Author: Dr. Ralf Deckers, Division Manager at IFH KÖLN

Are intelligent technologies such as AI, chatbots and the metaverse simplifying our day-to-day work? Why we should benefit and not feel threatened.

We all notice it. For some time now. Sales and distribution have changed. Much of what used to be done in personal contact, in face-to-face conversations, has now shifted to digital tools and processes. The pandemic has helped here once again and – inevitably – driven the development of digitalization.

Let’s take a look at the facts:

• B2B e-commerce, like B2C e-commerce, has been growing continuously for years. Looking at the last ten years, B2B online retail has seen average annual growth of over 6%. In interviews, manufacturers and wholesalers have stated that the pandemic has once again led to an increased shift in direction. And the limits to growth are not in sight. Manufacturers and wholesalers are even expecting more growth in the future. They are also working on it: digitization projects are being initiated across the board.
• The increase in online sales naturally has consequences: Manufacturers and wholesalers are reporting a cannibalization of analogue sales. In other words, sales that were normally generated via traditional analog channels (brick-and-mortar stores, field sales, back office) are now being generated online. And the channel shift is universal. Personal contact has clearly been relegated to second place in the entire customer journey, from information procurement to aftersales. And it’s quite substantial: many report over 30% of sales shifting to the online channel.

If we look further into the future, two questions arise: (1) What significance, what effects do new digital tools and trends such as chatbots and the metaverse have? Will this drive the train even faster and more purposefully towards the online world? (2) Where is the personal contact in all of this?

Let’s start with a look at the current hot topics of AI and metaverse. Sure, there is a lot of rumor and whispering. Great visions and promising prospects are being painted on the wall. Much is unclear and uncertain. But beyond the hype, there are certainly useful fields of application and use for the new technologies. And they already do.

• The metaverse is being proclaimed as the new evolutionary stage of the Internet. Everything is shifting to virtual worlds. That’s what they say. Large virtual galaxies, so-called M-worlds, are being created in which you can move around with your digital avatar. Seamlessly from one world to another. And at the same time, and this is the beauty of it, gigantic revenues are generated. Maybe. Probably not – at least not now. Nevertheless, trends and discussions surrounding the metaverse should be taken seriously and observed, especially for companies and brands. There are currently major online platforms with large reach and user numbers that are developing in the direction of the metaverse. Just think of prominent gaming platforms such as Fortnite or Roblox. The metaverse is alive and well here. And by many. At the same time, manufacturers, particularly in the fashion sector, are using metaverse platforms to showcase their brand, present goods and interact with their customers. There are certainly starting points here for B2B distribution and sales.
• AI and machine learning in general are currently in the spotlight. The intelligent chatbot ChatGPT has made a name for itself with unprecedented usage rates. There are also high hopes for this. And here, too, it is important to look beyond the hype. AI is already permeating our everyday lives, sometimes more, sometimes less, sometimes not even noticed by us customers. Just think of unlocking our smartphone or our newsfeed on social media. And AI enables marketing applications across the entire customer journey. From demand generation via AI-generated content to customer service via chatbots: AI simplifies the everyday life of marketers through automated processes in the familiar and “standard” marketing applications.

And where is the personal contact? If you visit the IAW trade fair from September 5 to 7, 2023, you haven’t done anything wrong, you haven’t missed the trend. On the contrary. Even and especially in the digital environment, there are strong reasons for personal contact.

• Yes, the traditional field sales tour may be on the decline. But the sales representative remains important as a point of contact for complex questions, ordering problems and service requests. Customers also tell us this in interviews.
• The Metaverse opens up options as a further touchpoint. But no one wants to spend their life with VR goggles in front of their nose, even if it is the design beauty of Apple.
• Customers’ relationship with AI and chatbots is characterized by ambivalence, fascination, but also unease, shuddering and keeping their distance. Most people still prefer a “real” person in a direct exchange.
• GenZ, which is suspected of only wanting to operate digitally, goes to stores to browse and find inspiration. Perhaps a little less than older customers, but they still store in stores. Our studies show that.

The list goes on and on. So enjoy and take advantage of face-to-face events such as the IAW trade fair. You’ve come to the right place!