Sales Channels

Sales Channels. Discover the ideal sales channel, direct or indirect, to reach more customers. Take advantage of every distribution channel, even with intermediaries.

Introduction

A sales channel is the system through which you interact, bring out needs and present solutions to your customers by leading them to buy your products or services.
A sales channel is different from a distribution channel that has the sole function of delivering your products to a customer, while the marketing channel is in charge of promoting these products.
The purpose is not to find new customers, but rather close contracts.
In fact, acquiring and cultivating customers is the prerogative of marketing while the sales function is focused on the economic result of a commercial negotiation.

List of Top Sales Channels

Below is a list of the most common sales channels:

Internal Sales Force

The use of your own sales force allows you to build a customer portfolio to which you can sell continuously.
In more complex organizations, there is a sales department with a well-defined hierarchy at the top of which there is a sales director who reports to a certain number of sales accounts operating in specialized divisions or in different territorial areas.

This sales channel is very common in the b2b (business-to-business) sector. In the b2b sector, the sales force plays a crucial role, as transactions are often of high value and require a relationship of trust between the seller and the customer. Sales accounts are not only responsible for selling the company's products or services, but they are also responsible for managing relationships with existing customers, negotiating contracts, and tailoring offers to specific customer needs.

In addition, the sales team can collaborate with other departments, such as marketing and customer support, to ensure an integrated and consistent approach to customer management. This synergy is essential to better understand the market, anticipate trends and respond promptly to customer needs.
Another important aspect is the continuous training of the sales force. Investing in training allows sales accounts to stay up-to-date on industry news, the most effective sales techniques, and marketing strategies. By doing so, they can improve their performance and contribute significantly to achieving business goals.

Finally, the adoption of technological tools, such as CRM (Customer Relationship Management) and data analysis software, can optimize sales activities, allowing sales accounts to monitor customer interactions, analyze performance and plan more targeted strategies. In a competitive context like the current one, the effectiveness of the sales force can make the difference in the success of a company.

External Sales Force

When you decide to outsource your sales force to a third party, it's called Sales Outsourcing.

Sales outsourcing can include using online sales channels to reach a wider audience. It is a service that is provided by an Outsource Service Provider and can be of two types: dedicated or shared, depending on the types of channels required.

The Dedicated outsourcing It consists of a team of very focused salespeople who operate exclusively for a particular company, using direct sales channels.

In Shared Outsourcing, Instead, the sales team works for multiple client companies, leveraging key sales channels to maximize opportunities.

There are advantages and disadvantages to both dedicated and shared outsourcing.
The benefits of dedicated outsourcing include greater customization of the service and a deep understanding of the product or service offered. Since the team is exclusively focused on a single company, it is able to develop more targeted sales strategies tailored to the specific needs of the customer. Additionally, team cohesion can lead to increased motivation and higher sales results, as members are invested in the success of the company they work for.

On the other hand, dedicated outsourcing can result in higher costs, as it requires you to allocate specific resources and build a dedicated team. Additionally, flexibility may be limited, as the team may not have the opportunity to work on other projects or clients, reducing the chances of learning and adapting to different market dynamics.
When it comes to shared outsourcing, the main benefits include reduced costs, as expenses are split among multiple clients. This model also allows for greater flexibility, as sellers can quickly adapt to the different needs and strategies of the companies they work for. Additionally, the shared sales team can benefit from a wide range of experience and knowledge, which can translate into more innovative and creative strategies.

However, shared outsourcing also has limitations. A lack of an exclusive focus on a single customer can lead to less personalization and superficial knowledge of the product or service. Additionally, there may be a risk of conflicts of interest, as sellers may need to balance the needs of multiple businesses at once, which could affect the quality of service offered.

In conclusion, the choice between dedicated and shared outsourcing depends on the specific needs of the company, its sales strategy, and the available budget. It's important to carefully weigh the pros and cons of each model to ensure that the approach you choose can maximize sales opportunities and contribute to the overall success of your business.

Retail

Retail sales means the sale of products to the final consumer through a store, showroom or an organized network of points of sale.
For local retailers, in-store sales have always been the most important element, but the way they are achieved is changing rapidly thanks to online commerce that allows consumers to buy at the times and places that are most convenient for them.

Compared to online commerce, physical stores can count on the value of the human resources that work there and that can offer customer service that is of real interest to the customer.

Sale with vending machines

It consists of using coin-operated dispensers, capable of dispensing the product directly to the final consumer.
Vending machines or "vending machines" have undoubted advantages over other sales channels, in fact they are Self-service automated shops which can be placed in city center stores, shopping centers or offices and work practically independently without the need for employees.
The only thing to worry about is to supply the distributors with the products that are gradually running out.

