Digital Transformation: How to manage the new channel

June 13, 2019 - Tech Trends - Digital Marketing - Digital transformation

If your company is manufacturing products or designing services, and selling directly to end customers, you have much more control over the customer experience and sales process, vs. a situation where channel partners are acting as middlemen between the manufacturer and the end customer. 

In this article I will focus on companies operating via an indirect distribution model, in Europe.

In such a situation you may experience complex challenges due to a lack of channel control. 

The 4 critical success factors for manufacturers are to:

  1. 1. Capture & learn how to use end customer data
  2. 2. Shift investments to focus on online channel partners with the best e-commerce capabilities
  3. 3. Win sales & share on online marketplaces
  4. 4. Keep channel inventory under control

1. Capture & use customer data to develop your business

Customer data is the ‘’Gold’’ of the 21st century. Companies able to effectively capture, and use such data to send customers relevant, personalized offers (while complying with data security regulation of course), will win.

The 1st challenge is that, in most cases, customer data is actually owned by the channel, and it is so precious to them, they are more than likely not willing to share it with manufacturers.

There are 3 ways to address this: 

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