2019 NA Seal Distributor MeetingMarketing & Tools Breakout Session

Jody Drap & Tom BennettOctober 2019

Digital Customer Experience (CX) Roadmap

Virtual Plant

Ecommerce

1

4

5

Configuration & Quoting (DistributorConnect)

3

Partner Communities2

Marketing & Tools BreakoutAgenda

Questions & Feedback6

Dnet + EISOur first distributor portal & webstore

FAEPFluid Application & Engineering Tools

Partner Community +Virtual Plant + LMSSalesforce.com Community will bundle the distributor experience and better connect you to your Flowserve team

Enterprise CXA fully Integrated Solution across the Flowserve Pure Play including Community + Enterprise CPQ + eCommerce

Coming in 2020Distributor ConnectSeal Configuration& Quoting

eCommerceEvolution of our commerce platform to Store.flowserve.com

Seal Failure AppMobile App to help diagnose Seal Failures

https://www.flowserve.com/en/go-digital-new-flowserve-app

Support Cases

Partner and Customer

Deal Registration

Lead Gen and Opportunities

Marketing (MDF)

Fund Requests and Claims

Community Collaboration/Learning

Knowledge Base, Collateral, Ideas/Questions

Channel Plans Objectives & Metrics

Training and

Certification

Accreditation &

Rebates

Business Process Management

Automated Approvals + Notifications

Special Pricing/Delivery

Distributor ForecastChat

COMMERCE

Order Status, Docs & History

Inventory Availability

Product Selection

Configure to Order

ERP Integration

Quoting

Engineer to Order

Build to Order

External Inventory

Resource Centers

Real-time, collaborative platform

COMMUNITY

CPQOpportunity

Management

Account

PlanningForecasting

Contacts

Projects

LeadsChatter Configure, Price & Quote

Quote to Order

Seamless Quoting & Ordering

CRM

Webstore

Dashboard

Partner Portal

Marketing & Tools BreakoutCustomer Experience Roadmap

Marketing & Tools BreakoutThe Partner Community

• Account Request/ Approval via Flowforceand contact creation

• Content sharing (Resource Centers) profile will determine content access

• Promotional Banners and Scrolling Communications

• Chatter• Lead Assignment through Salesedge• Manage Opportunities• Case Management – Ticketing/ Requests• Virtual Plant

• Single Sign on with CPQ + Ecommerce• Commercial Intensity Account plans• Chat• RFQ Routing• Marketing Tools Request Co-marketing

approvals• Sales and Marketing Planning• Training ( Access to LMS )• Access Order History• Search Installed Base• Search Drawings

• Knowledge Base• Inventory Management• My Performance (Dashboards, KPIs

and Reporting)• Invoice tracking• Rebate Management• Forecasting• Service

Marketing & Tools BreakoutVirtual Plant

▪ Virtual Plant:

https://virtualplant.flowserve.com

Changing Populations –Aging Workforce

Our core Customer is changing… and fast. Flowserve must adapt to new norms to take advantage of growth opportunities

Customer Persona Demographics Challenges How we can help

End User Very Technical, Worried for Job,

More with Less, Xfer’s risk to

Vendors, Forces cost reductions

on Vendors

2015:

GenX / Baby Boomer

2020:

Millennial / GenX

Graying out and loosing expertise

Depends on Suppliers for guidance,

but mostly exhibit NIH attitude

Tremendous pressure to reduce cost

Greater pressure to increase output

• Application Responsibility

• End Users Representative

• EFA’s to Reduce

Transactional Costs

• Expertise embedded in

digital

Engineer

Procure

Construct

(EPC)

Partially Technical, Very worried

for Job, MUCH more with less,

Forces Risk, Performance & Cost

pressure to suppliers

2015:

Millennial / GenX

2020:

Millennial / Fewer

GenX

Stuck in the vice between User &

Vendor

Expect Vendor to pick up cost + margin

losses

Loosing expertise at alarming rate

Technology demands increasing

• Application Responsibility

• LCC supply facilitator

• Selects ‘right tool for right

job’

• Resident Engineering

• Technology Facilitator

Channel

Partner

Nominally Technical, Very worried

for Job , MUCH more with Much

less but paid for performance,

Xfer’s Risk + margin expectations +

Cost pressure to suppliers

2015:

Millennial / Some

GenX

2020:

Mostly Millennial

Totally ‘Grayed out’ at the coal face.

