B2B vs. B2C: How eCommerce is Built for Industrial Supply Companies
The global e-commerce market is expected to grow by nearly 15% by 2027.
This means that you must shift your focus to online channels to remain competitive.
This is especially true for industrial supply companies, which operate in a B2B environment.
These brands rely heavily on relationships and customer experience.?
And in a modern market, B2B e-commerce is essential for meeting customer demands.
If you have a minimal online presence, then your competitors are claiming your market share.
In this article, we’ll reveal:
Why Does Your Industrial Supply Company Need B2B eCommerce?
Higher Average Order Value?
In general, B2B brands enjoy a higher AOV than B2C companies. This is because B2B transactions are often made for business purposes and involve larger or more complex orders.
Many B2B businesses sell products that are custom-tailored to the buyer’s specific needs. These products often require more personalized attention, consultation, and support from sales representatives, which increases their perceived value.?
In addition, business-to-business purchases are negotiable. Negotiation leads to customized prices, larger orders, and larger total order value, while B2C customers must pay the dollar price listed on a website.
How do you maximize the AOV for your B2B brand?
Design a B2B e-commerce website that accommodates these larger, more complex orders. For example, an interactive options selector functionality empowers clients to build their own solutions.
Similarly, you could install a personalized B2B quote functionality. Once your client builds the solution they want, their custom build is emailed to your sales team, while the customer receives an automated response. Your sales or CRM team can follow up when ready.
Better Customer Lifetime Value?
Typically, B2B customers are more loyal and have a higher customer lifetime value (CLV) than B2C customers. B2B clients often have complex issues that require quick, efficient solutions, and organizations invest in strong support infrastructures to cater to their needs.
Furthermore, B2B e-commerce has the advantage of default retention. Unlike B2C customers who may only make single-item purchases, B2B buyers often require a steady supply of inventory to resell.?
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This means that B2B customers are more likely to be repeat buyers and to maintain a long-term relationship with the company. Overall, the combination of repeat purchases and personalized attention maximizes the lifetime value of B2B customers.
How do you maximize the CLV for your B2B brand??
Focus on providing an exceptional customer experience, including easy access to accurate product information, fast shipping, and responsive customer service. By investing in a strong customer experience, industrial supply companies increase customer loyalty and drive repeat business.
Also, conduct data-driven paid search campaigns using dynamic retargeting for different levels of awareness. This keeps customers in your sales funnel, and as you learn more about your clients, you can offer targeted promotions on supplies you know they must replenish.
Learn more about the profitability of dynamic retargeting from The Optimum7 Letter.
Greater Opportunity for Growth?
According to Statista, the global B2B e-commerce market is valued at 500% of the business-to-customer market! This provides unparalleled opportunities for B2B growth.
B2B customers boast greater spending power and represent a more significant opportunity for businesses in terms of revenue and growth potential. B2C businesses appeal to a broader demographic of people — all with diverse spending habits.
Meanwhile, business-to-business audiences are a lot more narrow; usually a set number of buyers with a pretty straightforward profile. However, despite the smaller target audience, B2B e-commerce attracts nearly twice the revenue of online B2C transactions in the US.
How do I maximize long-term growth for my B2B brand??
Many industrial supply companies prioritize traditional sales and marketing strategies over internet marketing. This means that it’s vital to optimize your internet marketing efforts to reach B2B customers if you hope to gain a competitive advantage and maximize your CLV.
B2B e-commerce empowers you to build a custom sales funnel that nurtures long-lasting relationships with your most qualified customers. The B2B market is projected to grow by ~18% over the next 7 years!
That’s a value of almost $27 Trillion! Don’t you want a cut? ??
Boost Profitability with B2B eCommerce Solutions from Optimum7
Adopt B2B e-commerce to maximize your average order value, customer lifetime value, and opportunities for growth.?
Or, take your own advice: team up with experienced professionals who can minimize your costs.
Learn how digital marketing turns your B2B store into a sales machine on The Optimum7 Blog.
To maximize your revenue and growth, speak with my internet marketing experts today!
And subscribe to The Optimum7 Letter for more insider insights into the dynamic world of e-commerce development and marketing.