Perspectives | Digital Commerce 360 https://www.digitalcommerce360.com/type/perspectives/ Your source for ecommerce news, analysis and research Fri, 26 Jul 2024 02:09:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Perspectives | Digital Commerce 360 https://www.digitalcommerce360.com/type/perspectives/ 32 32 The new digital supply chain stars: automated guided vehicles https://www.digitalcommerce360.com/2024/07/26/the-new-digital-supply-chain-stars-automated-guided-vehicles/ Fri, 26 Jul 2024 14:00:28 +0000 https://www.digitalcommerce360.com/?p=1326053 Automated guided vehicles (AGVs) have become more common at supply chain locations worldwide, transporting containers and other loads between ships, trucks, rail cars and warehouses. Why are more leaders using them? Most use cases relate to relieving congestion and improving operations when ports experience record-setting traffic levels. Decision-makers recognize how AGVs can streamline their supply […]

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EmilyNewton

Emily Newton

Automated guided vehicles (AGVs) have become more common at supply chain locations worldwide, transporting containers and other loads between ships, trucks, rail cars and warehouses. Why are more leaders using them? Most use cases relate to relieving congestion and improving operations when ports experience record-setting traffic levels. Decision-makers recognize how AGVs can streamline their supply chains, keeping containers moving and preventing costly delays.

Leaders who use AGVs and other automated tools to strengthen their supply chains have more oversight and influence over the impact of supply chain fluctuations.

Accelerating the Movement of Goods

The supply chain’s persistent labor shortage can cause staffing crises that are particularly impactful during peak periods. Some leaders have deployed AGVs for material handling tasks, finding that such efforts help them maintain high productivity.

One example came from China’s Ganqimaodu land port. Each AGV moved between this port and a Mongolian coal stockyard, carrying two standard containers of imported products along a 1.86-kilometer route. An AGV takes 50 minutes per round trip and travels up to 25 kilometers per hour.

The AGV operator using them in China has 30 in its fleet, using 24 each weekday. They move 10,400 tons of coal daily during 160 total round trips. Additionally, there are 30 AGVs in Mongolia. Supply chain managers believe that using all 60 simultaneously will allow for achieving a 15-million-ton transport capacity.

To provide perspective on the overall coal-related activity at the port, leaders said each arriving truck holds up to four standard containers and makes four to six round trips per month. This initiative was the first instance of AGVs used at a land port for cross-border transportation, showing the potential of such applications.

Examples such as this show how AGVs can minimize supply chain staffing shortages, keeping each port as productive as possible during those challenging times. Moreover, AGVs can support other automation projects to relieve labor needs.

Japanese officials plan to address the labor shortage with a conveyor belt from Osaka to Tokyo. The so-called Autoflow-Road project would include infrastructure above and on the sides of roads, as well as tunnels underneath major highways. Estimates suggest this system could move loads equal to that of 25,000 trucks daily, and that each container placed on the conveyor belt would hold up to 1 metric ton of goods.

Facilitating Improved Forecasting

Multiple partners often handle goods moving through supply chains, especially when those loads require multimodal transport solutions. Clients understandably want progress updates on their container loads so they can plan associated operations accordingly. Managers frequently deploy connected technologies to meet those needs.

For example, the United Kingdom’s Port of Dover has an advanced digital twin that predicts the associated tidal flows and weather conditions, supporting safe arrivals and departures. That tool complements a landside digital twin that optimizes traffic flows and port operations while supporting decarbonization and energy efficiency efforts. Such visibility enhances predictions and reduces the reliance on guesswork. Supply chain clients benefit by passing on more accurate information to their customers, increasing the likelihood of repeat business.

People worldwide have warmly embraced online purchasing, appreciating its convenience and efficiency. In 2023, U.S. B2B ecommerce sales surpassed $2 trillion and U.S. retail ecommerce sales topped $1.1 trillion. And analyses suggest global retail ecommerce sales will surpass $8 trillion by 2027. Shoppers who receive correct estimates of incoming parcels can adjust their schedules accordingly, remaining available when they arrive.

Improving Resilience

Supply chain experts frequently assess their business models, identifying new ways to protect their networks from shocks that could severely disrupt their operations. Many search for process improvement options, knowing that even small tweaks can significantly improve outcomes.

These professionals must focus on the things within their control to minimize the effects of those that are not. Then, they remain better equipped to handle the various fluctuations common to their industries.

Freight indexes are nearly 10 times higher than pre-COVID-19 levels. However, leaders who use AGVs and other automated tools to strengthen their supply chains have more oversight and influence over the impact of supply chain fluctuations. Improvements could free up money in the budget for aspects outside their control.

Decision-makers may implement AGVs as part of more-extensive automation strategies, knowing targeted improvements will keep them competitive and profitable. A logistics company did that to prepare for Singles Day, which has become one of China’s most notable online shopping days. Business leaders created a robust, end-to-end system to support the supply chain from first-mile pickups to last-mile deliveries.

That all-encompassing effort allowed the enterprise to deliver more than 200 million parcels to customers who shopped for the occasion. AGVs played a significant role in the success. A single Thailand warehouse has 100 of the machines, which collectively reduce employees’ walking time by 90%. This example shows that AGVs can support higher efficiencies along the supply chain.

Planning AGV Utilization

Today’s supply chains pose increasing challenges, but automated guided vehicles can overcome many of them. However, any AGV-related plans must carefully consider worker training, traffic flow, tech infrastructure and other necessities.

Addressing those matters early in the process boosts the chance of success and provides a strong return on investment. Getting inspired by supply chain partners currently using AGVs in their processes is an excellent way to explore what is possible.

About the author:

Emily Newton reports on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Keeping B2B ecommerce flowing with post-sale support https://www.digitalcommerce360.com/2024/07/19/keeping-b2b-ecommerce-flowing-with-post-sale-support/ Fri, 19 Jul 2024 17:14:51 +0000 https://www.digitalcommerce360.com/?p=1325796   Repeat business drives a substantial portion of the revenue in a B2B company. You need to make re-ordering as convenient as possible. How do we achieve that in B2B implementation? Firstly, it’s important to note several differences in the order management implementation of “My Orders” in B2B ecommerce compared to B2C. In B2C, “My […]

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MichaelVax_CommerceIsDigital-2024

Michael Vax

Repeat business drives a substantial portion of the revenue in a B2B company. You need to make re-ordering as convenient as possible.

Make sure that customers can filter by date and employee who placed the order.

How do we achieve that in B2B implementation?

Firstly, it’s important to note several differences in the order management implementation of “My Orders” in B2B ecommerce compared to B2C. In B2C, “My Orders” refers specifically to orders placed by the logged-in user. In contrast, in B2B, the list should display orders placed by all users within the same business or, in the case of a large organization, by all users within the same business unit.

Additionally, since the list of orders could be extensive, searching and filtering past orders is the must-have functionality in B2B. Make sure that customers can filter by date and employee who placed the order. Let them search by product name, attributes, text in the description, and category. For large customers, allow search by an SKU number used in the customer’s procurement system.

