He adds: "in many industries channels are measured by their sales levels and their receptiveness to taking dumped inventory at the end of the quarter. However, they should be measured on how profitable they are to sell through, and how much value they add for the customer".
Here companies should also formulate clear rules of engagement. These should include rules on when business will be taken direct. "Guess what? Companies who take all the biggest opportunities direct, always end up complaining about how hard it is to build a channel," he commented.
Companies should also be looking at how much direct actually costs, compared to channels. "Few companies do this. Usually you find that the costs of selling direct are far higher than are realised," he added.
Swarbrick reckons that companies are most unlikely to develop successful and sustainable marketing programmes through channels, unless they go through this process. The good news is that most companies do have most of the information they need to complete the exercise – it is just a question of finding out who has it! "In most companies you can do a reasonably effective, quick and dirty channel strategy plan".
The key is to document it. "By putting your plan, how you intend to execute it and with whom, on paper, you immediately move the conversation, internally and externally, to a new level".
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