In 2020, Gartner predicted that 80% of B2B sales interactions would happen online by 2025. But by the tail end of 2024, that percentage hovered around 30%.
Getting from 30% to 80% in a year is ambitious but achievable. Eighty-one percent of B2B buyers wish they could purchase more online than they currently are able to.
To capitalize on this trend, manufacturers will need to prioritize a personalized approach to B2B commerce.
Generational Change Drives E-Commerce Adoption Urgency
This demand is being fueled by a generational shift. A majority of B2B buyers today—71%—are Millennials or Gen Z. These buyers range in age from 18 to 45. The oldest of these buyers, at age 45, came of age as the world made the transition to online connectivity through AOL and dial-up. They remember the advent of email and IM. The youngest of this cohort, at 18, have never known a world without online commerce or smart phones.
There is a yawning gap in the digital experience between the eldest millennials and the most junior Gen Z, but both adapted digital technologies into their lives at a critical time. In short, they natively reach for a digital solution to any problem.
Seeing as 71% are digital natives, it comes as no surprise that 75% of all B2B buyers prefer online ordering over all other B2B sales channels.
However, this shift doesn't mean that all buyers are on the same page. While 71% are digital natives, 29% of the B2B buying population are Gen X and older buyers who didn’t grow up with the internet. These buyers are more accustomed to using traditional channels such as email, phone calls and in-person meetings.
Knowing this, and knowing that the generational divide will grow, it is essential to understand the preferences of these different buyer groups and tailor digital solutions accordingly. Businesses must ask themselves: Who are your buyers? What are their preferences? How can online commerce address their specific needs?
Personalization Is Paramount
B2B is a textbook example of complex commerce. With multiple approvals, layers of reconciliation, complicated payments and bulk orders delivered to countless locations, B2B commerce is a unique beast that must be managed with skill. A one-size-fits-all solution doesn’t work.
To this end, personalization based on the buyer persona and buyer journey are paramount. For example, a large hydraulic crane manufacturer may find that their buyers are hesitant to purchase large, complicated orders that are high in capital expenditures through online channels without any sales support.
This makes sense – with such a high investment, a small error can spell disaster.
In this instance, the B2B commerce process could be personalized to include features such as online sales rooms, simplified reordering, online payment options or even support for research online, purchase offline – using the online store as a knowledge repository.
The main takeaway here: Personalization effectively solves unique buyer pinpoints along the buyer journey.
E-Commerce Solutions Should Solve Buyer Pain Points
What’s the most important part of an “e-commerce solution?”
The solution.
It’s easy for businesses to forget that element – companies can get starry-eyed thinking about the fun features, neat connections and internal time-saving processes that a stellar e-commerce solution will provide for them.
But technology alone won’t drive success. An online commerce solution will only be successful if it solves your buyers’ challenges. Whether it’s simplifying a complex order process, improving accessibility or ensuring accuracy, the solution must be buyer-centric.
This requires a deep understanding of your buyers and their pain points. Ask yourself: why should your customers adopt e-commerce? What pain points will e-commerce solve? Will it help your buyers save time, reduce errors or gain access to products more easily?
Often, the answers to these questions overlap. For example, an international company may have buyers across multiple time zones. Online commerce offers buyers the ability to place purchases outside of the seller’s business hours. This pragmatic functionality spurred the online commerce paradigm shift during the Covid pandemic; businesses literally weren’t able to be open to the public, so their e-commerce solutions became lifesavers.
Be Nimble, Be Creative, Be Iterative
Personalizing the B2B buying process thanks to a deep knowledge of the buyer journey is the North Star. On a tactical level, businesses need to identify key features that will address common pain points – choosing an iterative approach rather than a massive and risky grand overhaul.
For example, a customer of ours has deployed a new automation feature. When their clients are low on stock, they get an automated alert that it is time to order more supplies. Automation features like this help buyers eliminate out-of-stock challenges that can cause backed-up orders. Furthermore, this feature helps the B2B seller differentiate in a commodity environment – providing a competitive advantage.
Once new features are deployed, businesses should track how buyers respond and adjust accordingly. If a feature isn’t working, optimize it or try something new.
As businesses iterate, they should also continue refining their understanding of the buyer persona. Keeping the buyer’s needs at the forefront will help businesses roll out meaningful, personalized improvements that resonate with their customers.
The Time to Lead Is Now
The generational shift in B2B buying behavior is creating a demand for personalized digital commerce solutions. To stay competitive, businesses must embrace this change, not just catch up. By understanding the challenges of today’s buyers, personalizing the experience and staying nimble in implementation, companies can build a more effective e-commerce strategy and lead the way.
