B2B concepts

Topics: Cost, Sales, Customer Pages: 3 (498 words) Published: October 17, 2014
CH: CRM in B2B
3 kinds of relationships:
Transactional (timely exchange of products and services)
Value-added (falls between transactional and collaborative)
Collaborative (alternatives are less, complex purchases and high prices) Transactional:
Timely exchange of g/s in a highly competitive market in terms of prices. Autonomous, no/little concerns towards the need of customers or sellers. The relationship ends once the purchase is done
Types of products- packaging, cleaning products or commodity products where bidding is involved Collaborative:
Occurs when few alternatives are present and involves complex purchases. Prices too are high. Switching costs are very high and extremely important to collaborative customers. This is because the organizational customers invest in their relationships in the following areas: Money

People
Training costs
Equipment
Procedures & Processes
The needs of both the customer as well as the seller is taken care of. Trust and commitment are the key factors in such a relationship and they exists when one party has complete confidence in the other partner’s integrity and ability. Eg: IBM/GE/Intel/ DuPont- Sucralose, etc.

In case of high tech IT products, collaborative relationship can be very beneficial. It focuses on joint problem solving and resource sharing.
Value drivers in Collaborative exchange:
Value creation through core offerings- direct cost, delivery performance Value creation within sourcing process- acquisition cost
Value creation at the customer level of operations- ops
In order to achieve the key supplier status in collaborative exchange, one must- Target the right customer
Match with their purchase requirements
Develop strategies to build trust and commitment in order to reduce the perceived risk in the minds of the buyers. Value-added
In-between transactional and collaborative.
They are those businesses which apart from just attracting customers also try and retain customers by:...
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