Who you sell to.
WHO BUYS FROM DISTRIBUTORS
Retail shops Supermarkets and chains Kiosks and small outlets Restaurants and hotels Institutions Sub-distributors
WHAT DIFFERENT TYPES REQUIRE
- Chains: negotiated terms, listing agreements, reliability
- Small outlets: frequent small orders, credit, personal relationship
- Institutions: documentation, tenders, credit terms
WHAT TO ESTABLISH
Which segments you serve, and how.
WHY
Serving all of them the same way serves none well.
WHAT TO RECORD PER CUSTOMER
Identity and location Who owns and who orders Credit terms and limit Order history Payment behaviour Visit frequency
WHY OWNERSHIP SPECIFICALLY
Small outlets change hands and the debt follows the business, not the new owner.
WHAT TO VERIFY
Any change in ownership, before continuing credit.
WHAT TO ANALYSE
Customers by value and by margin after cost to serve.
WHAT THAT TYPICALLY SHOWS
A small proportion producing most of the value.
WHAT TO DO
Protect those relationships deliberately.
WHAT TO DO ABOUT THE LONG TAIL
Establish minimum orders, or serve them differently.
WHAT DRIVES CUSTOMER LOYALTY
Availability Reliable delivery Fair credit Consistent pricing The relationship with the representative
WHY AVAILABILITY DOMINATES
A customer who cannot get stock from you buys from someone who has it, and frequently stays.
WHAT TO MEASURE
Customers active, gained and lost Order frequency Average order value
