue upside associated with meeting the
growing needs of B2B customers (see Figure 7).
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
4
FIGURE 6
Online-Only Customers Are More Active Than
Offline-Only Customers
FIGURE 7
Online-Only Customers Have Higher AOVs Than
Offline-Only Customers
Base: 353 online B2B companies around the world (147 B2B companies
with greater than 25% of sales online, 156 B2B companies that have been
selling online for five years or more)
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
›
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
Easier to influence online in the short and long-term.
By a margin of more than to 1, B2B companies say that
they can more effectively reach customers online than
offline with cross-sell and upsell offers (see Figure 8). In
addition, B2B companies selling online indicate that they
can more effectively build customer loyalty online versus
offline (see Figure 9). As with AOVs, B2B companies
report that the more they sell online and the longer they
sell online, the more success they have using cross-sell
and upsell offers online and building customer loyalty
online. B2B companies that have much experience selling
online recognize that it is far less expensive and, if done
correctly, much better to build relationships with new and
existing customers online than offline — especially for
small-volume B2B customers.
5
FIGURE 8
It’s Easier To Reach Customers With Cross-Sell
And Upsell Offers Online Than Offline
Base: 353 online B2B companies around the world (147 B2B companies
with greater than 25% of sales online, 156 B2B companies that have been
selling online for five years or more)
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
FIGURE 9
B2B Companies Can Online Than Offline More
Effectively Build Loyalty
Base: 353 online B2B companies around the world (147 B2B companies
with greater than 25% of sales online, 156 B2B companies that have been
selling online for five years or more)
Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013
6
Demand Is Growing Rapidly For
Web-Based Self-Service Capabilities
By large margins, B2B companies say that “our customers
are asking us to offer them greater ability to buy online.” A
majority of B2B companies across the board indicate that
their customers want new and better self-service tools in
order to research, buy, and get customer service. In a new
world of 24x7x365 “whenever and wherever” commerce,
B2B customers are increasingly demanding tools and
technologies capable of serving them on their own terms —
which means online and on mobile phones. B2B companies
today are being asked to offer self-service eCommerce
technologies that:
›
Facilitate online buying experiences. Forrester found
that 62% of B2B companies currently selling direct to
business partners online say that their customers want
self-service tools for buying online (see Figure 10). For
B2B companies that have been selling online for five
years or more, the percentage rises to 71%. Moreover,
one-half of B2B companies surveyed report that their
customers want self-service tools in order to buy via a
smartphone — a number that rises to 65% for B2B
companies that book more than 25% of their business
online. B2B companies are finding that the more they sell
online and the longer they sell online, the more demand
they see from their B2B customers for online and mobile
product purchase environments.
›
Make it possible to get customer service online and
on mobile phones. B2B customer demands for selfservice tools are not limited to researching and buying
environments. B2B customers today are increasingly
expecting B2B companies to make the complete
customer interaction lifecycle web-centric — from the top
of the marketing funnel to the bottom. For example, a
majority of B2B companies currently selling direct to
business partners online report that their customers want
self-service tools in order to receive customer service
online and on smartphones. Tellingly, 35% of B2B
companies that are not currently selling online said that
their B2B customers want the ability to get customer
service online, and 25% said that their customers want to
5
get customer service on their smartphones.
FIGURE 10
B2B Customers Want Self-Service Tools In Order To Get Customer Service Online And On Mobile Phones
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013
7
Managing A Dynamic B2B
Commerce Business Presents
Challenges
eCommerce promises to be a game changer for many B2B
companies, and there is considerable upside potential for
B2B companies that execute well. However, building a
world-class B2B eCommerce business does come with its
challenges — especially in a dynamically evolving
commerce ecosystem. B2B companies beginning to sell
online, or those ramping up an existing eCommerce
operation, must consider that:
›
eCommerce means it’s a global market requiring
localization capabilities. eCommerce enables B2B
companies to sell products in other countries. But by the
same token, it enables B2B companies in other countries
to sell products into another company’s home market.
Companies participating in B2B eCommerce today must
understand that the market for selling anything today is
effectively global. In fact, 60% of B2B companies currently
selling direct to business partners online report that their
customers are comfortable buying products and services
from websites located in other countries. However, nearly
equal percentages of B2B companies also say that their
B2B customers expect to buy those products or services
in a local currency (63%). In addition, B2B customers
expect to use sites that are in a local language (67%) and
include all relevant shipping fees/duties/taxes before
committing to a final purchase price (64%).
›
Scaling requires implementing a robust partner
ecosystem. From systems integrators, to digital
agencies, to augmented internal and external staffing in
key roles, B2B companies must build an effective
ecosystem around their eCommerce operation. However,
building such an operation often requires securing sizable
funding support from C-level executives — never a task to
be underestimated. B2B companies we interviewed were
also clear about the profound challenges associated with
recruiting talented eCommerce professionals to help them
build a world-class organization. As one B2B eCommerce
executive told us: “Those people do not grow on trees,
and they are hard to lure away from successful B2B
eCommerce operations — much less from successful
B2C companies.”