Make it easy to repeat the entire order or reorder some selected products.

Warn customers about any changes in product availability. If a model has been discontinued, offer alternative products. Nothing is worse than coming to check out just to be informed that a product is out of stock.

Let customers know if a new model of a previously bought product is available and make it easy to replace it.

If the price has changed since the last purchase, make it known as early as possible. Update customers on current promotions, which could be different from the last time the order was placed.

Moreover, make sure configurable products retain product configuration details for make-to-order, so the customer does not need to go through the configuration process again.

One of the key benefits of B2B ecommerce is customer self-service capabilities. Implement the recommendations above to save your customers the most precious resource — their time.

Order Status Updates

Real-time visibility into order status and updates empower customers to track and manage their transactions proactively. By offering order tracking and notification features, businesses enhance transparency and build customer trust throughout the order lifecycle.

Not all order status changes happen in the ecommerce system, but to improve customer experiences, businesses must ensure that ALL notifications are received through the self-service channel. If an order is modified after it has been placed, these changes need to be synced back to the ecommerce system to provide customers with a single source of truth.

Integrating maintenance Requests and Support with an Online Portal

And to help customers after the purchase, create and support a knowledge database, FAQs, and usage and repair instructions.

By offering the ability to place a maintenance request on self-service support portals and ticketing systems, businesses empower customers to report and resolve issues autonomously, reducing reliance on manual intervention.

Conclusion

At the heart of every successful B2B transaction lies a seamless customer experience. It’s not merely about satisfying immediate needs but about fostering long-term relationships built on trust, reliability, and value delivery.

CX is the linchpin of sustainable growth and differentiation in today’s interconnected digital economy.

About the Author:

Michael Vax is the founder of CommerceIsDigital, which provides consulting services and training programs for companies deploying B2B and BTC ecommerce strategies. He is a former executive at ecommerce technology companies Spryker Systems, SAP Commerce Cloud, Elastic Path and WebInterpret.

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Lose the lingo and think TikTok: B2C marketing tips for B2B https://www.digitalcommerce360.com/2024/07/12/lose-the-lingo-and-think-tiktok-b2c-marketing-tips-for-b2b/ Fri, 12 Jul 2024 15:04:27 +0000 https://www.digitalcommerce360.com/?p=1325434 In the realm of marketing, B2B and B2C strategies often appear worlds apart; after all, you don’t market a software product the same way you market jewelry. As someone focused on B2B marketing, with experience working with consumer brands, I’ve discovered that B2B marketers stand to gain more insights from their consumer counterparts than they […]

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MattLevitt-829Studios

Matt Levitt

In the realm of marketing, B2B and B2C strategies often appear worlds apart; after all, you don’t market a software product the same way you market jewelry.

As someone focused on B2B marketing, with experience working with consumer brands, I’ve discovered that B2B marketers stand to gain more insights from their consumer counterparts than they might initially realize. Ultimately, whether it’s enterprise software or everyday products, those making the purchasing decision are still consumers. Companies are increasingly demonstrating that you don’t need to delve into technical intricacies to effectively engage with business audiences.

Here are four helpful principles B2B marketers can learn from B2C:

1 – Market to People, Not Just Businesses

There is a lot to learn from consumer brands that excel at communicating effectively with their audience. Often, marketing assets are not about the product itself but rather the emotion or benefits it can provide.

B2B marketers can take note — not everything has to be down to business. Take HubSpot, for instance. Initially targeting smaller businesses uninterested in or unable to handle the complexities of more advanced alternatives, HubSpot didn’t push the merits of marketing automation and CRM. Instead, they consistently provided valuable content addressing various business and marketing subjects, addressing the real needs of their audience.

This technique mirrors the strategy of makeup brands offering tutorials on platforms like YouTube, Instagram, or TikTok. Viewers seek education, and through this process, they discover and trust brands that offer solutions to their problems.

2 – Lose the Lingo

Business services and technology offerings can be a challenge to communicate, especially concisely. It requires skillful wording and sometimes an outsider’s perspective to strip away industry jargon and deliver a clear message. Even among knowledgeable audiences, content overloaded with unexplained acronyms or industry terms risk alienating rather than engaging.

3 – Expand Beyond Traditional B2B Channels

LinkedIn and Google aren’t the only way to reach your audience. If you ensure the right targeting, any channel can be a B2B channel including Instagram, TikTok and press. Since not every B2B company is leveraging these channels, it also offers an opportunity to stand out from the crowd.

If your website already has strong traffic, you can even use these advertising channels only to retarget people that have already been to your site and found you through more traditional B2B channels. A good example of a B2B company using traditionally consumer marketing channels is collaborative work management software firm Monday.com.

On Meta, Monday.com uses a strong mix of content that looks native to Facebook and Instagram, like UGC-style video, in conjunction with more typical B2B ads showcasing the product’s UI and various infographics. Monday.com understands that their audience spends time on Meta and is adjusting their strategy to meet them where they already are.

4 – Don’t Put Your Website on the Backburner

Your website’s impact is substantial; neglecting issues such as slow site speed can hinder users from discovering your offerings effectively. Invest in a website that will impress, regardless of whether your traffic rivals that of direct-to-consumer brands.

By embracing these principles gleaned from consumer marketing, B2B marketers can elevate their strategies and forge deeper connections with their audience. This will ultimately drive success in an increasingly competitive landscape.

About the author:

Matt Levitt is director of strategy at 829 Studios, a B2B and B2C marketing agency.

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Preparing for the “Machine Customer” era https://www.digitalcommerce360.com/2024/06/28/preparing-for-the-machine-customer-era/ Fri, 28 Jun 2024 12:00:40 +0000 https://www.digitalcommerce360.com/?p=1324835 In Part 2 of our Machine Customers series, we further expand on the emerging $30 trillion business-to-AI (B2A) marketplace. In Part 1, “The coming era of machine customers,” we introduce the concept of a custobot, a “non-human economic actor who obtains goods or services in exchange for payment” (Gartner.) We shared an example of how […]

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Shawn Cope, Xngage

Shawn Cope

In Part 2 of our Machine Customers series, we further expand on the emerging $30 trillion business-to-AI (B2A) marketplace. In Part 1, “The coming era of machine customers,” we introduce the concept of a custobot, a “non-human economic actor who obtains goods or services in exchange for payment” (Gartner.) We shared an example of how it could work in practice, and in this second part, we discuss  the technological underpinnings in greater detail.

If the Bill of Materials (BOM) is programmed into a smart machine, the custobot can search on any of the keywords or specifications.
Kathleen Leigh Lewarchick_Xngage

Kathleen Lewarchick

Since the decision-making around integrated machines is usually complex, we start with a typical custobot journey map. By capturing its flow, people can gain more clarity around their own roles of ownership, responsibility, IP, and security. And the journey really begins in just the first few seconds — dare we say nanoseconds? — within a transactional ecommerce environment.

