Channel Management

Today i read a reallly good article on Channel Management. So i captured the juice here for myself..

1. Even with Internet - direct selling made easy, many companies still sell thru intermediaries such as distributors, resellers - commonly known as channels. In certain ways, channels provide an efficient route to market.

2. Channel often provide "total solutions" to the customers - thru both products and services.

3. Must look into channel synergy, channel loyalty and win-win proposition for both parties.

4. Usually channel salesman meet resellers, the focus tend to be sales target and latest products & features. These are important but it does not foster business synergy. Other factors such as strategic value to the channel will separate you from other competing products trying to sell to the channels.

5. It's not just about revenue/sales. That's a common mistake. Instead, focus on showing how to grow sales thru planning, co-marketing and various support such as marketing & advertising in their selling efforts. Help them win more new customers and get more sales from existing customers.

6. Help channels in their financial management such as cash flow, inventory mgmt,.. offering to help them in sustaining their revenue stream. Help them manage risk.

7. Focus on Return on Capital. ROC should exceed the cost of capital.

8. Hybrid approach has been adopted in many firms. They let resellers sell to most customers except their key & large customers. these need to make clear otherwise, resellers may be wasting resources chasing the same customers.

9. Know the channels' operational needs. And help them improve and be efficient. Help them lower cost. Leverage on IT & Internet.

10. Make it easy for your channels to do business with you. Leverage on IT & Internet. Focus on processes. Create web ordering, simple & easy warranty system, streamline after-sales support.

11. Know that channels is not there just to make revenue & profits. They are selling your products because it adds value to their business.