Any business can quickly change its advertising strategy, its prices, and even revamp its entire product line. Of all marketing decisions, the distribution channels are generally the hardest to change once they’ve been set up.
Because of that, one of the first things you should do is research what your target customer groups expect from the buying process and then use their preference to craft the distribution system best suited to your business. By doing so, you will make sure that your customers (or at least a large percentage of them) are satisfied with your service and don’t consider it a hindrance.
Of course, there’s no such thing as a homogenous market – not all of your customers will perceive your company the same way. However, the goal of a customer-driven distribution system is to put the needs of your clients first so that they won’t feel like the way your products reach them is hindering the experience in a significant way.
In this article, we will take a look at some of the benefits you get from having a customer-driven distribution system and why you need to consider implementing one in your own company.
Choosing the Right Distribution Channel
You probably already know this, but choosing the right distribution channel for your kind of product is vital. Along with that, the channel you use should be aligned with your company’s overall mission and strategic vision, which includes all of its sales goals.
Your distribution system should also add value to your consumer. That means you have to consider the approach that might be most suitable for your target audience. Would they prefer to talk to a sales rep? Would they like to handle the product before making the purchase? Are they comfortable shopping online? Finding the answers to these questions is highly valuable, as it will help you determine what your potential clients value.
The other thing you need to consider is how fast you want your delivery times to be. Some products are best delivered through a direct distribution channel, while for others, an indirect system might be more beneficial. Additionally, you can opt for having multiple distribution channels, such as selling products online and through a retailer. However, in this scenario, it’s important to find a balance so that one channel doesn’t overpower another.
A mistake most businesses make when choosing a distribution system is opting for the one that’s the easiest to use or the most cost-effective for the company. While this approach might be useful in some cases, it only causes issues and can damage the reputation of your business and diminish the trust people have in it. Instead of focusing on saving time and money, you need to put your effort into coming up with a distribution system that fits the product you sell and considers your customers’ needs. By doing so, you will gain critical advantages over your competitors, which will help your business thrive.
Benefits of Having a Customer-Driven Approach
When it comes to your business, having a customer-driven approach to anything will always be beneficial, as it means that you’re making your company more attractive to the people who have to buy from it. However, when we talk about choosing a distribution system, the benefits are pretty straightforward.
You Make Shopping Easy
When you tailor your distribution system to your customers’ needs, you make shopping from your company more efficient. Essentially, you’re simplifying the process for the customers while giving them an incentive to choose your product over what your competitors are offering. If they already liked your brand and were considering purchasing an item, the decision will be clear when they see that they can get the product delivered in the best way possible for them.
You Are Building Trust in Your Brand
Promising a distribution system and then delivering on what you promised will only make your company look more reputable in front of your customers. On the other hand, if you promise something you can’t achieve, then this will diminish your business’s image in front of the clients. That’s why your customers’ needs and your ability to deliver on your distribution system should go hand in hand.
You Are Differentiating Your Company From Its Competitors
Offering a custom system will make your company stand out from the rest of the market. When it’s suited to your target audience, it will make shopping from your store the best option that they have.
You can change a ton of aspects of your company: the prices of the products, your lineup, your marketing efforts, and even your sales promotions. However, shifting to a different distribution system is a long and challenging process. That means that when you first have to choose one, you need to do it in a smart way – by considering the needs and wants of your target customer audience and going for a distribution system that fits them.