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Driving growth in B2B through digital

Digital has profoundly changed how B2B businesses need to interact with their customers. B2B customers are already embracing digital to make more informed purchase and post-purchase decisions. B2B companies need to understand how to use digital to be where (and when) their customers are. Latest McKinsey insights on B2B: http://mckinseyonmarketingandsales.com/topics/b-to-b

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Driving growth in B2B through digital

  1. 1. B2B – Using Digital toUnlock GrowthWebinar presentationJune 2012CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
  2. 2. Agenda ▪ Introduction ▪ Role of digital in B2B customer experience ▪ Success stories in navigating specific challenges ▪ Group discussion ▪ Wrap up McKinsey & Company | 1
  3. 3. Today’s discussion  The B2B customer experience – before and after purchase – is increasingly shaped by digital interactions  We have collected several examples of innovative digital tactics that showcase best practices at different stages of the end-to-end customer experience  There are several themes related to making a digital strategy come to life that seem to work, which we should discuss as group: ─ Figure out where digital matters most; prioritize! ─ Think about digital as part of a multi-channel strategy ─ Be clear about what you are trying to achieve and track impact McKinsey & Company | 2
  4. 4. Our conversation about best practices related to digital strategies will becentered around the end-to-end customer experience cycle ▪ Understanding your End-to-end customer experience cycle customer’s preferences and behaviors at key Evaluate touch points across the end-to-end cycle can be a powerful way to think about how to optimize your channel strategy and Bond invest where it matters the most Buy ▪ The payoff of getting the Consider customer experience right is that it can lead to a Advocate Experience “loyalty loop” of up-sell and re-sell opportunities McKinsey & Company | 3
  5. 5. The B2B customer experience is increasingly influenced by digitalinteractions Online has become the In B2B, the share of 2nd most important revenues from digital source of information for channels has almost B2B customers (especially doubled over the last 10 social media) years Evaluate Bond Digital will see Low channel the highest Consider Buy costs allow marketing Advocate Experience companies to budget raises revolutionize in the next their GTM years approach and gain new customer groups Digital enables (e.g., SMBs) systematic management of customer management servicesSOURCE: McKinsey McKinsey & Company | 4
  6. 6. And B2B customers are stating that they want to use electronic channelsmore frequently “I want …” … more face-to-face sales time and less phone or 20 Internet-based interactions" …less face-to-face sales time 48 and more phone or Internet- 32 based interactions" Indifferent … a sales rep to prepare and … self-service online tools to present products/solutions and 24 design my own product/ pricing to me" 46 solution" Indifferent 30SOURCE: McKinsey B2B Customer Insights Survey, McKinsey 2009 McKinsey & Company | 5
  7. 7. We have collected several examples of leading B2B companies that areusing digital to drive impact with their customers (particularly in SMB) Learn (pre-purchase) Evaluate Bond Buy (purchase) Buy Consider Advocate Experience B2B Lighting Company Use (post-purchase) Office supplies company McKinsey & Company | 6
  8. 8. Learn: example #1 Evaluate Dell’s social media listening command center is its ultimate Bond step in an effort to get insights from a global customer base Consider Buy Advocate Experience Social Media Listening Center "Some companies use ▪ Opened December 2010 social media as a ▪ Tracks 22,000 Dell-related topics every day defence play or for in eleven languages thought leadership, ▪ Listening rooms in China planned for 2011 [others] for better customer service… idea generation… to Social Media University generate demand… or ▪ Set of eleven classes on social media held around the world social commerce… ▪ 5,000 out of 100,000+ total Dell employees trained so far The difference here ▪ Gives employees certification in social media at Dell is that we are using it in every one ▪ Graduates are qualified to blog and tweet as official Dell representatives of these functions. Every department Standardization through policies uses it distinctly for ▪ Employee Twitter handles are first name appended by “atdell” its part of the ▪ All accounts are registered, and terminated when employees leave business.“ ▪ Facebook accounts once proliferated as product and account teams – Manish Mehta, VP created them, but now rationalized from over 100 to under 50 Social MediaSOURCE: Dell.com, CMO.com; interviews McKinsey & Company | 7
