In the 2010s, the volumes of online trading in metal products began to grow noticeably, and the largest manufacturers increased their investments in the development of online stores. One of the key players in the metallurgy market that embarked on e-commerce was company, which accounted for 23% of all steel production in one European country.
The e-shop, launched in 2018, allowed customers to select the desired product from 17,000 items based on technical specifications and arrange delivery from the manufacturer's warehouses. A significant emphasis was placed on the online store: it was intended to become a new sales channel, relieve the front office, and lower the entry barrier for small and medium-sized businesses.
The new service lived up to expectations: by the end of 2018, the number of customer registrations exceeded the plan by 60%, and sales grew by 74%. Noticing the successes of the e-commerce direction, in early 2019, the management set new goals to increase the share of online sales.
The first stage involved transitioning non-digital customers to online, followed by improving the customer experience for those who made online purchases the most. To better understand customer behavior and motivation, the online store team turned to Markswebb researchers.
The service, updated based on the project's results, helped increase the share of online sales nearly fourfold: in 2018, it accounted for 5% of the company's total retail, and by 2020, it had already reached 19%.
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For buyers of steel products who were accustomed to placing orders via email or phone, the website interface became a new communication space. Markswebb's task was to understand why some of them continued using traditional methods and how to persuade these clients to place orders through the online store.
In the first iteration of our buyer research, we decided to use in-depth interviews. The metallurgy industry was completely new to us, so we needed to immerse ourselves in the subject and understand the purchasing patterns for steel products, and then figure out how to transfer these patterns online.
Olga,
Team Lead at Markswebb
A total of 20 interviews were conducted. We selected clients who had made purchases during 2018 - representatives of small and medium-sized businesses, and procurement department employees in construction companies and stores. These buyers purchased typical steel products (rebar, beams, pipes, sheets, channels, wire), with procurement occurring 1-3 times a month. They usually did not have their own warehouses, and materials went directly to project sites.
The interviews were structured to form a clear pattern of buyer behavior: where and how they search for products, how they choose a manufacturer, how they establish contact, and what influences their choice and repeat business.
We discovered that buyers had a positive view of the manufacturer, considered it a quality producer, and were willing to purchase its products. However, there were barriers preventing a full transition to online shopping.
For example, buyers were unsure if the information about prices and stock availability was always up-to-date and promptly updated. They also believed that online orders were processed more slowly than traditional ones, and discounts could only be obtained through personal interaction. These issues needed to be addressed.
Olga,
Team Lead at Markswebb
Small companies value a supplier who is responsive, provides current information on stock and prices, and is willing to accommodate payment and delivery issues. The manufacturer was perceived as a large company that primarily served big clients, so quick response and a personalized approach for smaller customers were not expected.
Based on the context provided by the customers, Markswebb researchers developed a customer journey map and proposed two key directions for the digital service's backlog:
A convenient and fast online store helped transition the main segments of buyers to the online format. Additionally, new customers emerged who previously did not purchase products directly and relied on intermediaries. To better understand the needs of key buyers and determine how to increase the share of digital clients, we chose the method of in-depth interviews. The questions covered the entire process of metal procurement—from searching for products to receiving and inspecting the order. Each buyer group—construction professionals, traders, and private buyers—had its own set of questions according to the specifics of the segment.
A total of 20 interviews were conducted: 8 respondents from traders, 8 from construction professionals, and 4 from private buyers. Based on the interview materials, we created customer journey maps for each segment, described key needs, and made recommendations for service improvements.
For construction professionals, it is crucial to stay within budget and deadlines, receive materials at a predictable price on time, and immediately send them to the site. When ordering products through the website, they are often unsure if their personalized terms with the supplier are maintained. They want to see the final price with the maximum discount and get all the product information without additional requests.
Traders need to quickly process received orders to retain customers and maintain their reputation, which is why they use phone calls as their primary communication channel. They do not seek new suppliers unless absolutely necessary.
For traders, convenient delivery and consistently high material quality are crucial. They prefer to receive orders of multiple items from a single warehouse, so they need the ability to view in-stock products at specific warehouses on the website. This eliminates the need to separately verify details by phone.
Private buyers look for suppliers with strong support services. They may not always be well-versed in the products and want qualified assistance in choosing building materials. For private customers to be willing to place orders with online payment, the online store must build their trust, provide information about guarantees, and explain the steps to take if there are issues with the order.
In 2020, we aimed to delve deeper into the barriers and needs of customers when making online purchases. This time, we focused on studying the customer journey maps of the segments that accounted for the highest proportion of online sales: builders and metal traders.
CJM research can provide insights on which features will make the store more user-friendly. Understanding the context of customers always suggests insights for additional features in the online store. For example, an ability to quickly select the nearest warehouse.
Optimizing the interface and improving front-office processes had a synergistic effect: the average processing time for requests was reduced to 10 minutes, and customers began to trust the digital channel more.
Working on the customer journey in the online store helps expand the customer base. A well-developed online channel removes barriers for customers who previously did not interact directly with the manufacturer and believed that it was more convenient to work through intermediaries. Addressing the needs of such customers can open up new sales segments for a B2B company and lead to sales growth.
The research results confirmed our own hypotheses and provided new ideas for development. To improve the customer experience, we ensured timely updates of prices and stock information, and enabled payment and document retrieval directly from the website.
To make the transaction process quick and convenient, we launched an online invoice-agreement system. Customers can place items in the cart, complete the order, and receive an invoice-agreement within two minutes. After payment, the goods are delivered the next day.
Elizaveta,
Product Owner of the Online Store
This case study demonstrates the effectiveness of using CJM research and in-depth interviews to understand customer behavior, identify barriers to online purchasing, and enhance the user experience. By implementing the insights gained, the e-shop significantly increased its share of online sales, improved customer satisfaction, and expanded its customer base. The project highlights the importance of continuous improvement and targeted strategies to transition customers to digital channels and achieve business growth.
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