What is b2b2c

The B2B2C principle because today's business customers expect more

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1 The B2B2C principle because business customers The successful transformation from B2B marketing and sales to the platform economy By Dr. Dorith Mayer September 2017

2 Content Management Summary 4 The B2B sales cycle is changing 5 Strategy and technology hand in hand 6 The cloud as the basis for flexibility and scalability 7 Expansion of business models: the way to platform economy and B2B2C platform economy: proven methods for digital transformation Conclusion Avanade Inc. All rights reserved Avanade Inc. All rights reserved. 3

3 »Dynamics 365 the way to PLATTFORM-ECONOMY« Management Summary The B2B Sales Cycle is changing The information behavior of decision-makers in the B2B environment has changed significantly in recent years. Companies have had to put their B2B customer approach and sales processes to the test, at the latest since the decision-making process has already taken place online and before the first personal contact. The aim of modern customer experience management is to direct potential customers to their own website or social channels as early as the exploratory phase, i.e. during web research, and to lead them into an automated lead management process there. Through automation, the leads generated can then be developed to such an extent that they are ready to be taken over by sales and personal contact, for example through targeted content marketing, without great employee effort. All of this requires a revision as well as a structural and technological modernization of the existing marketing and sales structures. Today, the path should ideally lead to the cloud and thus to the platform economy. Cloud computing and software as a service allow companies access to a wide variety of marketing services, they are scalable and can increasingly be automated more intelligently by combining them with services from the field of artificial intelligence. The resulting digital transformation of the customer journey and customer management can also be used to establish new business and revenue models. The data streams that arise through the interaction with customers on the platform not only create the basis for cross-selling and upselling or for brand management. They themselves create added value for dealers and service partners, for example in the form of marketing, sales and service services that manufacturers can pass on to their dealers. The basis for this is provided by modern cloud-based customer management platforms that manufacturers can also open up to dealers and partners. Companies are thus able to monetize the attraction they exert on customers on the web and at the same time provide something for maintaining their uniform appearance on everyone Channels to do. This whitepaper provides an overview of the current framework, it explains specific development steps and shows companies what needs to be done in order to successfully transform their B2B marketing into the digital campaign world. Avanade has bundled its experience in the further development and transformation of customer relationship management into proven processes that make it easier for companies to navigate the transformation jungle and, in this context, combine them with relevant methods such as customer journey modeling, design thinking and agile process models. In the past few years, the situation for marketing and sales in the business customer sector has changed dramatically. Initially it was the boundaries between marketing and sales that could no longer be clearly distinguished from one another, but today we are experiencing a convergence between B2B and B2C marketing. The background to this is that B2B decision-makers have changed their information behavior and, analogous to their purchases as private customers, do much more research in advance via the Internet than in the past. Today the rule of thumb is that at least 60 percent of a B2B purchase decision has already been made before the first contact with the provider. 1 The B2B customer must therefore be addressed in a similar way to a B2C customer. The digital customer journey, up to now a principle mainly shaped in B2C marketing, is moving into the focus of all activities in the B2B segment and takes on an important part of the lead management process. Digitization thus shifts tasks that were in the past with sales to the responsibility of marketing. For example, digital systems can automate lead nurturing (i.e. the process of successive further qualification of a lead until contact is made with the interested party), in a highly personalized manner and taking into account many criteria. and thus ensure efficiency and a high completion rate. Figure 1 shows the relevant process steps of lead management and explains the respective potential for B2B marketing. In addition, we are currently experiencing an extension of the classic customer journey in B2B in many industries. Companies can maintain direct contact with their customers via portals and online shops, without intermediaries and without defined purchasing processes. Inquiries can be answered quickly via chatbots, for example, and integrated into the lead management process. Since connected products have been on the advance, almost all technical products have sensors and function as data collectors and transmitters, companies have the opportunity to set in motion a flow of operating and usage data and thus participate in the way in which a customer uses his product. This can be the basis for new business models and new cross- and upselling processes. The relationship between supplier and customer thus expands towards a B2B2C approach. Integrating this new approach into your own marketing processes and designing the customer journey accordingly is one of the major tasks that companies face. Because one thing is clear: This partly disruptive development harbors great opportunities for companies, it brings opportunities for completely new business models, service products and customer loyalty measures. Anyone who neglects the topic, however, threatens to be left behind in the platform economy. The transformation of B2B marketing towards powerful customer experience management should therefore be the focus of every company. Complemental description: This whitepaper provides further information: These systems thus ensure that sales can concentrate on the really mature leads Figure 1: The lead management process and its digitization potential 1 Cf. cid-22.html 2017 Avanade Inc. All rights reserved Avanade Inc. All rights reserved. 5

