1. Introduction

With many buyers preferring digital self-service to in-person transactions, digital transformation has become an existential concern for B2B companies. To be able to respond to customers’ changing behaviours and needs, B2Bs must digitise the experiences they offer, considering every step of the user journey. What do B2B marketers need to know to help make their digital transformation a success, so that they can continue to serve their customers in the way they would expect now and in the future?

This Quick Guide identifies the factors that drive successful B2B digital transformation programmes and looks at the key pillars organisations must have in place to continue meeting B2B customer expectations. It is an abridged version of Econsultancy’s B2B Digital Transformation Best Practice Guide. 

2. Drivers of B2B Digital Transformation

By 2020, digitisation was already changing B2B business. However, the global Covid-19 pandemic accelerated this transformation. Most significantly, it changed the customer. B2B buyers are moving away from the traditional purchasing methods that rely on sales representatives. They are seeking the convenience of being able to buy goods and services digitally, at any time and from any device, and pricing that is more transparent and delivered through a more frictionless experience.

Wunderman Thompson’s B2B Future Shopper report,^[1] which surveyed B2B buyers from the UK, Germany, South Africa, China, Brazil, Australia, the UAE, Japan, the Netherlands and India, found that nearly half (49%) of all B2B spending is online (44% in the UK), and that more than two-thirds (68%) of B2B buyers say that they will use digital shopping channels more in the future. The report also predicted that in five years’ time, 57% of B2B shopping will take place online.

However, while there is more B2B shopping activity online, not all buyers are happy with their experiences. The same report found that nearly half (46%) of global B2B buyers are “frustrated” with buying products online, and a similar proportion (45%) think that the process is more complicated than offline.

There is a clear opportunity for B2B businesses to differentiate themselves from the competition and respond to the changing needs of customers by embarking on a digital transformation journey, where they continually develop new competencies and update workflows. First, they must understand why digital transformation is necessary.

2.1 The B2B customer is changing

B2B customers have higher expectations, are more likely to be digital natives and are increasingly savvy about the products they buy before even getting in touch with a sales rep. The 2023 report by Wunderman Thompson^[2] found that 67% of B2B buyers are starting their purchase journeys online, and that the supplier’s website and mobile site provide the number one source of information for buyers of both general products and raw materials.

The pandemic has increased the pressure on B2B companies to provide online customer experiences that buyers are used to in B2C. According to the same Wunderman Thompson report, 66% of B2B buyers expect a similar buying experience on a B2B site to what they would expect on a B2C site.

2.2 Digital is shaping the B2B customer experience

Digital supply chain management and customer management systems are helping many B2B companies drive efficiency, drive down costs and promote customer satisfaction. Digital technologies make it easier for vendors to collect, manage, analyse and share data across their organisations, directly delivering greater efficiencies in processes and procedures.

There is an increasing appetite for self-serve experiences among B2B buyers – in fact, according to Gartner,^[3] 43% of B2B customers would rather not interact with a sales rep at all. Giving customers the option to digitally self-serve if they prefer is crucial for meeting expectations and delivering excellent customer experiences while allowing sales teams to focus on fostering relationships with customers, potentially helping to drive retention.

2.3 B2B marketplaces form a greater part of the customer journey

As a result of the rapid shift to digital buying, B2B marketplaces had been growing before the pandemic. When the pandemic hit, the disruption to supply chains and usual suppliers meant that many businesses had to quickly source products from B2B marketplaces instead. More than a third (36%) of global B2B buyers use Amazon Business, making it the most popular B2B marketplace among buyers.^[4]

The Wunderman Thompson report also noted the rise in marketplaces as one of the biggest trends in online commerce, finding that they account for about 11% of online B2B spend. Sellers can use these platforms, which include Amazon, eBay and Alibaba, as an additional channel for exposure and revenue, and to help build brand awareness. Many customers use marketplaces when researching products, so it makes sense for sellers to use these channels to ensure they are present on every step of the journey.

For guidance about selling on third-party marketplaces, see Econsultancy’s B2B Digital Transformation Best Practice Guide.

3. The Pillars of Digital Transformation

Digital transformation is an ongoing journey. It is a process of continual progress and adaptation in the face of rapid and constant change.

