5 disruptive online trends - no independent distributor can afford to ignore
TRANSCRIPT
5 DISRUPTIVE Online Trends
No Independent Distributor Can Afford To Ignore
5 Disruptive Trends
B2B buyers care less about your sales reps… and more about their online experience with you.
Trend #1
5 Disruptive Trends
B2B Buyer Insights
๏ 1/2 say having a catalog and having a sales representative are less important to their supplier
decisions than a quality website
Buyer’s Actions Have Taken a Noticeable Turn
๏ 1/2 of buyers spend most of
their budgets online
Source: UPS “B2B Purchasing Insights” April 2014
5 Disruptive Trends
The Millennials are Here
๏ Nearly 1/2 of all B2B Buyers are Now Millennials
Source: Google / Millward Brown Digital, B2B Path to Purchase Study, 2014.
๏ Millennials have Never Known Life Without a Computer
And are making business decisions
5 Disruptive Trends
93% say they prefer buying online when they’ve already decided what to buy
Late Breaking Forrester ResearchApril 2015
74% of B2B buyers say buying from an e-commerce site is more convenient than buying from a sales rep
74%26%
0
25
50
75
100
Prefer Ordering Online
Prefer Online Buying Convenience
Source: Forrester Research , Death of a (B2B) Salesman, April 2015
5 Disruptive Trends
Death of a (B2B) SalesmanOnline Ordering is Displacing Reps
๏ 1,000,000 B2B Sales Reps Will Lose their Jobs to Ecommerce by 2020
Source: Forrester Research , Death of a (B2B) Salesman, April 2015
๏ Order Takers for Commodity Products are Most Likely to Lose their Jobs
5 Disruptive Trends
๏ Your online customer relationships will trump your personal relationships so you better have a strong online position. !
๏ Your online success will be a critical determinant to your future success
Trend #1 Business Ramifications
5 Disruptive Trends
Mobile is swallowing the world… and that includes all of your customers
Trend #2
5 Disruptive Trends
Mobile has Changed the World
2005 - St. Peter’s Square
2013 - Vatican Balcony
Pope John Paul II’s Public Viewing
Pope Francis’s Inaugural Appearance
2007
B2B Online Insights
Mobile & Business
Your customers are Always On Always Connected
5 Disruptive Trends
Mcommerce is Heating Up
US Mcommerce grew 36% in 2014 and is now 19% of total ecommerce sales
Source: eMarketer.com
5 Disruptive Trends
๏ Mobile devices have become a human appendage. !
๏ Customers will openly engage in new mobile experiences and shift to mobile solutions that make their jobs more effective. !
๏ Business that don’t have a mobile strategy will lose business to those that do.
Trend #2 Business Ramifications
5 Disruptive Trends
Email marketing is driving sales… and customer loyalty.
Trend #3
5 Disruptive Trends
Source: Marketing Sherpa “Ecommerce Benchmark Study” 2014
Channels That GenerateTraffic
Email is The Most Valuable Tools in Driving Traffic
5 Disruptive Trends
Email Marketing is King of ROI
Source: Direct Marketing Association
Of all marketing tactics, email delivers the highest ROI
$44RETURN ON INVESTMENT
5 Disruptive Trends
Email Marketing is About Tailored Content
๏ Relevant !
๏ Useful !
๏ Timely
Think customer job role and personal interests
5 Disruptive Trends
๏ Customers will become harder to reach without using online tactics. !
๏ Distributors without an online relationship with their customers will lose them to companies that do.
Trend #3 Business Ramifications
5 Disruptive Trends
Your major competitors are killing it online… and piling on the investments.
Trend #4
5 Disruptive Trends
Among the Online Leaders
5 Disruptive Trends
US Distributor Ecommerce Sales
Source: Statista 2015
2013 Industry Benchmark: 20% Of Total Sales
Percentage of total revenue
B2B Online Insights
“E-commerce up 26% and accounts for
all of it’s 8.4% Q2 sales growth”
“E-commerce up 15% and provided all
of its 7.8% increase in fiscal first quarter sales”
MSC’s Online SuccessOnline sales tracking $1.6B - now 55% of revenue
Q1
Q2
5 Disruptive Trends
Grainger’s Online SuccessOnline sales tracking over $3B
๏ E-commerce is Grainger’s fastest-growing sales avenue !
๏ 450 engineers and developers !
๏ Thinking beyond MRO to become a top ecomm destination
5 Disruptive Trends
Competitive Mobile InnovationsGrainger’s Live Chat with Photo Sharing
“Overall, 14% of Grainger’s traffic now comes from mobile devices, a number that
continues to grow.“
Jim Ryan, CEO
5 Disruptive Trends
What Customers ExperienceWebsites designed for instant buying
5 Disruptive Trends
What Customers Experience on MobileMobile web sites designed for instant buying
5 Disruptive Trends
๏ Aggressive financial Investments
๏ Investments in Mobile
๏ Websites designed for Buying
๏ Immediate Credit Card purchases
Common Online Actions
5 Disruptive Trends
๏Because of their ongoing success, the national players will continue to drive their online investments
!
๏ Independents must provide an “on-par” buying experience or die on the digital battlefield.
Trend #4 Business Ramifications
5 Disruptive Trends
Most independents are getting misguided developer advise… and getting further behind.
Trend #5
B2B Online Insights
How are the Independents Doing?
๏ Over 50% of independent’s online sales are less than 5% of total revenue
๏73% of independents are below the 20% industry benchmark for online sales
Source: Media Frenzy Global, 2014
5 Disruptive Trends
Web Design Comparison
It’s all about
Buying
vs !
It’s all about Not
Buying
Leaders vs. Independents
5 Disruptive Trends
What Independents are Doing in MobileLeaving their mobile customers to competitors
๏ Mobile sites Aren’t Legible
5 Disruptive Trends
Mobile Comparison
It’s all about
Buying
Leaders vs. Independents
vs. !
It’s all about Not Buying
5 Disruptive Trends
Developers can’t provide you good guidance when their focus is on “amazing websites” & “your Brand” but they lack intimate B2B knowledge… !
๏ about your business ๏ about your customers ๏ about what your competitors are doing ๏ about other key market and technology trends
Trend #5 Business Ramifications
6 Disruptive Trends
5DISRUPTIVE
Trend #1 B2B Buyers will care less about your sales reps
Trend #2 Mobile is swallowing the world and your customers
Trend #3 Email Marketing is driving the highest ROI
Trend #4 Your major competitors are killing it with their online sales
Trend #5 Independents are getting misguided developer advise
Online Trends
5 Disruptive Trends
The independent’s
Where to Start? What to Do?
Dilemma
5 Disruptive Trends
๏ Lacking technical knowledge !
๏ Lacking internal resources !
๏ Limited cash !
๏ Lacking good developer advise
There’s Lots of Non-Starters
5 Disruptive Trends
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