In B2B, the focus must now be on business experience (BX)
Why customer experience (CX) in B2B has fallen short and how you can develop your digitalization holistically
Before we start … BX, CX, UX, TX, MX, EX. “It’s all about experiences!” At the end of the age of the customer, it’s no wonder that it’s really all about the experience, i.e. people’s emotions. The fact that the focus is increasingly shifting from the customer alone to the digital experiences of all people clearly shows that we are witnessing the end of the age of the customer. Or – also supported by the success of AI – that the next “age” has already begun. I once jokingly called the next coming age the “Age-of-the-Borg” in a presentation based on Star Trek. Before we delve deeper into the topic of BX, I would like to differentiate and categorize the experience terms:
User Experience (UX):
UX is the basis of everything: companies are trying to create a competitive advantage through digitalization. UX forms the basis of this, as it is fundamentally about how users interact with the tools, technologies and platforms. A good UX ensures that the interaction is intuitive, efficient and ultimately inspiring. UX aims to create positive experiences by meeting or even exceeding users’ needs and expectations. UX therefore adds value regardless of the business area or the focused user groups.
UX is the basis of everything: companies are trying to create a competitive advantage through digitalization. UX forms the basis of this, as it is fundamentally about how users interact with the tools, technologies and platforms.
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Customer Experience (CX):
CX focuses on giving all customer touchpoints a positive design. This includes all interactions with the customer, be it on the website, in customer service or in physical stores. A good CX means that customers have a smooth, pleasant and efficient experience, which in turn increases their satisfaction and often leads to repeat purchases and positive recommendations.
In recent years, CX has become particularly important as customers now more than ever expect their interactions with companies to be seamless and personal. Increasing digitalization has strongly influenced customer behavior and pushed companies to improve their CX in order to remain competitive. This has led to attempts to counteract dwindling customer loyalty and turn customers into fans of the brand in the “loyalty loop”.
CX focuses on giving all customer touchpoints a positive design. This includes all interactions with the customer, be it on the website, in customer service or in physical stores.
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In recent years, CX has become particularly important as customers now more than ever expect their interactions with companies to be seamless and personal. Increasing digitalization has strongly influenced customer behavior and pushed companies to improve their CX in order to remain competitive. This has led to attempts to counteract dwindling customer loyalty and turn customers into fans of the brand in the “loyalty loop”.
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Employee Experience (EX):
Employee Experience (EX) focuses on the working environment of employees. This is about ensuring that the tools, systems and processes that employees use on a daily basis make their work easier and promote a positive working environment. A good EX helps to ensure that employees are motivated, can work productively and identify more strongly with their employer. This in turn has a positive impact on employee retention, efficiency and ultimately the customer experience, as satisfied employees provide better service, for example.
Employee Experience (EX) focuses on the working environment of employees. This is about ensuring that the tools, systems and processes that employees use on a daily basis make their work easier and promote a positive working environment.
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CX and EX together make Total Experience (TX)
TX looks at both CX and EX. Looking at TX is about ensuring that both customers and employees have a seamless and positive experience. In other words, it is about taking a holistic view of the experiences of the people who are in the company’s direct sphere of influence. The term was taken up or defined by Gartner, but refers more to B2C companies and has its origins in retail. TX still excludes partners or suppliers (PX) in terms of content.
TX looks at both CX and EX. Looking at TX is about ensuring that both customers and employees have a seamless and positive experience. So it’s about taking a holistic view of the experiences of the people who are in the company’s direct sphere of influence.
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The term was defined by Gartner, but refers more to B2C companies and has its origins in retail. TX thus excludes partners or suppliers (PX) in terms of content.
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Partner Experience (PX):
PX considers the experiences and interactions of business partners, suppliers and other external stakeholders. A good PX ensures that these groups also have efficient and satisfactory interactions with the company.
PX consider the experiences and interactions of business partners, suppliers and other external stakeholders.
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A good PX ensures that these groups also have efficient and satisfying interactions with the company.
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Business Experience (BX):
BX is the most comprehensive view of the experience, which considers all user groups and all touchpoints of a company and therefore combines TX and PX from a mathematical perspective. From internal employees and customers to business partners, stakeholders and suppliers. BX aims to create a holistically positive and efficient business environment.
BX is the most comprehensive view of the experience, which considers all user groups and all touchpoints of a company and thus combines TX and PX from a mathematical point of view.
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From internal employees and customers to business partners, stakeholders and suppliers. BX aims to create a holistically positive and efficient business environment.
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Summary:
- The foundation of all experience considerations is UX
- CX looks at the customer experience
- EX looks at the employee experience
- CX and EX are collectively referred to as Total Experience (TX).
- Partner and supplier interactions are considered under Partner Experience (PX).
- The most holistic view of all touchpoints is Business Experience (BX).
