Simplifying B2B Digital Transformation: An Interview with Mark Bartlett of FPX

“B2B organizations have made great strides in shifting the buying and selling process online and investing in e-commerce capabilities. This is because B2B buyers want the same robust omni-channel and self-service capabilities they receive in their consumer experiences.”

FPX’s Chief Experience Officer, Mark Bartlett, sheds light on how digital transformation is viewed in B2B and B2C markets today. At FPX, the goal is to make selling simple for B2B manufacturers. What this means is to sell more with the help of data-driven insights into customers. And to deliver a better overall buying and selling experience for customers. Their Configure Price Quote (CPQ) solution plays a significant role in improving customer/user experience for businesses.

Mark speaks to MarTech Advisor about how B2B players can learn from B2C players. He shares his expertise on CPQ technology, the challenges of CPQ technology, and the trends impacting B2B purchase decisions for sales managers. From price management to IoT connectors, we ask Mark everything about digital transformation strategies for B2B buyers.

Key takeaways from Mark’s interview:

• Actionable digital transformation advice
• How to drive B2B purchase decisions
• Understand how B2B players fare in the digital market vs B2C players
• How to stay on-trend for B2B buying strategies
   

Here’s what Mark reveals:

1. What (if any) – in your experience – are the key differences in the way that B2B and B2C CMOs approach (or should approach) the challenge of digital transformation?

I think it’s more appropriate to reflect upon the similarities between B2B and B2C when it comes to digital transformation. Too often we talk about digital transformation in terms of technologies; for example what technologies should I consider for my businesses to check the boxes of digital transformation? Although technology is part of the solution, digital transformation needs to be focused on within the business to better address the customer. Think about it: we wouldn’t be having countless conversations around the concept of “digital transformation” unless it was something our customers overwhelmingly wanted. Our customers want more autonomy in the buying process. They want to engage with our businesses digitally. And they want personalized, intuitive experiences when engaging with us.

So, I think the CMO that’s on the front lines of understanding customers is perfectly positioned to drive B2B digital transformation. With more and more customer data shaping marketing insights, the CMO can leverage that well of knowledge to define a vision for the company through the lens of the customer, and then help the business better select the technologies that facilitate those transformative capabilities.

Digital transformation isn’t an initiative with a beginning and an end. It’s an evolving, iterative process that businesses must embrace in terms of technology, but more importantly a shift in their culture that starts with a focused eye toward the customer.

2. Could you give us some practical examples of a ‘customer-in’ approach to CX?

The customer-in approach means treating your users as real people who have realistic expectations. Traditionally, B2B companies haven’t approached CX this way, but an old-school approach won’t work for today’s modern and digitally savvy customer. Companies should always think about their business goals and processes with the customer’s needs and demands in mind.

B2B companies can learn from big B2C players such as Amazon or Netflix, who have developed a customer-centered strategy that has allowed them to dominate their industries. In today’s highly competitive landscape, it’s going all-in on the customer that will make the biggest difference.

3. In what significant way has the B2B buying and selling process evolved over the last 5-7 years? What is the key technology and behavior trends that are impacting the way B2B purchase decisions are made today?

Over the past five to seven years, B2B organizations have made great strides in shifting the buying and selling process online and investing in e-commerce capabilities. This is because B2B buyers want the same robust omnichannel and self-service capabilities they receive in their consumer experiences. In fact, 88 percent of executives today buy their business products online, and 92 percent wish purchasing business products online offered the same ease as buying consumer goods online.

Additionally, B2B buyers have very little patience for poor e-commerce experiences — 49 percent of executives say they won’t buy from a company if it’s too difficult to purchase products online.

However, despite all the B2C buzz, B2B will never be as simple as adding options to an online shopping cart and digitizing a product catalog will never be enough.

Rather than blindly following consumer trends, enterprises should consider the actual needs of their buyers and develop strategies that address the complexities of their business.

4. How has the Configure Price Quote (CPQ) technology offering evolved to meet those changing needs?

CPQ technology has evolved to focus more on the customer’s needs by leveraging technologies such as 3D modeling, drag-and-drop functionality, interactive demos and more that allow customers to engage online with product or service offerings. The business landscape is more complicated than ever, and CPQ has kept up with new technology to enable the e-commerce experience that customers want. Leading vendors have also made their CPQ solutions platform agnostic and can source data from existing systems, such as CRM and ERP, to create a holistic solution that is smarter and more effective for the business and customer.

Also Read: Effective Digital Transformation Strategies: An Interview with Andres Angelani of Softvision

5. What are the key, must-have integrations for an enterprise CPQ solution to perform and deliver in today’s complex business environment?

In order to perform and deliver in today’s complex business environment, it’s critical for B2B organizations to choose a platform-agnostic CPQ solution that can integrate several different internal systems. This allows businesses to leverage customer data, product catalogs, price books and business attributes from a diverse system of record in a single location — and then distribute it across all buying and selling channels to simplify the path to purchase.