Lacks application expertise, relies on

Supplier, Technical Sale important but

not vested, Relationship selling not

important, Depends on Supplier for

considerable support.

• Partner rather than

Customer

• Excellent support

• Lead Gen, Project Pursuit,

Execution

Aging workforce & impending lack of expertise In the past 2 to 3 years B2B Procurement has undergone a dramatic shift towards Millennial’s, and the trend will continue

• Growing ~ 70%, to nearly double the FLS Sales Force

• Typically ~ half the age of the average FLS Sales person

• Typically ~ one third the experience of FLS Sales person

However,

• Typically MUCH more digitally savvy – Digital Generation

• Vastly prefers digital communication

• Much more likely to use technology to solve problems, rather than relationships

• 91% likely to researched on the internet, most likely on a phone

• Typically MUCH more educated (with associated debt)

• 64% more likely to be the ‘Final Decision Maker”, rather than “Heavy Influencer” (22%)

Presents a risk and opportunity to understand and accommodate

• Recommendations

• Position for growth in Non-OECD locations – build out installed base to feed AM.

• Lead the wave by building out ‘Go-to’ capacity, competency, capability. Embed this capability in Digital.

• Reposition products and solutions to drive position in Liquids, Cryo, Upstream & Transport

• Opportunities

• Digital becomes the enabler to mitigate knowledge drain.

• Become the ‘Go-to’ provider of IP, Support, Technology

• Our future is based in Non-OECD locations

Expertise at Risk Within 10 Years

• > 44% of the expertise is at risk

• > 2481 years of expertise will exit the company

In Engineering & Sales

• > 18% of the headcount will reach retirement age

• > 41% of the expertise is at risk

• > 4307 years of expertise will exit the company

In Engineering

• > 16% of the headcount will reach retirement age

Application Selling Guides

Next Steps for Future ASG’• VOC for next generation Virtual Plants completed• Long list of priorities staged and ready• All Industries Included:

• Oil & Gas• Chemical• General Industry• Water Resources

Released ASG’s

ASG’s Status Status Action Next Priorities In Process• LNG• EthyleneNext Generation:• Propylene• Methanol• Pulp & Paper

Based on Sales Feedback:• HDPE/LLDPE• Fertilizers• Mono Ethylene Glycol• Many More

Current & Functioning – Operational Plants

VirtualPlant is an environment that provides an understanding of the Customer reality. With process understanding, guided product selection (with support tools – Why Flowserve?, Customer Challenges and Competitor Positioning), and direct access to collateral, technical information, sales tools, and training. All in a single location.

Process knowledge & understanding

Guided product selection by process unit

VirtualPlant

VirtualPlant Program:• Visual view of Customers’ Process, with key

products and services • Multiple use cases: internal & 3rd party Sales,

flowserve.com and the Public• Delivers content just-in-time• Core to sales certification model• Single location for all critical sales tools

Public and Secure Versions• Release Plans for ‘virtualplant.flowserve.com

• Page on flowserve.com

• In Support & Resources

• Banner Advertisement for the new site

• First introduced to the North American Seal

Distributors

• External Secure Version

• Promo write up with focused high points:

• Learning opportunity

• Product application

• Customer Process Description

• Flowserve experience

• How can Flowserve help you

• Lure in potential new customers

• Train Flowserve Customers and Partners

Plant Processes

▪ Each plant has unique units

▪ Each unit can be accessed by

name or location

▪ Each unit has a unique description

of the function for the operation

▪ Drilling into the unit adds product

insight

Flowserve Applicable Products

▪ Products are segregated within each plant

unit

▪ All applicable products are shown

▪ Each product offers a mix of supporting

collateral:

