Research into the characteristics of customer service in the business-to-consumer market has intensified over the last decade. By contrast, there has been little research into customer service in the business-to-business market and there are few significant publications. This lack of reliable data was the starting point for Siemens plc to commission ICS to investigate this very important, challenging and dynamic area with the aim of sharing the conclusions widely and particularly with organisations operating in the business–to-business environment.
In the business-to-business environment the relationships that occur between suppliers and customers are varied, sometimes undemanding and sometimes extremely complex. Where businesses buy mundane everyday products, e.g. stationery, the relationship can be a straightforward one; the purchasing businesses are in fact behaving as consumers. This research, however, focuses not on those types of relationships but on complex ones where there is a need for a clear understanding of the contractual relationship between business customer and supplier.
It is critical that excellence in business-to-business customer service is an integral part of any organisation’s strategy. Success in a highly competitive environment is built on many foundations; organisations that ignore the importance of customer service do so at their peril.
The main aim of the research was to identify and evaluate best practice in managing business-to-business customer relationships. This was achieved by:
The research findings are based on extensive research in the business-to-business sector. In-depth, qualitative interviews with senior managers and executives were conducted using a series of open questions which were framed taking account of previous studies in this area and detailed pilot work. The research took place in a number of small, medium and large organisations from across the UK and from a cross-section of sectors. The organisations involved ranged from multi-nationals to small and medium enterprises (SMEs) employing between 25,000 and eight employees.
The main findings of the research are that:
As suppliers grow they can begin to compete directly with their customers in the same market. This can create obvious conflicts of interest. Customers are aware that there exists a tangible breakpoint where changing suppliers for material or financial gain is worth the trouble. Changes in customers’ strategic thinking and organisational structures can act as a catalyst for an almost immediate demand for changes in suppliers’ working practices. Suppliers may also have more expert knowledge and they can help customers in their procurement processes and in the pricing of their services.
Research team
Dr Paul Frost
Chris Dutton
Output
Excellence in managing the B2B customer relationship final report
Partners