What is channel strategy?
Thursday, July 7, 2011 We define Channel Strategy as the term used to describe the method that controls the flow of goods and services from the manufacturer to the end-user. We believe there are three components to a successful channel. By understanding each of these components we can help you build a successful channel for your business.
IT Channels offers a focused management consultancy specialising in helping vendor technology companies with their channel strategy, from the design to the execution, with the aim of achieving revenue growth and increased corporate value.
IT Channels have worked with leading international companies in developing successful channel programs throughout EMEA and Asia Pacific. Combined, the founders have over 15 years of experience in working with companies that are channel focused including Conner, Seagate, IBM, Plasmon, QStar and Alliance Storage Technologies.
Channel Requirements
Your choice of sales channel will be influenced by what you want it to achieve. You might need a channel that showcases your products, or provides installation or customer support. If you want to build relationships with end-users, you'll need a sales channel that gives you control over these customers. By identifying the correct requirements for your business we can then create the right channel strategy for you.
Channel Strategies
The right strategy will fuel your business growth and so the degree of control you want to retain is very important. Regardless of whether you are working with sales agents, distributors or resellers, whether it is one-tier, two-tier or multi-tier you can still control your brand, pricing and even establish direct relationships with customer.
Channel Management
An effective channel strategy will enable you to use your sales channels to best advantage and maximise your return on investment and therefore profits. Focusing on a small number of sales channels lets you invest in each one and build strong relationships with key intermediaries whilst retaining the ability to identify conflicts and minimise them.
Whatever channels you use, you need to manage them properly. This means investing in systems and staff, as well as building good working relationships with the channel partners. Efficient logistics and communication are vital if you want to maximise your revenue.