Stats on How to Forge Better B2B Relationships

  • Risk aversion and resistance to changeForge Better B2B Relationships
  • When done correctly, the creation of a market collective…addresses a multitude of common problems that plague decision making within B2B companies, including:
    • An overly intense focus on internal considerations or end users
    • Reactive versus proactive strategic thinking
  • To increase the value of your brand, you must move the market’s (more precisely, collective decision makers’) perception of you towards Problem Solver and Trusted Advisor in order to secure consistently higher margins needed for profitable growth.
  • “participants should represent the top 20% of accounts that deliver 80% of your revenue” and “should only include about 10 to 25 executive customers from those accounts that are most strategically or financially important to your company, division, or geography.”
  • Number of those willing to recommend their B2B partners increased by 270%.
  • The B2B Executive Playbook by Sean Geehan
    • A B2C company (Starbucks): 80% of sales come from 15 million customers
    • A B2B company (Celestica, a Canadian supply chain services outsourcer): 90% of sales come from 10 customers
    • executive customer programs had the following effect on B2B businesses:
      • Customer retention increased by 30%.
      • Account growth increased by 300%.
  • Overall satisfaction increased by 30%.
  • A poor grasp of the marketplace and other externalities, including globalization, niche competition, and technological change
  • Internal conflict and lack of support within the leadership team
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Turn Your Industrial Distributors into Partners

  • Du Pont has established a distributor marketing steering committee, consisting of 35 divisional distributor marketing managers, to discuss common distribution problems, share market information on trends affecting the function, and ponder changing distributor requirements. Committee meetings often include presentations by market research analysts, consultants, and the distributor marketing managers of noncompeting companies.
  • Only 24% of all industrial marketers sell their products directly to end users exclusively; the remaining 76% use some type of intermediary, of which industrial distributors are the most prominent.
  • These situations show that for manufacturers to effectively plan and implement industrial distributor programs, they must
    • Gain a deep understanding of distributor requirements.
    • Build working partnerships with distributors.
    • Actively manage these partnerships.
  • Dayco Corporation, a manufacturer and distributor of engineered plastic and rubber products, uses its council to keep up with its industrial distributors’ changing needs. Selected to represent the entire network, about 10% of Dayco’s distributors comprise the council and serve on a rotating basis.

Study Finds B2B Growth Constrained by Sales and Marketing Partnership

  • More likely to own product development (70 percent vs. 31 percent)
  • Research statistics that define aspects of a true partnership vs. false partnerships include:
    • 40 percent more likely to be growing quickly compared to their false partnership peers
    • Far more likely to own customer experience (60 percent vs. 25 percent)
  • Much more likely to own customer research and insights (76 percent vs. 50 percent)
  • Much more likely to actively embrace sales support rather than downplaying those responsibilities (72 percent vs. 55 percent)

The Top 5 Reasons Why B2B Partnerships Fail

  • The third reason? Lack of effective joint management structures.
  • The second reason quoted – and one that will resonate with anyone who has had to manage a partner relationship on a day-to-day basis – was conficting sales incentives and behaviour.
  • Reason number one – mentioned by more than half of the respondents – was differing business priorities.
  • Next, one partner attempts to dominate the other.
  • Finally, inadequate senior management sponsorship.