Channel data is not new, but according to one expert the importance of proper channel data analysis and attribution will be key as merchants and brands head into 2017.
Digital channels continue to push retail revenue lines higher, but still many merchants don't have a solid grasp of how different channels impact their bottom line. That, according to one expert, is something that needs to change - and quickly - as we push toward 2017.
"Channel sales will be transformed in the coming year by the increasing volume and granularity of data that companies can expect from their partners at all levels. The increasing adoption of sophisticated channel data management (CDM) technology will expose businesses to more specific sales and inventory data from a wider swath of distributors and resellers, with more frequent updates that provide near real-time insight into the channel," said Chandran Sankaran, CEO, Zyme.
According to Sankaran, better understanding of channel data will begin to influence how retailers and other brands handle individual channels in 2017.
"New channel-specific roles focused on ensuring the flow of accurate and timely data from distributors, resellers, retailers and e-tailers, and distributing this data to a broad range of stakeholders across the organization will become commonplace for companies that sell more than $50 million worth of goods through the channel," said Sankaran.
And, he expects the focus on channel data management to become even more important as small moves begin to show their effectiveness in the digital space. Where will we see the most change?
"The areas most ripe for disruption in 2017 are incentive payments to channel partners, which will see tighter controls and new performance metrics, inventory management, which will reduce stock held in the channel by 10 to 20 percent by making rough forecasting buffers unnecessary, and channel marketing, which will be driven by more detailed and real-time analytics," said Sankaran.