Focus: Managing Multiple Selling Channels

Expanding your selling channels is a way to ensure that you can communicate with and sell to as many customers and potential customers as possible. Some of the selling channels are: personal/direct sales (face-to-face or by telephone), manufacturer’s representatives, wholesale distributors, value-added resellers, retail locations and direct marketing.

1.     Segment your customer database and prospect universe by defined criteria, assign the customers to a selling channel and add codes to your customer database to indicate which channel they are assigned to. One way to segment is by customer size.  If you want to give personal service to your largest customers and targeted prospects, you may want to assign them to personal sales. 

2.     Geography is another common segmentation methodology. Let’s say that you are growing sales outside the U.S. and decide to work through wholesale distributors. A distributor will likely know the market better than your company. Industry is also used as different industries place orders in a different manner.  Institutions such as education, military, and government have very specific purchasing processes that must be followed and expertise must be developed.

3.     Develop a communication strategy for each selling channel. Determine the customers’ preferences on how they would like to communicate: in person, by appointment only, telephone, email, catalog, online. Coding these preferences in your database or contact management system is key.

4.     Develop clear compensation plans for each selling channel. A sales representative might have high compensation costs but should have a high ROI.  A wholesale distributor may have a 40-50% margin but the support may be minimal because they order products from your company and assume all marketing costs. It is critical that you do a return on investment analysis on each channel.

5.     Develop support systems within your organization for all selling channels including marketing, customer service, order processing, sales collateral, sales planning etc. It is critical that all selling channels receive company support to ensure success. Remember, all selling channels represent YOUR business.