What are common mistakes when selecting a distribution channel for service delivery?

1 Mistake 1: Not aligning channel with customer needs

One of the most common mistakes is to select a distribution channel without considering the needs and preferences of your customers. For example, if your customers value convenience, speed, and personalization, you may want to offer online or mobile delivery options, rather than relying on physical locations or intermediaries. On the other hand, if your customers need more guidance, support, or trust, you may want to use direct or face-to-face channels, rather than self-service or automated ones. To avoid this mistake, you should conduct market research, segment your customers, and understand their expectations and behaviors.

2 Mistake 2: Not adapting channel to market changes

Another common mistake is to stick to a fixed distribution channel without adapting to the changes in the market environment. For example, if your competitors introduce new or better delivery options, you may lose your competitive edge or customer loyalty. Or, if your customers' preferences or behaviors change due to technological, social, or economic factors, you may miss out on new opportunities or face new challenges. To avoid this mistake, you should monitor the market trends, analyze the feedback, and evaluate the performance of your channel regularly.

3 Mistake 3: Not managing channel conflicts

A third common mistake is to ignore or mishandle the potential conflicts that may arise among your distribution channel partners. For example, if you use multiple or overlapping channels, such as direct and indirect, online and offline, or franchised and owned, you may face competition or cannibalization among your channel members. Or, if you have different or unclear roles, responsibilities, or incentives for your channel partners, you may face dissatisfaction or disengagement among them. To avoid this mistake, you should establish clear and consistent channel policies, communicate effectively, and foster collaboration and trust among your channel partners.

4 Mistake 4: Not leveraging channel capabilities

A fourth common mistake is to underutilize or overlook the capabilities and resources of your distribution channel partners. For example, if you have a strong brand image, reputation, or network, you may be able to negotiate better terms or access more customers with your channel partners. Or, if you have access to valuable data, insights, or feedback from your channel partners, you may be able to improve your service quality, innovation, or customization. To avoid this mistake, you should identify and leverage your channel strengths, opportunities, and synergies.

5 Mistake 5: Not optimizing channel costs

A fifth common mistake is to incur unnecessary or excessive costs in your distribution channel. For example, if you have too many or too few channel partners, you may face inefficiencies or shortages in your service delivery. Or, if you have complex or inconsistent channel processes, systems, or standards, you may face errors, delays, or rework in your service delivery. To avoid this mistake, you should optimize your channel design, structure, and operations, and balance your channel costs and benefits.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?