Channel conflict has been spotlighted as an ongoing challenge for all channel players. However, new research from market research company The 2112 Group indicates that change on the horizon.
The Second Annual Channel Conflict Report is part of the 2112 Quarterly Channel Review series. The study was created to shed light on the sources of channel conflict, the quality of management tools such as deal registration and the overall impact of unresolved issues.
From a high level, The 2112 Group confirmed that tensions between direct and indirect sales teams are leveling out, which is improving channel-wide collaboration and revenue productivity. In fact, the study reported that there have been more cases of co-selling between vendors and resellers. Additionally, vendors are disseminating sales opportunities to channel partners more frequently, rather than relying on direct sales teams.
“The overall level of channel conflict remains moderate to high. However, value-added resellers and solution providers say they’re engaged in more collaborative, mutually beneficial sales activities with their vendors,” said Lawrence M. Walsh, President and CEO of The 2112 Group and Principal Analyst of the report. “This is a strong indication that vendors are working more closely with partners to uncover and close sales opportunities.”
Should channel conflict occur, IT solution providers can face a multitude of challenges. For example, issues with vendors can compromise relationships with current and prospective customers, which may prevent future revenue opportunities.
To maintain partner engagement and loyalty, vendors must address cases of conflict because two-thirds of all solution providers say they would turn to alternative vendors more frequently if situations of conflict were persistent and left unresolved.