E-commerce

When the sale is carried out through digital channels carried out through a website, it is called online sales or e-commerce.
An e-commerce site can be b2c or b2b, in the first case the end customer is a private individual while in the second case it is a matter of selling products or services to other companies that could buy goods to resell them, so both the volumes and the prices applied are very different.
It is possible to activate an online sales channel through a website Proprietary e-commerce or thanks to a marketplace.

With a proprietary e-commerce site we are autonomous in adopting commercial and marketing strategies, but we must consider the expenses for the maintenance of the hardware and software infrastructure and the costs of specialized personnel on web marketing.
If we decide to sell online through a Marketplace like Ebay or Amazon, we do not have the same start-up and maintenance costs as proprietary e-commerce but we are obliged to pay a percentage for each sale made on the marketplace.

There are advantages and disadvantages for both a proprietary e-commerce and a marketplace.
E-commerce can be an effective sales channel for foreign countries as it is a virtual store that is always open that allows you to Sell your products 24 hours a day in various languages.

Dealers

If you have a proprietary brand or brand product, you can use retailers as a sales channel. Resellers purchase your products and services to resell them to their end customers.

If you use this sales channel, you should sell large volumes of goods by applying payment conditions and prices in line with the expectations of your dealers, who in this case become your customers. Additionally, it's crucial to establish a strong relationship with retailers, providing them with the resources they need to effectively promote your products. This can include product training, marketing materials, and support in sales management.

It's also important to monitor retailers' performance and gather feedback on your products. Not only will this help you improve your offering, but it will also allow you to tailor your sales strategy to the needs of the market.
Additionally, consider implementing an incentive system to motivate retailers to actively promote your products. You may offer discounts, rewards, or bonuses for achieving certain sales goals.
Don't forget to assess your distribution network and make sure your retailers have access to your products in a timely and efficient manner. Good logistics are crucial to ensure that retailers can meet customer demands without delays.

Finally, maintain open and transparent communication with your retailers. Hold regular meetings to discuss performance, challenges, and opportunities for growth. Not only does this strengthen the partnership, but it also helps you stay aligned with market dynamics and consumer needs.
In summary, working with retailers can be an effective way to expand your market presence, but it requires a constant commitment to relationship management and sales strategy.

System integrators

System integrators are companies that can add something to your products and services. These are still resellers but with higher skills as they are able to add value to the solutions you are a supplier of.

For example, a company that is able to customize software for end customers is configured as a system integrator. These system integrators do not just resell products, but offer a comprehensive service that includes consulting, implementation, and after-sales support. Thanks to their experience and expertise, they can analyze specific customer needs and design tailor-made solutions that optimize the use of existing technologies.

Additionally, system integrators often collaborate with different suppliers and manufacturers, allowing them to select the best components for each project. This ability to integrate different technologies and platforms makes integrators critical for companies looking to implement complex and interconnected systems.
Another important aspect of the role of system integrators is their ability to ensure interoperability between different systems and applications. In a context where companies use a variety of tools and technologies, it is essential that they can communicate and work together efficiently.

System integrators, thanks to their expertise, are able to solve any compatibility issues and create optimized workflows.
Finally, training and ongoing support are an integral part of the service offered by system integrators. They not only implement solutions, but also make sure that customers are able to make the best use of them by providing training and technical support when needed. This allows businesses to maximize their return on investment and remain competitive in the ever-changing marketplace.

Direct response marketing

This channel allows you to reach potential customers directly by phone, paper mail, door-to-door or recently with the evolution of digital tools also thanks to e-mail marketing (Marketing Automation) and instant messaging systems (chatbots). Additionally, the use of social media has revolutionized the way businesses can interact with their audience. Platforms like Facebook, Instagram, and LinkedIn offer unique opportunities to create targeted campaigns, engage users, and build lasting relationships. Through engaging content and engagement strategies, businesses can not only promote their products and services but also gather valuable feedback from customers.

Data analytics is another key aspect of modern marketing. With analytics tools, businesses can track the performance of their campaigns, better understand consumer preferences, and optimize their strategies in real-time. This data-driven approach allows you to make more informed decisions and maximize your return on investment.

Finally, we must not forget the importance of personalization. Today's customers expect tailored experiences and relevant communications. By using segmentation and targeting techniques, businesses can create personalized messages that address the specific needs of their customers, which can increase the likelihood of conversion and retention.
In summary, the integration of traditional and digital channels, combined with data analysis and personalization, is the key to effective marketing in today's landscape. Companies that can adapt to these new dynamics will certainly have a significant competitive advantage.

