10 B2B Trends That Will Rock Your World

1. 10 B2B Trends That Will Rock Your World Terry Jukes, President Ability Commerce www.abilitycommerce.com

2. Me 25 years in B2B DM Started with computer supplies catalog Past president of Misco, gNeil and B2B DMI Inc. Currently, President of Ability Commerce -Sell DM intelligence in the form of software -Design, build and run e-commerce businesses -100 clients, 140 employees

3. You Merit clients Marketing & Circulation folks Large and small companies represented "Entrepreneurial & Innovative" Here to learn, network, be challenged, think differently Want new, proven ideas to implement "Change agents & Survivors"

4. This Presentation Will give you some "big picture" trends and ideas. Will make you think. Will make you worry, a little. Will energize and encourage you. Will "set the mood" for you to get the most from the next two days.

6. Increasing marketing complexity

7. Increasing marketing complexity

8. Increasing marketing complexity

9. Increasing marketing complexity

10. Increasing marketing complexity Implications Complex interrelationships, interdependencies More special skill sets required Harder to know entire business, gain common understanding "Functional silos" form More to measure Management metrics are mandatory

11. Increasing marketing complexity

12. Increasing costs Postal Shipping – in & out Supplies Travel Payroll Utilities Rents Product

13. Increasing costs

14. Increasing costs

15. Increasing costs The price of gas: USA $4.00 Britain $9.88 Germany $7.86 France $8.07 Norway $8.73 India $4.81 China $2.88 Fleet size: USPS: 88K vehicles UPS: 264 aircraft(9th) 95K vehicles Fedex: 671 planes(1st) 45K vehicles

16. 2. Increasing costs Blip or shift change? Shift change Demand vs. supply World supply of resources limited USA is a per capita uber-consumer, at risk.

17. Increasing costs Inflation – significant? 5% or 15%? Little ability to raise prices in "customer controlled" marketplace Near perfect market information flattens prices and margins "Hard to find" and "New" product advantage reduced. Lower demand in recession, more shopping You will be "squeezed"

18. 2. Increasing Costs What can you do? Increase productivity by applying technology More international sourcing of products and services Outsourcing of non-critical functions "Measure & cut"

19. Increasing customer control "The customer is driving this bus!" Your customers comparison shop, bid, seek user ratings, read blogs, social network, etc. to gain near perfect market information. Comparative information instantly available. 3x more likely to believe other buyers. Less reliance on you.

20. 3. Increasing customer control Shifting Power in Marketing Because consumers are driving, they will shop wherever they feel they’re getting the best value and quality of service—the lines are increasingly blurring across channels and the divide is narrowing between manufacturers, B2B vendors, and B2C vendors. Source: IRCE 2008

21. 3. Increasing customer control Get good at responding! True one-on-one marketing Our responses must be timely and perfect Our responses must make brand believers Examples Triggered, event driven email Web 2.0 social networking participation Detailed mail, phone, email preferences VDP custom catalogs Site functionality – Live chat, Call me, account history

22. "Do not mail" Following "do not call" success Fueled by privacy/ID theft issues Seen as "green" Consumers feel overwhelmed Reaction to irrelevance Currently 18 pieces of legislation under review in 15 states B2C but will move to B2B Very real threat, not to be ignored

23. "Do not mail"

24. "Do not mail" Implications on USPS, your partner? With first class volumes in decline, ad mail volumes falling, fuel cost skyrocketing how can USPS withstand the impact of "do not mail"? USPS has 37,000 retail locations, 350 processing plants and 700,000 employees – huge fixed cost structure

25. "Do not mail" "Wake up!" Fight back! ACMA & DMA will lead www.DMAChoice.org According to general session speakers at ACCM 2008, consumers respond well to DMAChoice.org because it allows consumers to control their mailings without involving a "middleman" organization like CatalogChoice.com. Promoting YOUR organization as one that supports consumer choice is key to fighting legislation and independent organizations.According to general session speakers at ACCM 2008, consumers respond well to DMAChoice.org because it allows consumers to control their mailings without involving a "middleman" organization like CatalogChoice.com. Promoting YOUR organization as one that supports consumer choice is key to fighting legislation and independent organizations.

26. "Do not mail" Change! Be relevant. Gain mail, phone and email permissions & preferences Make it easy to opt out, in, down, up Increase targeting, personalization and relevance…"it’s not junk if I like it" Work with Merit database/circulation consultants Avoid "tonnage mailing" mentality

27. "Do not mail" List hygiene! In the next 60 minutes: 251 businesses will have a suit, lien or judgment filed against them 58 business addresses will change 246 business telephone numbers will change or be disconnected 81 directorship (CEO, CFO, etc.) changes will occur 41 new businesses will open their doors 7 businesses will file for Bankruptcy 11 companies will change their names So in a year: 21% of CEO's will change 20% of all addresses change 18% of telephone numbers will change 17% of business names will change Source D&B

28. "Do not mail" Promote our position/message as catalogers Arm chair convenience Selection Customer services Guarantee Energy efficient shopping vs. retail

29. Living Green & Sustainable Growing "environmental adversity" Catalogers are seen as "villains" We need to be proactive, self-regulate and promote our green and sustainable position Catalog shopping is green vs. retail Green standards coming "Green 15" initiative from DMA

30. Living Green & Sustainable Review your green position in every area of your business, promote same. Do not mail to those who don’t want mail. Maintain, respect preferences Track last channel ordered Test alternatives to catalog prospecting Other mail formats? (mini-catalog) Online prospecting? (SEM, PPC, etc.) Space advertising? Passionately support a green cause.

