Now that we’ve explored key topics covering how to make the case for your next B2B commerce project, build a team and establish priorities, amplify the customer experience, and boost conversions with B2B frontend features, it’s time to talk about data, analytics, and measuring success.
Whether you’re looking at data and analytics from your current environment or creating a list of data points you would want from your next commerce platform, having access to data can inform and help to drive better business decisions.
If your business is reviewing eCommerce reporting and analytics for future technology investment, it’s worth reviewing these four key data points that are not only unique to B2B eCommerce but also have a significant impact on sustaining current active customers as well as attracting new ones. Each of these measures and data points will help you understand customer behavior, drive repeat purchases, and increase order volume.
#1: New Customer Pipeline
In the B2C world, most of the new customers and accounts are being generated as a result of the checkout process. Has anyone ever created an account before starting checkout? Some maybe, but not many. In the B2B world, accounts are created and sourced from a number of places – trade shows, sales team manual entry, website(s), backoffice, and more. As a result, tracking those accounts by where they originated will drive a number of decisions and communication workflow.
- New Accounts by Source
Monitor accounts generated by the website, customer application forms, sales team, CRM integration, or back-office ERP.
To determine which channels are generating the most new accounts and the trendline to see where improvement can be made.
- New Accounts to First Order
Monitoring a list of new accounts that haven’t converted to their first order versus new accounts who are placing their first order.
Indicative of problems on the website with pricing, product selection or the checkout process. Lots of new accounts coming from other channels that aren’t converting on the website should be a red flag.
#2: Lost Customers
One of the out-of-the-box metrics we almost always see is the “Best Customers” listing or chart. While everyone wants to know who the best customers are, in many cases, the bigger potential segment is who are the customers who “should” or “could” be better customers.
Think of this segment as the customers who have lost their way. They were frequent purchasers, but their volume has dropped significantly. Utilizing workflow and integrated data sync to automate marketing outreach to these customers is a great opportunity to increase revenue and drive loyalty.
- At-Risk List
The customers who have gone completely silent within a particular range (6-12 months is usually good). They’re probably still out there and it’s possible to bring them back, but it’s going to require some work. Set parameters on this report that allows you to target long term customers who have purchased multiple times.
It’s easier to wake up one of these customers than it is to find a new customer who can generate the same volume.
- Silent Accounts List
B2B purchasing is much more than watching a single buyer, you’ll need to be watching the entire customer account. Has a company stopped purchasing from you entirely?
Use saved reporting to check for customers who have not purchased (by any of their buyers) on a regular basis and use messaging to notify the assigned sales representative.
#3: Average Order Value by Type
We love the average order value metric as long as it’s done in context. Reviewing average order value at a holistic level ignores the idea that there is likely to be a concentration of a number of different types of orders mashed into a single report. Original equipment orders shouldn’t be compared to orders of a single replacement part.
- Order Count & Value by Type
With new types of orders being placed on and through your commerce storefronts (equipment, replacement orders, parts, supplies, replenishment, etc.), it can be challenging to monitor. Applying filters to the average order value reporting to more specific track.
Less so with the original purchases, but are you seeing an increased frequency in follow-on, accessory or replenishment orders. Is the value of those orders changing over time? Is the sales team being incentivized to drive more of that business?
#4: Quote Abandonment
The forgotten “abandonment” metric when compared to its more popular cart abandonment relative. Of course, the quote management aspect of the business is only relevant to those who are collecting quotes, but the process to review active, inactive and at-risk quotes as a measure should be reviewed as both a count and in dollar count of how much order volume is sitting in the “quote” status.
How can those quotes be made active again and is the sales team following up with those customers to reactivate and move into the “order placed” category?
- Quotes Conversion
How many quotes that are started online versus offline sources are converted into orders and how does that change on a month-by-month basis?
Just like cart-to-order conversion, only a small increase in quote-to-cart conversion has big revenue implications for any business.
- Quotes At Risk
Do you know the timing of when a quote in process becomes unlikely to convert – when the likelihood of conversion drops below 50/50? Tracking the quotes that are getting to that point saves potential orders from disappearing.
Simple. More conversions equal more orders.
Running a B2B eCommerce storefront requires thinking about analytics to workflow and automation with a messaging component in a unique way. You’re focused on the lifetime value of the customer account and the potential that a new active customer could bring to your business over a long period of time. Ultra Commerce, in partnership with DigiCommerce, can help integrate your eCommerce with the rest of your business to ensure you have a single view of your customers and sales across all channels. To learn more, contact us to chat or schedule a demo.
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