In this post, we want to reflect on one of the points that, if not planned and executed correctly, can determine the failure of our distribution channel development strategy. The value proposition for the distributor.
The success of the distribution channel development strategy is directly related to the value proposition.
The elements that make up the value proposition are nothing more than the reasons, motivations, and arguments for which a distributor should be interested in marketing our product or solution. The perspective we must take to build the value proposition is the distributor’s own vision, and we should ask ourselves the following questions:
- What benefit does my distributor get if they market my products or solutions?
- Is the benefit the distributor receives direct or complementary?
- Is my product key to the development of your business or does it complement your commercial offering?
- Does it provide the ability to attract new customers or can it only increase the engagement with your current customers?
The answers to these questions must be transformed into arguments that execute a proactive commercial development of our product or solution by the distributor.
The construction of the value proposition must consider two basic aspects:
The offering: What elements of compensation do I offer the distributor for the proactive commercial development of our distributor. This offering should not be based solely on a pure commercial margin but should consider all those marketing and sales elements that facilitate the proactive development of sales. If we base our “offering” solely on a commercial margin, we are leaving our business at the mercy of the distributor’s reactivity.
The other element that must be considered in the value proposition is the“commitment”
that the distributor must acquire. Yes, the distributors must commit to us to carry out activities aimed at the development of the common business.
The construction of the value proposition must be aligned with the profile of the distributors, that is, if we have different distributor profiles, we must have different value propositions, one for each distributor profile.
If you need to develop, review, or improve your value proposition for your distribution channel, contact us at optimum@optimumventas.com
| David Galve | General Director www.linkedin.com/in/davidgalve |  |
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