In Econsultancy’s Digital Transformation and the Role of Data Best Practice Guide, digital transformation is described as a journey undertaken to futureproof businesses. Success depends on people, technology, processes and data, and often involves re-engineering and automating businesses, as well as reorienting company culture. This section of the report considers these key strategic ‘pillars’.

3.1 Vision and leadership

The success of a transformation depends first on having the right vision and leadership in place. This involves having buy-in from the senior leadership, without which progress will be severely hindered.

Many of the features that define effective leadership during a crisis are key to effective leadership in the digital age. To find out more about these features, and what it means to be a leader in the context of digital transformation, see Econsultancy’s Effective Leadership in the Digital Age Best Practice Guide.

3.2 Culture

Along with a clear vision for change, digital transformation is enabled by a strong business culture. In the context of continual change, it is important that leaders motivate and inspire their people. This was a point highlighted by Daniel Solomons, Founder and Director of corporate training company Byte Behaviour and former Head of the Google Digital Academy, in Econsultancy’s Digital Transformation and the Role of Data Best Practice Guide. He noted that change starts at the top, with leaders driving business culture by demonstrating the behaviours themselves.

Solomons went on to explain that as transformation can be daunting, leaders must break processes down step-by-step to create an inspiring movement. He also recommends that leaders communicate and celebrate positive behaviours, and reward bravery, collaboration, communication and learning.

3.3 Agility and innovation

It has become increasingly important for businesses to embed more agile ways of working into the fabric of how they operate, and so organisational structure is also an important consideration.

Small, cross-functional teams can promote business agility, as they help break down silos while enabling interdisciplinary collaboration. The result is faster delivery of value. See Econsultancy’s Digital Transformation: Agility and Innovation Best Practice Guide for guidance about how to set up teams for success. To find out more about user-centric design and how to develop products and interfaces that put the customer at the heart of the process, see Econsultancy’s User Experience and Interaction Design Best Practice Guide.

3.4 Data and insights

Data is one of the key ingredients in digital transformation, underpinning the design of better customer experiences and more personalised communication. As discussed in Econsultancy’s Digital Transformation and the Role of Data Best Practice Guide, data transformation must take place before digital transformation is truly possible.

The more the business understands its customers or prospects, the better it can serve them. The experience can be better tailored to their needs, and communications can be made more relevant. Data is key to gaining deeper insights about clients. Businesses must be capable of leveraging data in order to better understand their customers and their market as a whole.

3.5 Technology

After the vision, the right culture and the right data are in place, it takes the right technology to create value, both for the customer and for the business.

Technology can be a key enabler in moving customers along the buyer journey. For example, as described in an Econsultancy article about how digital is shaping B2B customer experiences, live chat has been a real asset, letting companies keep a line of support and assistance open during the consideration phase.

When introducing new technology to the company, consider using the SAMR framework.

3.6 People and skills

People and skills represent the final pillar of digital transformation. In an interview for Marketing Week, GSK’s Senior Media Director Jerry Daykin said that while people can become the greatest barrier to change, they can often be a major accelerator of it, as long as they are fully behind the idea and want to drive its success.^[6]

When embarking on digital transformation, businesses need to consider what training and skills development are required in teams throughout the organisation, particularly in sales and marketing. Nearly half (46%) of B2B respondents to Econsultancy’s 2022 Future of Marketing survey said that they expected investment in training and upskilling of the marketing team to increase over the following two years, while 42% said they expected budget increases in attracting and retaining talent.

Businesses that do not make these investments risk undermining any transformation efforts. It is also worth remembering that investing in new skills shows commitment to employee growth and development, and can help attract the right talent.

4. How to Optimise B2B Digital Experiences

B2Bs seeking to deliver positive customer experiences must consider every step of the buying journey, from how customers research their products and evaluate options, all the way to post-purchase. This section looks at the key considerations for organisations seeking to elevate the B2B digital experience.

