Admittedly, the story of the digitisation of retail has been going on for a few years now and has fundamentally changed the buying behaviour and expectations of consumers in the B2C sector. However, sales processes in the B2B sector have been much slower to change. Here, fax machines often still creak, and ordering by e-mail is already considered high-tech. Yet it is precisely this reluctance that often costs companies a great deal of revenue.
In this article, we look at the changes taking place in B2B sales and how you can optimise your own processes.
Read more: B2B with Shopify - How JAN'N'JUNE does it
For Anglophiles: This is the difference between B2C and B2B
If you find yourself struggling with neologisms, here are the two buzzwords of this article:
B2C: B2C stands for business-to-consumer, also known as business-to-business, and refers to the sale of goods or services by a company directly to consumers.
B2B: B2B is the abbreviation for business-to-business. It refers to a business relationship between two companies that is governed by a contract for the exchange of goods or services for money.
Read more: Internationalisation - How to make cross-border trade work
The millennials are out: Why B2B sales are in flux
All uncertainties removed? Then let's get straight to the point: What is going wrong in B2B sales that old methods are increasingly proving to be unproductive, if not downright sales killers?
In a nutshell: A generational change is to blame. In more and more companies, successors from Generation Y, born between 1981 and 1996, are taking over. According to market research institute Forrester Research, 73 per cent of all B2B purchasing decisions are now made by millennials. And as you know, they were there when the Internet entered every household, and although they may not have learned to shop online with their mother's milk, they certainly learned it from their teenage years. As a result, they are unfamiliar with the idea of concluding a transaction with a handshake. They want streamlined, digital processes without tiresome communication and lots of paper.
The bottom line: 90 per cent of entrepreneurs (study, Wunderman Thompson) would like to see a customer journey for their B2B business that is similar to the one they know from the B2C world: digital, online, straightforward, self-service, attractive. Other forms have a deterrent effect and are deliberately avoided.
But what exactly does this mean for B2B sales?
Methodology: The impact of digitalisation on B2B distribution strategies
First and foremost, the changing requirements of B2B trading mean that you need to rethink your sales strategies, because the customer acquisition methods you learned in Business 101 at university have a completely different meaning today than they did a few years ago.
The most important methods in sales strategy are:
Cold calling
Good old-fashioned cold calling. Your marketing department uses a (digital) industry book to compile a list of companies that might be interested in what you have to offer. Then it is up to your sales people to make an appointment - in person, on the phone or by e-mail - and present your products with the aim of signing a contract. This may sound a little old-fashioned at first, but prospecting is still a tried and tested way of establishing yourself in new markets or market segments. If you are also expanding your product portfolio or expanding into a new region, your sales force should pick up the phone.
Trade fairs
A compressed version of the trade fair: Trade shows are still one of the best ways to make contacts and close deals. With the digital difference that your sales force books its appointments online. The big trade shows in your industry should still be a regular part of your calendar in 202x. Having your own stand attracts attention and creates brand awareness; a personal tour of the exhibition shows presence and builds trust with buyers.
Print media
Of course, we are not talking about advertising in the tabloids, but in the trade magazines of your industry. These are still widely and regularly read by certain professional groups: Doctors and pharmacists, as well as the aerospace industry, use print to keep abreast of the latest developments and research. Advertisements here not only have a high degree of seriousness. Above all, they are seen by almost 100% of your target group. If there are trade publications for your industry, you should not neglect to advertise in them - even in the digital edition.
Pull marketing
Pull marketing (or inbound marketing) is one of the most charming forms of marketing because it gives you the chance to create real value for your B2B customers. The idea behind it: Attract potential buyers to your website with fresh, informative or exciting content about your products. If your blog post or video excites your visitors, they will be more likely to do business with you. Remember, however, that in the B2B sector it is rare for the buyer to be the expert. This means: The buyer of an engine manufacturer probably has a commercial training or a BWL degree. He is not an engineer. Don't get too technical either, and always keep the target group in mind.
