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	Customer Loyalty Part 3 of 4
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	CHANNEL PARTNER FOCUS From the manufacturer's viewpoint, an alternative application of the knowledge management framework uses the channel partner like a dealer or a value-added reseller as the focal point. Again e-mail and customer profiles are basic building blocks for dealing with the prospect. In the area of customer focus, contact management is particularly key in ensuring the positive evolution of the customer relationship. Contact management provides a relatively uniform way of implement­ing a sales process and its associated process elements. From a report­ing standpoint, the use of EDI for supply chain management enables feedback about the order and shipment status. The flow of goods from the manufacturer to the reseller is an important point as they provide important metrics on the success of the sales effort through the channel partner. A particularly illustrative example is the case of Wal-Mart, which has been extensively reported. In this situation, the reporting of con­sumer purchases through Wal-Mart, called "consumer sell-to," is criti­cal to successful sales. When the sales are down according to the EDI reports, Wal-Mart can rapidly take remedial action to get the volume up. This might mean more intensive use of the relationship manage­ment activity such as contact management in order to stimulate more preference for the vendor's activity. At McKesson Corporation, a San Francisco-based pharmaceutical supplier, an extranet was established with key intermediaries such as drugstore chains and hospitals that supply medicine to patients [3]. This extranet (an Internet system that ties a manufacturer to another external company such as a channel partner or retail outlet) was the basis for billing and sales analysis. Thus a nervous system for the sup­ply chain activity was set up and found to be very useful. Another example is the use of Partnership Web by HP's channel management to communicate with its resellers. Here a product ency­clopedia is made available in a searchable way so that resellers can obtain the most accurate and up-to-date information. The reseller sales team can then position solutions more effectively. Partnership Web also provides mechanisms for customer feedback on product performance such as warranty failures and their frequency. The information gained on sales to end-users through the channel enables the senior manage­ment team to more effectively fix product problems and quickly de­ploy additional resources to respond to customer satisfaction issues. User feedback on this type of mechanism has been very positive. "DIRECT CONNECT" FOCUS Yet a third alternative is in the area of one-to-one marketing wherein the knowledge management system is deployed to be the main contact with the customer. Here the Internet itself is used directly by the cus­tomer to obtain product and program information. A search engine may be deployed to assist with setting up the right connections. The customer may be asked to do their own self-profil­ing. And the user will have both the freedom and the tools to track their own orders and shipments through the manufacturer. Since the empha­sis is on one-to-one marketing, communications through the Internet e-mail system will be preferred. Since the customer interacts directly with the system, branding and best-in-class capabilities help to reassure the customer. In this context, strategic alliances with other pre-sales partners may prove helpful. For instance, it may be that the best search engine is one that is obtainable from a channel partner. Post-sales support is also an­other area of interest. Queensboro Shirts has set up a Web site for potential customers both to learn about their shirt products and to place immediate orders [4]. The product information is directly combined with consumer in­terest and self-service type data such as shirt size and color preference so that a prospect can turn himself or herself directly into a customer by ordering. E-commerce can thus enable the initiation of the sales cycle and guide the customer right through to the close. American Airlines is another example in which a customer can do their own direct tracking of their interaction with the airline, including status reports on frequent flyer program participation. Because it is straightforward to use on the Web, American Airlines has been able to build up a very loyal following of its Web site. This following can be leveraged into additional customer feedback (via e-mail), marketing of additional products or programs (such as the sale of excess seats), and customer profiling [5]. A final key example shows HP directly touching the customer. Here HP utilizes a network-based relationship with large commercial busi­nesses through a mechanism called Electronic Solutions Now (ESN). With this network, the customer has direct access to information on HP products that is tailored to their organization's specific needs. This tai­loring could be in terms of pricing, configurations, or additional ser­vices. What is interesting is that the data is specific to that business cus­tomer, to the organizational level, and even to the individual's need to know. This tailoring capability is the essence of one-to-one marketing. As figure 2 shows in summary form, this knowledge-based frame­work can be applied in a variety of sales models. Each sales model builds on a different aspect of information technology. The traditional sales rep model relies on an intranet approach with data shared only within the organization. Significant use of channels typically will require signifi­cant use of extranets. Finally a network approach directly to end-user customers will make full use of the Internet/Web technologies. To Be Continued STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation "How to Survive in an Entirely New Economy."  All at no cost of course.  First Name: Your E-Mail:  Your personal information will never  be disclosed to any third party. privacy policy Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter: "Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."                Kerry B. Stephenson. President. 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