The First Seconds of Your Machine Bot’s Journey

The first action step in a custobot’s journey is to identify a product need. The machine might do this through a regulated chip or sensor that provides data: examples include usage level, power level, or variations in tolerances. A data point (or need) drives a purchase occasion. You can see how a car wash soap machine (out of suds,) or a battery-powered system (out of juice,) might know when it’s time to reorder. But conditions requiring tight tolerances might be harder to manage, especially in cases where holiday seasonality or weather conditions may come to bear. And yet, predictive “machine customer” buying behavior is much farther ahead than you might imagine. Some vending soft drink machines have built-in thermometers, for example, to assess heat conditions (and pricing).

Once the need is identified, the custobot can use machine-learning and artificial intelligence to conduct a smart search. If the Bill of Materials (BOM) is programmed into a smart machine, the custobot can search on any of the keywords or specifications. If an item was previously searched, reviewed, or considered (through authentication,) that history might also be added to the query.

Once matches are found, the custobot can use pre-determined filters (like budgets, specs, brands) to then evaluate the shortlist of options for consideration. A custobot might know, for example, that there are two acceptable lightbulbs for its smart lamp. Because of the variability of pricing, shipping terms, delivery windows, and taxes, the distributor who gets the buy box or order will likely have the best real-time information and the most positive credentials, such as ratings-and-reviews.

The operative word in all of this is “smart.” Now is a good time to take measure of your ecosystem to determine where you are already ahead, and what obstacles you might have to navigate, in your platforms (ERPs, PIMs, DAMs) and other systems.

What to Do Next – Engaging Your Technical Experts

Data Preparation

On most B2B sites the current level of data is often quite sparse. Custobots will make purchasing decisions based primarily on information systems rather than personal relationships and will place a heavy emphasis on comparing a product’s attributes. This means you must vastly expand on the amount of detail available for a product’s specifications and attributes.

It also means that a strong push should be made towards standardized product attributes — now, while there is still runway left. According to Wes Smith, the President/CEO of the National Association of Electrical Distributors (NAED), through the IDEA’s data synchronization services, “the electrical industry continues to advance its product standardization effort, focusing on a goal of harmonized industry data that is consistent, compatible, and complete.”  IDEA is the Industry Data Exchange Association and is jointly owned by NAED and the National Electrical Manufacturers Association (NEMA).

Why standardize? Because it benefits every participant in the customer journey and will do so for machine customers one day.

Streamlined Products and Pricing with Optional Authentication

Common to B2B websites is the practice of locking catalogues behind an authentication wall. This could shut out guest purchases and present a roadblock to acquiring new customers. However, when a custobot encounters a digital store front as either a guest or authenticated user and it finds limited or no products, a website may rank lower in algorithms, resulting in lost opportunities.

Similarly, in B2B, pricing for a particular product is negotiated per customer or contract, and the price is hidden behind authentication. This pricing method simply won’t work for a custobot that wants to purchase and must at least have an opening price point for comparison. While there is merit in having a better price for volume customers, standard advertised prices are needed at the very least so you don’t risk losing easy sales and lowering your preference rankings in algorithms.

Influencing the Industry Standards

Start Search Engine Optimization (SEO) now to influence the artificial intelligence (AI) models that future machine customers will leverage. If models think specific attributes (e.g., “fit” or “material”) are the most important factors in a buying decision and your products score well there, you will likely win customers based on this foundational groundwork. Large language models are known to have some inherent bias and setting authority for search terms is an important first-mover advantage in the world of machine customers.

In Summary

The coming world of machine customers is already well underway. Setting a place at the table for your new customer requires smart planning and preparation. Since digital moves quickly, start by gathering a cross-departmental, cross-functional team and identifying what people know and don’t know about machine customers. This team can then identify gaps in a custobot customer journey, and then work with subject matter experts to assess the feasibility of solutions.

Pairing Product Management with IT resources will help uncover roadblocks to data flow and create the right single source of truth for product and pricing management. Pairing Marketing and IT resources will help uncover roadblocks to the golden order through API and SEO management. At the very least, by this time next year, everyone in your organization should know what machine customers are and why the company’s digital and IT investments will continue to grow.

Say hello to the new face of customers.

About the authors:

Shawn Cope is the Director of Front-End Engineering for Xngage LLC, a B2B digital commerce services company with more than 60 clients across the industrial trades. Throughout his career he has cultivated a passion for bleeding-edge technologies and crafting user experiences.
Kathleen Leigh Lewarchick
 is the VP of Marketing for Xngage. She is the former PURELL® Hand Sanitizer Brand Director, has co-created automated replenishment products with Amazon Business, and created telehealth solutions for a company that she later helped sell to CVS Health. 

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Product managers: Don’t miss out on the rewards that AI unlocks https://www.digitalcommerce360.com/2024/06/21/product-managers-dont-miss-out-on-the-rewards-that-ai-unlocks/ Fri, 21 Jun 2024 14:00:55 +0000 https://www.digitalcommerce360.com/?p=1324221 Advanced technologies like artificial intelligence (AI), machine learning (ML), advanced optimization, the Internet of Things (IoT), and data analytics make it possible for product managers to delve deeper into high-intensity user pain points and expand the possibilities in shaping delightful user journeys. Unfortunately, if product managers continue to look for incremental improvement opportunities to existing […]

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Advanced technologies like artificial intelligence (AI), machine learning (ML), advanced optimization, the Internet of Things (IoT), and data analytics make it possible for product managers to delve deeper into high-intensity user pain points and expand the possibilities in shaping delightful user journeys. Unfortunately, if product managers continue to look for incremental improvement opportunities to existing products based on legacy technologies instead of working backward from users each time and identifying the right solutions, they are likely to miss out on opportunities unlocked by newer technologies.

OYAK Cement used an AI-based solution to lower fuel and other delivery costs by $39 million annually.

Without constant learning and adoption, existing biases can prevent product managers from identifying the most persistent and intense challenges for clearly defined user personas that other products in the market have not addressed. As a result, many product managers build for the “average user” since this approach increases the total addressable opportunity during early assessment. This approach results in products that lack differentiation and scalability that create a durable competitive advantage over a period of time and are easily replaceable.

In today’s market, the most successful company leaders and product managers understand that product development starts with a deep understanding of previously unarticulated customer needs captured by closely observing customers in their workflow. An essential product competency is familiarity with new technologies like generative AI when approaching customer discovery, including at the earliest stages when diving deep into targeted user personas and identifying potential opportunities to address specific pain points.

The value of using extensive amounts of data from various user settings during discovery becomes magnified when the same datasets funnel into the development of personalized solutions. One powerful example of AI revolutionizing product development is the last-mile delivery systems companies develop and utilize for organizations’ delivery fleets, which they even sell as delivery-as-a-service white-label solutions. Fueled by massive growth in online shopping, the last-mile delivery market is expected to grow to more than $200 billion by 2027.

Using AI to make last-mile delivery more efficient

Not long ago, using generic routing algorithms and mapping technology and identifying the fastest, most efficient delivery routes with a simple “traveling salesperson problem” was considered sufficient in delivery systems.

