June 28, 2021

Why personalization is also 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 Jacob Gammelby Stenhaug
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 many companies were "forced" to make a digital entry but so has the natural development in society. The digital Millennials conquer an ever-increasing place in the B2B buying process, and they have significant demands for 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 your 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 digital customer experience.

 

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 a personalized customer experience 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 that out. Personalization technologies such as Raptor ensure that customers feel seen and heard during the digital customer journey.

The same does not apply to B2B. In a survey, 59 percent of B2B companies answer 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 address a B2C or B2B market, you ultimately sell 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 catch the wave of personalization.

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 you should consider implementing a personalization solution as part of your customer journey 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 purchase at companies recognizing, remembering, and providing them with relevant offers and recommendations.

Regarding this, Raptor points out that for today's companies, personalization has gone from being "nice-to-have" to "need-to-have" 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, the idea of personalization was simply targeted offers, but today it extends to the entire customer journey. Every touchpoint that your customer meets can be tracked, 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 bring the product to them with your knowledge of the customer.


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 match your target audience. In addition, personalization demonstrably reduces bounce rates significantly because customers are met with personalized content, which is good for SEO performance.

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

In a survey, 80 percent of the surveyed B2B companies 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 highly 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 their solutions here.

 

 

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Author Jacob Gammelby Stenhaug

Jacob has +17 years of seniority in e-Commerce, IT, and dynamic pricing. He has a great understanding of our customers' business and experience in delivering complex IT solutions. Contact Jacob if you have any questions Jacob Gammelby Stenhaug, Business Development Manager, e-Commerce | +45 27 53 00 12 | jgs@fiftytwo.com

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