Breaking News

B2B Companies Spending More ... But in Vain?

June 12, 2014

New study shows majority wasting up to half of investments.

An overwhelming majority of business-to-business (B2B) organizations are spending more on initiatives to improve their customers’ experience but many are not getting the most return on those investments, according to new research from Accenture. In fact, the study, based on a survey of 1,458 sales, service and customer executives of B2B companies in 13 countries, suggests most (76 percent) may be wasting up to half of their investment on ineffective customer experience initiatives.
 
Accenture’s research indicates that executives believe their business customers increasingly are exhibiting consumer-like behavior in terms of how they view, interact with and buy from their suppliers; including their knowledge of the market, higher expectations and greater price sensitivity. As a result, 43 percent of B2B supplier executives say they intend to increase spending on improving customer experience programs by 6 percent or more over the next fiscal year. However, more than half the respondents admit that their customer experience programs had achieved little, flat or negative return in terms of retaining customers (55 percent) and building global revenues (52 percent).
 
“The relationship between company and supplier has changed,” said Robert Wollan, global managing director of Accenture’s Sales and Customer Services practice. “Business customers are acting more like consumers. They know more about the services on offer, expect more customized solutions, and are more price sensitive. “Companies say they recognize this but the majority are not designing and executing the necessary changes effectively. This creates a drain on profitability and missed opportunities. Getting B2B customer experience right increasingly determines market success, but too many companies are ‘playing not to lose’ rather than ‘playing to win.’”
blog comments powered by Disqus
  • Start Stuffing The Ballot Box (Again)!

    Start Stuffing The Ballot Box (Again)!

    June 28, 2016
    Vote on the finalists in Happi's reader's choice Anti-Aging Product of the Year contest!

  • What

    What's Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 27, 2016
    Euromonitor weighs in on how Brexit could impact consumer product companies.

  • The Future of Innovation

    The Future of Innovation

    Nancy Jeffries, Contributing Editor||June 27, 2016
    Fashion Institute of Technology graduate students tackle a far-reaching topic for their Capstone project.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.