eCommerce Adoption: Enabling Sales Teams to Embrace Online Channels
Carlos Camacho
More than 20+ years in leading eCommerce teams in B2B and B2C industries, both at the manufacturer and distributor level. I'm passionate about Customer Experience (CX), global eCommerce, and building eCommerce road maps.
Mastering Change Management
In today's digital age, B2B companies are leveraging the transformative potential of eCommerce to revolutionize their operations, enhance customer experiences, and drive increased revenue. Adopting online channels allows them to unlock new opportunities and streamline their processes. According to McKinsey & Company, companies that regularly assess and adjust their eCommerce strategies can achieve a remarkable 15% boost in revenue.
However, transitioning to eCommerce can present challenges, particularly when convincing B2B sales representatives to promote this new channel actively. This task can be even more difficult with sales reps nearing retirement, as they may resist change. The typical response from older B2B sales reps often sounds like, "I've been selling my way for 30+ years. Why should I change now?"
While focusing on change management with younger sales reps may be easier, making an effort with the entire sales team is crucial. This two-part article aims to explore real-world examples of successful strategies that I have implemented in the past and those employed by prominent B2B companies to overcome these challenges and fully embrace the potential of B2B eCommerce.
Adapting to Changing Customer Behavior
The purchasing landscape for B2B businesses is undergoing a significant transformation. Previously, companies heavily relied on B2B sales representatives and printed product catalogs to research products and provide recommendations. However, in today's digital era, businesses increasingly embrace online channels as their go-to resource for product research and purchasing.
According to a recent comprehensive study by Forrester Research, 74% of B2B buyers now utilize online channels as a primary means to gather information about products and services. Moreover, the study revealed that 62% of B2B buyers complete their purchases online.
This paradigm shift in customer behavior presents a remarkable opportunity for B2B sales representatives to revolutionize their sales strategies. Rather than adhering to traditional sales methods, B2B sales reps can now concentrate on actively encouraging customers to embrace online ordering.
Fortunately, there exist numerous effective strategies that B2B distributors and manufacturers can employ to facilitate online ordering for their customers.
Benefits of Encouraging Online Ordering for B2B sales reps
Before we explore the strategies to drive eCommerce adoption, let's examine why expanding the eCommerce channel is crucial. Embracing online ordering provides many advantages for B2B sales reps, enabling them to excel in the digital business landscape. Here are the key benefits that online ordering brings to B2B sales reps:
Increased productivity
By embracing online ordering, B2B sales reps can eliminate the burden of manual order processing, unlocking valuable time and resources. Online ordering empowers customers to place their orders conveniently and offers a range of self-service capabilities, including order status inquiries and tracking information retrieval. As a result, B2B sales reps can bid farewell to tedious administrative tasks and redirect their focus towards more strategic endeavors, such as cultivating and nurturing customer relationships, identifying untapped sales opportunities, and delivering personalized service that adds significant value to each customer interaction. With the liberation from mundane administrative work, B2B sales reps can unleash their true potential and contribute more effectively to the growth and success of their organizations.
Improved Efficiency and Accuracy
Online orders significantly reduce the likelihood of errors compared to manual order processing. The risk of miscommunication, data entry mistakes, and misplaced orders is minimized by utilizing automated systems for order entry. This saves valuable time and enhances overall accuracy, ensuring a seamless and efficient ordering experience for B2B customers.
The benefits of reducing ordering mistakes extend beyond time savings. It saves costs by minimizing transportation fees and contributes to environmental sustainability through reduced re-shipping. Additionally, it enhances the productivity of B2B sales reps as they are not burdened with handling returns or initiating the return process through customer service.
Enhanced Customer Satisfaction
The convenience and accessibility of online ordering align perfectly with customers' expectations in today's fast-paced business environment. B2B companies that provide an intuitive online platform enabling customers to place orders conveniently and efficiently, anytime and anywhere, are poised to surpass their competitors in sales in the years ahead.?
This elevated level of customer service and convenience not only enhances the buying experience but also leads to increased customer satisfaction. By offering a seamless online ordering process, B2B companies can foster stronger customer relationships, build trust, and ultimately cultivate a loyal customer base. Providing such convenience and responsiveness encourages repeat business, driving long-term success in the market.
