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Channel Marketing Business Development Strategy Principles
In its most basic form we can think of channel marketing as a path or route that connects companies to its target market end user customer. Marketing Channels may readily be defined as coming in two main forms – one form is to actually deliver the products and services into the hand of the purchaser, now as we just referred to some basic understandings of this topic – this is where things can being to get really complicated; especially when we consider the business fundamental of distribution channel marketing. In short this is where a company or manufacturer delegates the responsibility for the delivery of goods over to third party companies; we mentioned that things can complicated and this is what we refer to.
In some cases the length of the distribution channel can be very long [when we refer to distribution channel lengths we speak of the number of intermediary companies that sit in between the manufacturer and the end user] so if say there are seven [7] layers to be passed through before the purchaser is able to consume the goods then this within itself will [by definition] present the parent company with certain challenges, not just in terms of maintaining product quality but also in relation to making sure that the message of the brand that relates to the products and services remain strong by the time it passes through to the end of the chain. Before we move on, it is worth considering the last point – as there are a classification of company that along with delegating the transportation to intermediaries, the actual marketing collateral will be given to the third party partners and it will be their responsibility to promote awareness down through the distribution chain.
So without going into any more details in terms of channel marketing development using distribution channel partners [this includes value added resellers, wholesalers, retailers & others] this is a factor that needs to be considered for all businesses especially the small business owner who may not have the strength of brand equity that will serve to counteract any dilution of the marketing messages that may occur whilst passing through the various links of the marketing chain.
So we have spoken about the physical act of placing goods and services into the hands of the customer – we have done this in terms of distribution marketing in order to illustrate the point however the principles should be taken through and applied to the reader’s business development situation. One worthwhile exercise is to consider how many links there are in the chain in terms of delivering your company’s services and goods to your chosen target market segment [and here again I am making the assumption that structured processes have been adhered to in order to assist the organisation in adequately defining the profile of their ideal client] and ponder how well the brand is represented whilst being funneled through the distribution chain.
If the customer is in another country and we are dealing with physical goods then this specific aspect of marketing strategy development needs to be carefully examined and appropriate systems and processes put in place in order to deal with any negative impact that may be encountered and experienced both by the end user and the parent company. So this aspect of channel marketing of actually putting the service into the hand of the customer can be considered in multiple forms such as in the case of a life coach that delivers one on one sessions – if the client is in the same town then of course face to face meetings may be entirely possible, if in another country they internet technologies may be considered or; the strategic decision may be made to only deal with clients within a specific geographical location. These are all top level business fundamental decisions that should be considered and made at the outset.
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Do you offer support?
Yes, as a member, you may use our administrative support desk for assistance. This enables us to communicate with you during business hours, regardless of your time zone. If your question cannot be resolved via the system, we will arrange for someone to contact you by telephone.
Will I receive a hard copy of the material?
Yes and no. Printed materials are expensive to produce. Our mission is to make this affordable for everyone. By making this available from your member’s area, we’re able to eliminate unnecessary publication expenses and pass those savings onto you. Further benefits include immediate access and updated material. But for those of you who insist on reading from paper, you may print the material using the “print” link at the top of each page.
I have a partner. Can I share my account?
You can, but it’s not recommended. Our system tracks the number of IP addresses used to access the account and may temporarily disable an account it feels is “abusing” the system.
Is your system compatible with Windows 95/98/ME/NT/2000/XP/Vista and MAC?
Yes, our system is a web-based membership site and cross-platform compatible.
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https://cms.lifeintelligencegroup.com/blog/why-customers-should-be-your-top-priority/
A recent study from CB Insights found that seventy percent of start-up tech companies fail. How did this happen?
Although there are so many reasons why these companies shutter, the analysts noted that 9 of the top 20 reasons for start-up failures were customer-related: not meeting customers’ demands or even ignoring them.
As defined by Business Dictionary, a customer is “a party that receives or consumes products and has the ability to choose between different products and suppliers”. Customers can jump from one brand to another or from one company to another. They have all this freedom in the world. But what can make them really stay with a company? It’s when they know that they are being heard, understood, and prioritised.
Loyal Customers Are Crucial
“Loyalty cannot be blueprinted. It cannot be produced on an assembly line. In fact, it cannot be manufactured at all, for its origin is the human heart-the centre of self-respect and human dignity. It is a force which leaps into being only when conditions are exactly right for it-and it is a force very sensitive to betrayal.” – Maurice Franks
Did you know that loyal customers are worth 10x as much as their first purchase?