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Key Recommendations
With unprecedented numbers of B2B customers beginning the search process online at mostly big B2C and
specialized B2B websites, B2B companies are being forced to rethink the fundamentals of their go-to-market
strategies. For B2B companies that are early into eCommerce, this research should serve as inspiration and
motivation to accelerate existing efforts. For more advanced B2B companies that are actively evolving their business
models and recalibrating customer acquisition channels, this study identifies opportunities to further differentiate and
gain market share.
To succeed in this new, more complex, and rapidly evolving B2B eCommerce space, B2B companies must:
›
Invest aggressively in delivering a world-class customer experience. It isn’t enough to match your B2B
competitors’ standards. B2B customers are also B2C consumers, and they increasingly expect that their B2B
online customer experiences should rival the gold-standard B2C shopping experiences they enjoy today on
leading B2C sites. B2B companies that want to be players on a global B2B commerce stage must recruit talent
that can create robust online buying experiences as well as upgrade legacy technology infrastructure that cannot
deliver a wherever, whenever commerce experience to customers across all channels.
›
Focus on mobile as a critical “channel of the future.” With over one-half of B2B companies reporting that
their customers are using smartphones and tablets to research purchases, as well as buy online, B2B companies
simply must see mobile as an integral part of their next-generation eCommerce offering. Increasingly, B2B
companies are reporting that mobile has created whole, compelling new use cases that never existed before —
such as harnessing new process workflows around approving purchases. For B2B companies that embrace
mobile and purpose-built sites and applications for their mobile users, the mobile channel offers new in-the-field
sales opportunities as well as more personalized customer service scenarios that were simply impossible or
infeasible before.
›
Assiduously woo omni-channel customers. The research is quite clear on this one: B2B companies identified
omni-channel customers as their best overall customers. By converting weaker single-channel offline-only and
online-only customers into omni-channel customers, B2B companies effectively transform those customers into
more active, more loyal, and higher-spending customers. Nearly 80% of B2B companies currently selling direct to
business partners online identified omni-channel customers as “profitable” customers (versus 57% of online-only
customers and 53% of offline-only customers). Also, twice as many B2B companies said that their omni-channel
customers were their “most profitable” customers as B2B companies said that either their online-only customers
or offline-only customers were.
›
Prepare for competition from all across the broader ecosystem. In today’s rapidly evolving B2B eCommerce
market, distributors are now selling against wholesalers, and manufacturers are competing with one another by
selling direct to customers. In fact, 41% of B2B companies Forrester surveyed said that they are currently selling
directly against their own wholesalers, distributors, and suppliers. We are rapidly approaching a time when most
companies in the supply and demand chain will likely be selling against one another at the same time as they are
partnering with one another. B2B companies must prepare for an emerging new reality wherein channel purity is
eroding and “co-opetition” prevails.
9
Appendix A: Methodology
In this study, Forrester surveyed 717 B2B companies across three major geographies (North America, Europe/Middle
East/Africa [EMEA], and the Asia Pacific region), or an average of about 240 respondents per geography. Nearly 50% of all
respondents, or 353 companies across all three major geographies, indicated that they are “currently selling direct to
business partners online (B2B).” Each of the major geographies (North America, Europe/Middle East/Africa [EMEA], and the
Asia Pacific region) produced a minimum of 100 respondents that are “currently selling direct to business partners online
(B2B).” All respondents must represent companies that produce a minimum of $250 million in total sales annually, and must
be personally responsible for, or deeply involved with, selling the company's products or services online.
In addition, Forrester conducted seven in-depth interviews with a variety of B2B eCommerce professionals responsible for
managing and maintaining their respective online selling organizations. Questions to the B2B survey participants focused on
eCommerce and omni-channel buying behavior, incorporating tools and technologies into the buying experience, and
identifying details about the internal organizational structure required to deliver world-class B2B eCommerce. The study
began in May 2013 and was completed in July 2013.
Appendix C: Demographics
FIGURE 11
Total Online Revenue (Nearly 50% With Greater Than $100 Million In Revenue)
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013
10
FIGURE 12
Company Size — Total Number Of Employees (With 71% Having Greater Than 1,000 Employees)
Base: 353 online B2B companies around the world
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013
11
Appendix: Endnotes
1
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013.
2
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013.
3
Companies that book more than 25% of their B2B sales online indicated that fully 63% of their customers use consumer
websites or B2B websites to purchase products. Source: A commissioned study conducted by Forrester Consulting on
behalf of hybris, September 2013.
4
Seventy-six percent of companies that book more than 25% of their B2B sales online report that their customers use tablets
to research products for purchase. Source: A commissioned study conducted by Forrester Consulting on behalf of hybris,
September 2013.
5
Source: A commissioned study conducted by Forrester Consulting on behalf of hybris, September 2013.