The fundamental of selling through channels (agent, distributor or wholesale’s organizations) is to realize that the channel is not the customer. Equally it’s important for the sales channel to realize that they are a local partner to the manufacture and consequently need to add value to the sales process that both the manufacture and the end-user benefit from.
Historically there has been a strong belief within sales channels that they need to protect their market intelligence and minimize investments in the sales and support process to secure their business and achieve the highest return on investment.
This has led to a reactive approach (cherry picking mentality) with price as the primary means to compete while you need your sales channels to take a more proactive approach and invest in the relationship.
Instead the channel needs to invest in sales promotion that strengthens your brand identity, offers first class service & support and provides the visibility that is essential for you to understand future market demands and opportunities.
The paradox with the cherry picking mentality is that it’s the safest way for every stakeholder to lose revenue and achieve a low return on investment, short and long term.
Our Channel optimization model™ is based on rating the sales channel’s promotion activities and investments by a selection of 12 key metrics divided into business partner commitment, business indicators and quality growth capabilities.
From the result of the rating you can focus the dialogue with your business partners on how to develop a value-added basis for your business that take your end customers far beyond mere ‘satisfaction’ and create a sustainable revenue stream.
The result of the rating also gives a quick indication of the potential profitability of the cooperation. Our model is then complemented by an implementation of an effective forecast system and an agreed marketing plan.
The Channel optimization model™ is based on extensive studies of sales organizations in solution-oriented business to business sales in Europe, USA and Asia in a variety of industries.