Addressing Channel Conflict while Going
Direct-to-Consumer

Manufacturers can gain important customer intel by
initiating a D2C business model. However, this can run the risk of causing tensions among resellers.

Reap the rewards of a D2C business model while maintaining good relationships with your dealer network, transforming potential conflict into partnership.

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Overview
Challenges
Business Outcomes
Spryker Capabilities
Customers

OVERVIEW

The D2C Experience

B2B buyers are more demanding than ever before, expecting a digital ‘Amazon-like’ experience during the procurement process. They also want the ability to order straight from the source - the manufacturer.

In return for selling D2C, manufacturers gain hugely valuable customer insights that were previously only available to resellers. B2B manufacturers, therefore, can better understand their own customer base by initiating a direct-to-consumer sales channel.

While the benefits of embracing a D2C model are clear, doing so without disturbing well-established business relationships with your dealer network is not so simple. With an established infrastructure and processes, your dealer network is a vital piece of the puzzle for your business success.

D2C Challenges for Manufacturers

Going D2C is an amazing opportunity for manufacturers, but can create tensions within their dealer network. If not handled correctly, the resellers manufacturers still rely on for services and increased reach may feel they are being cut out of deals.

Channel Conflict

Initiating D2C transactions creates perceived channel conflict and a sense of competition within your dealer network, who fear D2C is ‘cutting out the middle man’.

Manage Relationships

Good relationships with resellers will likely be based on many years of hard work. Going D2C must be done in a way which allows manufacturers to not jeopardize these.

Remaining Dependency

While going D2C will create anew sales channel, manufacturers still need to rely heavily on their dealer network to provide essential services and to increase reach.

The Business Outcomes of Addressing
Channel Conflict While Going D2C

If handled correctly, D2C models keep manufacturers and all-important resellers happy. Leverage a D2C business model that incorporates your network of dealers, allowing the continuation of current partnerships whilst benefiting from direct contact with end customers.

New Digital Sales Opportunities

Manufacturers can widen their access to customers while resellers can streamline their own processes and sales, benefiting overall from an extended reach.
Customer Stickiness through Improved Experience

Manufacturers can create and maintain a consistent branding experience across their entire catalog and all product information. In turn, customers can search and access a manufacturer's entire product range from one source.
Direct Communication & Insights From Customers

Manufacturers can gain insights through specific customer purchasing journeys as well as understanding the products most frequently purchased together. Improved customer relationships can also be established through exemplary customer service.
Improved Service of Complex B2B Needs

Improved understanding of customers paired with further insights about how products are used allows manufacturers to serve more complex B2B needs. Dealers can be used to provide further solutions.

The Spryker Solution

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