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THE TOP FIVE TRENDS DISRUPTINGB2B BUSINESSES IN 2022 3 /INTRODUCTION 4 /EXECUTIVE SUMMARY 5 /TREND 1: SUPPLY CHAIN ISSUES AND ECONOMICDISRUPTIONS PUT A FOCUS ON AGILITY 8 /TREND 2: COMPANIES LEVERAGE CUSTOMER DATAAND FEEDBACK TO SECURE CUSTOMER LOYALTY 11 /TREND 3: BUSINESSES MANAGE RISK BY FOCUSINGON CORE MARKETS 14 /TREND 4: WITH MERGERS AND ACQUISITIONS ONTHE RISE, BUSINESSES BALANCE GROWTH AND RISK 17 /TREND 5: COMPANIES EMBRACE OMNICHANNELSTRATEGIES THAT ALIGN WITH CUSTOMER NEEDS 20/CONCLUSION 21 /SOURCES INTRODUCTION The COVID-19 pandemic has changed the waybusinessesoperate.Every time businessesadjust to a “new normal,” they face challengesanduncertainties introduced by new virusstrainsand the resulting restrictions anddelays. In a climate that’s constantly changing— and that seems unlikely to stabilize soon —businesses that fail to adapt and respond risklosing customers and revenue. can be particularly challenging for companiesthatlack well-developed mechanisms forcapturingcustomer voice and expectations,whichare evolving more rapidly than ever.Moreover, they must constantly remain mindfulof how economic and social changes affecttheir clients’ business needs and, subsequently,the services in which they invest. Companiesthat fail to rapidly respond to this disruptionmight sacrifice growth and lose share to moreagile competitors. 90% The percent of businesses thatbelieve their business model needsto change to be viable through 2023 The percent of businesses thatbelieve that becoming more agileand flexible is a top business priority33% Instead of looking for short-term solutions orholding steady till the pandemic passes, smartbusinessesare viewing this moment as anopportunity to build agility and flexibility withintheir companies. They are developing quick-response strategies and operations to becomemore agile and mitigate risks brought on byexternal variables. In fact, now view agility andflexibility as a top-five business priority, a firstfor many companies. Businesses that hope to withstand and benefitfrom industry changes must first identify thetrends most likely to affect their organization.Trackingtrends and adjusting strategiesaccordingly allows businesses to get ahead ofchallenges that could be detrimental to theiroperations, costing time, money, and clients. The percent of companies that reporta negative impact on their businessbecause of supply chain issues75% Hanover’s“Top Five Trends Disrupting B2BBusinesses in 2022”report aims to help youprepare by providing data-driven insights andanalyses, along with actionable takeaways thatyou can apply to your own business strategies. Monitoring and adapting to external variablesare even more crucial for business-to-businesscompanies (B2B). Not only do they have to beconscious of the needs of their direct businessclients, but also their clients’ customers. This EXECUTIVE SUMMARY THE 2022 TRENDS IN B2B BUSINESSES Hanover is privileged to work with a wide array of businesses around the nation,representing a diverse range of industries and customers. Our work with themallows us unique and meaningful access to a variety of perspectives on theforemost B2B priorities and challenges, along with the consequent opportunityto develop data-driven insights and analysis. Supply chain issues and economic disruptionsput a focus on agility. Catalyzed by the pandemic, long-term economic disruptionsare forcing companies to embrace new agile approaches toensure quality customer experiences and drive loyalty. This year’s trends were developed by analyzing the most significant challengesour clients and prospects are facing and the approaches they are taking tostrengthen their companies, mitigate risk, and capitalize on new opportunities.Among what we’ve learned: Companies leverage customer data and feedbackto secure customer loyalty. As customer behavior and priorities shift, businesses mustupgrade their data-gathering and analysis capabilities toquickly collect and adapt to client preferences. Businesses that leverage data to build optimized products andexperiences for their customers are 60% more profitable thancompanies that don’t Businesses manage risk by focusing on coremarkets. With customers increasingly willing to switch brands becauseof product availability, businesses are focusing more oncustomer retention and their primary markets. Data-driven businesses are more than 20x more likely toacquire new customers and six times more likely to keep them With mergers and acquisitions on the rise,businesses balance growth and risk. 2021 mergers and acquisition (M&A) activity is up 32%compared to 2020 While organic growth investments are fraught with risk,M&A activity is thriving. Organizations looking to expand willneed to protect their core business from unexpected risks bycarefully investigating potential investments. 8 in 10 B2B leaders say that omnichannel sales strategiesare as or more effective than traditional methods Companies