.svg){kind=logo}
In addition to our syndicated benchmarking research, Advantage Custom Solutions (ACS) offers a tailored approach to business-to-business (B2B) research, diving deeper into specific areas that strengthen relationships. In 2024, ACS delivered 134 custom research projects across 31 markets, working with over 65 clients, including an equal number of retailers and suppliers, as well as some distributors.
Through our survey results and qualitative feedback, we identified five key takeaways to help businesses optimize their B2B partnerships, enhance business partner engagement, improve client interactions, and elevate customer journeys—all backed by data-driven insights.
1. Margin scores are important, but they are not a key driver of relationship quality.
Without sustainable profits, business partnerships cannot succeed. However, margin scores do not always reflect the quality of your business relationships. Our research shows that margin scores tend to correlate less strongly to business partner satisfaction compared to metrics such as trust, collaboration, communication, and strategic alignment.
2. Optimize your effort and reward ratio to invest smartly in business partnerships
Not all partnerships are created equal, and some require more effort than others. Businesses must assess whether the rewards of working with a challenging business partner justify the effort involved.
Some customers require significantly more effort due to their systems, cultural differences, or operational complexities. However, the potential rewards—such as market access and high growth—can make these challenging relationships worthwhile. For some, incremental volume may justify the effort, while others may struggle to see the trade-off.
Just because a company is difficult to work with doesn’t mean you should dismiss the partnership. Instead, it’s important to understand the effort-to-reward ratio and make decisions accordingly.
3. Segment your business partners to measure performance where it matters most.
Successful businesses don’t treat all their partners equally. Instead, they leverage segmentation to categorize partners based on performance, strategic value, and ease of collaboration, helping them identify the customers most critical to their success. Rather than focusing solely on the big picture, it’s important to break down the data. This approach helps you understand performance across different customer segments and pinpoint areas of excellence within specific groups. By doing so, you can determine which segments should be prioritized for growth.
Strategic, must-have customers are given top priority, with frequent meetings and dedicated account teams to foster strong relationships. In contrast, smaller artisanal customers, which help differentiate the portfolio, receive less frequent but equally effective engagement—tailored to meet their unique needs and expectations. This approach allows businesses to allocate efforts and investments more effectively.
4. Identify problems and fix them to drive advocacy
Asking the right questions is crucial for encouraging business partners to share the challenges they are facing. By understanding these concerns, businesses can resolve issues, improve operations, and even reach a point of advocacy where customers are more likely to recommend them to others. However, failing to address key issues risks eroding trust and losing the support of business partners.
Proactively addressing concerns strengthens relationships and creates an environment where partners feel valued and heard. Identifying and solving these problems ultimately benefits the overall relationship. Successful partnerships thrive on proactive issue resolution, while neglecting concerns can result in a loss of trust and advocacy.
5. Learn from best practices (yours and those of others)
Companies must continuously learn from both internal and external sources to elevate their performance. By looking within their own organizations, businesses can uncover valuable insights from different markets or areas of the business, such as pricing strategies, customer service approaches, or operational processes. Learning from the best practices implemented across different departments can help optimize your area of the business and overall operations.
Additionally, comparing performance with that of best-in-class organizations across industries and markets can yield valuable insights. Leveraging data, surveys, and interviews allows organizations to identify key strategies that drive success and apply them to their own operations. Even well-performing businesses can benefit from this approach, as it highlights strengths, uncovers growth opportunities, and helps maintain a competitive edge. By applying external insights to improve internal operations and identifying best practices from within the organization, companies can refine strategies, optimize performance, and stay ahead of the curve.
These five insights highlight the importance of strategic partnership management, proactive issue resolution, and continuous learning. By embracing these principles, businesses can strengthen their B2B relationships, foster sustainable growth, and build more collaborative ecosystems.
To discover how Advantage Custom Solutions can help you better collaborate with business partners on trends and industry challenges, get in touch with an Engagement Advisor.