Now, machine learning, advanced optimization techniques, and AI have enabled product managers to go deeper into each part of the driver’s delivery journey and create last-mile delivery products using the most optimal routing constructs for dynamic factors that influence driver’s on-road decisions, like the predictability of parking in dense metro areas, weather conditions, a customer promise to deliver within certain hours, street-crossing safety, and more. These enriched, real-world datasets combined with the ability to “productionize” them to optimize each delivery or pickup make last-mile deliveries more reliable, efficient, and much safer.

For instance, with today’s routing algorithms and advanced optimization techniques, it is possible to determine whether it is more efficient for each driver to park in a central location and walk to multiple delivery addresses or drive to each address. With historical datasets and generative AI, drivers can also access specific information about where they are making deliveries, including access codes, business hours, customer notes, and even photos of buildings.

With AI and other advanced technologies incorporated into delivery workflows, drivers can receive details on connected devices from past successful deliveries, along with important information such as guidance on the presence of lockers and directions for alternative delivery locations, which could be spread across multiple floors. Because of these advancements, uncertainty and inefficiency are replaced by streamlined operations that ensure packages are received optimally based on up-to-the-minute delivery conditions.

Drivers will consider various delivery applications and unit economics when delivering in various marketplaces. If all factors are equal, they are more likely to choose the companies that make delivering packages as convenient and reliable as possible. McKinsey & Co. reports that AI-based delivery solutions can save companies up to 15% in logistics costs, 35% in inventory levels, and 65% in service expenses. In one recent example, OYAK Cement used an AI-based solution to lower fuel and other delivery costs by $39 million annually.

Generic solutions for average users are no longer enough

The same degree of product specificity occurring in the delivery market is also happening in other areas of product management. As AI advances rapidly, the key to success for product managers today is “going deeper,” or using advanced technology to identify actionable insights from detailed datasets about users in their workflow.

Product managers leverage that information to create expansive lists of pain points organized by themes, test and validate hypotheses, and analyze results from surveys and focus groups to ultimately work backward from the user when envisioning product prototypes that achieve a higher level of differentiation.

Effective product managers understand that the most critical skill they bring to software development teams is acting as the user’s voice in the room. In this role, they prioritize product ideas likely to make the most significant difference to the user journey and ensure the development team designs features and solutions using the most advanced technologies that resonate deeply with consumers.

One example of this is a recent agreement between Mars, which creates a variety of food and pet care products, and PIPA LLC, a company that accelerates nutrition science and innovation by embedding AI in R&D, manufacturing, and commercial businesses. The partnership allows Mars to utilize PIPA’s advanced AI technology to design new products that meet the health benefits demanded by customers. The technology taps into clinical trial data, biomedical databases, scientific publications, and additional sources to identify market trends. The partnership and AI technology access have already led Mars to create a state-of-the-art diagnostic tool that predicts cat kidney disease.

The most effective product managers leverage AI, ML, and deep learning techniques to build specific customer personas and craft innovative solutions that meet their needs. On the other hand, product managers who stubbornly continue to focus on the average customer will likely see suboptimal user growth and retention by delivering products that fail to stand out and satisfy specific user needs.

Designing for the average customer is a mistake in most industries because increased competition has divided demand among many players and made differentiation necessary for product-driven growth. AI and other advanced technologies complement existing techniques that product managers can leverage to ultimately become faster and more effective in their jobs.

With the tools now widely available, differentiation has become more important than ever for product managers. In a recent Fictiv survey, 97% of senior decision-makers said AI will impact their organization’s future product development and manufacturing processes. In that same survey, 78% of respondents said they are currently evaluating technology tools to develop new products more efficiently.

AI is quickly changing the way product managers work

Advanced technologies are transforming the entire product development process. AI empowers product managers to make better, more informed decisions and design highly personalized products for users. There is almost no limit to how granular product managers can understand user needs as they strive to improve and grow their products.

In last-mile delivery, for example, product managers use enhanced map datasets driven by ML models to optimize delivery based on traffic lights, predicted street traffic, and parking availability instead of just determining the shortest map route for deliveries — a capability that is easily available in consumer map products. These capabilities are why 83% of CEOs say AI and advanced technology are critical to the success of their companies.

Paul Daugherty, chief technology and innovation officer at global information technology consulting firm Accenture, recently said, “The playing field is poised to become a lot more competitive, and businesses that don’t deploy AI and data to help them innovate in everything they do will be at a disadvantage.”

About the author:

Hrishikesh Paranjape is a senior product manager with experience across ecommerce, real estate, customer service and financial industries.

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The Cost of Slow Shipping: 23% Cart Abandonment Rate https://www.digitalcommerce360.com/2024/06/17/the-cost-of-slow-shipping-23-cart-abandonment-rate/ Mon, 17 Jun 2024 14:37:41 +0000 https://www.digitalcommerce360.com/?p=1324134 Modern e-commerce is witnessing a significant shift towards expedited delivery driven by changing consumer expectations and the competitive market. Recent studies show that 23% of consumers abandon their orders due to slow shipping, highlighting the crucial role of fast delivery in customer retention and satisfaction. Current E-Commerce Shipping Landscape in the U.S. Today’s shipping landscape […]

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Modern e-commerce is witnessing a significant shift towards expedited delivery driven by changing consumer expectations and the competitive market. Recent studies show that 23% of consumers abandon their orders due to slow shipping, highlighting the crucial role of fast delivery in customer retention and satisfaction.

Current E-Commerce Shipping Landscape in the U.S.
Today’s shipping landscape is multifaceted with logistics companies offering various shipping options tailored to timelines and budget considerations.

  • Standard Shipping (Economy Shipping): Most economical, typically takes 5-7 working days.
  • Ground Shipping: Balances cost and speed, delivering in 3-5 working days.
  • Expedited Shipping: Guarantees delivery within 1-2 days, sometimes up to three days.
  • Express Shipping: Promises even quicker delivery in 1-2 days or less, catering to the growing need for faster turnaround times.

However, definitions and expectations for these services can vary across carriers, regions, and retailers, leading to a lack of a universal standard. Logistics companies offer several options to maintain flexibility in accommodating varying market needs.

Retailers integrate expedited shipping into their logistics strategies based on operational capabilities and customer demand, often offering a range from economy to express, so as to streamline operations and manage costs effectively.

Why Choose Expedited Shipping?
While e-merchants recognize the appeal of expedited shipping, its cost can be a significant burden. Businesses strive to balance this additional expense against the potential benefits of increased customer satisfaction and loyalty. Key reasons to incorporate expedited shipping into your logistics services includes:

Meeting Industry Demands
Expedited shipping is essential for certain sectors where timing and reliability are critical. Categories such as health and personal care, perishable goods, event-related products, gifts, and subscription boxes require swift delivery to meet customer expectations. For example, the luxury industry benefits greatly from expedited shipping. High-value items like jewelry, designer clothing, and exclusive electronics necessitate fast delivery to ensure customer satisfaction and uphold brand prestige. Customers purchasing luxury items expect premium service, including quick delivery, as part of their overall shopping experience. Expedited shipping meets these high expectations, enhancing the reputation of businesses for reliability and responsiveness.

