More and more industrial companies are noticing that the old analogue sales channels no longer meet the requirements of today. What does the future of B2B trade look like? We talked about it with Sebastian Maurer, the founder and managing director of digital.manufaktur.
In the private sector, online trading is becoming more important year after year, and various B2C brands were the pioneers in digital sales. The industry, on the other hand, did not deal with this topic for a long time. That has changed. Inquiries for digital solutions for sales have been increasing for several years. Many industrial companies are under increasing pressure because their analogue sales models no longer meet today's requirements. We talked to Sebastian Maurer, the founder and managing director of digital.manufaktur, about the future of B2B trade. Among other things, it is about why industrial companies need digital sales channels.
Sebastian Maurer: I have been dealing with the topic of online trading almost every day for around two decades and have implemented numerous e-commerce projects with my team. While initially the big B2C brands were the pioneers in digital sales, we have been receiving more and more inquiries from industrial companies in recent years. These are under increasing pressure because their analogue sales model often no longer meets the requirements of their business customers.
To what extent have the requirements of B2B buyers changed in recent years?
S. M.: You mentioned it at the beginning: online shopping has long since become normal in our private lives. We inform ourselves about products online, compare prices and conveniently order the best offer with just a few clicks. The buyers transfer this shopping experience to their professional world: Anyone who makes private purchases on their cell phone no longer wants to send faxes in the office. Anyone who compares prices at home also includes comparison platforms and online marketplaces such as Amazon Business in their purchasing decisions at work.
What is the proportion of buyers who use online channels for their procurement process?
SM: Recent study results show that over 80 percent of B2B buyers already use online channels to search for information and to procure frequently needed products with a low value. These include, for example, machine accessories, tools and small electrical parts. In the group of under 26-year-olds, the so-called "Generation Z", even more than 90 percent order such products online. This means: If you want to convince the decision-makers of tomorrow, you have to take care of future-proof digital offers today.
Do you expect digital commerce to replace long-established sales with personal customer contact, e.g. via field staff?
SM: I am convinced that business will continue to be conducted between people and not between machines in the future. Personal contact is extremely important, especially in the B2B sector, in order to establish and maintain long-term business partnerships. For complex machines or other high-priced products and services that require explanation, personal advice from competent sales staff is irreplaceable. In many industrial companies, however, the sales department can only spend a small part of its time on its core tasks - looking after regular customers and acquiring new customers. Administrative activities such as data entry and manual order processing take up a significant part of the working time. Digital tools can bring an enormous increase in efficiency here. When digital tools take over the standard administrative tasks, the highly qualified employees in sales have more time for activities that focus on the human factor.
Do you have specific examples of how digital tools can improve the sales process?
SM: Setting up a convenient online shop with a self-service portal for every business customer offers a number of advantages. For example, the shop is accessible 24/7. The customers can place their order when it suits them and are not dependent on the working hours of their contact person. In their personal customer portal, buyers can request information such as order confirmations, invoices or the shipping status at any time without having to call customer service. This means considerable time savings for both parties. The automation of these administrative tasks frees up new capacities. In times of a shortage of skilled workers, this is worth its weight in gold.
You have many discussions with decision-makers in industrial companies. How do they react to the increasing demand for digital information and ordering options?
SM:The company should first ask itself which strategic goals it wants to achieve. For example, should only the core business be digitized initially in order to retain existing customers? Or should the digital sales channel primarily serve to acquire new customers? I recommend introducing digital offers gradually. The definition of an MVP (“minimal viable product”) is suitable for this: What core functions does the digital sales channel need in order to be able to go live? For example, many companies start with a shop for aftermarket products, i.e. wearing, repair and accessory parts. After the first launch, the online shop can then be successively scaled. Another example are international corporations.
So far you have mainly referred to the topic of online shops. What other options are there for industrial companies to digitize sales?
SM: Online shops are still the most important source of information for buyers who want to order new products. Equipped with special B2B functions, an online shop is an important tool for customer retention and new customer acquisition. Industrial companies that want to start small can, for example, first digitize their product range and improve their marketing and sales campaigns with digital catalogues. Supporting tools such as digital project folders, order lists and scanner connections can also improve the customer experience.
You just mentioned special functions that a B2B online shop should have. Which are they? What distinguishes a B2C shop from a B2B shop?
SM:With regard to the user experience, B2B buyers expect a similar intuitive handling and transparency as they are used to from B2C online shops. For example, they want precise information on prices, availability and delivery times. A sophisticated search function is also important to them. However, B2B trade works differently than B2C e-commerce in some relevant aspects. In companies, for example, several people with different budget responsibilities and decision-making powers are often involved in the procurement process. These structures and processes must be mapped as precisely as possible in a B2B online shop by assigning roles and authorizations to individual employees. Another difference is that that in most cases individual conditions are negotiated in B2B business. It is therefore important to map customer-specific product catalogues, price, delivery and payment conditions in the online customer portal.
In my experience, B2C and B2B also differ in the area of online marketing. In B2C e-commerce, the majority of sales are generated via SEA and SEO - Google is a very important partner here. However, many B2B shops are password-protected and not listed on Google. How does a shop like this manage to address and generate new customers?
SM: Basically, this question sums everything up perfectly. Of course, certain assortments and above all conditions should not be public. These can only be viewed via a password in the company's own customer portal. Nevertheless, in my view, visibility in search engines and systematic online marketing are of fundamental importance for the long-term success of B2B offers. Supported by automated processes, new customer relationships can be established efficiently. It will also be important here that the shop is enriched with a wide range of valuable information and tools for interested parties and thus turns from a pure ordering process into a digital advisor.
Now let's move on to the topic of technology. Which technical aspects do companies have to consider in a digital sales strategy?
SM: When we accompany companies in their digitization process, we first take stock: What does the existing IT landscape look like? Which systems (ERP, CRM, PIM etc.) have to be connected to the new shop system? When choosing the right shop system, we advise our customers very individually. There is no one perfect system, as the requirements can vary greatly depending on the company and industry. However, it is important to pay attention to modern and future-proof technology.
What technologies should an ecommerce tech stack include to be well-positioned for the future?
SM: E-commerce is constantly changing. We therefore rely on an API-first and microservice-oriented architecture as well as a cloud-based infrastructure. This allows companies to adapt to changing market requirements in an agile manner. Another important aspect is a good user experience. And not only on the desktop in the office with a stable Internet connection, but also on mobile devices and with low bandwidth. The world of work is becoming increasingly mobile. Buyers no longer place orders exclusively at their desks, but increasingly also on the go or directly in the factory. They expect a page load speed that is just as high and a user experience that is just as smooth as on the PC in the office.
Finally: In your opinion, what are the three most important points that industrial companies should take away from our discussion?
SM: First: In order to be able to survive in the market in the long term, there is no way around digitizing sales. Second: In procurement, the focus is on the customer experience. Digital services should offer added value in order to bind customers to the company and relieve the sales team. Third: The whole thing is not rocket science and can be implemented systematically with an experienced digitization partner at your side.
About digital manufaktur
Digital.manufaktur, based in Hanover and Mannheim, supports well-known brands from all over Germany in their digitization strategy. The interdisciplinary team of developers, designers and technology experts has been successfully implementing future-oriented e-commerce platforms and digitization projects since 2006.
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