Channel Conflict
Channel conflict occurs when different sales or distribution channels compete with each other to claim revenue. This can arise between direct sales teams, resellers, distributors or revenue-driving channels.
Common causes of channel conflict can include pricing discrepancies, territory disputes or misaligned incentives. Channel conflict has many negative potential side effects: it can erode customer relationships, damage brand reputation and reduce profitability.
Effective channel management strategies are essential to mitigate these risks and foster collaboration among partners.
Channel conflict arose when the direct sales team began offering discounts that undercut the pricing structure of reseller partners, leading to decreased sales and dissatisfaction among our channel partners.
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