4 "Digital potential for the B2B customer journey" Strategy and technology hand in hand The cloud as the basis for flexibility and scalability The first step on the way to the necessary digitization in business customers is a viable transformation concept. This includes the design of the future business models and the customer journey, the analysis of the existing processes and communication channels as well as the definition of a target architecture for the IT solutions required and, derived from this, the necessary fields of action on the way to a modern customer approach, the Future Mode of Surgery. The main goal in all of this is to adapt the Current Mode of Operation to changed market conditions and thus make it fit for the present and the future. When setting up new platforms, companies should make sure that they are agile and dynamic enough to be able to change them again and again in line with new requirements. This is also important for marketing, sales and service, because digitization shortens innovation cycles to an extent that does not allow the development of a new platform for every paradigm shift. The world is changing successfully are the companies that change with it without losing their core. How can the B2B journey look like, on which a prospect becomes a customer? 2 What is the path from the first Google search to the conclusion of a contract? How does the transition from marketing to sales succeed, and what happens then? On the digitized customer journey, the customer goes through various lead management and sales phases. This process is shown as an example in Figures 2 and 3. Automation and personalization are the two central elements of digital lead management. The specific design of the processes is highly individual and depends on the individual company and the markets in which it operates. This is where the consulting and technology expertise of an external partner can help. No matter how the customer journey is designed in detail: Cloud solutions are the logical basis for this. Because these bring the greatest possible flexibility and scalability and, through data storage in European high-performance data centers, also the necessary security and availability. For a future-proof approach, the Microsoft Azure cloud computing platform, for example, offers numerous options for individually supporting digital travel with various services and tools. The variety of native solutions offered here ensures holistic customer experience management for companies right from the start and prevents them from sticking to old silo structures. so that a continuous process chain and a uniform view of the customers is guaranteed. In addition to solutions for customer and campaign management, Azure also offers numerous useful tools that simplify collaboration within the company and with external partners, suppliers and dealers. Above all, the various productivity and communication tools from the Microsoft Office 365 environment should be mentioned here, which interact seamlessly with the sales and customer service tools from the Dynamics 365 for Sales, Service and Operations suite. Joint planning of tasks in the Team Planner, communication via integrated chat channels, joint processing of documents, transparency of current sales figures for sales managers while on the move - these are just a few examples of the possibilities with Microsoft Office 365 on Azure. Thanks to cloud computing and SaaS, companies always have the latest technology available. This enables them to set trends with their customer experience management and to react quickly to changes in the market. In addition to classic analytics, components from the areas of artificial intelligence (AI) and cognitive services are also available, such as face and voice recognition. All these elements work together to create an optimum of marketing intelligence, paired with a powerful implementation. Analytics and AI make the difference in customer experience management, provided that the knowledge gained can be used reliably. Figure 4 shows a selection of available services as they are used to design the customer experience. For the needs of marketing, sales and customer service in the Azure ecosystem, a large number of software asa service (SaaS) solutions are available, for example from Sitecore, Adobe and Microsoft (e.g. Dynamics 365 for Sales, Service and Operations). They can all be coordinated and work hand in hand, Figure 3: Digital customer journey in B2B Potential new customer Figure 2: Digital customer journey in B2B Potential lead 2 In Europe, 98% of all search queries run via Google, see: Avanade Inc. All rights reserved Avanade Inc. All rights reserved. 7th

5 »Use of automation and AI« Expansion of business models: the way to platform economy and B2B2C platform economy: proven methods for digital transformation Such a customer experience platform gives companies the flexibility to quickly implement such business models that deviate from the classic B2B picture. In this way, companies can become providers of digital services themselves, addressing the end customer directly on the one hand and their service partners and / or their dealer network on the other. An example of this: Until now, a device manufacturer generated the majority of its sales from the sale of products and accessories as well as from various after sales services. Now this company can tap new sources of income with digital services via a web platform. This makes it possible to integrate customers and interested parties who come to the platform because of additional digital offers or through Google research into an automated lead management system and thus into their customer journey. New sources of income arise when the manufacturer passes on certain leads that are not intended for the direct sales channel to its dealers for a fee. In this way, new pay-per-lead models can be established in the business customer sector. For their part, the dealers can access the marketing automation services that are active in the platform and further develop the leads for themselves via SaaS. The manufacturer thus offers its dealers a central paid marketing infrastructure that cannot be financed by the individual dealer. Figure 5 shows a selection of possible services for the respective areas. In addition, such a platform enables important savings potential through self-service functions and structured communication with customers. For example, central after-sales processes such as the scheduling of service technicians can be optimized and the booking of training courses and events can be automated and fed back into customer experience management. And last but not least, the seamless integration of partners and dealers leads to a customer experience that is coordinated down to the last detail. The customer always experiences the company and its brands in a uniform manner, regardless of which channel they come across. This pays off for both sides through high customer loyalty and valuable cross- and upselling potential. Every company has its own scenarios that move it forward. No transformation project is like the other. How exactly the path to digital customer experience management using the platform economy looks like depends on where a company stands and what its short-term and long-term goals are. In order to determine individual needs and to implement the resulting steps in a structured manner, Avanade relies on four formats that have proven themselves in transformation projects: iday, blue print, proof of concept with prototypes and implementation (transformation). iday: In specially developed workshops, companies looking for ideas about what the digital transformation should look like can work with industry and technology experts from Avanade and Avanade to develop visions, concepts and goals that serve as the basis for concrete implementation. The format ranges from one-day inspiration sessions to multi-day workshops to try out new business models and approaches using design thinking approaches and prototypes. Blue Print: This step is about concretizing the existing basis or the basis developed in iday. Consultants and customers work together to reinvent the company's business, to adapt processes and business models to new market conditions and new opportunities. Figure 5: Platform Economy: Marketing, Sales and Services as a Service Figure 4: Illustrative functional blue print of a customer experience platform in Azure 2017 Avanade Inc. All rights reserved Avanade Inc. All rights reserved. 9

