June 28, 2021

Why personalization also is important in B2B e-Commerce


While B2C e-Commerce has been gaining momentum for several years, it took some time before the B2B landscape went through the same digital transformation. However, they have come a long way in the last few years. As of 2019, B2B e-Commerce has grown approx. 4 times larger than B2C e-Commerce, and the growth journey does not stop here.

Written by Peter Klindt
e-Commerce
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According to a report from Grand View Research, B2B e-Commerce is expected to grow at a compound annual growth rate (CAGR) of 17.5 percent from 2020 to 2027.

The corona crisis has undoubtedly played a role in the rise of B2B e-Commerce, where a sea of companies was "forced" to make a digital entry. Still, the development of time has undoubtedly impacted as well. The digital Millennials occupy an ever-increasing place in the B2B buying process and place great demands on a digital buying experience. A Forrester survey shows that 80 percent of all B2B buyers by 2023 will belong to the Millennials generation.

However, e-Commerce is not just about adding an online sales channel to its business. Although B2B e-Commerce is growing, the market is still lagging behind B2C when it comes to innovative strategies and tactics. There is no doubt that for many B2B webshop owners, learning from the more experienced B2C players can be valuable, especially when it comes to personalizing the customer experience digitally.

 

Personalization – B2C vs. B2B

As people (customers), we are attracted to people (companies) who show insight and understanding of our wishes and needs. This is how we create relationships - when we experience that someone "knows" us.

When you run a business, you need to build strong relationships with your customers to gain loyalty. The question, however, is how do you give your customers the personal customer experience that is needed when you interact with them through your webshop and thus have no physical contact with them?

The answer must be found in technology, and many B2C webshops have already figured it out. Personalization technologies such as Raptor ensure that their customers feel seen and heard on their digital customer journey.

The same does not apply to B2B. 59% of B2B companies answer in a survey that lack of technology is why they have chosen not to focus on personalizing their customer journey - even though the technology is more accessible and affordable than ever before.

Whether you turn to B2C or B2B, you are ultimately selling to individuals, and B2B customers will often carry their B2C buying experiences into the B2B buying process. As B2C customers get used to this high level of personal service online, B2B customers will expect the same. Therefore, B2B companies must jump on the wave of personalization.

Now we have clarified that personalization is valuable - whether you run B2C or B2B e-Commerce. Below, our partner Raptor has listed a few specific reasons why you should consider implementing a personalization solution as part of your customer journey in order to remain competitive.

 

 

1. Today's customer expects you to know them

Today, consumers are used to getting what they want, and they are drawn to companies that recognize them as individuals rather than generic buyers. According to Accenture, 91 percent of customers are more willing to trade with companies recognizing, remembering, and providing them with relevant offers and recommendations.

In this connection, Raptor points out that personalization has gone from being "nice-to-have" to "need-to-have" for today's companies to survive in a highly competitive digital market.


Customers expect to be presented with relevant recommendations and content in the correct order when visiting a webshop. Conversely, if a webshop places recommendations in the wrong order or shows irrelevant products, it may result in the customer going to the competitor instead. A survey by Accenture shows that 48 percent of consumers have left a webshop to make the purchase elsewhere if they received a bad customer experience.


In the past, personalization turned out simply in the form of targeted offers, but today it extends to the entire customer journey. Your customer encounters can be tracked in every touchpoint, and this insight can help you create a customer experience that saves the customer time and money. Instead of the customer having to spend a lot of time finding the product that can meet their needs, you can, with your knowledge of the customer, bring the product to them.


2. Personalization creates a competitive advantage

Raptor claims that the collection, analysis, and efficient use of customer data helps your business create campaigns, content, and overall experiences that fit your target audience. In addition, personalization demonstrably reduces bounce rates significantly because customers encounter personalized content, which is good for SEO performance.


The customer data you access with a personalization solution is specific to your audience, which means that your competitors can not copy. You get a competitive advantage here as you can stand out and communicate one-on-one with your customers based on their behavior.

Eighty percent of the B2B companies surveys indicate that personalized content on their website works far more effectively to achieve their goals than non-personalized content. In addition, B2B companies that personalize their content generally perform 30 percent better than those that do not.



Personalization with Raptor-logo-horisontal-gradient

With Raptor's technology, you can track your customers' movements around your webshop, thus translating this data into personalized product views that create the personalized experience they demand. Raptor's personalization solution is extremely sophisticated and requires a certain amount of dedication from you to get the most value out of the solution. Despite this, the solution is easy to implement. You can read more about Raptor and its solutions here.

 

 

What is omnichannel?

Author Peter Klindt

Peter Klindt has extensive experience and knowledge within e-Commerce and the development of software solutions. On a daily basis, he helps a number of companies in B2B and B2C with their webshops. Contact Peter if you have any questions | Peter Klindt, e-Commerce Manager | +45 28 10 70 01 | pkl@fiftytwo.com

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