For decades, many business-to-business (B2B) companies have been largely conservative and resistant to change, whether they are manufacturers, wholesalers, distributors, or business service providers.
Even though products and services have been completely transformed by the digital revolution operated by companies such as Amazon, Netflix, Airbnb or even Uber that have totally redefined the vision of the market and innovation, the customer still remains at the center of their concerns.
The existing B2B relationships have generally remained unchanged.
This is not to say that the B2B environment is not changing. New players have come along to shake up this ecosystem, and today they are enjoying great success.
These are usually the players who already have experience on the consumer side : Amazon and Alibaba with their market place or Airbnb with its professional offering.
However, many traditional players still haven't appreciated the magnitude of this change, and continue to think that it's only a matter of digitizing part of their processes while staying true to the same sales approaches.
According to investment bank RBC Capital Markets, Amazon's B2B business is on track to surpass $31 billion (€26 billion) in revenue out of $52 billion (€44 billion) in gross merchandise sales within three years.
How should companies that want to rethink themselves approach their digital transformation?
First and foremost, they need to redefine their approach and their sales channels while placing the customer experience at the heart of the business.
Traditional criteria such as price and functionality are becoming less important.
The customer experience has become THE decisive factor in a buying process.
It is far more complex than B2C, and it must be understood at two levels: the organization and the individual. Both levels have a significant impact on how companies continue or stop buying from their suppliers.
A good customer experience can be defined as one that speeds up and simplifies all stages of the buying process. It's an experience that removes friction, speeds up and facilitates the entire customer journey and buying process.
Here are some examples.
B2B relationships are not just about buying or selling. Some business processes are just as transactional but more complex.
Let's take the example of a business looking to take out a financial loan. The company Kabbage offers businesses access to a loan in minutes via a 100% online experience. This process avoids friction compared to the traditional way of doing business where several face-to-face meetings with a bank are required, followed by a minimum 20-day wait.
Many business-to-business processes are similar to this scenario and therefore could be easily improved with a relevant digitalized process. For example, it could be a company requesting an account to become an affiliate reseller with a wholesaler in a regulated industry (healthcare, financial product or food) or a company wanting to become a certified partner, and therefore having to go through a lengthy process.
Imagine how much faster and simpler their application could have been for these companies if it was done online ?
The Subscription models with streamlined and fast operations are key elements of a sustainable B2B relationship.
So, the company Café Royal Pro provides businesses with services for their coffee. They manufacture and supply coffee machines that are installed in their customers' homes, they also sell coffee capsules for these machines and they provide after sales service and logistics.
Thanks to a subscription system, which customers can change at any time directly on the website according to their needs, Café Royal Pro simplifies the purchasing process and their customers no longer fear running out of coffee!
Placing the organization's experience at the heart of the process has allowed Café Royal Pro to have greater customer loyalty, an increase in sales which has led them to position themselves as a leader in their market.
These days, buyers are empowered and seek out content online about products to learn more so they can make informed decisions.
This is the foundation of Content Marketing. Many detractors call it a "buzzword" and think it only applies to B2C. If you are one of those detractors, there is still time to change your mind!
Content marketing is not new, and it applies to both B2B and B2C.
The new thing is that now it's possible to combine your content marketing efforts with extremely actionable buying interactions by blending content and commerce into a single journey and experience.
This is achievable through technology that unifies the world of e-commerce and content management, increasing the value of content marketing.
These examples highlight the importance of customer experience for B2B buyers, and how it can make a difference and contribute to the success of B2B companies in their digital transformation.
This doesn't just apply to startups, but to all companies that are willing to change in order to remain competitive in their market.