6. Do salespeople feel threatened by the increasingly intelligent CPQ solutions available? In a B2B context, what are your practical tips for a Sales Manager to work with a CPQ solution to deliver optimal business outcomes?

Salespeople shouldn’t feel threatened by CPQ solutions; this technology was created to make their lives easier. The old way of making sales requires salespeople to manually configure, price and quote customers, resulting in significant time lost due to complexities. This is especially true when it comes to pricing decisions that require multiple touchpoints and a lot of data. To deliver optimal business outcomes, sales managers can work with a CPQ solution to have transparency in the sales process that will help them work more efficiently with their customers and better meet their needs.

7. What are the typical challenges, roadblocks and missteps you observe with the B2B CPQ process today?

We recently partnered with Gerson Lerhman Group (GLG), the leading platform connecting business to insight, to dive deeper into what B2B buyers wish they had done differently in the CPQ purchase process when working with other vendors. Our report found that the top internal challenges and implementation roadblocks organizations encounter include:

• Insufficient research: 55 percent of organizations reported the biggest challenge for budgeting a solution is underestimating the scope of work, followed by not fully grasping the level of functionality needed at 45 percent.
• Lack of internal alignment: 70 percent of buyers saw longer-than-expected delays in their CPQ buying process. Many of these delays came from organizational issues, such as lack of consensus in the steering committee or key stakeholders prioritizing other projects.
• Too much focus on features, functions and price: 32 percent of buyers said they overemphasized the cost of the application, while 31 percent said the same for features and functions. Instead of focusing on price as a deciding factor, many buyers said they wished they had considered the long-term value and scalability of the solution.
• Minimal transparency: 42 percent of buyers believe their CPQ vendor overpromised and underdelivered. Organizations wish they had evaluated more CPQ vendors by doing their due diligence on understanding the technology, its key solutions, and how each could meet their needs.

Buyers should be wary of vendors who overpromise and underdeliver to make a quick sale. Instead, look for vendors that can be a strategic partner and consultant to your business and can handle your specific needs and complexities.

8. What would the typical metrics and KPIs be to judge the ROI on a CPQ investment?

There are several typical metrics that businesses should use to measure ROI on a CPQ investment: reduction in order errors, increase in revenue, and a reduction in the length of the sales cycle.

For instance, a Forrester Total Economic Impact report, we commissioned found that our CPQ solution can produce a 4 percent increase in revenue within three years, a 70 percent reduction in the overall sales cycle and a 315 percent return on investment. Under the right circumstances, a CPQ solution can have a huge impact on a business’ bottom line.

Also Read: Driving Digital Transformation And A Better Customer Experience at PROS

9. What technologies and trends are you tracking in the CX and B2B deal-making space moving into 2020?

It’s an exciting time for technology vendors as customer expectations for a great experience continue to evolve. A few technologies we follow that play major roles in enhancing the B2B user experience include:

• Price management and more dynamic pricing: Pricing is one of the most complex elements in the B2B customer experience, and the intricacies continue to multiply. Improvements in pricing visibility, managing discounting and pricing workflows, and leveraging data will provide insights to ensure every customer engagement receives the correct price. Not only will these improvements ensure a better customer experience, but they will also afford the business substantial savings in terms of time, resources and revenue.
• Enhancing 2D and 3D visualizations in solution configuration: We’re already seeing the power of crisp digital renderings when configuring products and services. For customers, seeing is believing and ultimately, buying. We’re approaching the next iteration where customers can visually configure their products, giving them the confidence to self-serve when building complex goods. It’s all about providing that extra layer of validation.
• Augmented and Virtual Reality: The gradual consumerization of AR/VR is going to increase the willingness of businesses to experiment. Rather than devoting resources to building out prototypes, AR/VR provides a safe avenue for testing viability and buyer response to innovations. The experiences are more than just “fun” or “cool” — they provide practical use cases for buyers as they determine their specific needs for a product.
• IoT Connectors: We’re living in an IoT world, and technologies such as CPQ need to get onboard. As methods for ordering, recurring orders and subscriptions join the realm of IoT, businesses will need more resources to support these channels.
   

Neha: Thank you for sharing your experiences and insights on digital transformation and so much more, Mark. We hope to talk with you again, soon!

About Mark Bartlett:

Mark Bartlett is Chief Experience Officer at FPX and a practitioner of e-commerce and digital transformation with more than 20 years of experience.

About FPX:

FPX solves the challenges of slow and inaccurate quoting processes for leading manufacturers around the world. As a critical component of the optimal B2B buying and selling experience, FPX helps organizations meet the demands of their modern omnichannel customers. Fortune 500 manufacturers like Honeywell and Dover Corporation rely on FPX for their CPQ solutions