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April 2013

2013 B2B Commerce Trends

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 2

Contents

§  Introduction 3

§  Methodology 4

§  Key Trends Summary 5

§  Findings 7

§  Summary 13

§  Appendix 14

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Introduction According to Forrester Research, B2B e-commerce sales are now more than twice the size of B2C e-commerce and are expected to achieve $559 billion in sales in the US by the end of 2013.1 Because of this growth, Oracle conducted our B2B Commerce Trends survey for the 3rd year in a row.2 Oracle surveyed 99 B2B e-commerce professionals across North America, Latin America, Europe, and Asia Pacific. The following data provides insight into the evolving nature of B2B commerce and highlights key trends and areas of investment for building an online presence.

1 “Building a World-Class B2B eCommerce Business” Forrester Research, January 7th, 2013 2 Oracle Endeca conducted B2B Commerce Surveys in 2011 and 2012

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Oracle to conducted online interviews with 99 B2B e-commerce professionals in December of 2012 and January of 2013. 68% of respondents reported being on the business team, 17% on the technology team, and 15% other.

Methodology

Company Business Model (selected all that apply): §  B2B: 64% §  B2B2C: 60% §  B2B2B: 18%

Company Revenue:

§  100M-500M: 62% §  500M-1B: 9% Company Region •  North America: 74% •  EMEA: 13% •  LAD: 3%

Company Industry: §  Consumer Goods: 30% §  High Tech: 10% §  Industrial: 7% §  Communications: 6% §  Electronics: 4% §  Office Supply: 4% §  Travel & Hospitality: 3% §  Chemical: 1% §  Medical: 1% §  Life Sciences: 1% §  Other: 33%

§  1B-3B: 10% §  3B and above: 19%

Sample Demographics

§  B2C: 9% §  B2E:: 9% §  B2G: 6%

§  APAC: 1% §  Global: 9%

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It is no longer enough to have just a presence online. Because every B2B customer is likely an online shopper, B2B organizations must embrace proven B2C commerce practices to deliver user-friendly and relevant commerce experiences. Additionally, because B2B organizations operate in a multi-channel, multi-currency, multilingual world, further complicated by massive product catalogs and custom contracts / pricing they must develop an underlying commerce infrastructure that will support the complexities unique to their business.

§  Online remains a growth opportunity for B2B §  28% of respondents said that they have over 50% of their revenue coming from the online channel

§  31% of respondents said direct sales are still driving most revenue but online is growing in importance

§  Only 5% of respondents predict no growth in their online business in 2013

§  Complexity remains a challenge with the majority of respondents dealing with product, pricing, channel, and back end complexity

§  B2C practices gain traction; drive revenue §  30% of respondents said that growing market share was top area of focus in 2012

§  80% of respondents agree that customer expectations have changed due to B2C/retail practices

§  Personalization, online catalogs, and SEO continue to be the top 3 B2C practices that influence revenue the most

Key Trends Driving B2B Commerce Success

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The continued growth of mobile devices and tablets brings new opportunities to enable sales teams and encourage e-commerce adoption rather than resistance. §  Mobile continues to be a driving force

§  26% of respondents said that mobile web / apps influence revenue the most

§  31% of respondents are investing in mobile in 2013

§  Only 9% of respondents said they have no plans for mobile at this time

Customer acquisition and retention are top success metrics in B2B commerce. Organizations must invest in both people and technology to deliver the best customer experience and meet their business objectives.

§  B2B organizations are investing in overall customer experience §  13% of respondents said that they focused most on investing in customer experience in 2012

§  57% of respondents said customer acquisition is a top metrics used to measure success and 42% said customer retention §  62% of respondents said they have a customer experience initiative in place and 25% plan to implement one in 2013. §  35% of respondents will invest in cross-channel integration and 34% in managing and leveraging product content. Both

important initiatives in improving customer experience.

