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Tuning in to Your Sales Channels Can Help you Satisfy Customers Without Sacrificing Margins

Stop the static


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ElectricityAs the tactical delivery arm of any business, sales channels must be tuned in to market conditions, customer needs and company-specific objectives to be effective. But too often, static interferes. Weak signals between customer needs and the ability of the sales channels to meet them can create performance gaps that threaten a company’s financial performance. Why the threat to the bottom line? Because of the costs associated with delivering ”value” as well as poor sales performance caused by loss of customers, competitors seizing market share and unfavorable channel partners.

This paper explores ways to bring clarity to the customer-sales connection through a channel optimization approach, used to identify the most appropriate level of service for each customer and the most efficient delivery model for that service, which should result in the most profitable relationship possible. As a case in point, it looks at how a global manufacturer benefited from an innovative channel optimization approach that allowed it to achieve a 3 percent revenue increase the first year following implementation, far exceeding its initial financial goals.

Authors: 
John Hidalgo, manager, Deloitte Consulting LLP
Shaily Sanghvi, senior consultant, Deloitte Consulting LLP
Catherine O’Connor, senior consultant, Deloitte Consulting LLP

Related Content:
Overview:  Channel & Sales Force Effectiveness 

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