4.1 Nurture customer loyalty

One key challenge faced by B2Bs is the fact that customers can struggle to distinguish supplier offerings from one another through digital alone. According to a study by Gartner of more than 1,100 B2B customers, 64% of B2B buyers cannot differentiate between B2B brands’ digital experiences.^[7]

In the realm of B2B, where products tend to be more complex and expensive, and consideration periods are longer, it is particularly important for vendors to be reliable partners to their buyers, which means consistently delivering on expectations. As part of their experiences, B2B buyers expect availability of product, accurate information and shipping updates. Getting these consistently right is more likely to translate to customer loyalty.

4.2 Take a customer-centric approach

Put the customer at the centre of the business. As McKinsey noted in its Future of B2B sales: The big reframe report, as customers seek simpler, on-demand omnichannel experiences, B2B companies must adopt a customer-first approach, ensuring buying journeys are personalised and intuitive.^[8]

A vast majority (91%) of B2B respondents to Econsultancy’s 2023 Future of Marketing survey stated that empathy for the customer and a deep understanding of their needs would either be important or critically important over the following two years.

4.3 Understand the end-to-end customer journey

When moving the customer journey online, it is important to understand every step, including the pain points and where digital can support the user. More than half (51%) of the senior executives surveyed for 2022 Digital Trends: Experience Index report by Econsultancy in partnership with Adobe identified the customer journey as a top priority for the year.

Businesses that improve the digital customer experience are in a better position to reach buyers who prefer to shop digitally, offer relevant product recommendations and lower the price per customer with self-service. Ultimately, the buying process is made easier for both customers and sales teams.

To understand more about the end-to-end customer journey and how to improve the customer experience, see Econsultancy’s Customer Journey Mapping Best Practice Guide.

4.4 Use digital tools to support the entire customer journey

As hybrid selling becomes the norm, and sellers can expect further reduced face time with their customers, it is important for B2B companies to create the human touch in a digital world and continue to foster successful relationships.

There are many tools available to help B2B businesses achieve this, enabling sellers to create engagement with customers and decision makers in a way that replicates the traditional forms of selling. They can also help sellers overcome the challenges of aligning different groups of internal stakeholders virtually as well as across different digital sales channels. These include interactive tools such as chatbots, or visualisation and guided selling tools that make the use of augmented reality.

To find out more about the different digital tools that can help the customer along their journey, as well as support sales teams, see Econsultancy’s B2B Digital Transformation Best Practice Guide.

5. Conclusion

The increased demand for digital products and services has created a great opportunity for B2B companies. Making the most of that opportunity first requires that B2Bs nurture the right vision and culture to transform the business. To maintain progress, they must continually work to improve the customer experience and support customers across all touchpoints of their journey, and regularly revisit their digital transformation plans with a view to upscaling digital infrastructure.

They must also keep an eye on the horizon, so that they can continue to serve B2B customers in ways they would expect on channels that may be unimaginable today. According to Wunderman Thompson’s 2023 B2B Future Shopper report,^[10] in five years’ time, 35% of B2B buyers will be making purchases on social media channels, while 67% said that in the future they would like to buy products or services in the metaverse, using an avatar.

Econsultancy and Guild Founder Ashley Friedlein has argued that digital transformation is really business transformation. Businesses must transform into agile, customer-centric digital organisations in order to succeed.

Whatever future may unfold, a few guiding principles will remain: follow the customer, understand the journey they make, and use the tools at hand to reach them.

5.1 Key takeaways

• Nearly half (49%) of all B2B spending now happens online, and this figure is only set to increase. More than two in five (43%) B2B buyers prefer not to interact with a sales rep at all, so giving customers the option to digitally self-serve is a crucial step in futureproofing the business.
• B2B customers are changing. They have greater expectations, are more likely to be digital natives and are increasingly self-educated about the products and services they are in the market for.
• Digital transformation is an ongoing journey that requires continual adaptation as conditions change. The success of a digital transformation programme depends on having a clear vision and leader, strong business culture, agility, data and insights, technology, and the right people and skills.
• Key considerations for optimising the B2B digital experience are nurturing customer loyalty, taking a customer-centric approach, understanding the end-to-end customer journey, and using digital tools to support the journey in its entirety.
• Ongoing success requires that organisations regularly revisit their digital transformation plans while keeping an eye on the horizon.