Key Trends Driving B2B Commerce Success

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Online is still a growth opportunity for B2B §  Many organizations have established an online channel and the focus

in 2013 will be how to grow this channel to maximize revenue

Moving more customers online is key to B2B commerce success TAKE AWAY

28%

And … Respondents that have over 50% of revenue

coming from online channel 31% Said direct sales are driving most

of their revenue but online is growing in importance

5% See no growth in their

online business in 2013

And only …

8%#

33%#

9%#

21%#

28%#

What%percentage%of%your%business%comes%from%the%online%channel%(outside%of%EDI)?%

None#Less#than#5%#5220%#20250%#50%#and#above#

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Channel conflict could hinder online growth

41% 11% But there is good news … of respondents say

channel conflict is a slight concern

but necessary step

Say channel conflict is a big concern

but necessary step

Direct sales and e-commerce must work together to be successful TAKE AWAY

§  Over 50% of respondents are dealing with conflict between their direct sales and online channels.

35% Of the respondents that are NOT dealing with channel

conflict report 50% of revenue or above coming from online

channel*

1 Compared to 28% of total respondents that are reporting 50% of revenue or above is coming from online channel

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B2B organizations face multiple complexities

Select a commerce infrastructure that can support multiple complexities TAKE AWAY

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Product complexity

Pricing complexity

Channel complexity

Back-End complexity

None Other

Which of the following complexities in your business are you currently addressing?

§  Only 8% of respondents are not addressing B2B complexities

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B2C practices gain traction; drive revenue §  B2B organizations have embraced proven B2C practices as a way to

drive revenue and grow market share

Embracing B2C practices will drive revenue growth TAKE AWAY

1 Respondents were asked, if you had to pick one area, where did you most focus your efforts in 2012? 2 Mimics the top 3 B2C practices from Oracle’s 2012 B2B Commerce Survey

Personalization, online catalogs, and SEO continue

to be the top 3 B2C practices that influence

revenue the most2

80% of respondents agree

that customer expectations have

changed due to B2C/retail practices

Growing Market Share

30% Top Area of Focus:1

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Mobile continues to be a driving force §  For the second year in a row,1 mobile continues to be of strategic

importance for B2B e-commerce

1 Reference to mobile as a key trend in Oracle’s 2012 B2B Commerce Survey. 2 Respondents were asked, What top three consumer / B2C-like practices influence your revenue the most?

Only

31% of respondents are investing in mobile in 2013

9% Of respondents have no plans for mobile at this time

It’s more than just the mobile phone, think tablet as well TAKE AWAY

26% of respondents said that mobile web / apps influence revenue the most2

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B2B organizations are investing in overall customer experience §  B2B organizations are focusing on customer experience to help achieve

key success metrics such as customer acquisition and retention

Positive customer experience = Happy customer = Repeat business TAKE AWAY

B2B and Customer Experience

13% of respondents said they

focused most on investing in customer experience in 2012

42% Said that customer acquisition is a top metric to measure

success

57% Said that customer retention was a top metric to measure

success

62% Said they have a

customer experience program in place

25% Plan to implement a customer experience

program in 2013

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Summary The focus of B2B companies in 2012 was investing in commerce technology – in fact, over 80% of respondents from Oracle’s 2012 B2B E-Commerce survey said that they invested in their commerce platform in 2012. The new challenge for B2B e-commerce organizations in 2013 will be to grow their commerce channels to maximize revenue potential. Drive B2B commerce success in 2013 and beyond: 1.  Embrace proven B2C best practices such as personalization, online catalogs, and SEO 2.  Engage with the direct sales team when building online channels to overcome channel conflict 3.  Leverage mobile devices and tablets to better enable sales teams and encourage e-commerce

adoption rather than resistance 4.  Invest in commerce technologies that can support the complexities unique to B2B organizations 5.  Focus on the overall customer experience to drive customer acquisition and retention

Contact Us For more information about Oracle Commerce, visit www.oracle.com/commerce.