1. HOW TO IMPROVE CUSTOMER INTERACTIONS FOR B2B
[JOHN – GREETINGS, INTRODUCTION]
Diana Todorova, Demand Manager, SAP South-East Europe
Friday, 12 October 2018

2. Agenda Introductions Trends in Consumer Industry Challenges Solutions
[JOHN]
- Provide overview of webinar
- 50 minutes with time for questions at end
Forrester Report
Closing and Takeaways

3. Trends in Consumer Industry
[JOHN– INTRODUCTION TRENDS]

4. B2B Customers would buy again from the same supplier…
[JOHN]
- Pricing transparency beats product selection and low prices
- Personalizing the experience for the B2B customer ranks closely behind pricing transparency
19%
16%
Transparency of prices
Personalized recommendations
lf they have the broadest selection of products or services
lf they have consistently lower prices
lf they offer multiple payment options
lf they offer omni-channel capabilities
lf they have excellent customer service and post-purchase support

5. Opportunities in the consumer space are real:
98%
43%
27%
of B2B buyers research purchases online before buying offline.
B2B buyers prefer to buy directly from the brand that manufactures the product vs. a distributor that sells it.
B2B buyers would be willing to pay slightly more to buy directly from the brand that manufactures the product.
[DAVID – SLOW DOWN – ALLOW AUDIENCE TO SEE STATS]
- Trends are compelling
- Nearly all B2B purchases are starting online
- B2B customers prefer working with brands directly
- 27% of customers are willing to pay more to work directly with the brands
Source: Forrester
Source: Forrester/Internet Retailer Q Global B2B Buy-Side Survey
Source: Forrester/Internet Retailer Q Global B2B Buy-Side Survey

6. Top drivers of digital transformation
74%
65%
64%
60%
Provide better Customer Experience/ Meet customer expectations
Provide a consistent experience across channels
Higher lifetime value
To drive additional efficiencies and cost savings
[JOHN]
- Customer expectations – Keeping up with B2C experiences like Apple and Amazon
- Presenting a consistent face to the customer across channels
- Mining higher lifetime value from the customer relationship
- Enabling scale without increasing costs

7. Where are these pressures coming from?
Decreasing product differentiation
Buyers are more empowered
Speed is more important than ever
New business models driven by technology
[JOHN]
- Standing out on product alone is becoming more difficult
- Buyers have more information on products – price / availability / specification
- Speed makes and breaks sales in B2B
- Rapid technological change driven by connectivity, the cloud, and mobility

8. How are customers engaging?
62% of B2B buyers request
self-service capabilities
GROWING TRENDS
WEB SELF-SERVICE
SOCIAL
VIDEO
MOBILE
LIVE-AGENT VOICE
IVR
[JOHN]
- is falling out of favor
- Live agent help centers are slow
- IVR can largely be replaced by other online help technologies
- Providing information so customers can help themselves
- Crowd sourcing information and solutions
- YouTube generation
- Make it all accessible via mobile devices
[TRANSITION TO DAVID FOR THE CHALLENGES]
DECLINING TRENDS
Source: Forst & Sullivan 2017

9. The Challenges
[DAVID]

10. Business problems in the consumer industry
Digital capabilities falling short
Complex business rules & processes
Silo’ed, redundant, and aging software
[DAVID – SLOW DOWN]
- Repeated throughout several of our customers
- Which of these topics stand out in your enterprises?
[NEXT: COMPLEXITY]
Institutionalized work-arounds
Ill-equipped agents
Shifting customer behaviors and expectations

11. Serve the customer at every point of their journey
RESEARCH
PURCHASE
CUSTOMER SUPPORT
There is a much higher reliance on digital assets
Digitization has changed the way customers transact
Customer are in the driver seat dictating the new rules
[DAVID – SLOW DOWN]
- Manufacturers are uniquely positioned to provide the best research
- Purchasing products is much easier – P-Cards, Invoicing
- Customer support – the customer is right at the source
[NEXT SOLUTIONS]
Enriched high-quality product content is critical
Pricing, Processes & Policies must be consistent
Customers expect Self- Service + OEM having a single view of their activity

12. The Solutions
[DAVID]

13. Desired outcomes Grow aftermarket service parts
Improve sales efficiency
Enable new revenue streams
Go mobile
Reduce cost to serve
Manage complex products & pricing
[DAVID – SLOW DOWN]
- Manufacturers are working towards these outcomes
- Do any of these resonate?
Offer product selection and CPQ
Sell service solutions
Expand channels & geographically

