How B2B Companies Can Minimize the Risk of Channel Conflict

Every business is unique however B2B businesses that produce products or services often experience conflict or issues with their channel partners that distribute, market, and sell their products.

To reach a wider audience and improve their customer experience, a B2B business’s main channel partners are often e-commerce, in-store partners, and online partners.

However, these channels can lead to conflict when they prove to be unreliable and/or lead to oversaturating the market.

Preventative Measures for Channel Conflict

So what can a B2B company do to minimize the risk of channel conflict?

1. Manage the supply chain and all partners efficiently

2. Conduct regular audits of channel partners

3. Clearly define boundaries and structures for targeting customers across different channels

4. Be transparent across all channel levels and educate all partners on the product and market strategies

5. Establish open communication with distributors, partners, and sales teams to understand their pain points and grievances which can provide insights into the potential for conflict and help prevent it

Minimize and Manage Channel Conflicts

Additionally, B2B companies can proactively minimize and manage channel conflicts by:

1. Aligning Business Models with Channel Partners: Ensuring that the business model is aligned with channel partners can help in preventing conflicts

2. Communicating Pricing Approaches: Transparently communicating pricing approaches to all channel partners can help in avoiding misunderstandings and conflicts

3. Offering Product Differentiation and Exclusivity: Providing product differentiation and exclusivity to channel partners can help prevent conflicts and foster a sense of collaboration

Talk to us for help with reducing the risk

One of the best ways of assessing potential snags is to brainstorm all the different reasons why there could be channel conflict for your B2B business.

The Brand Pilots can help you look objectively at each possibility and evaluate ways of reducing the risk so you can maintain harmonious relationships with your partners. Get in touch today.