  9. 9. Learn: example #2 Evaluate Bond To create an interactive, sticky experience with prospective and current customers, Dräger uses online games and Consider Buy webinars to let customers experience products in real-life Advocate Experience situations Description ▪ Game with 10 "missions" in which people must be rescued and fire source need to be cleared ▪ Multiple webinars to showcase customer “champions” and their experience with Dräger productsSOURCE: Dräger.us McKinsey & Company | 8
  10. 10. Buy: example #1 Evaluate To create a scalable way to customize the buying experience Bond for smaller customers, Celeste’s web site allows customers to Consider Buy configure solutions with pre-defined building blocks Advocate Experience CELESTE has an extensive products offering… … that customers can choose from a simple “ a la carte’” or bundled ▪ Large range of ICT products package ▪ Customers express their specific ICT needs – Internet/connectivity: DSL technologies, optical fiber, 3G – Private VPN, international VPN, back-up VPN – Telephony: high definition – Security – Web and data housing/hosting services ▪ CELESTE also proposes "All in one" package: "CELESTE work" – High-definition telephony set – Secured Internet set (access, firewall, secured mailbox) – On-site private VPN connection and traveler access "We address mainly enterprises between 10 and 100/150 employees with high bandwidth, high reliability, high-quality solution needs. Our whole go-to-market model is exclusively based on call centers with dedicated sales reps.“ - CELESTE CEOSOURCE: Company website, press, interviews McKinsey & Company | 9
  11. 11. Buy: example #2 Evaluate B2B To give customers the opportunity to self-segment based on Bond Lighting buying preference and create stickiness, this company used Consider Buy Company online as a portal for an array of buying options Advocate ExperienceSOURCE: XACT Web site McKinsey & Company | 10
  12. 12. EvaluateUse: example #1 Bond For IBM, using digital to proactively monitor service and Buy Consider identify problems before they happen is an example of post Advocate Experience sales support moving towards end-to-end automation Once Product Warranties are registered, Customers can sign up for Electronic Service Agent My Search using inventory data is a facility that uses the standard IBM comprehensive search augmented by information from your server as provided by the Service Agent My Monitoring – get error messages any time, day or night, better system availability identify problems and insure that they are ironed out in advance. automatically receive high priority program fix messages “My Systems” – let’s you see the software and hardware inventory on your system. You see what IBM Support Community can seeSOURCE: Web search McKinsey & Company | 11
  13. 13. Use: example #2 Evaluate Office Personalized offers using this algorithm generated Bond Supply significant incremental lift across online Buy company Consider Advocate Experience Targeted product selection can have as much impact in driving customer purchases as aggressive offers Used to drive both volume and margin Enhanced by “test and learn” Not limited to the web! Targeted offers can be driven by direct mail, call center or field sales teamsSOURCE: Disguised client data; team analysis McKinsey & Company | 12
  14. 14. Discussion questions / Q&A ▪ What are the challenges that you / your team are facing related to your digital strategy? For example: – Lack of clear ownership – Systems can’t support the vision – Lack of fact-base to justify investment – Mindset that non digital channels are always more effective ▪ Has anyone been able to overcome these challenges? What actions have you taken? ▪ Are there short term, no regret moves that you could start addressing today? ▪ …. McKinsey & Company | 13
  15. 15. Presenter contact information Jenny Cermak Associate Principal, Atlanta (404) 358-0503 jenny_cermak@mckinsey.com Juan Bueno Principal, Atlanta (404) 335-3742 Chief Marketing & Sales juan_bueno@mckinsey.com Officers Forum: cmsoforum.mckinsey.com Darren Pleasance Partner, Silicon Valley Follow us on Twitter: (650) 245-2405 @McK_CMSOForum darren_pleasance@mckinsey.com @DarrenPleasance McKinsey & Company | 14

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Digital has profoundly changed how B2B businesses need to interact with their customers. B2B customers are already embracing digital to make more informed purchase and post-purchase decisions. B2B companies need to understand how to use digital to be where (and when) their customers are. Latest McKinsey insights on B2B: http://mckinseyonmarketingandsales.com/topics/b-to-b


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