Marketing Channel Strategy
CDW Uses the Equity Principle in Function Management and Incentive Creation
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| CDW Uses the Equity Principle in Function Management and Incentive Creation
In two notable ways, CDW acts in accordance with the equity principle. First, it compensates employee salespeople with a commission rate that is the same regardless of whether the sale is generated person-to-person or from online ordering (both of which CDW offers). As we discussed, every customer is assigned a CDW salesperson, in the hope that more promotional CHANNEL BASICS 53 (sales force) contacts generate greater customer lifetime value. But imagine that the customer interacts with the CDW salesperson periodically for major purchases, then buys replacement components (e.g., printer cartridges) online. Is it “fair” to award sales commissions to the salesperson for these online purchases? According to CDW, it is, because the online purchases resulted at least in part from the initial sales efforts by the salesperson to build the customer relationship. Without the salesperson, the end-user might have made these routine purchases elsewhere. Moreover, CDW recognizes that it is not just how costly the inputs are that matters; it is also how the customer wants to buy. If a customer prefers to make certain purchases online, such as when it seems easier than contacting a salesperson, CDW’s internal incentive system sup- ports the customer’s freedom of choice. Its equitable commission policy also avoids a pernicious sales incentive to “force” the customer to buy in person rather than online. Second, CDW offers a different fee schedule to the small solution providers with which it part- ners to serve some ultimate end-users, because it relies on them to perform on-site work, such as installation, software or hardware customization, post-sale customer service, and so forth. The equity principle suggests that these solution providers should be unwilling to undertake such costly activities unless they know they will be compensated. The fee structure offered by CDW gives them an adequate reward; by “paying them what they’re worth,” CDW embraces the very essence of the equity principle. A U D I T I N G C H A N N E L S U S I N G T H E E F F I C I E N C Y T E M P L A T E To audit a channel member’s capability to provide each channel function and add value, and at what cost, we can use an tải về 5.39 Mb. Chia sẻ với bạn bè của bạn:
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