14. Improving customer engagement in 3 ways:
CUSTOMER CENTRICITY
OPERATIONAL EFFICIENCY & AGILITY
GROWTH & INNOVATION
360 Degree View of Customer
Sales & Service
Next Gen Business Models
[DAVID]
- We are working with customers to improve engagement in three ways
- Start with the customer in mind – what do they need to come to you or stick with you?
- Look at what’s happening within the enterprise – where can efficiencies be found?
- Be able to support new products and service moving forward
Marketing automation
Social marketing
Self service
Product information
Service integration
2D & 3D parts selection
Digital content
DIY marketplace
Predictive analytics
My equipment
Subscriptions
Software
Telematics / IoT
Owner’s portal

15. Customer dynamics: a digital experience
70%
B2B revenues come from customers using digital channels
70%
[DAVID]
- Digital experiences matter – the numbers prove it out
- Expectations are rising too
[TRANSITION TO JOHN ON GROWTH]
B2B firms say that customers have higher expectations on the experiences they have in the buying process
Source: 2015, 2017 Forrester Research

16. Growing…
70%-90%
Of the total lifetime cost of heavy equipment is in maintenance, repair, and services
[JOHN]
- Post-sales opportunities are massive [STAT]
- Making the initial – share of wallet – is augmented by service – share of wrench
Share of wallet
Share of wrench
Source: IDC Whitepaper: From Products to Services

17. Supporting the entire lifecycle and value chain
Equipment owner
Lifecycle management
Service call parts replacement health check
Equipment + distributor + service + parts
Cross sell renewal
[JOHN]
- Data and the right tools make the customers’ journey
- Managing the customer and product lifecycle opens up new opportunities
- Selling parts, consumables, service are all possible
[TRANSITION TO DAVID ON THE FORRESTER REPORT]
Recommendations
Customer journey
Feedback

18. Forrester Report
[DAVID]

19. What are B2B leaders saying?
Key Finding: Manufacturers are not confident in their ability to manage the digital purchase process.
How confident are you in your ability to execute each of the following digital capabilities? (Showing “Very Confident”)
Convert visitors to buyers
35%
Managing final stages of purchase fulfillment
34%
[JOHN]
- Only 35% of manufacturers said they were ”very confident” on their ability to convert visitors
- They reported similar confidence in their eCommerce abilities
Tracking effectiveness of digital marketing campaigns
33%
Communicating product information to drive purchase
32%
Capturing customer information for tracking
28%
Very Confident

20. How are Manufacturers rating the importance of Commerce functionality?
Key Finding: Buying is not the challenge – the challenge is in gaining insights into customer behavior:
Convert visitors to buyers
61%
Managing customer experience through full purchasing lifecycle
42%
[JOHN]
- Yet they rate conversion as the most valuable task they can be doing
Communicating product information to drive purchase
54%
Tracking effectiveness of digital marketing campaigns
42%
Capturing customer information for tracking
42%
Very Valuable

21. Marketplaces have a positive impact a Manufacturer’s ability to operate a Commerce experience
Manufacturers operating their own Marketplaces:
Gain confidence in converting visitors to buyers
Have an increased ability to execute purchase fulfillment
Gain better insight into their customers
Are mitigating channel conflict by opening new channels for their partners
Key Takeaway: Manufacturers can see greater success by going direct to customers
How confident are you in your ability to execute each of the following digital capabilities? (Showing “Very Confident”)
Difference
Convert visitors to buyers
45%
+ 10%
[JOHN]
- We see a boost in confidence in manufacturers implementing Marketplaces (STATS)
[TRANSITION TO DAVID ON CHAMBERLAIN / LIFTMASTER]
Managing final stages of purchase fulfillment
43%
+ 9%
Capturing customer information for tracking
32%
+ 4%
Very Confident

22. Closing and Takeaways
[JOHN]

23. THREE KEY TAKEWAYS: MANUFACTURES SHOULD BE SELLING DIRECT
B2B customers want to engage with the manufacturers they use – provide a complete solution of engagement and commerce
CUSTOMERS ARE EXPECTING A B2C-LIKE EXPERIENCE
Customer expectations are rising and your experience systems need to be able to meet those expectations
MARKETPLACES OVERCOME CHANNEL CONFLICT
Manufacturers now have the ability to create a bigger pie to share with their channel partners
[JOHN]
- You should be selling direct
- Customers want it and they are willing to pay more.
- Channel conflict can be mitigated
- Marketplaces are one possible solution
- Get ready for changes in business models

24. RESULTS IN NUMBERS: FORRESTER TEI STUDY
307%
ROI OVER 3 YEARS 5%
70%
30%
INCREASED AOV
DROP IN ORDER PROCESSING COST
INCREASE IN PRODUCTIVITY
[JOHN]
- Forrester research on the Total Economic Impact of a Hybris Commerce deployment
Source: Forrester TEI Report on Hybris Commerce, 2017

25. Thank you.
Contact information:
Diana Todorova
Demand Manager, SAP SEE