When B2B buyers want to go digital—and when they don’t
New
research indicates where to focus digital investments so that they will reap
rewards in online and face-to-face channels.
It was long held that B2B
customers would shun digital channels, explaining why many suppliers have been
slow to make significant investments in them. Wisdom had it that the products
and services purchased were just too complex. New research puts that claim to
rest, but it also makes clear that B2B suppliers cannot choose between a great
sales force and great digital assets and capabilities. To drive growth, they
need both. The research further suggests that companies should see their
initial digital investments as the glue that holds together a powerful multichannel
sales strategy.
The findings
We surveyed more than
1,000 buyers in four countries in a range of industries to identify their
preferences when dealing with suppliers. The responses showed that industry
sector is not a factor in buyers’ decisions to turn to a digital channel rather
than a traditional one when deciding what to buy. What determines the channel
of choice is whether or not the buyer is making a first-time purchase. As
Exhibit 1 shows, 76 percent of B2B buyers find it helpful to speak to a
salesperson when they are researching a new product or service. That figure
falls to around 50 percent for repeat purchases of products with new or
different specifications. And only 15 percent want to speak with a salesperson
when repurchasing exactly the same product or service, no matter whether it’s
the purchase of a router or, say, bulk commodity chemicals. There is also a
small group of people who are happy if they never speak with a sales
representative.
When it comes to
actually making a purchase, 46 percent of buyers say they would be willing to
buy from a supplier’s website if the option were available and the service
efficient. That compares with just 10 percent who make an online B2B purchase
today.
The importance of an
efficient service relates to the second finding: the way the experiences of B2B
buyers in the online consumer world has
influenced their expectations. Be they online or off, B2B buyers want an
immediate response. They want ease of use (the ability to find the information
they need effortlessly). And they want that information to be both accurate and
highly relevant to their particular needs, wherever they are on the customer decision journey.
Noteworthy too is how
often they are dissatisfied with suppliers’ current level of digital and
offline performance: some 46 percent of survey respondents said it was
difficult to compare products online accurately. They are frustrated that they
cannot complete a repeat order easily. And they grumble about the time it takes
to get a response when seeking help.
Indeed, slow response
times are by far the biggest frustration for buyers, bigger even than pricing
issues. Some 30 percent of buyers of industrial technology, for example, said
they preferred to buy from distributors because manufacturers’ sales
representatives took too long to get back to them. That is not to say that all
distributors outperform suppliers, but it illustrates how a slow response risks
lost sales. After the sale, the four most commonly identified pain points that
would prompt a buyer to consider an alternative supplier all relate to
suppliers’ lack of responsiveness .
The implications
The survey findings
suggest the need for two different sets of digital investments.
Customer-facing investments
The first set targets
those who are comfortable or even prefer being online, keeping them satisfied and loyal, speeding up the sale, and
encouraging them to spend more.
For instance,
comparison engines will help ensure buyers consider suppliers’ products and
services in initial searches and give them easy access to information.
Click-to-chat support on company websites will offer buyers the assistance they
expect around the clock. And automatic email reminders will drive repeat
purchases. (Half of all B2B buyers rely on sellers to remind them when to
reorder, according to our survey, but many sellers disappoint.)
Some companies provide
direct online sales, perhaps with an automated next-product-to-buy engine based
on customer-transaction data. An advanced-materials and -machinery company we
know tripled market revenue growth in this way. Direct sales are not an option
for all, yet even those suppliers that sell indirectly will have to work with
distribution partners to facilitate online purchases if growth is their goal.
Whatever the
functionality, it will have to meet expectations for speed set in the B2C
world. “There’s no sense having an e-chat function that I have to wait in a
15-minute queue to use,” one buyer told us. “I want it now, or I’m logging out
and going elsewhere.”
Sales-force investments
The overwhelming
majority of buyers told us they still want the prompt attention and expertise
of a salesperson when making decisions about first-time purchases. Investments
in digital assets will indirectly help the sales force meet those needs,
freeing them up from dealing with routine inquiries (when customers don’t want
to talk to them anyway). Instead, they can devote time to helping customers
with more complex buying needs, as well as seeking out new customers. However,
a second set of digital investments will help the sales force directly.
Relatively simple
customer-relationship-management tools can track customers’ previous questions
and help anticipate needs. Virtual product demonstrations on a browser or
tablet (when visiting a buyer) will assist in a sale. Customer-segmentation and
value-proposition engines help sales representatives build tailored offers in
the field that quantify the value for the customer. And as in the online world,
advanced analytics can prompt buy recommendations. They can even feed sales
representatives with real-time information on how to price an offer based on an
analysis of deals other salespeople in the company have closed.
This is just the start.
Suppliers’ digital strategies will have to change in line with evolving
customer preferences. But it makes sense for them to cut their teeth in the
digital world with investments that reflect customers’ current preferences and
expectations.
By Christopher Angevine, Candace Lun Plotkin,
and Jennifer StanleyMcKinsey Quarterly August 2017
http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/when-b2b-buyers-want-to-go-digital-and-when-they-dont?cid=other-eml-alt-mkq-mck-oth-1708&hlkid=20d087804f4c43afa4d833c2b0466561&hctky=1627601&hdpid=230fe595-b7c5-4fe0-8a8b-61eb1dc6eb72
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