By embracing online ordering, B2B sales reps can adapt, excel, and drive business growth in the digital era. In the following sections, we will explore successful strategies prominent B2B companies employ to overcome challenges and fully harness the potential of eCommerce.
Empowering Sales Teams to Embrace Online Channels
B2B sales rep quota adjustments
Incentivize B2B sales reps to focus on eCommerce sales by adjusting their quotas accordingly. In 2017, Dell recognized the need to incentivize its B2B sales reps to promote eCommerce adoption. By changing its quotas to incorporate online sales, Dell witnessed a remarkable 20% increase in online revenue within the first year. This approach demonstrated the power of aligning sales incentives with the company's digital transformation goals.
Increasing the quota for manual orders and decreasing it for online orders will encourage B2B sales reps to promote and prioritize online ordering actively. This adjustment sends a clear message that eCommerce sales are a priority and rewards B2B sales reps who contribute to the growth of the digital channel.
Pay commissions to B2B sales reps for online orders
Early in my career, I encountered a challenge regarding eCommerce adoption when the webstore I managed competed with our inside and field sales teams for orders. The issue arose when online orders were credited to the eCommerce channel, resulting in sales reps needing to receive a commission for their accounts' orders. This created an "us vs. them" situation, where the webstore was perceived as a competitor, and sales reps consistently requested order origin changes for customers they had worked with. Unfortunately, this situation led to a lose-lose scenario.
To address this problem and foster eCommerce adoption, let's flip the strategy and consider a more practical approach. If a B2B sales rep's account places an order online, they should be appropriately compensated. It's essential to track the ordering channel origin (attribution) while implementing this strategy. By doing so, we can create a win-win situation. We can shift the focus of our sales team towards consultative activities while administrative work is streamlined through the eCommerce channel.
Every company must drive customers towards online ordering in the current business landscape. Even if it means paying commissions on web sales, we should embrace this strategy for now. It acknowledges the importance of eCommerce and positions it as a primary channel. While this approach may evolve, it is the most effective path forward. This is the way.
New account enablement by the B2B sales reps
As advocates of digital self-service and automation, the following approach may contradict those principles. Viewing commercialization as a product is beneficial when launching a new eCommerce site. This entails incorporating a pilot phase and limited release to a specific segment of your customer base. The eCommerce team, downstream marketing managers or business development manager, and B2B sales team will collaboratively determine the target customers throughout these stages. Subsequently, the eCommerce enablement team will provide comprehensive training to the B2B sales representatives.
To facilitate eCommerce adoption during these project phases, the B2B sales reps will personally engage with their designated accounts, offering a personalized and attentive onboarding experience that ensures a smooth registration process and familiarizes customers with the site's main functionalities. By implementing this strategy, the B2B sales reps gain control as they actively participate in selecting the accounts and shaping the onboarding process. This approach has proven to be one of the most effective change management strategies for eCommerce adoption that I have seen. Furthermore, a modified version of this approach could also be applied to existing eCommerce channels.
Addressing incentive abuse by B2B sales reps
In 2019, Home Depot tackled a common challenge in change management – incentive abuse by B2B sales reps. The company implemented a policy prohibiting B2B sales reps from placing orders online for themselves or their acquaintances. As a result, Home Depot experienced a notable decrease in fraudulent orders, ensuring the integrity of the eCommerce system.
Implement measures to prevent B2B sales reps from placing orders online, as this can lead to abuse of incentives.
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Compensation structure adjustment
In 2020, Nike restructured its compensation model to reward B2B sales reps who generated significant sales through the eCommerce channel. This adjustment motivated the salesforce to actively promote online sales, leading to an impressive 30% increase in online revenue in the first year. Nike's strategy showcases the impact of aligning compensation with the desired outcomes.
Modify the compensation structure so that orders placed offline by B2B sales reps pay a lower commission rate below a certain threshold (e.g., drive orders under $1,000 to the web platform).
