How a Generational Shift is Changing B2B Ecommerce

The landscape of B2B ecommerce is undergoing a profound transformation due to a generational shift in B2B decision-making power. With the retirement of the Baby Boomer generation, younger professionals are now stepping into roles as primary decision-makers and influencers in business-to-business transactions. This shift brings with it a significant change in purchasing preferences and behaviors. According to a study by Anteraid (formerly Merit B2B), 73% of B2B buyers are now Millennials, signaling a critical shift that B2B ecommerce operators must acknowledge and adapt to. This article explores the implications of this generational shift, examining the changing demographics, the decline of traditional purchasing methods, and the necessity for modern, digital-first strategies.

A Generational Shift is Underway

The Baby Boomer generation, born between 1946 and 1964, has long been the backbone of B2B purchasing decisions. These professionals developed strong loyalties to certain suppliers and were comfortable with traditional methods of placing orders, such as calling sales representatives or faxing order sheets. According to the U.S. Census Bureau, there are approximately 70 million Baby Boomers in the United States, many of whom are now reaching retirement age.

In contrast, Generation X (born 1965-1980), Millennials (born 1981-1996), and Generation Z (born 1997-2012) are increasingly taking over these decision-making roles. These younger generations have grown up in a digital world, and their purchasing preferences reflect this. As previously referenced, a recent Anteraid study found that 73% of Millennials are involved in B2B purchasing decisions, and they prefer to conduct business online.

These younger professionals are less likely to have long-standing loyalties to specific suppliers and are more open to exploring new options. They value efficiency, convenience, and digital engagement over traditional methods. This shift in buyer demographics necessitates a reevaluation of B2B ecommerce strategies to meet the expectations of this new generation.

The Fax and Everything but the Fax

Historically, many B2B commerce operators relied heavily on fax machines and manual ordering processes. This method, while familiar to older generations, is fraught with inefficiencies and potential errors. Duplicate data entry, human errors in transcription, and the risk of losing or overlooking order sheets are common issues associated with fax-based ordering.

A study by Esker found that order entry automation such as that provided by a modern ecommerce platform can increase order processing speed by up to 90%, reduce order-to-cash operational costs by up to 70%, all while costing the company about 50% less to accept the order versus manual entry. Additionally, fax machines are becoming obsolete in the modern workplace. A report from Novatech highlights that while fax machines remain in use in certain sectors requiring secure document transmission, their prevalence is declining in corporate environments, including ecommerce, as more efficient and secure digital communication methods become available. The report notes an average annual decline of 5-10% in fax machine usage in recent years, a trend likely to continue as younger buyers bear responsibility for corporate ordering. ​

For B2B ecommerce operators, continuing to rely on fax machines and manual processes is no longer viable. It is essential to embrace digital solutions that streamline order processing and reduce the potential for errors.

The Phone Call Phobia

Another significant aspect of this generational shift is the strong aversion younger professionals have to speaking on the phone. A study by Zipwhip found that 74% of Millennials and Gen Z prefer to use text-based communication over phone calls for business purposes. This preference extends to their purchasing behaviors, with a clear preference for online ordering and chat-based customer service.

Younger generations value the ability to research products, compare prices, and place orders at their convenience without the need for direct human interaction. This shift necessitates that B2B ecommerce operators offer robust online platforms and digital communication channels to meet the expectations of these buyers.

The Modern Buying Experience

Modern business buyers, especially those from Gen X, Millennials, and Gen Z, expect a seamless and efficient buying experience. This includes features such as user-friendly websites, detailed product information, real-time inventory updates, and the ability to place orders online quickly and easily.

A survey by Salesforce found that 87% of B2B buyers expect companies to provide a personalized and convenient experience similar to B2C interactions. Additionally, these buyers value transparency and quick responses to their inquiries, making digital communication channels such as live chat and email essential components of the buying process.

Furthermore, younger buyers are increasingly influenced by social proof and peer reviews. A study by G2 Crowd revealed that 92% of B2B buyers are more likely to purchase after reading a trusted review. This underscores the importance of incorporating customer feedback and reviews into the digital buying experience.

Action Needed to Remain Relevant

To remain competitive and relevant in the evolving B2B ecommerce landscape, businesses must take proactive steps to modernize their operations. This includes replatforming their ecommerce systems to modern solutions such as Adobe, BigCommerce, commercetools, or Shopify. These platforms offer the flexibility and scalability needed to meet the demands of today’s digital-first buyers.

Additionally, modernizing customer service to include digital communication options such as live chat and email is crucial. These channels provide the quick and convenient interactions that younger generations prefer, enhancing the overall customer experience. Implementing a composable commerce strategy is also essential for long-term success. This approach allows businesses to build and maintain a flexible and adaptable ecommerce ecosystem, integrating various technologies and services as needed to stay ahead of market trends and customer expectations.

By embracing these changes, B2B ecommerce operators can ensure they remain relevant and competitive in a rapidly evolving market.

Conclusion

The generational shift in B2B buyer demographics is reshaping the ecommerce landscape. As Baby Boomers retire and younger professionals take over decision-making roles, the need for modern, digital-first purchasing experiences becomes increasingly critical. B2B ecommerce operators must adapt to these changes by embracing new technologies, streamlining processes, and providing the seamless, convenient experiences that today’s buyers expect.

For businesses looking to navigate this transition, McFadyen Digital offers expert guidance and solutions to modernize your B2B ecommerce operations. Contact us today to learn how we can help you stay ahead of the curve and meet the demands of the next generation of B2B buyers.