We’ve spent a lot of time this year talking about powering personalization for the new Experience Economy, and the need for companies to rethink their core value in a world where companies compete on the memorable customer experiences they provide, not the products they sell. Now, we can add a new number to the conversation: $800 billion.
Google’s Kiran Mani dropped this stat during her recent Shop.org session on How Machine Learning Can Help You Deliver Better Customer Experiences:
Even as transparent pricing and rising B2B buyer expectations compress business margins, leading B2B sellers are leveraging eCommerce to complement traditional channels and drive digital revenue growth. At the same time, most B2B digital experiences struggle to match B2C experiences. Endless catalogs, nuanced contractual requirements, multiple buyers, integrated account managers and complex buying processes increase complexity to both buyers, as well as sellers. B2B leaders are turning to personalization to simplify, guide, and differentiate.
Matching what we are hearing from the market, B2B executives from across multiple B2B verticals see digital as a primary driver of their growth strategy and expect the majority of their products to be sold online in the next five years, according to a study of business leaders in the United States and Europe. Digital commerce will become the dominant channel in that time period, moving beyond “secondary” status, according to a new report titled Why Digital Will Become the Primary Channel for B2B Engagement.
They’re Coming for You Next: Amazon Hits $10 Billion in B2B Sales
In another amazing growth story from the giant in the Northwest, Amazon has gone from $1 billion to $10 billion in online B2B sales in less than 3 years. If Amazon didn’t get onto the radar of B2B players with their announcement of Amazon Prime for Business, then they should have gotten their attention with their latest announcement: Amazon Business tops $10 billion annual revenue run rate.
Last week over 900 commerce, digital and marketing executives from America’s leading manufacturers and distributors came together at B2B Online to develop the tools they need to power innovative, forward thinking, omni-channel experiences for their customers. The event elevated and reinforced the need for B2B companies to act fast and differentiate, as buyers now expect consumerized experiences when making professional purchases.
Personalization presents a set of unique challenges for B2B companies, particularly because B2B customers tend to ‘procure’ rather than ‘shop’ for goods.
A recent news item just placed Amazon.com Inc.’s revenue above the gross domestic products of oil-rich Algeria and Qatar. And Amazon’s footprint is set to grow even larger as the largest U.S. online retailer makes a big push into B2B commerce. In addition to its “Back to Business” campaign, Amazon just announced its own delivery service for businesses that seeks to undercut UPS and FedEx on price.