31. Living Green & Sustainable Promote your environmentally friendly position

32. 6. Continued globalization Buying: More direct sourcing overseas China "matures" Vietnam, Indonesia grow More than manufacturing -includes product innovation, design, fulfillment Services – call centers, software, HR, non-critical services

33. 6. Continued globalization Selling: Low USD increases foreign sales and exports www.ishopusa.com International expansion – Europe, Asia, South America/Spanish Sell direct to Canada, UK

34. 7. Outsourcing Driven by: Increasing complexity, specialization Rising costs Need to "catch up", seize opportunity Determine what you are best at, outsource the rest. Your core strengths? Product Marketing Customer service

35. 7. Outsourcing Considering outsourcing all non-critical activity HR E-commerce Catalog production Circulation planning Telesales IT, software development Fulfillment – regional centers Start with the premise that it will be better and cheaper if outsourced Get over the "control issue"

36. 8. Government sales grow Government spend is everywhere "Fortune One" 1/3 of GDP (fed, state, local, education) Growing 3-5% per year Buys everything Purchasing habits are public record Non-contract, credit card spending estimated to be $60B

37. 8. Government sales grow Hot segments/products Training Safety, security, facilities You need Dedicated sales force – field and phone Government version of your catalog Patience and intelligence

38. 9. Online retail continues to grow

39. 9. Online retail continues to grow

40. 9. Online retail continues to grow Amazon – $14.8B Staples – $5.6B Office Depot – $4.9B Dell - $4.2B HP - $3.4B Office Max $3.2B Apple $2.7B Sears $2.7B CDW $2.4B Newegg.com $1.9B

41. 9. Online retail continues to grow

42. 9. Online retail continues to grow

43. 9. Online retail continues to grow Site functionality SEO SEM,PPC Affiliates Podcasts Video, YouTube Dynamic customer content Shopping/bid sites B2B Networking sites Email Webinars & white papers Blogs Banned commercials Automated salesmen Chat/IM/Call me Integrated call center Customer reviews & ratings Social bookmarking Online trade shows Mobile marketing

44. 9.1 Online retail continues to grow

45. Online retail continues to grow Mobile marketing—if you think it’s too early to plan for mobile-accessible websites, think again! Graph showing in 2008 13% of cell phones have data/Internet access and capability, by 2011 this will be 90%.

46. 9.3 Online retail continues to grow

47. 9.3 Online retail continues to grow

48. 9.3 Online retail continues to grow

49. 9.4 Online retail continues to grow Product demonstrations, installation, common fixes, repair, service, etc. Video case studies, white papers Social networking – customer videos of product use, endorsement Training & Product documentation Use humor, extremes, alternative content

50. 9.4 Online retail continues to grow Branding – Berlitz

51. 9.4 Online retail continues to grow Crossing channels, B2B Blendtech was a manufacturer which sold their restaurant-quality blenders exclusively B2B, until the success of their impromptu YouTube ad campaign, "Will It Blend?" The campaign increased their brand awareness and created a B2C opportunity for them which expanded their potential customer base dramatically.Blendtech was a manufacturer which sold their restaurant-quality blenders exclusively B2B, until the success of their impromptu YouTube ad campaign, "Will It Blend?" The campaign increased their brand awareness and created a B2C opportunity for them which expanded their potential customer base dramatically.

52. 9.4 Online retail continues to grow

53. 9.4 Online retail continues to grow Education HR Creations on YouTube

54. 9.4 Online retail continues to grow Videojug.com Sclipo.com Sutree.com 5min.com Expertvillage.com Viewdo.com Helpfulvideo.com Teachertube.com Vidipedia.com Youtube.com

55. 9.5 Online retail continues to grow

56. 9.5 Online retail continues to grow

57. 9.5 Online retail continues to grow

58. 10. Your product & service innovation In spite of our uncontrollable challenges, our product and service innovation has the power to propel us forward. Margin management is critical. What are your goals? What are your current results? What are your future plans?

59. 10. Your product & service innovation Avoid "terminal sameness“. New, Innovative products & solutions. "Hard to find" now "one stop shop". Private label drives "exclusive". Price must be competitive, value apparent. Product and service differentiation is key to survival.

60. 10. Your product & service innovation Resist cutting circulation to cut costs Test changing the mix of what you mail Clean/profile/model database Co-mail Trim Continue to integrate your offline and online campaigns to improve overall effectiveness Maintain your telephone and face-to-face sales relationships

61. 10. Your product & service innovation Rise up to meet the challenges Turn challenges into opportunities Take market share from those who falter Seize opportunistic acquisitions Position yourself for better times ahead