Manufacturers that delayed their digital transformation are learning a valuable lesson. Digital is no longer a disruptive force. It is a lifeline.
The ongoing global COVID-19 pandemic is forcing the manufacturing industry (and every other industry) towards digital. Case in point: COVID-19 accelerated B2C commerce growth by five years.
According to the study by IBM, this development makes e-Commerce a “must-have” for B2C businesses who want to survive.
Download our Manufacturing Commerce Playbook to find out how you can launch a high-performance digital store in just three months or less.
Manufacturers need to consider e-commerce
With e-commerce now the norm for B2C, your customers are expecting the same B2C experience when they buy from you. That makes e-commerce a “must-have” for B2B manufacturing businesses that want to thrive.
Your business is already struggling with:
- Slim margins
- Global competition
- Increasing customer demands
Your customers demand the same frictionless buying experience that B2C offers. And they are taking that appetite for speed and convenience with them when buying from you.
In a recent Gartner survey, B2B customers have shown a deep frustration with their buying journey. They think it is needlessly convoluted and are on the lookout for an easier way to buy—from you or your competitor.
Manufacturers who can meet this challenge fast will be able to uncover a wealth of opportunities buried right in their front yard.
Start e-commerce initiatives fast with after-sales
However, for various reasons, jumping onto the e-commerce bandwagon is not a feasible solution for many manufacturers.
Your barriers to adopting e-commerce may be:
- High costs of implementation
- Undefined digital priorities
- Inflexible upper management
- More critical business objectives
An ideal testbed for your e-commerce initiatives may be hiding in plain sight—your after-sales business.
Your after-sales unit is responsible for:
- 10-30% of your total revenue
- Additional 15-20% in margins
- Improving customer satisfaction
- Additional 5-10% share of wallet
- Ensuring brand loyalty
But most of all, it is a predictable source of recurring income for your manufacturing business.
Big tech is coming after your after-sales business
Your after-sales business is lucrative, and your trusted partner, Big Tech knows it too. Companies like Amazon and Alibaba have deep technology expertise and the global reach to position themselves between you and your customers.
However, what they cannot replicate is your manufacturing expertise, production data, and—most importantly—your personal relationship with customers. The ball is now in your court. The question now is, what will you do with it?
The revenue potential of your after-sales can't be ignored. But at the same time, the scale of each individual transaction can be too small to manage in a cost-efficient way.
To uncover this revenue goldmine, manufacturers can turn to digital channels, and offer customers the option to self-serve, and buy online through digital commerce.
Read our Manufacturing Commerce Playbook to find out how you can launch a high-performance digital store in three months or less. You can also download a copy for offline reading, or to build a case for investing in digital commerce.