Sales Channel Management Overview
Sales Channel management is to maximize the performance of sales channels to achieve objectives around sales and distribution.
Sales Channel management is to maximize the performance of sales channels to achieve business objectives.
Key Sales Channel Management business questions:
- What should be my channel acquisition strategy to get the best quality at minimum cost?
- What kind of sales staff profile is suited for my products and customer segments?
- What kind of product should be sold by which channel?
- Which of my sales staff are expected to attrite?
- What is sales channel attrition cost?
Scope of Chapter on Managing Sales Channels
Sales Channels includes all possible methods, by which an organization reaches to its customers and prospects to sell their products. Following are some of the sales channels:
On the basis of business tie-up
- Direct Sales Channel: When company has its own employees doing its selling.
- Exclusive/tied individual agents : These are agents which are not on the payrolls of the company, and are selling exclusively for the company. They are individuals and not a corporate entity. Example is Life and General Insurance companies.
- Non-Exclusive individual sales agents: Selling agents, which are also selling other products from other companies.
- Exclusive Sales distributors/resellers/Corporate agents: These are business entities, which are selling exclusively for the company.
- Non-exclusive 3rd party distributors/Resellers/Corporate Agents/Brokers: These are business entities, which are selling products from multiple companies.
On the basis of method of reaching the customer
- Direct contact- Outlet
- Direct contact- Approaching customer
- Sale through the Web
We will be covering the following aspects/success drivers of Sales Channel Management:
- Sales Channel Acquisition
- Training and Development
- Effective sales channel Compensation
- Portfolio Assignment and management (Which channel to sell what products and what ticket sizes)
- Sales Channel Support.