Using RoCI Tracking to Streamline Channel Efforts

Any healthy Business can be defined as follows – you put in an investment and you generate value. While ‘value’ itself is a very abstract concept and we could dwell into how it can be measures, for now, let’s just stick to value in terms of Channel Marketing, and use that idea to understand what is a good Channel Strategy.

A good strategy is one which leads to incremental Return on Channel Investment (RoCI).

In most companies, RoCI is usually calculated in spreadsheets. It is the ratio of revenue generated through channel in a given period to the amount spent on that channel for the corresponding period, or some variation thereof. The traditional spreadsheet approach works well for a Business that has stabilized and is now looking to maintain that position. But, when it comes to Businesses which are targeting growth, this approach has many loopholes. First of all, the data isn’t always recent. How recent depends on the organization; some have it updated for the last quarter, some for the last month. Another issue is the granularity of the data – not all of the costs associated are accounted for.

So how do we handle these issues? Well, as the old saying goes - 'First Things First'. In our years of experience in running streamlined schemes for our clients, we have found that taking care of these 3 issues can give the most output -

ARMS Enterprise addresses both of these issues. Unlike traditional Spreadsheet reporting, ARMS Enterprise uses its central cloud database to calculate real-time values for RoCI. The values for Manpower costs are updated based on the employee allocation in the system. The input costs for Merchandise, Fixtures and POSM are obtained through the ARMS Enterprise ISD App and the Retailer App. The system automatically combines these values and gives the most recent values for you to base your decisions on.

This speed and flexibility is paramount for growth-oriented companies. Some of our clients have used this information to design schemes that give the most bang for the buck, quite literally. Other clients use this information to decide which stores to invest in further, and which ones to not. This ground level information lets organizations make effective decisions in terms of picking the right markets to target.

ARMS is an Enterprise Class solution which can handle all aspects of Channel Operations – manpower, merchandise, route planning, stock movements, schemes and ticket escalations. The real value which it generates comes from the integration of all these aspects of Business, helping you take your Channel Strategy to the next level. Get in touch with us today for a free guided Demo and see what ARMS can do for your organization.