Effective channels can be a great source of growth, strategic advantage and a way to maintain competitiveness. By focusing on channels that create traffic for your business, while evaluating margins and the expense of efforts in managing them, you can ensure a maximum Return On Investment (ROI).
By segmenting your channels, you can effectively grow partners who facilitate demand activation and retail advocacy. Of course, we know it's not that easy. Keeping partners motivated to support your business is a major challenge, especially when markets are tough. Channel member profitability is a significant driver, but not the only factor that affects partner satisfaction and motivation. A good channel manager measures and monitors profitability and the channel members' ROI. You can also adopt a variety of financial and non-financial incentives and value-adds to motivate members. These can range from policies, market development support, end-user contact, direct mail, merchandise programs to event management.
According to research*, wholesale distribution businesses experienced growth by adopting the following methods. Some with impressive results.
- 69 % of distributors experienced growth through client referrals
- 42 % improved their business by communicating upcoming events to their clients
- 24 % experienced sales growth by obtaining referrals from other divisions or departments of the client company
- 15.4 % increased their business by highlighting new product ideas from suppliers
- 9 % experienced sales growth by presenting new ideas used by other clients
- 8 % increased sales and improved business growth by highlighting the way promotional products provide ROI