Gaining a Competitive Edge
Beyond meeting practical needs, offering expedited shipping serves as a strategic tool for differentiating your business in a crowded market. Providing expedited shipping allows businesses to stand out by offering a superior level of service that exceeds standard shipping expectations. This premium service can be crucial in attracting and retaining customers, showcasing a company’s commitment to promptly and efficiently meeting customer needs. Moreover, it improves the overall customer experience by adding convenience and reliability, fostering brand loyalty and encouraging repeat buys. In a competitive landscape, swift and secure delivery can be an outstanding advantage, helping companies distinguish themselves through excellent service and customer care.

061724_Cirro_Factory

The Role of Expedited Shipping for Large Corporations and Small Businesses
Though the needs and strategies of large corporations and small businesses differ, expedited shipping is crucial for both.

Large Corporations
Large corporations typically have multiple warehouses or physical stores across the U.S., enabling them to ship products from the nearest location to the customer, achieving shorter delivery times and reducing the dependence on expedited shipping. Nonetheless, expedited shipping remains a vital to fulfill orders within guaranteed lead times and mitigate risks of delays. During peak seasons, when order volumes spike, expedited shipping becomes essential for maintaining service quality and meeting order fulfillment challenges.

Small Businesses
Small businesses, lacking the extensive infrastructure of large corporations, rely more heavily on expedited shipping services to offer competitive delivery times. Without a broad network of warehouses or stores, these businesses depend on logistics partners to provide fast and reliable delivery, making expedited shipping a crucial component of their logistics strategy.

How to Choose Expedited Delivery Partners?
Selecting the right expedited delivery partner requires a thorough assessment of the business needs. Key considerations include delivery speed, reliability, package sizes, cost, coverage of key markets, customer support, and alignment with customer expectations. The chosen provider should integrate smoothly with your existing operations for a seamless transition. While major players like FedEx, UPS, and USPS provide established and comprehensive services, the market also features competitive alternatives like CIRRO E-Commerce.

CIRRO E-Commerce is known for being 25-35% more cost-effective than the leading trio, with transparent pricing and no hidden fees. Their collaborative approach allows for flexible and affordable pricing solutions, maintaining expedited delivery times of 1-3 days with a 98.5% on-time delivery rate.

The Outlook for the Expedited Shippings
The future of the expedited delivery service industry is shaped by advancements in logistics and evolving retailer strategies. The logistics industry will increasingly leverage technology to enhance service orchestration, accuracy, and deliverability. Innovations like real-time tracking and communication with drivers will offer customers transparent, reliable delivery updates. Additionally, the ability to customize delivery routes will provide a more personalized experience, setting service providers apart from competitors. Retailers are moving towards forward stocking and hyper-local fulfillment models, strategically positioning inventory closer to consumers to expedite delivery. Effective inventory management will become essential, allowing retailers to quickly respond to demand fluctuations and optimize stock levels at various locations. Together, these advancements will make expedited delivery more efficient, responsive, and integral to meeting customer expectations for speed and reliability.

Conclusion
Expedited delivery is essential for e-commerce brands, meeting the growing demand for fast shipping while enhancing operational efficiency and customer satisfaction. Digital commerce businesses should evaluate their delivery strategies, considering cost, speed, reliability, and other factors to choose the right partner and integrate expedited delivery into their operations, driving growth and fostering long-term customer loyalty. CIRRO E-Commerce offers expedited delivery services tailored to diverse needs. For more information, please visit here.

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The consumerization of B2B: myth or fact? https://www.digitalcommerce360.com/2024/06/14/the-consumerization-of-b2b-myth-or-fact/ Fri, 14 Jun 2024 13:00:44 +0000 https://www.digitalcommerce360.com/?p=1323479 There has been an ongoing narrative that success in B2B commerce means mimicking tactics in B2C commerce. The idea is that B2B buyers want a familiar and comfortable experience, akin to that of B2C. The reality is that the B2B world is vastly different from B2C and for good reason. Sales in the B2B sector […]

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asonNyhus-Shopware

Jason Nyhus

There has been an ongoing narrative that success in B2B commerce means mimicking tactics in B2C commerce. The idea is that B2B buyers want a familiar and comfortable experience, akin to that of B2C. The reality is that the B2B world is vastly different from B2C and for good reason. Sales in the B2B sector are full of complexities and nuances that B2C sales don’t need to address, so the tactics for the two sectors are different and need to be different.

The reality is that the nuance of B2B sales means that consumerization will never truly work for this sector.

There are numerous aspects of your B2B commerce strategy that need to be addressed but are often overlooked. For example, the B2B commerce world involves intricate relationships, both internally and externally. There needs to be custom pricing for some accounts and specialized workflows to move potential customers down the pipeline. So, it is no surprise that much of the sale is based on relationships.

Building trust and relationships.

The truth is, for many sales reps in the B2B space, they operate on the Pareto Principle, also known as the 80/20 rule. For them, 20% of their accounts produce 80% of their results. This means that if they have 50 accounts, they are really leaning on 10 of those accounts to drive their numbers.

Those top 10 accounts will be the first to hear about a new promotion or new product offerings, and they’ll have consistent communication from the sales rep. Relationships with the prime accounts will be the strongest and get the most attention, but what about the other accounts?

If you’re looking through a B2C lens, you’d assume everyone is getting a little bit of interaction from the sales rep, but that’s not how it works. The myth formed by ecommerce companies is that by leaning into consumerization, you can create new sales opportunities and unlock new and explosive growth for your B2B company, but that is a story told to cover up the shortcomings of so many ecommerce platforms when it comes to B2B sales.

The reality is that the nuance of B2B sales means that consumerization will never truly work for this sector. With B2B sales, you’re dealing with much bigger contracts, a longer buyer journey and more decision makers. Due to all the reasons mentioned above, a rep has to be that much more nurturing for their leads in B2B sales. Potential customers will want more research, a deeper understanding from the sales rep of their business and the challenges they are looking to solve. Each step in the sales process needs to be carefully cultivated and developed by the sales team.

Sometimes there can be a team of 10 that all need to make the B2B buying decision together, whereas in B2C you only need to worry about one single buyer. This is why becoming a trusted advisor for the entire buyer group is so important.

In B2B sales, you need to make sure the whole buyer group is confident moving forward. You may have a split decision among the buyer group and have to provide extra content and answer additional questions for the doubtful side of the buyer group. Sales teams in the B2B sector need to be prepared to tailor their efforts to not only the group as a whole but also on an individual basis.

In a nutshell, the differences between B2B and B2C sales far outweigh the similarities between the sectors, and if you are trying to replicate strategy across sectors, you are setting yourself up for failure.

Convenience and practical functionalities.

Most commerce platforms were launched more than 15 years ago and designed for the B2C commerce boom. These platforms were not designed to handle B2B sales. But instead of redesigning their platform or adding new features and functionalities to better support B2B sales, ecommerce technology companies are trying to make B2B sales fit in their current B2C offerings — and it should be the other way around.

