B2B profitability: The Johnson Controls story

As many B2B companies prioritize their digital transformation journey this year, Johnson Controls is taking the lead with a successful upgrade to Adobe Commerce.

On March 25th, 2024, Valtech and Johnson Controls International (JCI) took the stage at Adobe Summit to talk about the digital evolution of B2B companies in the HVAC industry and JCI’s transformation journey to creating a total commerce experience.

Janet Englehart, Ecommerce Director at JCI, and Charles Desjardins, EVP and Managing Director for Valtech Commerce, explored the JCI success story in relation to common manufacturing trends. They discussed how to future-proof your B2B business and continue to drive growth by elevating your ecommerce experience.

So how does a global distributor find their path to profitability in e-commerce?

1. Find the manufacturer’s sweet spot

Many B2B companies struggle to understand the product AND the customer: how they interact and how to market and sell. The key connector between those two is the right talent. Finding the right talent is imperative but it’s also challenging for many B2B companies to create the perfect harmony between Talent x Product x Customer.

Finding that ideal sweet spot for your organization will create the ideal environment for ease of doing business.

2. Focus on cultural transformation

This industry is filled with folks who have been working with specific tools and processes for years. Changing the way they approach their jobs and use technology is a common challenge; 31% of manufacturers cite cultural transformation as their biggest hurdle.

JCI’s user adoption strategy was simple and effective:

• Adopt a “did you know” approach to share interesting information and advantages of this transformation internally and externally. E.g: Did you know this new tool can help you create a quote for your clients on our website?

• Involve your field sales in the digital transformation process and prepare them with as much knowledge as possible.

• Talk to your customers/dealers and help them understand there are new and potentially more efficient ways for them to find the solutions they are already familiar with. 

It’s a matter of gaining trust and loyalty and giving the digital transformation journey a chance to see that it works and it’s consistent.

3. Formulate proper data management

For most B2B companies, high profit margins come from part sales. But many B2B websites lose on these sales because customers go where fitment, specs, visualization, and other features feel more convenient and trustworthy.

PIM and proper data management are key to feeding the machine and improving the customer experience.

Some honorable mentions

In addition to the 3 key takeaways, here are some honorable mentions that are sure to make you sound like you were right there in the crowd:

• Digital change in B2B is now: 52% of manufacturers are focusing on transforming their digital services in the year ahead, despite the common challenges they face.

• Digital presence has a significant impact on attracting and retaining clients through a total commerce experience – and so do brick-and-mortar locations. A total commerce experience makes both offerings intuitive and easy.

Want to learn more from our experts on profitability in ecommerce for B2B? Contact us today for support on your digital transformation journey.