Align your channel model with market conditions
The process of selecting, managing and steering channel portfolios is becoming increasingly complex, with channel conflicts threatening existing business. Many companies find it difficult to choose the right sales channels and manage their variety. Customer needs are becoming ever more diverse and hybrid. So, how is the total customer experience best delivered and what isa solid approach for interacting with customers along with the infrastructure required to manage this? The era of mainstream channel mixes and one-size-fits-all approaches is over. Sticking to poorly performing traditional channels is a dead end. Companies that use innovative routes to sell to and serve the market are successful in responding to customer needs and outperform the competition.
By assessing the existing channel model and re-aligning it with market conditions, an organization can consistently meet its desired performance goals. Channel improvements can lead to fundamental changes in marketplace outlook and operating models by identifying the right route-to-market for relevant customer segments. A well defined and executed channel strategy can help delivering the right valueto the right customersat the right priceby aligning customers with channel specific value propositions. A systematic approach to implementing significant channel improvements helps an organization to better achieve the delicate balance between effectively meeting customer needs and achieving a high level of productivity from its sales resources. As channel costs represent a large portion of the expenses in the value chain and the price paid by end customers, effectively managing channel costs impacts business profitability and even business viability. Some companies have used channel strategy to literally change the ‘rules of the game’ to disrupt existing industries to their own advantage.
NOOTABEENE supports clients to seize the opportunity to improve their channel effectiveness and reduce channel complexity in order to enhance financial performance and to rise above the competition. Generally NOOTABEENE assists in the definition and execution of a rationalized, customer-centric channel strategy by: (1) evaluating channel productivity and profitability, (2) identifying differences in the value proposition portfolio, (3) providing customer segmentation based on a thorough understanding of how customers make a purchase decision, what they really value, and what they are willing to pay, (4) defining value propositions per segment and (5) aligning customer values and behaviour with delivery channels to improve channel productivity and profitability. The end game of the effort is an improved business strategy, a cost reduction, a more effective allocation of resources, and the execution of aggressive market growth plans.
Review your channel strategy and management processes on common pitfalls to decide if NOOTABEENE’s support is required to optimize channel effectiveness:
• Is known what customers really need, value and are willing to pay?
• Do customers seem to recognize the unique value of your offerings?
• Are competitors making innovative changes to their sales strategies?
• Are competitors seizing market share and channel partners?
• Do channel partners complain that insufficient business is driven in their direction?
• Show channel partners diminishing performance?
• Are the type and level of support each channel and customer segment should receive defined?
• Does your sales force over-deliver and underperform?
• Does your company’s sales channel strategy recognize differences in value propositions?
• Has your company the right sales channel portfolio?