The shift that needs to happen from ecommerce platforms for B2B sales can be compared to the shift to telehealth for healthcare companies. Telehealth is all about efficiency and adding value for the doctor and the patient. A traditional visit to the doctor can take up to three hours when you factor in drive time, waiting, filling out paperwork, and the actual time with the doctor. Now, with telehealth, the experience only takes 30 minutes, and it is a highly personalized visit.

By truly adopting a B2B mindset for your ecommerce platform, you can learn how to create value for both the sales rep and the customer. The truth is, if your platform doesn’t add value, the sales reps will just rely on the same old tools they know the best. The sales teams for the B2B sector need to have the ability to answer complex, multi-level questions from anyone in the buyer group. For a sales rep to switch from their current system to your new commerce offering, it needs to help them answer those questions effectively and efficiently.

Supplying unique B2B-specific features will truly unlock B2B sales and growth. Your offerings need to strengthen the skills B2B sales reps already have. You need to be able to make their life easier, not just give them another tool to use. When looking at your platform, take a step back and ask yourself, “How will this make things easier for the sales rep and provide a better experience for customers?

Provide tools that unlock potential for the other 40 accounts people are managing, not just the 10 accounts in the top 20% of their portfolio. Adding features that make building relationships with all the customers easy is where the growth will come from.

About the Author:

Jason Nyhus is the president and general manager of Shopware US, an ecommerce software provider.

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Why omnichannel retailers are letting suppliers into their ‘walled gardens’ https://www.digitalcommerce360.com/2024/06/07/why-omnichannel-retailers-are-letting-suppliers-into-their-walled-gardens/ Fri, 07 Jun 2024 13:00:16 +0000 https://www.digitalcommerce360.com/?p=1323467 Many retailers have historically fashioned their product data ingestion processes into “walled gardens,” narrowly architected systems that required their suppliers to pay for access to portals to submit product information. These walled gardens make the collection of data extremely challenging. Brands would have to go through one system to submit GDSN (Global Data Synchronization Network) […]

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Joshua Silverman_Salsify

Joshua Silverman

Many retailers have historically fashioned their product data ingestion processes into “walled gardens,” narrowly architected systems that required their suppliers to pay for access to portals to submit product information.

These walled gardens make the collection of data extremely challenging. Brands would have to go through one system to submit GDSN (Global Data Synchronization Network) data, another for ecommerce setup, and another just for submitting images. This web of single-purpose systems created manual work for brands that delayed product launches, led to error-prone data that resulted in fees, and ultimately worsened the quality of product detail pages and jeopardized the shopper experience.

Walmart recently launched its new Omnispec API, a new product information submission process for suppliers that combines all of the data requirements for both online and brick-and-mortar.

While some retailers still have these traditional processes in place today, many more have begun to rethink how to offer their suppliers a better experience. This new trend has been driven by several factors:

  1. Recognition that high-quality product information drives conversion. The  latest consumer research reports found that 78% of consumers will abandon a product purchase when the product information is incomplete. Additionally, the 2023 Forrester WaveTM for Product Information Management states: “The macro trend shaping product information’s criticality is that consumers find online shopping more convenient than offline shopping in stores…Product information quality [is] the North Star to drive conversions. Bad content on product pages is a barrier to sales.
  2. The rising importance of retail media as a revenue source. According to new research from Stratably and the Digital Shelf Institute, brands reinvest, on average, 7.2% of their digital sales into retail media spend with their retailer partners — and that figure is steadily climbing. But 67% of brand leaders say that content quality is a meaningful part of this investment equation, meaning that brand leaders will reconsider additional investments until the data on the product detail pages their ads connect to are best-in-class. Inaccurate or incomplete product data means lower return on ad spend (ROAS) for the brands. For any retailer looking to derive revenue and margin from their first-party data, the quality of the product detail page (PDP) is critical.
  3. The introduction of AI is giving retailers the ability to scale content quality checks in a way that simply wasn’t possible before. Part of the walled-garden approach was an attempt to force data consistency through a narrow submission channel. AI allows for data checks at scale, without the need for a limiting submission mechanism.

A key way retailers have begun to tangibly invest in better collaboration with their suppliers is through “omniconnectors,” new application programming interfaces (APIs) that are purpose-built to support data ingestion for all content for both the digital shelf and brick and mortar.

These omniconnectors create a single, streamlined process for brands to submit information and reflect the omnichannel shopping habits of today’s consumer (eg., through BOPIS, an industry that is forecast to grow at a double-digit. compound annual growth rate of 19.3% until 2027, globally). The technology of APIs, as opposed to submission portals, also offers the ability for AI-propelled quality checks and two-way feedback between the retailer and their suppliers, driving collaboration at scale.

Leading retailers are investing in this technology now. Walmart recently launched its new Omnispec API, a new product information submission process for suppliers that combines all of the data requirements for both online and brick-and-mortar item setup. Other retailers like Kroger and Albertsons have also “opened up” their existing walled gardens, allowing their suppliers choice when it comes to which syndication provider they prefer to use when they submit their product information. This means that brands no longer need to pay multiple providers to get content to the same retailer. The Home Depot is another retailer now rethinking how it can create more agile ways for its thousands of suppliers to submit product content updates.

Over the next couple of years, it will become possible for any retailer to efficiently offer similar capabilities at a reasonable cost, transforming the industry.

What should brands and retailers do now to prepare for an open, collaborative, omnichannel, future?

Retailer Executives:

  1. Think strategically about where supplier collaboration sits in your roadmap of priorities, given its impact on consumer experience, retail media ROAS, and PDP conversion rates.
  2. Complete an analysis of all the various disparate methods across teams for product ingestion from suppliers today and how they might be streamlined.
  3. Start conversations with leading suppliers and their chosen product data management and syndication technology providers to begin designing a roadmap towards your own omniconnector capabilities.

Supplier Executives:

  1. Consider how and where your product content is stored and managed today. Are you still using spreadsheets, or do you have a product experience management solution in place? How ready are you to scale processes to automate delivery of your content to all endpoints?
  2. Think about which teams will need access to product content and whether it’s easy for them to access. How will you power your product enterprise and break down silos, allowing your legal, support, ecommerce and retailer media teams to access the same set of optimized, complete and accurate product content?
  3. Talk to your retailers about any pain points you experience in the content submission process today and the consequences (e.g., delayed product launches or stale information on PDPs). Your influence could help to get improvements on the roadmap.

A focus on open and easy collaboration between retailers and their brands drives efficiency and revenue, impacting both top- and bottom-line growth by creating product experiences that drive conversion.

About the author

Josh Silverman, is senior vice president of retail and distribution at Salsify Inc., a provider of product information management and related technology applications.

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How to grow ecommerce with a B2B content strategy https://www.digitalcommerce360.com/2024/05/31/how-to-grow-ecommerce-with-a-b2b-content-strategy/ Fri, 31 May 2024 17:13:29 +0000 https://www.digitalcommerce360.com/?p=1323316 Brand awareness, customer engagement, traffic, leads and sales can all be achieved through the production of high-quality content. But before the content is produced, planning and preparation needs to take place. That’s where a content strategy can help. A content strategy is an overarching plan for all of your digital content. From blogs and whitepapers, […]

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CharlotteTomlinson_Distinctly

Charlotte Tomlinson

Brand awareness, customer engagement, traffic, leads and sales can all be achieved through the production of high-quality content.