6 »Start the digital transformation« Conclusion This also includes defining the right IT equipment to implement the transformation in day-to-day business. In addition, in this phase the next project steps are planned and documented in a roadmap, the future mode of operations is outlined and concrete concepts for the first prototypes are developed. Prototype: In the case of particularly innovative projects that move beyond the previous horizon of experience of a company, a larger trial is recommended as part of a proof of concept. This could, for example, be the development of a prototype and the test with a larger group of users whose findings serve to gradually improve the prototype. In the course of this, the actual value contribution of the planned solution can also be calculated as a basis for business decisions. Implementation (transformation): The actual transformation takes place in previously defined steps, i.e. the development of the solution architecture and the company-wide rollout. Avanade uses the self-developed and proven iagile methodology, which is based on approaches such as SCRUM and agile and involves users in the solution design at an early stage. Short and fast feedback cycles, efficient Figure 6: Formats for designing, testing and implementing the digital transformation 2017 Avanade Inc. All rights reserved. 10 processes, easy consideration of changing framework conditions and greater proximity to the customer experience - these are just some of the added values ​​that result from iagile. Not to forget: high flexibility with simultaneous stability thanks to permanent teams. Of course, Avanade also supports its customers with change management and ensures that employees have the necessary know-how and are motivated to make the transformation of the customer experience their own business.The transformation of the customer experience is a challenging undertaking because it requires deep know-how from different areas: information technology, digital marketing, industry specifics, etc. For companies this means that on the one hand they have to form internal transformation teams in order to bundle competencies and to be able to depict this diversity. On the other hand, they need an external consulting and implementation partner who is able to shape the change with them. The platform-as-a-service model plays a central role in this redesign of the customer journey in B2B: companies can use cloud-based software components to develop their own platforms for customer experience management for their own use or to involve dealers and / or partners. These platforms create the basis for meeting the changed communication expectations of business customers, and thus new business models can be implemented based on the principle of the platform economy. The following table provides an overview of the central aspects of the various formats. Figure 7: Formats for designing the customer experience depending on the maturity level in the company 2017 Avanade Inc. All rights reserved. 11 It is important to provide the internal change management with enough space and resources to pick up the affected employees and make them meaningful. Introducing steps to new technologies and new processes. Because the modernized customer journey also changes the journey of employees through their everyday work and it is of the utmost importance that they feel comfortable on this journey.

7th About Avanade Avanade is a leading provider of digital services, business and cloud solutions and design-oriented applications. Our specialists develop the optimal solution for each individual customer based on the Microsoft ecosystem. At Avanade, we stand for fresh and modern thinking and have extensive technology, business and industry knowledge. This makes us a pioneer of digital transformation with the goal of: growth for our customers and their customers. Digitally networked people work for Avanade in 24 countries around the world: in a culture of collaboration and diversity, they create creative solutions together every day. Avanade was founded in 2000 by Accenture LLP and Microsoft Corporation. Today the company is majority owned by Accenture. More information at: Avanade Inc. All rights reserved. Avanade and the Avanade logo are registered trademarks of Avanade Inc. Other product, service, or company names mentioned herein are registered trademarks of their respective owners. Germany Avanade Deutschland GmbH Campus Kronberg 7 D Kronberg Telephone: Switzerland Avanade Schweiz GmbH Richtistrasse 11 CH-8304 Wallisellen Telephone: avanade.com Austria Avanade Österreich GmbH Schottenring 16 A-1010 Vienna Telephone: