$10M a day online: a manufacturer’s strategy

One of the world’s leading manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial turbines now generates more than $2 billion a year in online sales with B2B eCommerce. This is largely driven by an integrated digital approach with dealers and major investments in digital and mobile technology.

A long-term investment in eCommerce

Caterpillar, a company with more than a century of history, has "already made significant investments over the past few years in several e-commerce systems, aimed both at very large customers and at other applications for smaller retailers" , said Caterpillar Group President Bob De Lange at the company’s annual investor day in May.

Thanks to their steady efforts and ambition, their dealers generate $10 million in parts sales to end users every day through their e-commerce platform. According to Bob De Lange, this is only the beginning, as the company has "significant growth ambitions" and its long-term investments are paying off. Total revenue rose by 11%, from $12.9 billion in Q2 2021 to $14.1 billion.

A digital mindset for a better customer experience

A look at Caterpillar’s website reveals a digital mindset and a culture that’s leading the way in delivering a better customer experience:

"Our goal is to provide best-in-class online digital interactions and e-commerce self-service capabilities. We know customers expect it to be even easier to do business with us, and we are making significant investments in multiple e-commerce solutions for both large and small customers. " (Caterpillar 2022)

Deeply understanding how customers work and operate every day as professionals, and how expectations for seamless experiences have evolved, is a priority for the company. While most people now use their phones and digital self-service in their personal lives, it can be difficult for small businesses to make the shift to buying online. Customers of smaller businesses want the confidence that they’re buying exactly the right parts.

That’s where QR codes come in. "We’re starting to place them on our machines and engines, which allows a customer to easily scan them and be taken directly to a landing page with information about their specific asset, their specific serial number, giving them the confidence that they’re buying exactly the right part." said De Lage. By connecting physical assets to a digital experience, Caterpillar is transforming the entire customer journey and ensuring a seamless, highly relevant experience for all its customers.

To drive meaningful growth, Caterpillar took these steps to improve and simplify online transactions:

• Better integration and a simpler B2B eCommerce site with its dealers and branches.
• Developing a more advanced mobile app
• Making online purchasing easier for smaller customers by placing a QR code on machines and engines.
• Making a "digital first" approach the main driver of growth.

Over the next three years, Caterpillar expects its online sales, including parts sold on its dealers’ websites and on its own parts website, to increase by at least 50%.

If you’re a manufacturer looking for the right B2B eCommerce platform, DJUST gives you the tools you need to build, launch, and grow your business faster.

Source: Digital Commerce 360°, www.catepillar.com