B2B channel conflicts can disrupt communication and result in lost deals. Hence organizations need to have efficient work processes to minimize channel conflicts.
As customers are more digitally connected than before, there is an increase in the number of buyers that prefer to explore markets beyond the traditional channels.
A report shared by Forrester predicts that the market size of US B2B eCommerce will approximately reach USD 1.8 trillion and account for nearly 17% of all B2B sales in the US by 2023. Managing channel partners efficiently is essential for all businesses of all sizes. Conflicts between channels are bound to happen, which might have serious implications on business processes.
B2B enterprises need to ensure that they have efficient workflows implemented to minimize the channel conflict to streamline operations. Here are a few strategies to avoid B2B channel conflicts.
Efficient supply chain management
Organizations need to manage the supply chain and all the partners efficiently, to avoid channel conflicts. B2B businesses have to track and monitor the partners’ performance regularly to streamline the workflow. A few third-party management services assist organizations in reducing their work burden. There are tools available to monitor the entire supply chain -right from the inventory levels to customer satisfaction- to identify weaknesses in channel management.
Define a robust framework for targeting customers
CMOs should consider setting up a framework before targeting customers to ensure the target audience does not overlap with partner channels. This approach will ensure fair competition between the competitors to make revenue without having to think about targeting the same target audience. Organizations that aim to create a loyal customer base need to set up boundaries and structures while targeting the customer base.
Also Read: The State of B2B Marketing – The Need for a Leaner MarTech Stack
Have a transparent relationship with all the channel partners
Industry 4.0 has increased the competition in the market, and it has become challenging to manage horizontal channel conflict. Designing and implementing stringent and transparent contracting processes is essential to mitigate the channel conflicts risks.
Setting up clear expectations with the channel partners about all the restrictions such as geography and market segment will help to develop a reliable B2B channel partner relationship. Enterprises need to develop a reliable and scalable channel partner relationship that will assist in creating value-added relationships. If organizations aim to minimize channel conflicts, businesses need to track what deals and offers the competitor is providing to create unique selling points apart from them. This approach will not give enterprises a competitive advantage but also create make a fair marketplace with healthy competition.
Conduct regular channel audits
Increasing channel partnerships have a tremendous influence on business workflows. B2B businesses should consider developing a personal relationship with the channel partners to audit the supply chain performance and identify opportunities to have successful relationships. It is a perfect way to minimize partner conflicts and develop a reliable relationship. Moreover, it is crucial to continuously audit channel relationships and amend the contracts whenever necessary to avoid potential conflicts.
Have an exclusive channel partner
Organizations that have an exclusive partner minimize the possibilities of conflict. But this approach will restrict the potential target audience reach and minimize the conversion rate. B2B enterprises need to evaluate their long-term brand goals to prioritize the aspects and choose what is crucial to them. A small turnaround to enhance this approach is to offer exclusive products on every partner channel to add value proposition to each channel and minimize conflicts between them.
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