Think of your customers like your best assets, your indestructible foundation. Without them, a company would be nothing! Loyal customers are crucial to the success of any business, big or small.
If you want your customers to repurchase again and again for over a long period of time, give them what they want and make them feel appreciated. And how do you do this? Make sure you care about them, you address their needs, and you deliver your promises.
According to Microsoft, 96% of consumers worldwide say customer service is an important factor in their choice of loyalty to a brand. Also, some research says that acquiring a new customer is 6 to 7 times more expensive than it is to keep an existing one. So if you want to obtain lifetime customers, do all your best to look after them and don’t get tired in satisfying their needs.
Poor Customer Service Can Negatively Impact the Business
“Merely satisfying customers will not be enough to earn their loyalty. Instead, they must experience exceptional service worthy of their repeat business and referral. Understand the factors that drive this customer revolution.” – Rick Tate
First impression lasts. This is absolutely true with customers who had previous good or bad experiences with a certain product or company. Customer service experiences have a long-lasting effect, and the more negative the experience is, the longer it will stay to a person’s memory and share the story with other people.
So, if you think poor customer service won’t greatly affect your business, think again! Here are some customer service statistics you can’t afford to ignore:
- Customers with past good experiences are 3.5x more likely to repurchase and 5x more likely to recommend the company to other people than if they have previous bad experiences. (Temkin, 2018)
- 95% of customers tell their friends or relatives about a past negative experience and 87% share positive experiences. (Zendesk, 2013)
- 89% of consumers switch to a competitor because of a poor customer service experience. (Harris Interactive)
- Globally, 59% of consumers have stopped doing business with a company following a poor customer service experience. (Microsoft, 2017)
With the information above, it’s easy to see why customer service experience can make or break your business. With an amazing experience, customers will stick with you no matter what. But with a poor one, you can lose them in a snap of a finger.
Difficult Customers Hones Customer Service Skills
In business, encountering a problematic customer can happen anytime. Every customer is different, and this is expected. Some are understanding while others are just, let’s face it, rude and very hard to please.
Whether the customer is angry or rude, the company should not ignore them. Solve the issue in a timely and appropriate manner to avoid damaging backlash. Know that unhappy customers can spread negative reviews in just one click of the mouse and damage the company’s reputation.
The good news is that company owners and leaders can take advantage of the situation and use it as an inspiration to improve their customer service department. As Bill Gates said, “Your most unhappy customers are your greatest source of learning.”
Customer Satisfaction is a Competitive Advantage
Recent surveys of top managers show that customer satisfaction is the number one priority, with 89% of company leaders seeing customer experience as a key competitive differentiator. Customer Expert Prof. Steven Van Belleghem noted that business leaders must view customer relationships as a fundamental factor in their company’s future success.
According to the management consulting firm CX Solutions, the formula for achieving customer satisfaction is:
Doing the job right the first time + Effective Customer Service = Satisfaction
Doing the job right the first time is only achievable when you know what your customers want in the first place. One of the best ways to accomplish this is by creating a detailed buyer persona. A persona is a fictional representation of your ideal target buyer, which includes thorough research, online surveys and customer interviews. This helps you analyse what your customers are looking for in your product/company and what areas need to be improved.
To learn more about creating your Buyer Persona, READ: Why Personas Are Important to Your Products
Effective Customer Service results from addressing customers’ needs and providing them with useful information or recommendations for new products and services. CX Solutions added that once this is achieved, it can have a huge impact on the customer’s overall service experience.
When these two factors are successfully combined and implemented, you can expect more new customers to come as old ones continue to stick around. Your support team is happy. Customers are happy. Everything is doing well.
Strengthening Customer Relationships is Key to a Successful Business
Customer-centric companies stand out in competitive industries. Do you know why? It’s because they go above and beyond to identify and fulfill the needs of their customers with the products and services they offer. They excel in providing great customer care and service. For these companies, customers are the heart and soul of their business. This isn’t part of a strategy, it’s a culture.
Your business can also do the same!
If you want to improve your customer care knowledge, we at Life Intelligence Group can help. We use advanced Agile techniques to help you identify the best strategies to achieve great customer experience and satisfaction. Visit our website: https://www.lifeintelligencegroup.com/ to learn more!