Emphasize the financial benefits B2B sales reps can reap by embracing omnichannel ordering. It's important to highlight that sales reps who leverage multiple channels, such as online and offline, consistently earn, on average, 15% more in commissions compared to their non-omnichannel counterparts. This finding has been consistently observed throughout my experience across various companies. After all, which sales rep would want to avoid the opportunity to earn commissions on orders 24/7?
Comprehensive ongoing training for B2B sales reps and managers
Comprehensive training programs are vital for successful eCommerce adoption among B2B sales reps and managers. These programs should prioritize educating sales reps about eCommerce's many benefits and advantages. It is crucial to emphasize how embracing eCommerce can enhance their sales skills by providing them with cross-sell and upsell information at their fingertips. This, in turn, can lead to increased customer satisfaction, ultimately resulting in higher commissions for the sales reps.
Equally important is training managers to understand the significance of eCommerce goals and integrate them into their team's performance metrics. By providing managers with the necessary knowledge and skills, they can effectively support and guide their teams toward eCommerce success.
Ongoing training ensures that B2B sales reps and managers stay up-to-date with the latest eCommerce strategies and best practices. By continuously enhancing their understanding and proficiency in eCommerce, they can adapt to evolving market trends and maximize their potential for success.
Establish a B2B sales rep incentive program for online orders
Implement a well-defined incentive program that incentivizes and rewards B2B sales representatives for their efforts in promoting and driving online orders. Consider offering additional commissions or bonuses to those who consistently generate online sales, encouraging them to embrace and advocate for eCommerce adoption. In the past, goodwill with the sales teams was fostered through gestures like providing lunch or coffee gift cards. To further engage and motivate the salespeople, introduce creative contests, leveraging their natural competitive nature.
B2B sales rep training on eCommerce benefits
Offer comprehensive training sessions to educate B2B sales representatives about eCommerce's numerous benefits and advantages. Highlight how online ordering can significantly enhance sales performance, improve customer satisfaction, and increase earning potential.
Nurture a culture of knowledge sharing among B2B sales reps by establishing forums or internal platforms to freely exchange valuable tips, best practices, and success stories on eCommerce adoption. Encouraging peer-to-peer learning fosters collaboration and enables B2B sales reps to learn from one another's experiences.
Identify and leverage B2B sales reps who have wholeheartedly embraced online ordering as champions of the cause. These individuals can be pivotal in providing training, offering encouragement, and serving as valuable assets in change management efforts.
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Gamify the adoption process
Gamify means incorporating game elements into non-game contexts to engage and motivate individuals. It uses competition, rewards, challenges, and progression systems to make activities more enjoyable. Gamification enhances motivation, increases participation, and drives desired behaviors by leveraging our innate desire for achievement and recognition. Gartner highlights that companies implementing gamified approaches to eCommerce adoption can experience a 20% increase in customer engagement.
You can implement gamification elements within your eCommerce platform to make the transition more engaging and enjoyable for B2B sales reps. This can include leaderboards, achievements, rewards, and friendly competitions, fostering a sense of excitement and motivation to promote and use the online channel actively.
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Celebrate successes and milestones
Recognize and celebrate achievements related to eCommerce adoption. This can include publicly acknowledging top-performing B2B sales reps, sharing success stories, or organizing events to commemorate significant milestones. Celebrating successes reinforces the importance of eCommerce and motivates B2B sales reps to continue driving its adoption.
Keep B2B sales reps and management informed about the progress and impact of eCommerce adoption. Share key metrics, such as increased online sales, improved efficiency, and customer satisfaction, to demonstrate the value and success of the digital transformation.
eCommerce goals as part of Management's bonus structure
Consider incorporating eCommerce goals as part of managers' bonus structures to drive eCommerce adoption further. By tying managers' incentives to the success of the eCommerce channel, they will be motivated to support and promote online ordering actively. This alignment of goals ensures that managers prioritize eCommerce initiatives and provide the necessary support to their sales teams.
Integrating eCommerce goals into the bonus structure of regional or district sales managers is crucial as it drives the adoption and success of online channels within an organization. By including a specific key performance indicator (KPI) related to eCommerce adoption and sales for the VP of Sales, a clear message is sent down the sales hierarchy, emphasizing the priority of eCommerce.
