October 31, 2022 How to Use B2C Advances to Future-Proof Manufacturing

Leveraging digital tools to adopt a customer-centric mindset will add a greater level of flexibility and resiliency during difficult times.

By Gerry Szatvanyi, CEO of OSF Digital

After continued negative economic growth, U.S. manufacturers are staring down a potential recession heading into the New Year. A litany of macroeconomic issues still plagues the industry, like global supply chain disruptions, rising material costs, and an ongoing labor shortage that doesn’t seem to be going away. This means that manufacturers’ confidence in their businesses has hit its lowest point since the fourth quarter of 2020.

However, the situation isn’t all doom and gloom. While macroeconomic trends may be out of control, manufacturers can still take digital-centric steps to ensure long-term sustained success. Prioritizing how manufacturers engage with their customers and partners can help future-proof the business and lay the foundation for survival during economic downturns. To do this, manufacturers need to take a page from B2C strategies for streamlining the customer experience.

Leaning Into Ecommerce

Traditionally, much of the B2B manufacturing purchasing process was done in-person, but studies have found that 80% of B2B buyers won’t go back to traditional in-person sales and purchasing methods. In this respect, the manufacturing industry is playing catch up. As of 2021, fewer than 50% of B2B manufacturing sellers had an ecommerce site. Moving sales and purchasing to ecommerce platforms enables manufacturers to leverage new digital tools to automate processes that have been done manually in the past, thus streamlining internal processes and improving revenue streams. Examples such as OSF Digital’s work with TOA reveal the benefits of optimizing digital performance to improve customer experience.

Businesses gain more direct contact with their customers, and by doing so, they are able to collect more data, gain insight into customer needs, and drive innovation in the sales process. In addition, it opens up the business to a greater number of sales channels, in turn reaching new market segments and facilitating growth. The result is a more agile and flexible approach that can help temper the increased cost of materials and help businesses adapt quickly to changes in the supply chain.

Making B2B Ecommerce Look Like B2C

According to Harvard Business Review, 73% of B2B buyers are millennials, and the digital-native users expect ALL ecommerce to be intuitive and seamless regardless of the business context. Like B2C customers, B2B buyers have developed a low tolerance for difficult-to-navigate systems. Studies show that the majority of buyers will find a new supplier if the manufacturer’s online purchasing process is frustrating. That means it’s no longer optional to view the buyer convenience factor – an essential facet to securing new business – as a top priority.

Manufacturers can start by improving the basics. Like B2C shoppers, B2B consumers increasingly engage in online price comparing and shy away from companies that limit their ability to do so. By instituting simple changes like offering product demos and making pricing clear upfront, manufacturers can significantly simplify the purchasing journey for prospective clients and drive loyalty from past buyers. As customers become more accustomed to making the bulk of their day-to-day purchases online, the need for ecommerce options in the business environment will continue to grow.

Personalize The Customer Experience

While a digital customer journey hasn’t been the standard for manufacturers in the past, that is certainly changing in a post-pandemic world. A customer-centric approach has proven itself to be an effective way to take control of the market. Expectations of the purchasing experience have changed for B2B sales, and industrial organizations can learn from the tailored experiences offered to B2C consumers. Personalizing the customer journey to streamline the purchasing process for prospective and returning clients will drive customer loyalty and eliminate frustrations for repeat buyers.

A recent market impact study found that 62% of B2B customers want a way to reorder digitally; however, only 13% of original equipment manufacturers (OEMs) offer solutions for organizations to do so. By adding digital reordering capabilities and allowing customers options like uploading flat files to expedite the ordering process, manufacturers can address the most common pain points for their purchasers.

Playing Catch Up

With uncertainty on the horizon for many manufacturers, now is a pivotal time to consider how businesses can adapt their sales platforms to our new reality. Industrial organizations rank themselves lowest in digital capabilities of any B2B industry, and the time has come to catch up.

While manufacturers may not be able to completely revamp their sales strategy overnight, beginning by using digital tools to adopt a customer-centric mindset will add a greater level of flexibility and resiliency during difficult times. Why not start building the digital systems that will become table stakes tomorrow? By launching ecommerce platforms that take a page from the B2C playbook in streamlining purchasing, manufacturers can drive sales and take control of their future.

Gerry Szatvanyi is the CEO of OSF Digital, a top digital transformation and leading global commerce solutions company to some of the world’s most well-known brands.

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