Defining and Evaluating Services

Adding services may require incremental investments

Distributors must constantly define and evaluate the value their services deliver and effectively communicate that to suppliers and customers.  Some things to keep in mind are:

• Customer preferences - Customers my have certain expectations and preferences regarding how and where they receive services (for example, from the manufacturer, from the distributor, or via a third party).  Understanding the source and nature of these preferences can help distributors overcome resistance.
• Additional resources required - Adding services may require incremental investments in information technology (IT) and/or the addition of new personnel able to sell or deliver the services.  Integrating these individuals into existing compensation and management structures requires planning and communication to ensure expectations are aligned across the organization.

ACTION POINT: Evaluate the services offered in the light of customer preferences and the resources required to deliver them.