But before the content is produced, planning and preparation needs to take place. That’s where a content strategy can help.

A content strategy is an overarching plan for all of your digital content. From blogs and whitepapers, to social media and video content, a strategy is essential for understanding the purpose behind your content.

Why are B2B content strategies important?

Not all content drives traffic, and not all content converts. To ensure your digital content meets your objectives and reaches the right audience, you’ll first need to consider a few points:

What kind of users are you targeting with your content? Which format are they most likely to engage with? How should your content look? Where should you position the calls to action? And what exactly do you want your content to achieve?

An effective content strategy should include the answer to all of these questions. From the user research and content formats to the frameworks and design, a good strategy covers it all. Focusing on the bigger picture enables you to have a clear plan and structure for all of your content efforts, ensuring they’re successful and produced with your goals in mind.

8 steps to create a B2B content strategy

So, before you jump into content creation, how exactly do you put together an effective B2B content strategy?

1. Identify your target audience

First things first: Who are you creating content for? By understanding exactly who is going to read your content, you can ensure it’s written with those people in mind.

A useful way to understand your target audience is through the use of customer personas. These are defined as semi-fictional characters which represent your ideal prospect. Through demographic reports, user interviews, forums, social media and surveys, you can identify key insights into the people and businesses who are likely to read your content.

Identifying your target audience is key for developing content that resonates with them. By understanding their pain points, how they engage with content and how they make decisions, you can tailor your messaging and streamline the conversion journey.

2. Decide on your objectives

Your objectives should drive your content strategy. But not all content will have the same aims.

For example, is it topical content to build authority? Are you aiming to build brand awareness and secure the top ranks within search engine results pages, or SERPs? Which pieces of your content are to generate leads?

Knowing what your goals are for each piece will help you understand the purpose behind the content you’re creating. Following the SMART objective method is a useful way to set realistic goals that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).

3. Choose which content formats to opt for

Once you’ve identified your target audience and decided on your objectives, you’ll need to establish which content formats are best suited.

Each stage of the buyer’s journey (awareness, consideration and decision) will also require different types of content, each with a unique aim.

Some of the most popular B2B content formats include:

  • Blog posts – this form of content is extremely versatile and can include topical blogs, product/service comparison blogs, search-led blogs and even conversion-led blogs.
  • Case studies – these are a great way to demonstrate the benefits of your business by highlighting how your service or product solved a challenge and offered a solution.
  • E-books – these can be detailed “how-to” guides that educate the user on a certain topic, giving them helpful advice on the solution to their challenge.
  • Whitepapers – this is long-form content that delves deeper into a specific topic or offers a solution to a problem that your target audience faces. Whitepapers are often used as gated-content, which can only be accessed after filling in a form/exchanging information.
  • Infographics – this type of content is a useful way to succinctly convey complex information, making it easier for your audience to engage with key concepts quickly.
  • Interactive content – this could be in the form of quizzes, checklists, animations or even calculators. Interactive content helps to keep the user engaged, whilst enabling you to collect audience insights.
  • Social media carousels and posts – social media is an effective tool for brand awareness, helping you to reach a wider audience.
  • Video content – video content has continued to grow in popularity. Whether it’s customer testimonials, a service/product explainer or even a how-to guide, videos offer an engaging way for users to connect with the business.
  • Email content – emails, such as newsletters, can be used to nurture customer loyalty and keep users connected. Emails can feature product/service information, along with repurposing content you have previously created.

4. Create a content calendar including industry events

A content calendar is an easy way to organize your content plan for the year ahead. Not only is this an effective way to keep track of your content plans, it also helps you consider exactly when this content should be published.

Are there any key industry dates that you could create content around? Are there any upcoming changes within the industry that you need to keep in mind? Is your content aligned with relevant seasonal events? By mapping out your content month by month, you can focus on creating relevant and timely pieces that your audience will engage with.

5. Produce detailed frameworks including CTAs

A content framework or copy brief is a plan or template that acts as a guideline for the person producing the content. Having a framework in place improves efficiency, organization and ensures that everything is produced with your goals and target audience in mind.

So, what exactly does a content framework include? Whilst there are many different ways to produce and lay out a framework, it should include information on:

  • The content format
  • The purpose and objectives of the piece
  • Information on the target audience/customer personas
  • The tone of voice to use
  • Key products/services to promote within the piece
  • The structure of the content (what will the different sections include)
  • SEO information (meta data, keywords to target and internal links)
  • CTAs to include and where they should be positioned
  • Key images/visuals to include
  • Competitor examples
  • When and where the content will be distributed
  • Key points on how the content should look/design elements

6. Decide where best to distribute your content

Different types of content perform best in different places. It all comes back to your objectives for the piece. Are you offering valuable, in-depth content that should sit on your website or blog? Are you trying to raise brand awareness through a social media post? Do you want to generate leads through gated content?

Understanding the purpose behind the content you create is key to ensure that it reaches the right audience on the right platforms.

7. Consider design and layout

Content isn’t just about the words on a page. You’ll need to consider where each section should sit and how you’ll maximize engagement. From CTA positioning to content formatting, there’s plenty to consider.

When designing the layout for your B2B content, keep the following in mind:

  • Branding consistency
  • Clear messaging
  • Readability and content formatting
  • Visual hierarchy
  • Making use of whitespace
  • Incorporating imagery and data visualization
  • Ensuring responsive design
  • Design and positioning of CTAs
  • Accessibility

8. Report on performance, keeping KPIs in mind

So, how did your content perform? Whilst your initial thought might be to report on how many leads were generated, it’s important to remember what the aims of the piece were. Was it to generate brand awareness and traffic? Was it a piece aimed at boosting topical authority, therefore less likely to generate leads? Perhaps your content was repurposed on social media where it then performed the best?

Whether it’s sessions, conversions, qualified leads or ranks, keep your objectives in mind when reporting on performance.

Content plays an essential role in B2B marketing. The more thought that goes into your content process, the more results you’re likely to achieve.

About the Author:

Charlotte Tomlinson is head of SEO & Content at London-based digital marketing agency Distinctly. With experience in both B2B and B2C marketing, she has worked with companies ranging from startups to global enterprises.

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Nominate a game-changer for the Global B2B eCommerce Industry Awards from Digital Commerce 360 and the B2B Ecommerce Association.

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Replacing your ecommerce platform? First, figure out ‘the Why’! https://www.digitalcommerce360.com/2024/05/24/replacing-your-ecommerce-platform-first-figure-out-the-why/ Fri, 24 May 2024 15:39:02 +0000 https://www.digitalcommerce360.com/?p=1322967 I’m sure many of us have seen Simon Sinek’s Ted Talk “Start with the Why.” In the talk, he introduces the golden circle, which consists of what, how, and why.  Sinek suggested that every company knows what they do; some can even articulate how they do it, but few get to Why they do it. […]

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DaleEdman

Dale Edman

I’m sure many of us have seen Simon Sinek’s Ted Talk “Start with the Why.”

