The pace of digitization within the B2B space is majorly underestimated.
A 2016 Intershop survey showed that 40% of respondents say digitization has changed the way they do business.
Beyond that, 94% of those respondents believe that they will need to integrate one system in their B2B tech stack by the end of 2019.
Business transactions have been transformed by modern consumerism and organizations are finding it challenging in their digital journey. The challenge lies partly in the fact that some organizations don’t know what they are trying to achieve, and others think it is not a major priority now.
For businesses that work with intermediaries, the digital technology challenge is real. Intermediaries help companies service end-customers more efficiently and effectively.
Some advantages include economies of scale in distribution and production as well as supply specialization. A perceived lack of knowledge and fear of change is often what holds businesses hostage from capitalizing on digitization.
This is where disintermediation comes in.
While research lacks alternatives for challenges with intermediaries, there are some approaches that companies can take when it comes to rebalancing relationships. Some of these include:
- Strategic partnering and developing collaborative relationships
- Communication and training to bridge gaps with customers
- Organic growth that is stemming from direct contact with customers
Paying attention to elements such as these can help companies and industries better understand their customers’ needs and develop products for unique customer environments.
B2B revenue also has shown to increase with these approaches in play.
For example, 60% of B2B companies from the Interscope report suggest that B2B buyers spend more overall when customers interact with multiple channels and B2B omnichannel customers are more likely to become long-term and repeat customers.
The bottom line is companies must make it easier for businesses to do transactions online. The adoption of technology is partly premised on the need to build deeper relationships with customers by attracting and maintaining communication and trust.
If you want to find out more about taking the next step to develop a digital strategy that responds to these types of challenges, click the link below for more information.