Our research, The QBR Delusion, exposes the extensive (and worsening) challenges within buyer-supplier relationships. Many buyers are increasingly feeling that their suppliers are demonstrating a lack of care, professionalism and focus, alongside a regular failure to understand and respond to their needs.
At the very moment when organisations are looking to their partners for added value, innovation, and help in navigating an increasingly complex and dynamic business landscape, suppliers can appear not to be listening.
The research clearly shows that poor business reviews are a major driver for this breakdown in buyer-supplier relationships. While most suppliers recognise the importance of QBRs, they don’t understand the degree to which they are currently falling short of client expectations. Many suppliers simply aren’t reading the room – they think they are doing a good job with QBRs, when in actual fact their poor performance in review meetings is slowly but surely destroying their client relationships. They simply don’t understand the impact that substandard QBRs now have on buyer mindsets and behaviours.
Perhaps the most surprising takeaway from The QBR Delusion is the strength of feeling that now exists among almost all buyers. Whether they work in procurement, finance or operations, buyers are losing patience with suppliers that seem satisfied delivering the bare minimum.
The reality is that poor QBR processes are now costing businesses a huge amount of money, through customer churn and missed opportunities to grow revenue, as well as doing profound damage to their brand’s reputation in their industry.
Suppliers urgently need to raise their game. And the starting point for this has to be the QBR. They need to listen to client needs and take a more structured approach to review meetings. They need to provide evidence of the value they are delivering, and demonstrate innovation and strategic direction. And they need to provide buyers with a seamless QBR experience; before, during and after meetings.
Those that are successful will undoubtedly reap the benefits, forging enduring, close client relationships which drive revenue and deliver profit. And as this research shows, those organisations that can build a reputation for strong client relationships, built on a foundation of strong QBR processes, have a golden opportunity to retain accounts and grow them with new innovative service offerings.
James Ward, Managing Director, Clientshare
"By implementing a robust, consistent and strategic approach to QBRs, suppliers can reduce churn and margin erosion, improve NPS and drive revenue growth. QBRs can and should be a way to drive competitive advantage. But suppliers can only achieve this if they start recognising the QBR as the moment that matters most within their client engagements.
Ultimately, suppliers should be focusing their approach to QBRs around one single objective – to have better business conversations with their customers."
Final thoughts
QBRs are a critical moment that can make or break buyer-supplier relationships. Poorly executed, they drive churn and missed opportunities. But when approached strategically, by listening, demonstrating value, and driving innovation, suppliers can strengthen relationships, retain business, and unlock growth. Those who get QBRs right will stand out as trusted, value-driven partners.
