2014 STATE OF E-COMMERCE IN DISTRIBUTION Featuring: Jonathan Bein, - - PowerPoint PPT Presentation
Download handouts (PDF) : www.mdm.com/slides or info@mdm.com 2014 STATE OF E-COMMERCE IN DISTRIBUTION Featuring: Jonathan Bein, Ranga Bodla and Tom Gale March 20, 2014 Produced by: Event Sponsor: 1 Download handouts (PDF) :
March 20, 2014
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Produced by:
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Featuring: Jonathan Bein, Ranga Bodla and Tom Gale
Event Sponsor:
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Tom Gale Publisher Modern Distribution Management Jonathan Bein Senior Partner Real Results Marketing Event Sponsor: Ranga Bodla Director of Industry Marketing Netsuite
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to better understand trends in e-commerce.
February 2014.
– E-commerce revenue as a percent of overall revenue is rising rapidly – Key objectives are acquiring new customers, growing wallet share with existing customers, and improving website usability – Grainger is overwhelmingly considered the best website by other distributors – Respondents express mixed satisfaction with much of the functionality
– Mobile technology for e-commerce is being deployed rapidly. – Catalogs are considered to be highly effective for generating e- commerce revenue.
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growth stage companies
growth stage companies
mature companies
Definition
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commerce revenue
commerce revenue to decline in 2014.
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Top priorities are
Priorities reflect the nascent and growth stage e-commerce in where the first priority is to get revenue flowing with a usable web site.
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Among respondents with nascent stage e-commerce programs, only half have dedicated leadership vs. 70% who in growth or mature stage.
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Respondents are only satisfied with the table-stakes functionality (contact information and basic search.) For only slightly more complex functionality (stock levels, technical information, social media), there is mixed satisfaction. For advanced capabilities (quote, live chat, and purchase suggestions), satisfaction is low.
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Respondents have high satisfaction with login and
They have mixed satisfaction will all of the
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Support for mobile technology has grown nearly 25% from last year including:
Still, more than 30% intend to implement support for mobile technologies in the next year and beyond.
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Smaller distributors are less likely to rely on EDI or punch-out as part of their e-commerce solution. The emphasis on EDI and punch-
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industries
commerce and catalog are synergistic or that their catalog helps drive e-commerce sales.
believe that e-commerce and catalog are synergistic or that their catalog helps drive e-commerce sales.
McMaster-Carr) who were considered by their peers in a previous survey survey to have the best websites were also considered by their peers to have the best catalogs.
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– Order tracking – Shipping charges
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– Order tracking – Shipping charges
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– Order tracking – Shipping charges
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Many distributors use email marketing to promote products, special and branch events. There is limited awareness among distributors about marketing automation and how it differs from email marketing.
Wait 3 Days Clicks Link Opens Email No response? Newsletter Invite Email Send Newsletter Send Exclusive Webinar Invite Send Whitepaper Message Invite to Private Demo
a 451% increase in qualified leads. In turn, nurtured leads make 47% larger purchases than non-nurtured leads. (The Annuitas Group, Nov 2012)
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a 451% increase in qualified leads. In turn, nurtured leads make 47% larger purchases than non-nurtured leads. (The Annuitas Group, Nov 2012)
for more than two years, with 79% of CMOs indicating “increasing revenue” as the most compelling reason for adoption, followed by “higher quality leads” at 76%. (Gleanster, Aug 2013)
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a 451% increase in qualified leads. In turn, nurtured leads make 47% larger purchases than non-nurtured leads. (The Annuitas Group, Nov 2012)
for more than two years, with 79% of CMOs indicating “increasing revenue” as the most compelling reason for adoption, followed by “higher quality leads” at 76%. (Gleanster, Aug 2013)
responsible for improving revenue contribution. (The Lenskold and Pedowitz Groups, Nov 2013)
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a 451% increase in qualified leads. In turn, nurtured leads make 47% larger purchases than non-nurtured leads. (The Annuitas Group, Nov 2012)
for more than two years, with 79% of CMOs indicating “increasing revenue” as the most compelling reason for adoption, followed by “higher quality leads” at 76%. (Gleanster, Aug 2013)
responsible for improving revenue contribution. (The Lenskold and Pedowitz Groups, Nov 2013)
2012)
– 107% better lead conversion rates – 40% greater average deal sizes – 20% higher team attainment of quota – 17% better forecast accuracy 36
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Many distributors start with search marketing as the primary
generate demand. Yet, only half of respondents consider search marketing effective for customer acquisition.
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0% 5% 10% 15% 20% 25% Mostly done with a third party with some in house Even balance between in house and third party help Almost all done in house Mostly done in house with some third party help Almost all done with a third party Not applicable
Select the choice that best describes how your company developed its web design
Respondents in a 2013 survey are less likely to do the design all in house or all with a third party than in 2012. Companies with more than $100M revenue are more likely to do the design in house. There is very low satisfaction among distributors regarding their web design.
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Product data accuracy and completeness are good for most distributors. Photographs, substitutes and information about related products is weak. Vast majority of data comes directly from the manufacturer. However, there is an increasing role of pure third-party solutions or blended third-party solutions.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Almost entirely from manufacturers Mostly from the manufacturers with some from third party sources Even blend from manufacturers and from third party sources Mostly from third party sources with some from manufacturers Almost entirely from third party sources Not applicable Other (please specify)
Select the choice that best describes how your company gets product data.
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Fulfillment – slightly lower satisfaction with warehouse and inventory levels. Quotation handling – big concern with nearly 20% unsatisfied. Order handling – Good except chat is underutilized.
using expected delivery dates, the same applies.
rollout.
registration support, and quotation requests.
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Powers Distribution
Founded 1998 Publicly traded on NYSE: “N” Offices in 10 countries 2,300+ employees 2013 revenue: $415M
Background Performance
#1 Cloud ERP Suite
Used by 20,000+ global organizations World’s most deployed cloud ERP Top 10 highest growth ERP solution according to Gartner and IDC NetSuite runs NetSuite
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