Aligning the incentives of sales managers with the company's eCommerce objectives is vital. This integration ensures the entire sales team actively promotes and drives online sales. When eCommerce goals are tied to the bonus structure, it fosters a culture of eCommerce adoption throughout the organization.
Integrating eCommerce goals into the bonus structure motivates sales managers and sends a powerful message about the importance of online channels to the entire sales team. It creates shared responsibility and encourages active participation in promoting and achieving eCommerce success.
Ultimately, this approach maximizes the potential of online channels to boost revenue and enhance customer satisfaction. By fostering a culture of eCommerce adoption and aligning incentives, organizations can drive the successful integration of eCommerce into their overall sales strategy.
Multi-strategy approach drives successful B2B eCommerce adoption
In conclusion, achieving successful eCommerce adoption in a B2B company requires a multifaceted approach encompassing various strategies and tactics. Companies can effectively drive the adoption of eCommerce by implementing proven techniques like B2B sales rep quota adjustment, customer incentives, addressing incentive abuse, compensation structure adjustment, targeted email marketing campaigns, ongoing training, and gamification.
Encouraging online ordering allows B2B sales reps to focus on strategic endeavors, cultivate customer relationships, and identify untapped sales opportunities. The benefits of online ordering for B2B sales reps are numerous. It increases productivity by eliminating manual order processing, saving valuable time and resources. Online orders also improve efficiency and accuracy, reducing errors and ensuring a seamless ordering experience for reps and customers. Enhanced customer satisfaction is achieved through convenience and accessibility, fostering stronger relationships and repeat business.
B2B sales reps must embrace eCommerce, implement effective change management strategies, and maximize revenue and customer satisfaction in the digital landscape. By leveraging the remarkable opportunity presented by the shift in customer behavior towards online channels, B2B companies can capitalize on the benefits of online ordering for their sales reps. With the right strategies in place, including empowering sales teams, addressing incentive abuse, adjusting compensation structures, and providing comprehensive training, B2B companies can foster a culture of eCommerce adoption and drive success. Integrating eCommerce goals into sales managers' bonuses ensures the necessary support and promotion of online ordering throughout the organization. As B2B ecommerce continues to grow rapidly, embracing eCommerce is not just a competitive advantage but a necessity for B2B companies looking to thrive in the digital era.
Do you have other strategies to get B2B sales reps to embrace eCommerce? If so, I'd love to read about them in the comments.
Did you enjoy this article? If so, be sure to read "Successful Strategies for B2B eCommerce Adoption."
Better business by design | UX / UI Manager | Strategy | User Experience | Marketing | E-Commerce
1 个月Great article Carlos. I think you really nailed how to address some of the challenges at the business level, especially with aligning incentives for reps and encouraging adoption. Change management in a situation like this is so important.
Commercial Director | CCO | Digital Transformation | Interim | Marketing Management| Enhancing revenue and profit, optimizing GTM strategies, achieving commercial excellence, and expanding eCommerce.
1 个月Fully agree Carlos adoption is a challenge. Setting up an online channel will not change the way the sales teams sell. I like to say that you have to work on adoption of the customers and the sales teams. Incentives for sales reps have proven to be a strong weapon. Great article !
Regional Manager
1 年Jesse White
AI-Driven Product Data Services with Human Expertise to Boost Revenue for Industrial Distributors
1 年Interesting insights, The challenge has been most B2B sales involves either strong application knowledge or trusted relationship. The established Sales Reps still have fear that they may not be able to nurture this in Digital Commerce....
B2B Ecommerce Expert and Practitioner
1 年Great article, well written and with some solid examples how to include sales reps in the digital commerce transition from day one! I have seen organizations "build it and wait for them to come" and others where sales reps were actively trained and incentiviced on the digital commerce solution internally, even customers were given training on the new digital channel (sometimes in person). The results reflect in sales online. The industry is awakening to the fact that you cannot purchase digital commerce success by investing only in a platform, investments in and changes with people, process, policy, and platform are required.