A Forrester Consulting
Thought Leadership Paper
Commissioned By EPiServer
B2B eCommerce
Produces Results — Get
On Board Now
May 2014
Table Of Contents
Executive Summary ........................................................................................... 1
The Verdict Is In: eCommerce Drives Both The Top And The Bottom Line2
SaaS/PaaS Provide A Path To Faster And More Cost-Effective
Implementation ................................................................................................... 4
Best Practices For Implementing B2B eCommerce ...................................... 5
Key Recommendations ..................................................................................... 7
Appendix A: Methodology ................................................................................ 8
Appendix B: Demographics/Data ..................................................................... 8
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1
Executive Summary
The age of the customer is changing the way B2B
companies must address their sales channels. B2B
customers are more empowered by technology than they
were in the past, choosing to research and purchase over
channels that are most convenient to them. As empowered,
connected customers in their personal lives, business
buyers are increasingly expecting the same personalized,
multichannel customer experience for their business
transactions.
Until recently, there were many arguments B2B companies
could use to avoid selling through online channels. The
technology was mostly homegrown and ill-equipped to deal
with the channel complexity of selling online. The results of
eCommerce systems were largely unproven for B2B, and
the process of implementing them was considered complex
and costly. However, in recent years, B2B eCommerce
solutions have evolved to offer a customer experience
rivaling that offered by B2C standard-bearers. The results
are coming in and they all point to moving forward
aggressively with eCommerce.
In January 2014, EPiServer commissioned Forrester
Consulting to evaluate best practices in implementing B2B
eCommerce systems and metrics around those systems.
Forrester wanted to determine the perceptions and realities
around the timing and costs associated with implementing
eCommerce for businesses, and the results the solutions
are delivering today.
Between March and April 2014, Forrester Consulting fielded
an online survey to 100 US firms that have implemented
B2B eCommerce solutions in the last seven years and
conducted interviews with a select set of the same
respondents. Forrester found that these companies
achieved impressive financial success attributable to their
eCommerce implementations and used best practices to
contain and manage the price of implementing the solution.
KEY FINDINGS
Forrester’s study yielded three key findings:
›
B2B eCommerce solutions contribute significantly to
key selling metrics and incremental revenue. Our
survey found that B2B eCommerce solutions lead to
increases in company revenue, profitability per order,
average order value, and decreases in cost per order. In
addition, respondents estimated that, on average, 31% of
the revenue their eCommerce system books is
incremental revenue.
›
SaaS/PaaS B2B eCommerce solutions have the
potential to save time and money in implementation.
According to our survey, 39% of SaaS implementations
cost less than $1 million, compared to only 10% of onpremises implementations. And more respondents said
that a SaaS/PaaS solution took less time than expected
compared to those who implemented on-premises.
›
Best practices can ensure you stay on time and on
budget during implementation. In order to implement
eCommerce efficiently and in a customer-centric fashion,
B2B companies should carefully define project goals and
objectives upfront. In addition, B2B companies are wise to
involve users throughout the implementation process and
engage with knowledgeable experts, both internally and
externally.
2
The Verdict Is In: eCommerce Drives
Both The Top And The Bottom Line
In surveying 100 firms that have implemented B2B
eCommerce in the past seven years, we found that nearly
all of them agreed that implementing their eCommerce
solution was a key component in reaching their top online
selling goals. Another consensus was that eCommerce is
responsible for quantifiable improvements in sales metrics
across the board, from revenue to cost savings.
›
Sell to businesses online to grow revenue and attract
new customers. Implementing eCommerce is now
essential to meeting your company’s goals. According to
our survey, the top goals for selling to businesses online
are to grow revenue (79%) and attract new customers
(70%) (see Figure 1). Nearly all of our respondents said
that their eCommerce solution was important in meeting
their goals to grow revenue (98%) and attract new
customers (90%) (see Figure 2). The rise of online retail
pure plays have shifted buyer expectations across the
board, and in today’s age of the customer, your partners
expect to be able to interact with you (increasingly in real
time) across channels that are most convenient to them.