- BX combines consideration of PX and TX (CX + EX)
Why we need to talk about business experience (BX) instead of customer experience (CX) in the B2B sector
In the B2B world, it is no longer just about optimizing the customer experience (CX). While CX focuses on the relationship or interaction with the customer, a more comprehensive perspective is required in the B2B sector:
Business Experience (BX) is a holistic view of business processes that encompasses both customer and supplier relationships and focuses on the overall experience that all business partners have with the company.
In the B2B world, it is no longer just about optimizing the customer experience (CX). While CX focuses on the relationship or interaction with the customer, a more comprehensive perspective is required in the B2B sector:
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Business Experience (BX) is a holistic view of business processes that encompasses both customer and supplier relationships and focuses on the overall experience that all business partners have with the company.
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Why is BX important in the B2B sector now?
- Complex value chains: In the B2B sector, business processes are often more complex and extensive than in the B2C sector. Companies must not only understand and meet their customers’ needs, but also ensure that their supply chains are efficient and reliable. The smooth integration and optimisation of all these processes creates a positive business experience.
Examples include collaborative research, e.g. on drugs or new technologies, or working together on digital twins in mechanical engineering. The ability to work together easily and without technical barriers is essential. - Long-term partnerships: B2B relationships tend to be more long-term and strategic than B2C relationships. Companies depend on reliable and trustworthy partners on an ongoing basis. That is why BX focuses on developing and maintaining supplier relationships: And, especially in long-term business relationships, poor usability or poor processes are particularly annoying and sometimes detrimental to business. They can lead to well-intentioned processes being circumvented rather than used.
- Driving innovation: By taking a holistic view of the BX, companies can drive innovation across the entire value chain. This leads to better products, more efficient processes and ultimately greater competitive resilience.
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- Complex value chains: In the B2B sector, business processes are often more complex and extensive than in the B2C sector. Companies must not only understand and meet their customers’ needs, but also ensure that their supply chains are efficient and reliable. The smooth integration and optimisation of all these processes creates a positive business experience.
Examples include collaborative research, e.g. on drugs or new technologies, or working together on digital twins in mechanical engineering. The ability to work together easily and without technical barriers is essential. - Long-term partnerships: B2B relationships tend to be more long-term and strategic than B2C relationships.
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Companies depend on reliable and trustworthy partners on an ongoing basis. That is why BX focuses on developing and maintaining supplier relationships: And, especially in long-term business relationships, poor usability or poor processes are particularly annoying and sometimes detrimental to business. They can lead to well-intentioned processes being circumvented rather than used.- Driving innovation: By taking a holistic view of the BX, companies can drive innovation across the entire value chain. This leads to better products, more efficient processes and ultimately greater competitive resilience.
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- Complex value chains: In the B2B sector, business processes are often more complex and extensive than in the B2C sector. Companies must not only understand and meet their customers’ needs, but also ensure that their supply chains are efficient and reliable. The smooth integration and optimisation of all these processes creates a positive business experience.
How can BX be implemented effectively?
- Holistic strategy development: Companies should develop a comprehensive BX strategy that takes into account all touchpoints and interactions along the entire value chain. This includes both internal processes and external partnerships.
- Technological support: Modern technologies, such as digital platforms and integrated ERP systems, are crucial for the implementation of a successful BX strategy. They enable the seamless integration and optimization of business processes and promote collaboration between all stakeholders. See the SAP S4HANA B2B portal S4INFINITY.
- Culture and leadership: Just as with CX, a successful BX strategy depends on the people who are responsible for the corporate culture and the corresponding processes. Managers must act as role models and actively communicate and promote the importance of BX. While CX is often the responsibility of CMOs/CSOs, BX must definitely be driven by the CEO.
- Feedback and adaptation: Ongoing feedback from customers, suppliers and partners is essential to continuously improve the BX. Companies should implement mechanisms to regularly collect feedback and iteratively adapt their strategies accordingly.
- Holistic strategy development: Companies should develop a comprehensive BX strategy that takes into account all touchpoints and interactions along the entire value chain.
- Technological support: Modern technologies, such as digital platforms and integrated ERP systems, are crucial for the implementation of a successful BX strategy. See, for example, our SAP S4HANA B2B portal S4INFINITY
- Culture and leadership: Just as with CX, a successful BX strategy depends on the people who are responsible for the corporate culture and the corresponding processes. Managers must act as role models and actively communicate and promote the importance of BX.
- Feedback and adaptation: Ongoing feedback from customers, suppliers and partners is essential in order to continuously improve the BX. Companies should iteratively adapt their strategies accordingly.
Conclusion – Why it is important to focus on BX:
In the modern B2B world, it is no longer enough to focus solely on the customer experience. Companies must optimize their business experience (BX) holistically in order to be successful in the long term. BX integrates and optimizes all business processes and strengthens relationships with customers, suppliers and partners. A holistic BX strategy increases efficiency, promotes innovation and ensures long-term competitiveness.