The plan focuses on enhancing the wholesale channel strategy by defining key metrics like Sales Volume, Average Order Value, Customer Lifetime Value, Customer Acquisition Cost, and Channel Partner Satisfaction. Each metric provides insights into different aspects of wholesale operations, enabling the creation of targeted improvements. For instance, increasing Sales Volume might involve expanding product lines or offering competitive pricing, while boosting Average Order Value could be achieved through product bundling.
These metrics are crucial as they help in aligning business goals with customer expectations, promoting efficient resource allocation, and maximizing profitability. For example, a low Customer Acquisition Cost ensures more funds for customer retention strategies, while high Channel Partner Satisfaction ensures lasting partnerships. Understanding and optimizing these metrics can significantly impact overall business success.
Top 5 metrics for Wholesale Channel Strategy
1. Sales Volume
Represents the total quantity of products sold through the wholesale channel
What good looks like for this metric: Varies by industry; aim for consistent growth
How to improve this metric:- Expand product lines to meet diverse customer needs
- Enhance promotional activities to boost sales
- Strengthen relationships with existing partners
- Provide more flexible purchasing options
- Offer competitive pricing and discounts
2. Average Order Value
Measures the average dollar amount spent by customers per order
What good looks like for this metric: Varies by industry; typically between $500-$5,000
How to improve this metric:- Bundle products to increase order size
- Implement minimum order quantities
- Offer free shipping over a certain amount
- Develop loyalty programmes for frequent buyers
- Regularly review and adjust pricing strategies
3. Customer Lifetime Value
Estimates the total value a customer will contribute over their lifetime
What good looks like for this metric: Typically 3-5 times the acquisition cost
How to improve this metric:- Focus on high customer satisfaction
- Improve customer retention strategies
- Provide excellent after-sales support
- Cross-sell and upsell additional products
- Use personalised marketing campaigns
4. Customer Acquisition Cost
Calculates the cost to acquire a new customer
What good looks like for this metric: Should be a fraction of Customer Lifetime Value
How to improve this metric:- Optimise marketing spend
- Increase conversion rates on landing pages
- Enhance inbound marketing approaches
- Collaborate with relevant industry partners
- Leverage social media advertising
5. Channel Partner Satisfaction
Evaluates the satisfaction level of wholesale partners
What good looks like for this metric: Aim for 80% or higher satisfaction
How to improve this metric:- Solicit feedback regularly from partners
- Conduct training sessions to support partners
- Ensure efficient logistical support
- Foster open communication channels
- Address concerns promptly and effectively
How to track Wholesale Channel Strategy metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