FIGURE 1
B2B Firms’ Top Goals Associated With Selling To
Businesses Online
“What are the top goals of selling your products to
businesses through the online channel?”
(Select all that apply)
Grow revenue
79%
Attract new customers
70%
Improve customer
retention/satisfaction
61%
Lower costs
Gain a competitive
market advantage
53%
37%
Base: 100 US firms that have implemented B2B eCommerce solutions in
the last seven years
Source: A commissioned study conducted by Forrester Consulting on
behalf of EPiServer, April 2014
THE QUANTIFIABLE BENEFITS OF ECOMMERCE
Firms are now starting to track metrics attributable to their
eCommerce solutions, and the results are impressive. Our
survey shows that:
›
eCommerce delivers real financial success.
Implementing B2B eCommerce solutions delivers clear
and quantifiable benefits. Eighty-nine percent of
respondents agreed that implementing eCommerce
increased annual company revenue — and by an average
of 55% (see Figure 3). Eighty-eight percent agreed that
implementing eCommerce drove higher profitability per
order — and by an average of 30%. Eighty-four percent of
respondents agreed that implementing eCommerce drove
lower costs per order — and by an average of 28%.
Lastly, 81% of respondents agreed that eCommerce
increased average order value — and by an average of
31%. The evidence is overwhelming that eCommerce
contributes to both the top line and the bottom line.
›
Implementing eCommerce drives incremental
revenue. Respondents indicated that an average of 31%
of the revenue that their eCommerce system books is
incremental revenue (see Figure 4). This is good news for
companies that are concerned about revenue
cannibalization and channel conflict. In addition to being a
necessary channel for customer engagement online, on
FIGURE 2
eCommerce Drives The Process Of Selling To
Businesses Online
“How important is your eCommerce solution
in meeting the following goals?”
Very important or important
Grow revenue
98%
Attract new customers
90%
Improve customer
retention/satisfaction
90%
Lower costs
92%
Gain a competitive
market advantage
89%
Base: 100 US firms that have implemented B2B eCommerce solutions in
the last seven years
Source: A commissioned study conducted by Forrester Consulting on
behalf of EPiServer, April 2014
3
FIGURE 3
eCommerce Solutions Provide A Myriad Of Financial Benefits
“How much do you agree or disagree with the following statements?”
Average
improvement
Agree
Implementing eCommerce increased
our annual company revenue.
Implementing eCommerce drove
higher profitability per order.
Implementing eCommerce drove
lower cost per order.
Implementing eCommerce increased
our average order value.
89%
+55%
88%
+30%
84%
-28%
81%
+31%
Base: 100 US firms that have implemented B2B eCommerce solutions in the last seven years
Source: A commissioned study conducted by Forrester Consulting on behalf of EPiServer, April 2014
mobile devices, and even offline, eCommerce is clearly a
net contributor to revenue growth across all channels.
FIGURE 4
eCommerce Solutions Provide Substantial
Incremental Revenue For B2B Firms
“What percent of the revenue that your eCommerce
system books do you believe is incremental
revenue for the company?”
More than 50%
12%
40% to 49%
16%
30% to 39%
24%
20% to 29%
27%
10% to 9%
0% to 9%
Average:
31%
19%
2%
Base: 100 US firms that have implemented B2B eCommerce solutions in
the last seven years
Source: A commissioned study conducted by Forrester Consulting on
behalf of EPiServer, April 2014
4
SaaS/PaaS Provide A Path To Faster
And More Cost-Effective
Implementation
While the value of eCommerce solutions for selling to
businesses online is undeniable, many B2B companies balk
at the thought of a complex and costly implementation
process. We wanted to know how eCommerce is being
deployed today — how long it will take and how much
companies should expect to spend to implement their
eCommerce solutions. We found that eCommerce is most
often deployed as a hosted solution, and the average costs
and timelines varied based on company goals and company
size.
