B2B channel conflict is experienced in nearly every organization and can lead to lost deals. This article explores the causes of channel conflict, such as inconsistent pricing, unclear or incompatible goals, lack of trust, and more, as well as solutions to prevent them from happening. Solutions include having an airtight contract, offering exclusivity to partners, managing the supply chain effectively, and more.
Channel partners or partnerships are collaborations between the companies that produce products or services and the companies that distribute, market, and sell them. B2B has three main channel types: communication channels to receive and deliver messages, distribution channels to market and sell, and service channels that carry out transactions. Advantages of using such channels include reaching a wider audience, while disadvantages include potential channel conflict and oversaturation.
Channel conflict can be managed by keeping partner numbers small, offering exclusivity to partners, establishing boundaries and structures for targeting customers, being transparent, educating all levels on your product, and regularly reviewing partner performance. By doing so, you can minimize conflict and maximize your business success.
... continue reading below