Less is more: Creating the best omnichannel retail
The best omnichannel retail strategy focuses on the channels that matter most to your customers and providing seamless customer experience.
The line between B2B vs B2C commerce is growing shorter.
For example: Question: Is LG a B2C or B2B business? If your answer starts with “Well…” or “It depends,” it’s okay. You’re not alone.
The company’s TVs, appliances, or smartphones put them squarely in the B2C camp. But when you consider purchasing those products at Best Buy or another retailer, it switches to B2B.
That’s because like many other traditional businesses, the line between B2B vs B2C commerce is blending and blurring.
Where does B2b end and B2C begin?
In reality, LG is both B2C and B2B. As are plenty of other companies.
With COVID’s material impact on retail, direct engagement is accelerating, and the line between B2C and B2B commerce is blurring.
Current forecasts project DTC e-commerce sales to hit $18B in 2020. Even as the world normalizes, we can and should expect to see more of this.
Change is coming from all angles: Examples of commerce merging
There’s been a growing tension manufacturers and the distributors who sit between them and their customers. So much so that many manufacturers are creating direct relationships with their customers, bypassing distribution altogether.
According to research from Forrester, indirect sales will decrease every year for the next decade.
But it’s not just the increasing focus on DTC blurring the lines. B2C retailers are branching into B2B channels, like Lululemon partnering with gyms and fitness centers to sell branded Lululemon apparel. Even digital-native DTC brands have entered into channel partnerships with retailers, like Casper did with Target.
Going beyond traditional: B2B vs B2C commerce
On the surface, this change seems great. Customers get richer brand experiences and the freedom of choice to buy from businesses they prefer. Manufacturers have greater access to customer and market data to improve their products, while also amplifying brand exposure. No brainer, right?
When executed well, it’s great for the manufacturer, the customer, and even the channel. But too often, manufacturers make missteps that negatively impact profitability, market reach, and channel dynamics.
Here are a few tips to consider when deciding to embrace a different commerce approach:
- Know what you’re selling to each audience: While B2B businesses are very familiar with customer or account-specific catalogs, those are foreign in B2C. B2B businesses need to treat their B2C channels like another B2B customer account. This includes defining the product assortment for that group.Why would somebody opt for a B2B relationship if they can get their job done through a B2C experience?Manufacturers looking to activate a B2C or D2C experience should start small. Leave the broader assortments for your B2B business to avoid introducing channel conflict. This also creates a “carrot” effect enticing buyers to enter into more formal buying relationships.
- Uncover hidden B2B buyers in your B2C experiences: B2B purchasing is all about speed, convenience, and trust. Many B2B buyers dread setting up new purchasing accounts. Often buyers cannot complete this process promptly, so they resort to purchasing from B2C websites (this is how Amazon discovered its B2B opportunity).Businesses should look for B2B trends in their B2C business, like frequent recurring orders. Manufacturers that identify potential B2B buyers can negotiate more favorable terms and create greater customer stickiness and customer lifetime value.
- Automate the delivery of uber-personalized pricing: Another concept for B2B businesses is managing negotiated pricing.If you ask any pricing professional, managing complex B2B pricing and agreements can get out of hand quickly.Supporting a B2C or D2C route adds additional complexity across every aspect of your pricing strategy.
Omnichannel examples: Brands creating their own luck
Online retail and e-commerce require an omnichannel strategy. How do you create one? Learn some of the best omnichannel examples out there.
Businesses need to ensure that their B2C pricing doesn’t compete and isn’t more advantageous than their B2B pricing. Not only that, but customers expect a great experience and don’t care about the messiness behind the scenes.
If Amazon can deliver a relevant price in milliseconds to their customers, manufacturers need to do the same across their various channels and routes to market.
Existing tools like ERPs, e-commerce platforms, and CRM often fall short when trying to manage this complexity at scale. Complex channel strategies require dedicated solutions to deliver an omnichannel friendly pricing strategy.
