So what does this mean for B2B businesses that are all most likely ready to drive their revenue to make up for last year.
In today’s post we discuss how to pull the lever so to speak on value, volume and the frequency of sales to increase your B2B shopper’s sales journey experience using Salesforce Commerce cloud.
If the pandemic has taught all businesses not only B2B leaders, it’s that digital channels have provided them with a life line to continue trading online while the world was in lockdown. Yet, there is still a big opportunity to leverage and capitalise on the digital commerce market and what business leaders commonly fail to recognize is how to get the most out of digital commerce.
Below we illustrate proven strategies to help you increase revenue and build back up over time.
1. Look no further than your average order value (AOV)
The first question business leaders need to ask themselves is “what is my average order value?” and “How can I calculate it?”.
Typically speaking an Average order value (AOV) is the average value of all customer orders over a defined time period, such as a day, week, or month.
And to calculate AOV, you need to divide your commerce revenue by the number of orders. Of course the higher the better, but there are many factors to consider that can impact AOV, such as changes to your product mix, promotions, and digital experiences.
While B2B orders placed via e-commerce stores increased by 44% last year between January 2020 and August 2020, the AOV of self-service orders was estimated to be about half of in-person purchases. That’s likely because customers are still accustomed to in-person interactions and phone calls. Therefore, the more personalised experiences a business can offer to connect their customers needs and wants to their products the more likely they are to stay with their business than to go to a competitor.
More personalized experiences can involve effective cross-selling i.e. from suggested recommendations such as “people also bought this with your product you are buying”, upselling i.e. suggesting better quality products, and other promotional offers such as product bundling.
2. Value has to go beyond the product
As digital commerce becomes more prominent to the public’s channel for everyday daily buying needs instead of a monthly online shop, there is now fierce competition to offer value.
Value is derived from your product relationships, price lists, and up-sell and cross-sell opportunities.
Business leaders should look at how their average cart size today compares to your other sales channels. And with this information - you will be able to have a clear vision on what strategies to implement.
The most common strategy that most businesses could capitalise on is to look at giving their customers the ease of convenience for example, if your data picks up apon regular customers who order the same products time and time again - then one way to increase value is to showcase related products on the digital front page storefront to personalise their shopping experience. Suddenly your regular customer who usually buys for example computer components now adds additional accessories in their cart from their personalised recommendation bar.
3. Volume, Volume, Volume!
It may sound obvious, but higher order volumes lead to higher revenue!
Even if you have a lower per-unit cost on an item that customers buy in large quantities, your company benefits because high volumes drive AOV.
So how can your business increase units per transaction? Well, the most applicable strategy that would suit most businesses is to look at a “Tiered pricing”. You can use a tiered pricing model to incentivize customers to purchase larger quantities. For example, if a customer buys 1,000 products, they can get a 5% discount, which will drive a higher cart size.
With Salesforce B2B Commerce, you can apply tiered pricing strategies using price or percentage adjustments, or fix an absolute price based on each quantity tier.
Digital commerce is here to stay for B2B businesses, and your AOV is a key metric that will impact revenue growth - build your Salesforce B2B Commerce quickly and effectively to start building your personalised digital storefront.
That's why at Savant Technology Recruitment we have partnered with CloudGaia.
A platinum Worldwide Salesforce partner - with more than 10 years of experience dedicated to building digital solutions on the Salesforce platform. Our partners team of cloud experts, developers and product support specialists has extensive experience working with Salesforce cloud platforms and APIs. They can provide professional service for all Salesforce.com products as well as Technical Architecture and Integration of Data and Systems.
Our strategic partnership allows our customers to find talent within specific areas and markets that business leaders typically do not know where to find top talent. This initiative alliance has helped large and SME firms to be connected to candidates that have been technically assessed to bring high level top talent in the ecosystem.
Through our partnership, professionals have been introduced to our partners who will put them forward for an interview.
To find out more about how our partners have supported our customers and in turn help you with your recruitment needs, please do not hesitate to contact us via technology@savantrecruiment.com or visit us at www.savantrecruitment.com