›
SaaS/hosted deployments are becoming more
popular relative to on-premises solutions. Forty-two
percent of survey respondents chose to deploy their
current eCommerce solution through the SaaS/PaaS
model, while 17% chose to host the solution on-premises
(see Figure 5). Companies are increasingly looking at
SaaS/PaaS as an option to get up and running quickly
and cost-effectively. For example, 39% of SaaS
implementations cost less than $1 million, compared to
only 10% of on-premises implementations (see Figure 6).
In addition, 41% of respondents deployed eCommerce
using a hybrid methodology. Hybrid models are becoming
more popular, as well, as they retain some of the flexibility
of a SaaS/PaaS solution (speed and cost) while at the
same time benefiting from the controls an on-premises
solution can offer.
FIGURE 5
B2B eCommerce Deployment Types
“How have you deployed your current core
eCommerce solution?”
Software-as-a-service (SaaS)/platformas-a-service (PaaS) (hosted offsite)
Hybrid (started SaaS, plan to
transition to on-premises)
42%
24%
17%
On-premises
Hybrid (started SaaS, transitioned
to on-premises)
Hybrid (started on-premises,
transitioning to SaaS)
Hybrid (started on-premises,
transitioned to SaaS)
8%
6%
3%
Base: 100 US firms that have implemented B2B eCommerce solutions in
the last seven years
Source: A commissioned study conducted by Forrester Consulting on
behalf of EPiServer, April 2014
›
Larger companies tend to deploy/transition to onpremises, but at a cost. We found that companies with
annual revenues higher than $1 billion were less likely to
deploy in a SaaS environment and more likely to
transition from a SaaS deployment to an on-premises one
(35% versus 24% overall). Transitioning off of SaaS/PaaS
to on premise can make economic sense at certain higher
scale points, but larger companies are still gravitating
toward on-premises models from the start in order to
FIGURE 6
eCommerce Solutions Provide A Myriad Of Financial Benefits
“How much did it cost to initially implement your current core eCommerce solution?”
More than $7,000,000
8%
$3,000,000 to $6,999,999
33%
$1,000,000 to $2,999,999
34%
$500,000 to $999,999
Less than $500,000
19%
39% of SaaS implementations
cost less than $1,000,000
(versus 10% for on-premises)
6%
Base: 100 US firms that have implemented B2B eCommerce solutions in the last seven years
Source: A commissioned study conducted by Forrester Consulting on behalf of EPiServer, April 2014
5
maintain control over their technology environment. Some
also harbor a largely unfounded fear that SaaS/PaaS
systems are less secure. At any rate, when large
companies choose on-premises solutions as a get-started
strategy, they often do so at the expense of time-tomarket considerations and initial cost savings.
right the first time is essential to a successful project. It’s
also equally important to map these goals and objectives
into a phased road map. Invariably, features will be
scoped into and out of the process, and a solid road map
with key milestones built in will ensure that the project
stays on a proper course to completion.
Best Practices For Implementing
B2B eCommerce
“[You] need to decide key business requirements
early. It can greatly reduce rework by making sure
processes are correctly diagramed at the
beginning.”
— Director of eCommerce, MRO supplier
It’s not always easy to stay on time and on budget on the
journey to a successful eCommerce implementation. In
speaking with decision-makers at B2B companies that have
successfully implemented eCommerce, several key themes
emerged as best practices. In order to successfully
implement eCommerce. B2B companies must (see Figure
7):
›
“Spend more time up front with mockups and
requirements. Do not underestimate the work you
need to do up front. It can make development
sprints shorter and make the solution behave the
way you want it to the first time.”
— IT solutions analyst, internal supplier for global
home goods retailer
Carefully define project goals and objectives.
