08 Dec Why completing a digital transformation for a chemical company and how it can help in growing its business?

Posted at 17:56h in Articles SP by Lucile

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December 2021

With the current health context and the major evolution of our buying patterns, the companies have no other choice than keeping pace with all the changes to continue their growth and expand their sales. In the very special area of specialty chemicals, the digital world is essential to reach new customers and to build relationships. Beside the external communication opportunities, the digital transformation helps in the improvement of the internal processes and allows the companies to be more efficient.

Digital transformation of customer’s way of consuming

These last 20 years, the way we live, we buy and we consume have significantly evolved. We have now access to an infinity of products and services and because we can compare and evaluate the right solution to meet our needs, we have more and more power. Indeed, thanks to internet we are now used to search information online to take a decision and to choose to buy or not. Obviously, we can easily imagine that today very few people could buy from a company that have no presence online. It could only work if the company has a physical store accessible locally but even in that case, we are used to check the rates online.

So before buying a product, we are used to look at the opinion of others which can have a large influence on our decision. In fact, according to a study conducted by the IFOP (Institut français d’opinion publique), 80% of the interviewed persons seek information before they buy, 66% defer their purchase if they found negative comments and even more 30% refuse to buy because of such comments. [1] And the recent health crisis further reinforced that trend. With all the restrictions, we had no other option to buy but doing it online. The European e-commerce federation (Fevad) stated in February 2021 that one product over six was purchased online in France. [2] We can now order particular products wherever we are, in the entire world and received it at our doorstep in the twinkling of an eye. In the morning, we can search and compare offers on our smartphone in the public transport to work, order the best product on our laptop at lunch, and receive it the following morning and even by evening if you are lucky and you pay for it.

This shift which involves not only individuals but also companies has been largely influenced by the globalization of markets and above all internet and emerging technologies. No matter if you a searching something for you or for your company, your habits are still the same. Actually the behavior of consumers in B2C is now more and more similar to the one of B2B consumers. [3] After all, behind a company there are people. So, if the customers have evolved, the companies should inevitably adapt.

Companies and the digital world

Globalization induces a large increase of the competition but also new opportunities though new consumers unreachable so far. In addition, internet offers the possibility to reach this large amount of customers at a low cost for the companies. [4] But no need for the company to do something because even if they don’t, the consumers could add information on internet without their control. That is why it is essential to manage their visibility and also reputation online. Definitely it is better to manage the information disseminated online than letting others doing it.

It is in that context that we talk about this recent concept: the digital transformation. For a clear understanding of the digital transformation, let’s define it. This concept covers the integration of digital tools at all organizational levels such as the intern management as well as the sales and the marketing. One of the main objective is to improve the growth of the company by using digitals tools to optimize the organization, the process and the user experience. [5] Of course before the digital transformation, companies made business but they were using more expensive, time-consuming and less effective sales techniques based on outbound marketing such as print catalogue, cold calling or sales prospecting. Difficult to find new customers with these intrusive techniques and added to the recent health crisis, it was not possible to count on conference and business meeting to connect with customers and partners. And of course, it is important to make sure that the efforts undertaken are effective and profitable for the companies. [4]

So, unlike the classic marketing based on traditional media (newspapers, billboards, catalogs…), the digital techniques and tools facilitates the measurement of the results and benefits that come with it. But being on internet implies new effort and adaptation for the firms, and not all of them perceive the importance and the opportunities linked to the digital world.

The main objectives to go forwards a digital transformation for a company are:

Increase its visibility

Expand on new markets

Develop its sales

The issues faced by the companies with the digital transformation

According to a study conducted by the AFNIC (Association française pour le nommage Internet en cooperation), 6% of the interviewed companies believe that they don’t have the resources and the time to be on internet. Simultaneously, a large majority already knows that having an online presence is necessary, 71% of the companies think that internet is essential for their activity. [6] However, it is one thing to think about being on internet, but making efforts to actually having a presence on it is other. According to a study conducted by the company Simplébo in 2021, 49% of the 1 678 French companies interviewed don’t have a website or a page on social networks. And even if the companies are on internet, a large majority of French SME doesn’t take advantage of these opportunities because less than one company over five is using the e-commerce. [7]

So, even if some firms are reluctant to adjust their way of working, they need to find a way to stay competitive with their large number of competitors and to reach their customers. To do so, they have to stand out and refine their products and services even more closely adapted to the customer expectations. More important to prosper, they must find a way to reach the customers when and where they need them. At the end, the companies are facing these changes and should adapt if they want to keep up with the times. As you may have noticed, companies don’t really have the choice if they want to survive and even more if they are seeking economic growth; and that is where the digital world comes into play. They must be easily accessible everywhere if they want to boost their sales regardless the line of business. The question related to the digital transformation is not why but when because now it is a matter of speed of adaptation and flexibility to answer the new challenges and capture market opportunities.

