Sales channels to reach your customers

Using different sales channels, such as selling directly, online, through agents or through distributors, can help your business grow. It can also create operational, pricing and customer service challenges.

Most channels, apart from face-to-face sales, can distance you from the customer. This makes clear communication and consistent service important. Make sure:

• the channel gets all the necessary information across - whether this is a sales agent or a direct mail letter
• end customers trust you to deliver quality products or services

For example, make sure sales agents, retailers and distributors sell your product accurately and protect your reputation. Ask customers for feedback and monitor quality issues.

Be particularly careful if more than one channel reaches the same customer. For example, suppose you sell books at your shop and also online. How will customers react if they find you charge different prices? How will agents or distributors react if you compete with them through other channels?

How to manage your sales channels

Manage each sales channel actively. Otherwise, the channel may underperform or create extra costs. For example, if you sell through retailers, support them with product information, training and promotional material. You should:

• regularly review how each channel is performing
• look at how you can support the channel - with advertising, service and so on
• compare the sales and profit the channel provides against your additional costs
• consider whether sales through that channel are new sales, or sales you would have made anyway