1. Understanding distribution methods
The choice of distribution model is a strategic decision that has a direct impact on the customer experience and business results. Each model has its own advantages and limitations, which need to be carefully assessed.
- Single-channel distribution is based on the use of a single point of contact, such as a physical store or e-commerce site. This model, ideal for high-end or personalized products, offers a simplified, consistent customer experience.
- Multi-channel distribution, on the other hand, involves diversified touchpoints, such as teams of field representatives, distributors, physical points of sale, a transactional platform and marketplaces. This type of distribution enables us to reach a wide range of customers, but requires rigorous coordination to avoid inconsistencies in the customer experience.
- Finally, cross-channel distribution integrates different channels to create a seamless experience where, for example, a customer can buy directly from you and talk to one of your local partners.
Before choosing a channel, it's essential to assess your strategic objectives, your management capacity, your customers' expectations and the particularities of your market. For example, construction products are often sold directly in Canada, but through distribution networks in the U.S. market. Catalog products, on the other hand, can be sold via a long channel (which includes wholesalers and retailers). The direct channel, managed without intermediaries, is suitable for companies wishing to maintain total control over the customer relationship, while the indirect channel enables them to rely on partners to reach a larger number of consumers.
2. Managing intermediaries: a step-by-step process
However, choosing a channel is only the first step. Researching and evaluating potential partners is just as crucial. A thorough analysis of their reputation, network and cultural compatibility can make the difference between a fruitful collaboration and a source of conflict.
Experience has led me to manage my search for a distributor in 5 stages:
Planning
This is where you think about and structure the management of your sales team according to your business objectives.
The search
This should be based on three criteria.
Your intermediary's product line should complement yours, not compete with it.
That his customers are synergistic with the profile of those you're looking for.
Finally, that their working methods, and even their values, are complementary to yours.
Recruitment
It's important to be rigorous when recruiting a distributor. He's the one who's going to take control of your sales in his market. Having a grid of criteria is one of the best ways of doing this.
The contract
The contract that will bind you should be complete: objectives, co-marketing, who does what, performance indicators, duration of the contract, termination clauses... We do this well with a salesperson we work with, so it's even more relevant with people over whom we have no control. The contract formalizes the relationship.
Optimizing communications.
This means recurring meetings (planned in advance and at regular intervals); clearly established performance indicators (which both parties can consult) that will serve as benchmarks; a working context that encourages discussion (concerns, issues, actions in progress...) so that we can always adapt to any fluctuations.
3. Building solid, optimal relationships
The role of “chanel manager” is indispensable. Once partners have been identified, effective relationship management becomes a priority. Providing appropriate tools, such as marketing materials, training or sales pitches, is a concrete way of optimizing their performance and ensuring that your products are promoted under optimum conditions. But beyond tools, and as mentioned above, regular communication is essential.
It's also crucial to avoid certain pitfalls. Poorly planned integration or a lack of clarity in partners' roles and responsibilities can lead to inefficiencies or tensions. Similarly, neglecting performance monitoring can lead to stagnation, or even a deterioration in results.
4. Meeting distribution challenges
There's more to managing your distribution network than static rules. With increasing digitization and the emergence of new business models, companies need to be more agile. Integrating modern technologies, such as collaborative platforms and data analysis tools, can help anticipate trends and optimize performance. Moreover, active listening to customer feedback and continuous adaptation of strategies are key differentiators in a competitive market.
A strategy that pays off
Investing in distribution network management is a lever for continuous improvement for any company wishing to optimize sales and strengthen its market presence. By combining rigorous planning, solid partnerships and appropriate strategies, organizations can not only avoid common mistakes, but also seize new opportunities for growth. The key lies in the ability to innovate, adapt and collaborate effectively with like-minded players. By strengthening these foundations, companies can create high-performance, sustainable distribution networks capable of meeting the challenges of today and tomorrow.
To find out more :
Sales: structuring and strengthening a distribution network