Digital transformation for chemical companies

The field of chemicals is no exception, customer companies use internet to find the product and service that meet their need from international suppliers. According to a study conducted by GlobalSpec in 2017 and based on industrials about the use of digital media, 94% of the questioned engineers use search engines during the exploratory phase of their projects, and 50% spend more than six hours each week on supplier websites. [8]

Thus, chemicals companies must find their place on the digital and define a strong strategy to face their competitors worldwide. The implementing of a digital strategy to maintain competitiveness is a unavoidable consequence of the needed adjustments of business models for global chemical industries. [9] Furthermore, for specialty chemical suppliers that don’t have physical stores, the digital is essential to sell products and even more services. And in term of digital strategy, inbound marketing techniques are the most effective ways to attract future customers. It can generate higher quality leads for sales, with 6 times higher chances to convert them into business compared to old marketing techniques (outbound). If we focus on the most effective inbound channels which can be employed by specialty chemical suppliers, we find the search engines, the product databases and the social media. [8]

Below, you can find the three most effective inbound channels that must be used by the chemical suppliers to reach their customers:

Search Engine Marketing

Audience quality: ★★★

Taffic share: ★★

Ressource needed: ★★★

Cost per lead: SEO – $ | SEA – $$$

Product Databases

Audience quality: ★★★

Taffic share: ★★★

Ressource needed: ★

Cost per lead: $$

Social Media

Audience quality: ★

Taffic share: ★★

Ressource needed: ★★

Cost per lead: $

The digital transformation of SPECIFIC POLYMERS

SPECIFIC POLYMERS is a research company and chemical supplier of functional monomers, polymers and materials with enhanced performances. The company has started a real digital transformation in 2018 with the hiring of a digital marketing and communication manager. Since then, it kept on developing its digital strategy and process. The main objective of the digital strategy was the increase of the R&D products sales, in particular in foreign markets. To reach the objective, it was necessary to improve the visibility of the company and to work on the reputation and the image of it.

As roots of such digital transformation and for a great e-marketing strategy it is necessary to have a quality and efficient website. Indeed, almost all of the strategic channels used by SPECIFIC POLYMERS aim at bringing sales leads on our website so it needs to be easy to use, pleasant and adapted to the users. The new website of the company had to offer a positive user experience and to help them finding the right product and service that meet their needs and requirements. Important efforts have been provided to create a product finder and help the internet user to find easily the chemical that correspond to his need among a large variety of R&D products (+430). Added to a new website, SPECIFIC POLYMERS has developed an app for a internal use which aim at facilitate the work of the engineer by indexing all the information on our specialty chemicals and raw materials.

Next, the development of the SPECIFIC POLYMERS ‘ website and the product databases has been two of the first steps within the digital world. The product databases can be expensive for a small company, that is why it is important to identify the most strategic ones to reach the targeted objectives. It has improved the visibility of the company and above all the lead generation for the specialty chemicals provided by SPECIFIC POLYMERS. In addition, to develop a recognized and relevant corporate branding, it was essential to harmonize the communication supports of the company and define its graphic charter as a strong basis to implement a digital transformation.

Moreover and based on inbound marketing techniques, SPECIFIC POLYMERS has built its social networks strategy up. Mainly based on LinkedIn, the objective was to reach out to the right community and once again, to raise its brand visibility. In order to find easily the company on search engines, it was important to realize an extensive work on the search engine optimization and search engine advertising. It was necessary to be in accordance with the behavior of the SPECIFIC POLYMERS’ customers.

Finally, as part of an outbound strategy which can be complementary to the inbound efforts undertaken, the emailing strategy is important because it aims at raising interest in the last products or new about the company and re-engage a conversation with customers and sales leads.

08 Dec Why completing a digital transformation for a chemical company and how it can help in growing its business?

AUTHORS

DATE

Digital transformation of customer’s way of consuming

Companies and the digital world

The issues faced by the companies with the digital transformation

Digital transformation for chemical companies

The digital transformation of SPECIFIC POLYMERS

References

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