▪ Marketing Literature

▪ Technical Literature

▪ Videos

▪ Images

▪ User Instructions

▪ Training

Customer Needs & Recognizing Competitive Threats

▪ What drives the customer

▪ Insights by customer persona

▪ Competition conversations are

included in each of plants by unit

▪ Conversations are for awareness

▪ Preparations for addressing the

situation before entering the plant

Social Media Schedule

▪ Public Version of VirtualPlant at https://virtualplant.flowserve.com

▪ Promoted on LinkedIn, Twitter and Facebook

▪ Schedule:

▪ Conventional Steam, August 1

▪ CTO/MTO, August 12

▪ Combined Cycle Power, August 26

▪ Desalination, September 16

▪ Palm Oil, September 30

▪ Concentrated Solar Power, October 14

▪ Pharmaceutical, October 28

VirtualPlant Contents

▪ VirtualPlant content summary

▪ 11 Plants

▪ 59 Units

▪ Total Products represented: 195

▪ 75 Pumps

▪ 60 Valves

▪ 44 Seals

▪ 8 Actuators

▪ 8 miscellaneous products

▪ Literature contents: ~ 975

Marketing & Tools BreakoutConfiguration & Quoting

DistributorConnect

▪ DistributorConnect:

https://flowserve.bigmachines.com

▪ Released to a pilot group ( Montana Seals, Allied

Sales and Seal Solutions) yesterday

▪ Full production release to approved distributors is

planned by early November timeframe

Marketing & Tools BreakoutConfiguration & Quoting

1 Click “New Quote” or open your “Quote List” to access or change existing quotes

2 Click “Add Items”

Marketing & Tools BreakoutConfiguration & Quoting

3 Use “Find a part” for standard part number items

Use the Config Selector for Configurable Seals4

Marketing & Tools BreakoutConfiguration & Quoting

5 Select Options and click “add to quote” for new items or “save” for changes to existing items

Marketing & Tools BreakoutConfiguration & Quoting

6 Select “Update Price” then “View Generate Quote”

New users can self register. Enter your company’s unique “ecommerce access key”

Questions : Contact your company administrator, your Flowserve Sales contact or

ecommerce@flowserve.com

Visit the new Flowserve ecommerce website @ http://store.flowserve.com

Login if you have an account. Your username is your email address. Click the forget password button if you need to reset.

How do I get Access?

Marketing & Tools BreakouteCommerce

▪ Ecommerce: http://store.flowserve.com

Store HighlightsHomepage

✓ Assign a company administrator to manage your accounts by using the Admin module under “My Profile” in top right corner

✓ Use the “Account” drop down menu to access different contracts and pricing based on customer or product family. Toggle between buy resell , commission and alliance price contracts.

✓ Dashboard View of open carts, lists and order history

✓ Build / Request a Quote Feature enables Configure to Order for product (where applicable)

Store HighlightsOrder Status

✓ Check the status of your order history (search your “web orders” or “all orders” that you have placed). Track the shipment status click the tracking ID hyperlink

Store HighlightsParts Search

✓ Search by Key word, description or part number

✓ Use Facets to filter down options

✓ Type ahead feature offers up potential matches as you enter part number data

✓ Search by Part Number

✓ Click on BOM to get the details

✓ Add items to cart from BOM view

✓ Export Bill of Material to excel or pdf document

✓ Check Availability

Store HighlightsBOM Search

1

2

Store HighlightsQuick Configure to Order

3

4

Store HighlightsQuick Configure to Order

Store HighlightsShopping Cart/ Pricing

✓ Add items to your cart. Save as a list to purchase later

✓ Add tag numbers, item or order notes

✓ Check expedite flag to request improved delivery

Store HighlightsResource Centers

✓ Access secure Technical Support Information in Resource Center

Parts Finder 2D or 3D Product Visualization

PARTS FINDER DRAWING

Store HighlightsParts Finder (future release)

Thank You

▪ Ecommerce: http://store.flowserve.com

▪ DistributorConnect: https://flowserve.bigmachines.com

▪ Virtual Plant: https://virtualplant.flowserve.com

Questions & Comments