Industries all across the globe are transforming their system and working ways into a digital one. It’s no different for the B2B environment. This digital transformation has now become the new way for B2B to conduct their businesses, albeit it only started as a crisis response. This transformation is taking its place in the B2B history and for them going digital is the correct step in the future. This article will inform you of the many transformations the pandemic has had on the B2B environment and how their business will be moving forward.
Both Buyers and Sellers Seek Digital Reality
The world has shifted dramatically since the pandemic hit and subsequently affected people’s quality of living. Based on these circumstances B2B businesses quickly changed their approach from on-site interactions to online interactions. At first this transition happened due to unforeseen circumstances, but now it has been a mainstay even after the lockdown period. There are a couple of reasons behind this course of action. The first one is to keep everybody safe from the pandemic and the second one is that remote interactions have made it much simpler for buyers to receive the important information about the products and services at hand, to then place their orders, and arrange a requirement. McKinsey & Company has done a research that showed around 70-80% of B2B decision-makers prefer remote human interactions or digital self-service due to the much easier and simpler scheduling process, allowing low-cost travel expenses and upholding the safety of everyone involved. This digital engagement shift has proven to be an efficient system, and decision-makers worldwide have followed accordingly. A sudden and unwilling transformation has now become a guideline to make B2B businesses thriving.
OnlineServices and Remote Engagement Produce Purchases
This digital shift has encouraged B2B buyers to make large quantities of purchases and re-orders online. Using e-commerce as the number one platform to facilitate buyers is an efficient way of providing convenience for them, and these e-commerce platforms are stocked with an abundance of different products with a wide array of prices, not just for the notion of smaller items and fast-moving parts. It’s estimated that around 70% of B2B decision-makers want to make new fully self-serving or remote purchases for $50,000, while around 27% would even spend over $500,000. These purchases happened because of the availability and effectiveness of online and remote selling as they are superior to regular in-person engagement. McKinsey & Company’s research showed that 75% of existing customers by August 11th 2020 have deemed the new sales model in reaching and serving customers would be effective. It supports both selling and prospecting, not to mention, 76% of new customers think the same way. This is a valid proof that a convenient online services platform and remote engagement would significantly boost the number of purchases to unprecedented heights.
Video and Online Chats
The era of the digital world entails video and live chats that emerged as the main platform for B2B customers’ interaction and sales, whilst in-person interactions and sales-related activities have decreased substantially. Not only has the usage of video and live chats risen enormously, the amount of revenue coming in has also risen dramatically, as high as 69% since April 2020. Both e-commerce and video conferencing accounts for 43% of all B2B revenue. A McKinsey & Company study has shown that traditional/in-person interaction’s go-to-market sales model during COVID-19 for traditional/in-person interaction has decreased by 52% from 61% to 29%, whereas digital interaction using video conference and online chat has increased by 41% 23% respectively. Furthermore, traditional/in-person interaction revenue has dropped a massive 55%, whilst digital interaction with video conference and online chat has risen by 69% and 31%, respectively. This data further solidifies the opinion that utilising video and online chats will massively increase B2B’s ROI and avoid bankruptcy. Following this new way of interaction and engagement will enrich your business’ livelihood and stature without having to worry about failing in the future.
Integrating your B2B strategies and application with digital technologies is a proven method to keep your business alive and thriving, as stated by the points above. As a digital marketing agency, we are ready to help you on the marketing side of things! Don’t hesitate to contact us!