Independent Research Finds Midmarket, B2B Sellers Prefer A Unified Approach For Their Ecommerce Solution
SAN MATEO, Calif.—July 7, 2016—NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud financials / ERP and omnichannel commerce software suites, today announced that 62 percent of midmarket, business sellers considering their next ecommerce investment, plan to purchase a unified, single-stack solution for their ecommerce and back-office systems such as ERP, CRM, and inventory/order management, according to a study from Forrester Consulting commissioned by NetSuite. Survey respondents ranked better customer experience, improved cost savings and the agility to remain competitive as top reasons for migrating customers to their ecommerce channel.
The study, “Tomorrow’s Midmarket B2B eCommerce Will Take Place in the Cloud,” is the first of its kind to examine how midmarket, B2B sellers are responding to shifting customer preferences to engage and transact online. The study also found that most of these companies still use legacy, standalone ecommerce technology, which can limit their market agility and their ability to fulfill omnichannel customer expectations in the ever-changing world of the B2B buyer.
The study found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships. Businesses that adopted a single, unified solution to run their ecommerce and back-office systems reported experiencing even greater benefits. They were 19 percent more likely to say their ecommerce solution improved cross-sell and upsell revenue, and 14 percent more likely to credit their ecommerce solution with improving their overall profitability per customer. The B2B companies that adopted cloud-based, unified solutions did so to implement more quickly, reduce costs relative to on-premise systems, gain the agility to better respond to fast-changing market conditions, and scale more efficiently to help grow their business.
According to Forrester, businesses continue to respond to the shifting, B2B customer preferences of engaging and transacting online. Most B2B buyers prefer the online, do-it-yourself option of researching products and services, and find it more convenient to buy online versus from a sales representative. Therefore, many of the study’s respondents reported that they continue to experience higher online sales with less overhead, motivating them to make ecommerce a major investment priority and migrate more customers to their ecommerce website.
“Business sellers realize legacy, standalone ecommerce systems are unlikely to meet the evolving needs of their customers who want seamless, omnichannel buying experiences to engage and transact,” NetSuite’s General Manager of Commerce Products, Andy Lloyd said. “A cloud-based, unified solution can provide that experience, while streamlining business operations to grow profitably.”
Additional key findings from the study include:
B2B online sales continue to rise. About 72 percent of midmarket, B2B sellers derive at least 25 percent of their revenue from online channels.
Ecommerce leads technology priorities. Approximately 59 percent of companies surveyed have made ecommerce technology an investment priority for 2016.
Business sellers respond to customer demand. More than half of sellers reported focusing on ecommerce because their customers expect a high quality online shopping experience.
Unified approach drives higher satisfaction. Sellers that deployed a unified platform reported higher satisfaction levels by enabling customer self-service, acquired new customers, and eased the burdens of tracking orders and managing fulfillment.
Cloud on par with on-premise. Nearly half (48 percent), of midmarket, B2B companies were running on or transitioning to a cloud-based ecommerce solution.
B2B ecommerce market expanding. Forrester estimates that US B2B ecommerce will grow from $780 billion in 2015 to $1.13 trillion by 2020. Forty-two percent of sellers in the study expect at least half of their customers to be buying from them online within the next three years.
Forrester Consulting conducted the NetSuite-commissioned research in January 2016 by administering an international online survey to 352 midmarket, B2B ecommerce decision makers, supplemented with three in-depth interviews.
To acquire a free copy of this study, visit netsuite.com/B2Bmidmarket