Case study: Telecoms & ICT

Channel Marketing Strategy for an Internet Service Provider

The Problem: Complex distribution channel

Our client was a NASDAQ-listed Internet business, operating in a highly regulated industry. The majority of its revenue was from channel sales, but the distribution channel was complex with several thousand resellers arranged in multiple layers. Influencing channel behaviour was challenging.

For three consecutive years, Credo worked with the business to improve 'bang for buck' of channel marketing programmes and drive increased sales. Each year we demonstrated further innovation and improvement.

Our Approach: Intelligently segmented channel marketing

We began with a detailed assessment of the channel, using several surveying techniques to understand the behaviour of individual resellers.

We then segmented resellers depending on their business model and the importance of our client's product in their service stack. Some segments were offered "hard incentives" such as discounting, and others "soft incentives" such as sponsored marketing programmes. We also set performance metrics which differentiated between apparent growth from channel churn, and real growth from a bigger overall channel – aligning our client's investment with the impact on their top line.

The Result: Strong sales growth without extra investment

Increased channel participation and a more targeted marketing strategy helped to drive sales growth of more than 12% for two years running, with limited increase in budget.

The consultative approach we took also helped to improve relationships with the channel and increase awareness of our client's service offer.

Our client has seen an increase in share price of 40% over the past three years.

Contact

Tim Nixon
Tim leads Credo's IT Services practise, with a particular focus on HCM, BPO & offshore strategies and Web hosting & domains. Tim has extensive consulting & general management experience across the sector having lived and worked in the UK, Europe, India, South East Asia & the US.
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