According to our survey, the most critical factor to a
successful eCommerce implementation is to accurately
define the project goals and objectives (56%, 29% ranked
as most important). Getting the key project requirements
›
Involve internal and external users throughout the
implementation process. Forty-six percent of
respondents said that involving users throughout the
FIGURE 7
Factors For A Successful B2B eCommerce Implementation
“Which of the following factors was most critical to the successful
implementation of your core eCommerce solution?”
(Rank your top 3)
Rank 1
Rank 2
29%
Successfully defining goals and objectives
Involving users throughout the process to ensure
the solution would meet end user needs
Engaging a knowledgeable system
integrator/eCommerce consultant
12%
11%
14%
23%
11%
Obtaining executive buy-in/sponsorship
from key stakeholders 6%
Dedicating enough time to training 5%
16%
20%
Building a business case to justify the solution
Taking a phased approach to project rollout
Rank 3
11%
14%
12%
8%
13%
16%
Making a critical hire for background 3%5%3%
and experience
Base: 100 US firms that have implemented B2B eCommerce solutions in the last seven years
Source: A commissioned study conducted by Forrester Consulting on behalf of EPiServer, April 2014
56%
14%
46%
21%
46%
8%
14%
11%
Total
42%
39%
31%
29%
11%
6
process to ensure that the solution will meet end user
needs is critical to successfully implementing B2B
eCommerce. It is also important to remember that these
systems should be designed with end user involvement
from the start, building end user alpha and beta testing
into key development plans.
“Communication is key — visibility into the project
across the company is important because
eCommerce touches all aspects of the
organization.”
— Director eCommerce, large global manufacturer
“We added a lot of people to the discussion, which
took additional time. But if we didn’t have people at
the table from each department, it would have
resulted in more time-consuming development
cycles later on.”
— Director of eCommerce, MRO supplier
›
Engage with both insourced and outsourced experts.
Having a partner who is an expert in B2B environments,
as well as a veteran of large-scale implementations, is
essential to ensuring a successful project. Forty-six
percent of respondents said that engaging a
knowledgeable system integrator/eCommerce consultant
is critical to implementing B2B eCommerce. Furthermore,
54% of companies that were able to implement
eCommerce in less than one year ranked it as critical.
B2C experts have much wisdom to offer here, having
spent the better part of 10 years grappling with similar
implementation challenges. Where possible, leverage
these experts to reduce project risk factors and shorten
completion timelines.
“Having a partner that understands B2B and
eCommerce is needed. Experience working in B2B
projects is a must. When we send them business
requirements, we weren’t reinventing the wheel,
they had done projects like these in the past. They
are able to come back with suggestions and
improvements.”
— VP of eCommerce, global business supplies
distributor
“We were able to stay on time and on budget by
having an expert involved who has done this before
that was empowered to define scope. With lots of
experience with big projects they knew where the
pitfalls were and were able to navigate through
them.”
— Head of eBusiness, global biotech supplier
7
Key Recommendations
Time is the enemy. Inertia takes hold quickly in organizations and it’s easy to say “not now” to the idea that
eCommerce’s time has come. But the evidence is now clear. eCommerce is a positive contributor to the customer
engagement process and is inextricably linked to the future of the age of the customer. To be a leader in the space and
successful at standing up a world-class eCommerce platform, B2B companies must:
›
Make a long-term, strategic commitment to the space. For B2B companies, eCommerce is not just an
extension of the website; it often drives a business transformation. eCommerce will fundamentally change how
B2B companies acquire and retain their customers. As such, B2B executives must prepare to run a marathon
and not a sprint. They must expect to endure many short-run challenges in exchange for quantifiable long-run
benefits. Developing an eCommerce platform and hiring domain experts to run the eCommerce business
requires making a significant investment of time and energy in the space. Fortunately, technological advances
have made it possible to pay for such resources increasingly, at least initially, on an opex basis as opposed to
exclusively on a capex basis.