Social Selling
Our most recent B2B sales strategy is not to be found in any textbook: social selling. By this we mean the company's own presence in the social media in order to get in touch with potential customers, build up a relationship with them and thus generate leads. Something we often forget: Behind every company, even on LinkedIn and Co. are people. If you are present and active on social media, you will soon - thanks to big data - appear in the feeds of potential customers. According to Statista, 95.8 percent of B2B companies use social media in some way.
They in turn have the opportunity to contact you directly via the platform. If the buyer of an interested company then contacts you, you not only have a personal contact, but also the immediate opportunity to build a personal relationship with her. Social media platforms are the ideal breeding ground for this. A friendly mention of the new collection here, a birthday greeting there, and the trust is there. LinkedIn, Facebook and Instagram should therefore be part of your B2B sales strategy.
Read more: Internationalisation strategies in e-commerce - these tools bring more growth
B2C-ification: What B2B customers expect from their purchases
But your sales strategies are only half the battle. They have to persuade companies to buy from you. The next step is to close the deal and close the sale. We remember: Millennials want the B2B shopping experience to be similar to the B2C shopping experience.
What this means for you: A B2C online shop that is as good as your B2B shop in terms of usability and look & feel is no longer a special service, but is simply expected by most buyers. For the perfect B2B customer journey, however, there are a few aspects of your shop that need special attention:
#1 Personalisation
According to McKinsey, a B2B shop that can be tailored to the personal needs of its visitors generates up to 40 per cent more revenue. A personalised shopping experience includes
Customisable product catalogue: Not every customer is interested in your entire product range. If you give them the ability to customise and hide categories, they will find the items they want much faster.
Language and currency: Potential buyers in the B2B sector come from all over the world. If you can welcome them to your shop in a language they understand and save them the hassle of currency conversion, they will appreciate it. At least English and a price in dollars should be there.
Product Reviews: What works in B2C also works in B2B: product reviews by buyers create transparency and trust - especially if you thank them for good reviews and respond to bad ones in a personal and helpful way.
Branding: Personalisation also works in reverse. In other words, you should not do without your personal branding in your B2B shop, B2B app or B2B return portal. Having your logo prominently displayed on the site not only makes it more recognisable, it also builds trust for your users.
#2 Self Service
It is also important for your success that your B2B customers are able to complete their purchases as quickly and easily as possible, and that they do not have to contact your customer service department if they encounter minor problems. So pay attention:
Automated quantity discounts: In B2B trading, the motto is: If you buy more, you get a discount. But your buyers should not have to ask for this discount. It is much more elegant to integrate it automatically into your shop. A small note such as "Only 60 shirts left for 10% off" can also be very sales-boosting.
Easy to reorder: B2B orders are often repeat orders. Someone who ordered 200kg of coffee beans in the first quarter of the year will probably want to do the same in the second quarter. Offer your visitors the option to save their order to save them unnecessary work.
Card Vault: The same goes for payment information. No one wants to have to re-enter their card number. For security reasons, however, it is usually not stored. This is where vaulting (from vault: bunker) comes in: between purchases, the card details are encrypted and stored in a safe place, and are automatically added to the next time you make a purchase.
Editable customer data: In B2C it is common, in B2B it is not: the simple change of contact details. For example, the delivery address of a company can change, or the email address of a buyer can change. Do not put any obstacles in the way of your customers, but allow them to edit their details quickly and easily.
#3 Other must-haves
Aspects that can neither be attributed to personalisation nor to self-service, but which add real value to your B2B shop, can be found here:
Payment terms between two companies are often much longer than between end customers and companies. 60 days and more are not uncommon. So that buyers do not get into arrears through no fault of their own, or so that you do not have to chase your money, automated payment reminders are a popular option.
APIs to external service providers are important in the B2C sector, and almost indispensable in the B2B sector. If you receive a large order for 5,000 mattresses to be shipped to Japan, you are unlikely to pack the parcels yourself and send them to the post office. If your shop is able to route the order through your ERP system, update the warehouse and inform the accounts department, everyone wins. Interfaces to other software are gold in B2B.
Easy to implement: The biggest hook at the end: The most beautiful B2B shop is of no use to you if it is not synchronised with your B2C shop or if you have to invest tens of thousands of euros every month. A one-stop solution is ideal - also in the interests of your B2B customers, who often prefer to find a business portal under your own shop URL rather than having to go to a cryptic web address such as www.meinshopb2b.com.