Import and export

These are distributors who operate in a foreign market and import products from local distributors specialized in foreign sales.
In this case, if you want to start a new overseas sales channel You need to develop partnerships and be able to provide the necessary assistance and guarantee to support customers outside the national borders, using online sales channels.

Agents

Commercial agents are Authorized intermediaries that operate on behalf of one or more companies in a given geographic area. Usually there is no fixed salary but a predetermined percentage gain on the turnover produced for the principal, i.e. commissions.

The sales agent represents a very advantageous sales channel because he has certain management costs and on average lower than an employee and in any case proportional to turnover.
In practice, a commercial agent assumes part of the business risk by tying its earnings to the results it is able to obtain.

In Italy, commercial agents are divided into single-firm and multi-firm agents:
Single-firm agents exclusively promote a company to a certain geographical area. Multi-firm agents can promote several companies at the same time.

The adoption of a single-firm agent is preferable for complex commercial negotiations, large territorial areas or even in the case of the launch of a new product or the development of a new market.
In markets that are fragmented or do not allow high profits, it is preferable to use the multi-firm agent.

Testing new sales channels to acquire customers

To increase your company's turnover, the first thing you need to do is figure out how to increase the sales channels you currently use.

If you use one or two sales channels, you are reducing your chances of earning money and if you think your industry is different, you should obviously explore the types of channels available. Some of your competitors are already taking advantage of this.
In fact, many physical stores have also started to sell their products on online sales channels, winning new customers.

If you have a counter sales store, don't underestimate the possibility of selling over the phone, perhaps even providing a home delivery service.
If most of your customers are located near your location, start developing commercial partnerships with an external sales force or agents and representatives operating in other territories to expand your customer base.

Similarly, if you sell in Italy successfully, you could develop a new sales channel abroad. There is no magic recipe, but what you can do is Start with this list of sales channels and try to test them one by one without any prejudice.

Managing sales channels with a CRM

If you want to win new customers, you will have to take into account the acquisition cost and the time it takes to turn a contact into a new customer.
Each of the sales channels listed can bring you new customers with different costs and times, but to evaluate the effectiveness of one sales channel compared to another, you will have to analyze the data through a management software specifically designed to monitor and manage sales processes: the CRM (Customer Relationship Management) is essential to effectively manage contacts through the main sales channels.

Thanks to the CRM you will be able to have an estimate of the number of deals made in a given period of time and understand how many have actually been closed. With a well-structured CRM, in addition to following sales processes, you will be able to verify your team's ability to transform the contacts acquired into new customers.

You can also segment your customers to identify active customers, or customers who buy more frequently and those who are dormant.
Test various sales channels and analyze data with a CRM to choose the most profitable one where to focus your resources.

To evaluate the sales channels that best suit your business, you can rely on FlashCRM the CRM software we use for companies that want to increase turnover by following the STRATEGIX METHOD .
It is a management software that helps you to be more organized, efficient and quick to increase turnover.

New Sales Channels and Artificial Intelligence

In recent years, the evolution of technology has fundamentally transformed the business landscape, leading to the emergence of new sales channels and the integration of artificial intelligence (AI) into various aspects of business operations. These changes have not only expanded market opportunities, but have also revolutionized the way businesses interact with their customers.

The Rise of E-commerce

E-commerce has experienced exponential growth, also driven by the COVID-19 pandemic, which has forced many companies to digitize quickly. Online platforms not only offer a wide range of products and services, but also allow for a personalization of the shopping experience. Through data analysis and recommendation algorithms, businesses can suggest specific items to consumers, thus increasing the likelihood of a sale.
In addition, the use of conversational chatbots , active 24/7 allows you to multiply sales and lead generation opportunities.

Social Commerce

In parallel, social commerce has gained traction, allowing companies to sell directly through social media. Platforms like Instagram and Facebook offer features that allow users to purchase products without ever leaving the app. This way of selling leverages the power of community and reviews, creating an environment where consumers feel more connected and confident in their purchases.

Artificial Intelligence at the Service of the Seller

Artificial intelligence plays a crucial role in optimizing sales processes. Businesses use chatbots to provide 24/7 support, answering frequently asked questions, and guiding customers through the buying process. In addition, AI can analyze user behavior to predict buying trends and optimize marketing strategies. On the other hand, the recent adoption of AI voice agents ย It has begun to revolutionize the way companies manage customer communications, for example for the qualification of leads through outbound calls that use artificial intelligence.

Predictive Analytics

Another innovative aspect is predictive analytics, which allows companies to anticipate customer needs, leveraging artificial intelligence for data analysis. Using machine learning models, companies can identify patterns in historical data and predict which products are likely to be successful in the future. This approach not only improves inventory management, but also allows offers to be tailored to consumer preferences.