›
Get going now and produce results quickly. B2B customers are clamoring for eCommerce and the evidence
is clear that eCommerce produces incremental revenue, enhances profitability, and reduces costs. Companies
that wait risk falling exponentially farther behind and ceding ground to both pure-play B2B websites and
encroaching B2C players. According to our survey, 62% of B2B companies were able to implement eCommerce
in less than 12 months. With mature SaaS and PaaS solutions available now, B2B companies can and should
get up and running quickly and at a relatively low cost. It’s not necessary to build the perfect solution from day
one. Results drive investment, so get to getting results as expeditiously as possible and backfill with the less
critical pieces later.
›
Rethink traditional channel ecosystems and recalibrate for new opportunities. eCommerce is a relatively
new, but extremely important channel for B2B companies. After carefully reviewing existing channel relationships,
B2B companies may realize that old competitors are now new partners and old partners have quietly become
new competitors. Completing such an analysis can lead B2B companies to simplify channel complexity, which is
a good thing and will speed along eCommerce. Forrester’s research has shown that reducing channel complexity
often leads to faster implementation timelines. In addition, as we have seen in the consumer market, a unified,
multichannel experience drives higher customer satisfaction and loyalty.
›
Follow proven best practices and learn from those who have already made key mistakes. Take the time up
front to study how others in both B2C and B2B have approached the eCommerce challenge, keeping in mind that
eCommerce is a process and is never “done.” Enough time has passed in both realms for good and bad
examples to emerge and for B2B companies to borrow lessons learned. Chief among the mistakes to avoid is to
build an experience that works for the company first and the customer second. B2B companies that have
successfully implemented eCommerce reverse the proposition and build for empowered customers first —
keeping in mind that increasingly B2B customers want and expect a B2C-like unified and mobile-friendly
multichannel experience. Leverage consultants, customers, employees, and any/all experienced ecosystem
partners to avoid making costly and time-consuming errors.
8
Appendix A: Methodology
In this study, Forrester conducted an online survey of 100 B2B companies in the US to evaluate best practices in
implementing B2B eCommerce systems and metrics around those systems. Survey participants included decision-makers at
companies that have been selling direct to business partners online for more than three years that were personally
responsible for, or had knowledge of, the core eCommerce implementation process. A series of follow-up interviews was
conducted with a subset of these survey respondents, as well as with candidates provided by EPiServer. Respondents were
offered an incentive for participating in the interviews. The study began in March and was completed in April 2014.
Appendix B: Demographics/Data
FIGURE 8
Survey Demographics
“Using your best estimate,
how many employees work for your
firm/organization worldwide?”
20,000 or more employees
12%
5,000 to 19,999 employees
16%
31%
500 to 999 employees
30%
2 to 199 employees
Manager
22%
EVP, SVP, VP
34%
7%
4%
“Which of the following most
closely describes the department
you work in?”
Associate
2%
1,000 to 4,999 employees
200 to 499 employees
“Which title best describes
your position at your
organization?”
Director
42%
IT/development/
infrastructure
Business analysis/
analytics
59%
15%
12%
eCommerce
Project management
4%
Customer experience/
customer service
4%
Marketing
3%
Other (please specify) 1%
Sales 1%
Product management 1%
Base: 100 US firms that have implemented B2B eCommerce solutions in the last seven years
Source: A commissioned study conducted by Forrester Consulting on behalf of EPiServer, April 2014
9
FIGURE 9
Survey Demographics (Cont.)
“Which of the following most closely describes your
company’s total annual revenue?”
More than $5B
9%
More than 10 years
$1B to $5B
40%
$500M to $999M
$250M to $499M
$50M to $249M
“How long has your company been selling your
products and services online?”
27%
10%
14%
Less than $50M
Base: 100 US firms that have implemented B2B eCommerce solutions in the last seven years
Source: A commissioned study conducted by Forrester Consulting on behalf of EPiServer, April 2014
15%
6 to 10 years
3 to 5 years
52%
33%