The B2B solution of choice: Shopify Plus
The question remains as to how you can most easily find a B2B shop that offers everything we have listed. Our suggestion: A B2B shop via Shopify Plus, because the shop system has been constantly expanding its B2B offering over the last few years and months.
There are two options here: a dedicated B2B shop or a mixed shop. At first glance, they are not very different. They both offer around
- B2B payment terms as for net pricing
- View and configure product catalogues
- a B2B checkout with additional information
- a comparison of stock levels between B2B and B2C shops
The differences are mainly in the detail and are worth a closer look.
Dedicated B2B store
This is an extension shop which can only be visited by B2B customers who have previously registered with you. The clear separation from B2B has both advantages and disadvantages:
Advantages
- Wholesale discounts can be implemented via Shopify scripts
- Analysis reports contain B2B data only
- Customise themes and shop navigation
- Content of emails, such as shopping basket abandonment, can be customised for B2B customers
- Mailing preferences and pricing for bulk mailers
Disadvantages
- Double management of the shop
- Shop content needs to be re-created
- Potential additional costs of apps for two stores
Mixed Shop
A mixed shop allows consumers and business customers to shop from a single URL. Business customers only have to log in via a account to get net prices or to be able to select larger order quantities, for example. There are advantages and disadvantages:
Advantages
- One URL for all customers
- No duplication of content
- No additional costs for apps
Disadvantages
- Discounts for merchants only: are not available via Shopify Scripts
- Analysis reports include both B2B and B2C data.
- Customer emails are identical in content for B2B and B2C
- Sending settings and tariffs for B2B and B2C customers are identical
The updates for B2B businesses with Shopify Editions
It should not go unmentioned at this point that Shopify is currently working hard on the functionality of its mixed shops. In the Shopify Summer Editions 2023, the following new features were introduced:
Volume pricing: Volume discounts on large orders have been limited in mixed shops using apps. This option is now available natively.
Store personalisation: Previously, the look and feel of the B2B section of the mixed shop could only be customised with a great deal of effort. This is now much easier and requires no programming.
Quick order lists: Product variations, such as different colours and sizes, can now be easily ordered via lists and no longer need to be placed in the shopping basket one by one.
PayPal payments: PayPal has been fully integrated as a payment option for business customers. PayPal is also available for the payment of invoices.
Card Vault: Vaulting is also available for the mixed shop. Repeat customers do not have to re-enter their card details if they choose this option.
Which B2B shop for which company?
Which is better, a dedicated B2B shop or a mixed shop? If you read our articles regularly, you already know the answer: it depends.
The mixed shop is particularly interesting for companies that see their B2B area as a second pillar alongside their B2C sales. Here, order volumes can be realised that are higher than those ordered by consumers, but which have not really been classified as wholesale until now. The fact that B2B customers are offered roughly the same delivery options as B2C customers is of little relevance here. Nor is the fact that the content of the e-mails does not differ according to the type of customer. On the contrary, a personal tone can even be trust-building here.
The dedicated B2B shop, on the other hand, is the right choice for companies that generate the majority of their sales through cooperation with B2B business partners and simply want to allow end customers to buy directly from the manufacturer. This is where the advantages of a dedicated B2B shop come into their own: Fulfilment is hardly possible without the company's own dispatch options, an e-mail should sound as professional as possible in terms of content and sometimes also in terms of form, and analysis data contributes significantly to strategy development.
In a nutshell: B2B sales strategies in six sentences
And that puts you in the picture: B2B via fax is no longer in demand. Too slow, too cumbersome, too impersonal. What your customers want is a B2B shop with the ease of use of a B2C shop. So start by choosing the right sales strategies for you to generate leads, and then invite your business customers to your Shopify Plus B2B shop. Once there, persuade them to make a purchase by fulfilling all their requirements. Take a look at our detailed list to see what you can do, and whether you choose a dedicated or mixed shop will largely depend on your sales strategy.
If you need help with implementation or in-depth advice on how to optimise your B2B sales processes, please contact us. We look forward to hearing from you.
