Three B2B buying styles that are changing retail business management
Three B2B buying styles that are changing retail business management: In a few short years, the retail sector has transformed itself globally. Both consumer and B2B buying methods have changed dramatically. Online shopping is an obvious development that has overtaken the demand for high street stores, forced prices down for the consumer, and caused headaches and liquidation for many traditional retail business models.
But these casualties of the digital age have fallen by the wayside because they failed to embrace the inevitable and unstoppable industry changes that have transformed both shopper and buyer experiences. Today, there are three main preferences that are guiding the retail sector and driving a buying revolution.
NetSuite and product sourcing protocol
While a company buying department in an SME might have a team of five employees researching buying habits and products, the decision-making process on acquiring new buys involves a lot more people. Focus groups examine the market value of the product. They are comprised of different demographics and cultural requirements to test suitability and market strength.
As the retail sector is now a global concern, several influencers are used in different geographic locations to provide their feedback on a new line or buy. Because of this group’s diversity, there can be different and sometimes conflicting priorities towards the services and/or products being examined. Added to this is the financial perspective, from forecasts to goals and strategies to implement growth and distribution.
There is a huge amount of data to collect, before a decision is even made on a range or product buy. Keeping track of the data during this process, can be convoluted. It’s essential that all buying habits, trends and selling strategies are examined, so a true picture of that product’s market value can be assessed.
Customer reach and interest
As the retail industry has mushroomed in the online boom, so have the methods and means of reaching the right customer markets. Selling a product is no longer just a case of getting it placed in the right store front and advertising it via below-the-line methods. Today, there must be a multi-pronged approach that involves harnessing the power of social media channels, business networking, the generation of reviews and multiple selling point outlets. Ease of distribution is another essential element. Patience of customers has shortened sharply as a result of the Amazon affect. The need-it-tomorrow generation will shop elsewhere unless access is fast and efficient. NetSuite enables businesses to compile data and forecast
Online product research
And that takes us to our final buyer preference, which sees buyers spending increasingly long amounts of time researching potential products online, before they consider even sharing that product with a focus group. A recent study by Forrester indicates that as many as 74% of B2B buyers carry out more than 50% of their product research vis the internet. But because web provides such a vast playing field of information, this is not a fast process. In fact, researching the value of a potential product online, now takes 22% longer (according to research by SiriusDecisions study) than it took five years ago. As increased numbers of businesses take their services and products online, the sheer volume of data required to assess that information, has grown exponentially. Along with this trend, is the tendency for seller companies to overload the web with information that isn’t strictly directed to their most successful buying markets. While information is important, it must be provided in a strategic manner without too much convoluted or unnecessary data.
Ultimately though, all this research pays off for those who manage their data well and stick to a well-planned strategy. It’s worth remembering that according to retail and marketing studies, the majority of consumers must hear about a product five times before they will show belief in the product. That’s why a multi-pronged approach through so many media channels is an important marketing strategy. It’s also why collection and use of your market research data and demographics needs to be accurate.
NetSuite provides a one-stop-shop solution to retail industry clients looking for an end-to-end management system. NetSuite software is a cloud-based ERP service that helps companies manage their essential business practices in one place. From measuring and forecasting growth, collating and collecting marketing data, to CRMs, database management and e-commerce tracking. For more information on implementing NetSuite to your business management system, contact an RXD consultant today.