In the talk, he introduces the golden circle, which consists of what, how, and why.  Sinek suggested that every company knows what they do; some can even articulate how they do it, but few get to Why they do it.

Your ‘Why’ is likely to be multi-faceted, and the better you can get to the bottom of it and get transparent with all stakeholders, the more you will set yourself up for success.”

Companies looking to replace their ecommerce system often know what they are doing: replacing their ecommerce system. Some even get to the how, deciding on technologies and partners. But from my experience, few understand why they are replacing their platform. The re-platforming project will be complicated and expensive, and you will need a ‘Why’ to align everyone in the company.

Here are some of the whys that I have heard over the years:

  • Legacy systems that are no longer supported.
  • Security concerns.
  • Increasing total cost of ownership.
  • Looking for modern functionality.
  • Board/CEO/CIO/CMO — want something new and shiny.

There are other reasons why, so make sure you understand yours. Often, it will have multiple layers. For example, who doesn’t want modern functionality? However, you need to ask yourself what you think you are getting.

Is it enough for the investment? Technical debt and legacy systems can force your hand, but your Why must be bigger than “we have to do it” to get you through the difficulty of the project.

One last word of caution: while having your C-suite on board might be enough, wanting something new or shiny is not enough to sustain your project over the long run.  Your Why is likely to be multi-faceted, and the better you can get to the bottom of it and get transparent with all stakeholders, the more you will set yourself up for success.

Setting Requirements

To accomplish your Why, you must decide on what you are building and establish requirements.  Requirements are an iterative process, starting with high-level requirements often defined by your Why.

For example, I have been a part of many projects that required analytics. “Enable Google Analytics” would be recorded as a project requirement. That is a high-level requirement from the Why, but you will need to define what types of data you need, what you want your dashboards to look like, and whether you have internal resources to build them. There are a couple of other watch-outs when defining requirements; over- and under-engineering.

Once you start to understand your requirements, it is important to consider prioritization. One question that an architect on one of my projects used to ask was, “If this was the only thing not ready, would you still go live?” You will eventually have to make those decisions, so understanding what is necessary versus nice will make the project smoother.

Over-Engineering

As you define your requirements, you may over-engineer the problem. Industry trends, such as “composable or headless commerce,” can cause additional work and overhead.

I worked on a re-platforming project to implement headless commerce.  We needed a high-level strategic resource to design the system, then an architect for the front-end work, an architect for the commerce work, and two or three developers for both the front- and back-end work. Requiring a headless commerce system added overhead to the project. You may have an excellent Why for using more complicated architecture, but make sure you know what you are gaining and what it will cost you.

Another common reason for over-engineering is to future-proof your platform by ensuring you get every requirement in the first build. Not understanding or prioritizing your requirements can lead to everything being important and nothing being important. It also could prevent you from seeing times when an “out-of-the-box” solution could have been adopted with a few tweaks to the requirements, saving costly customization. Remember, you don’t just build these systems; they must be maintained and expanded to meet your consumers’ needs.

Under-Engineering

Under-engineering can also be problematic; phrases like “Lift and Shift” or “Out of the Box” are often used to simplify requirements. With “lift and shift,” you focus on moving the existing site’s functionality into the new technology platform. It may seem the easiest way to avoid scope creep and constrain the project. But it doesn’t work because not every requirement can be ported over.

Most legacy systems were engineered over a decade ago, and there is a reason you are considering a re-platform. At the same time, you may have built those into your legacy system, but the new system tends to handle them differently. Another common mistake is using the “Out of the Box” functionality. You should select a modern ecommerce platform because they have already figured out many of the challenges you are dealing with.

Technology Platform and Partners

You have your team identified; they are clear about the Why and have started the hard work of defining the requirements. The question is, have you already decided on a technology platform? It is tempting to lean heavily on the IT department to make this decision. They will, after all, be responsible for maintaining it, so shouldn’t they have the final say? Since a re-platforming involves more than IT, it should be more than their decision. Your chosen platform has business, merchant, and marketing implications, so you must ensure everyone is comfortable with the decision.

Some things to consider as you look at different platforms:

  1. Are you B2C or B2B? Do you need to support other marketplace channels?
  2. How do your requirements line up with the functionality of the platform?
  3. Will this platform scale with your growth?
  4. Support and community: are there resources to turn to? What does the broader partnership ecosystem look like?
  5. Interfaces and integration: will this platform integrate with your back-end systems?
  6. What is the total cost of ownership, and what do maintenance, licensing, and support costs look like? How do they increase over time?

One last thought on platform selection: Make sure you talk to customers using the platform. Ask the vendor for references, but also do your homework. Reach out to folks in your network to get a sense of how people use the platform, what challenges they have had, and how they feel about it post-launch. You can’t have too many of these calls; they will help you understand what and how the platform works day to day.

Funding and ROI

You will need to understand the total cost of ownership and the benefits or gains the new system will bring. If your Why is technological debt, and you have been in a maintenance mode, it’s more than likely that your new system will cost more. Your old system doesn’t cost anything and feels like a freebie. Not since the early days of commerce have I seen a new system with double conversion rates, so you will need to get creative about what benefits the business and your customers will derive from the project. Having the team bought into the Why will pay dividends. Hopefully, they will  see the benefits, which could be as simple as freeing up your sales teams to have more time to sell and not take orders.

Once you understand your ROI, you can decide how to structure your project and its costs. I have seen two different ways.

  1. Only fund the upfront work, requirements gathering, and UI/UX that informs the cost of the development portion of the project. I prefer this method, but most CFOs/CEOs won’t sign off on a project if they don’t have at least some idea of the total cost.
  2. Get a bid for the entire project up front. If you have done enough requirements gathering, you can look to get a bid for everything. Your system integrator should know what they typically charge, although none are typical builds. If you go this route, add 40% internal contingency to your request so that you have room for surprises. The last thing you want to do is have to go back and ask for more money.

The other way to manage costs is to be flexible with your requirements. From my experience, this is hard to manage. Most people feel they will never get the functionality if it doesn’t happen at launch. At one company, there was an internal joke that there “was no 2.0,” meaning that once something launched, it was there for good, and nothing would change or get upgraded.

Conclusion

The decision to re-platform your ecommerce business is always a challenging one.  As technology author Rick Watson once said, “No one ever got fired for not re-platforming, but plenty of people have been fired for botched re-platforms.”

Starting with the Why, getting clear about your requirements, resisting the urge to over-/under-engineer, and selecting the right technology platform are crucial to having a successful re-platform project. Hopefully, this will help you understand the importance of firmly setting the foundation for your project.

About the author:

Dale Edman is an independent adviser on B2B and retail ecommerce and digital transformation. He has held ecommerce executive positions at companies including West Marine, Newell Brands and The Wasserstrom Co. He posted an earlier version of this article on LinkedIn.

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