Competitive Approaches

Why Reshare: Key Differentiators from Alternative Solutions

There are four methodologies that can be used for Channel Management, the most robust and complete “closed-loop” solution being that offered by Reshare under our Patented Business Method. The other solutions are discussed below.

The Dead End Model - Do Nothing to Refer Customers
The “Dead End” Model will leave your customers with nowhere to go. Although most companies recognize the need for a methodology that offers customers sources for their products, there still remain those who have not executed such a strategy. We can cite several examples of companies with tremendous websites featuring all of their products with no store locator or online sales. It will not shock you to learn that this model is a lose-lose proposition for all. For customers, not being able to buy online is frustrating enough. But not even being able to find a distributor or retailer or get a phone number is quite another. Retailers lose the awareness that a Web site could provide and the business that results from it. The manufacturer or brand owner loses sales and something far more important - brand satisfaction.

The Fumble Model - Refer but Lose Customers
The “Fumble Model” exists when you send your customer to your channel partner in the hope that they will promote your brand with the same veracity as you. While retailers are only concerned about selling “a brand,” you should only be concerned about selling “your brand”. At Titleist Golf’s website, you can search for nearby retailers by city, state, zip or name. Titleist gives numerous options in an attempt to even the playing field for competitive retailers and give consumers more choice. Unfortunately, by using this model, you may lose your customer to another brand-perhaps an online brand that can meet the customer’s needs then and there. And no matter how you look at it, you lose control of the branded experience that you've worked so hard to achieve. Perhaps Titleist is a strong enough brand to prevent customer defections by a retailer recommendation, but even for Titleist there are no guarantees. Are there for you?

The Two Faced Model - Partially serve customers and damage your channel
In this “Two Faced” model, customers can purchase a limited selection of your products from your website. This is the case at upscale fashion accessory designer Kate Spade. The products may represent a segment of your entire line or be an entirely separate “online-only” offering. Regardless, customers expect that the manufacturer itself should offer its full suite of products. The customer is rarely satisfied by being forced to choose from a limited selection and will often leave your site without purchasing. The result is a negative brand experience. At the same time, your distribution channel sees your online store as direct competition. Even if you sell different products online, distributors and retailers are now put in the position to compete with you for a finite number of consumer dollars. Furthermore, channel partners see your initiative as a first step towards being totally circumvented by you, whether that is your intention or not. Channel relationships will worsen and focus on your brand in retail establishments will be diverted to other brands that appear more loyal to the distribution channel.

The Broken Boomerang Model - Share but Lose Customers
A “Broken Boomerang” best exemplifies this model. You throw your customer to your channel partner with the expectation that the sale will return to you through a customer purchase of your brand, only to discover that you have no idea what happened to it. In this model, the consumer goes to brandname.com, shops for a product, and clicks on “buy online”, taking them to icons of online retailers that are supposed to have the item in question IN STOCK. The customer chooses a retailer and is taken to the product page at the retailer’s website. Now at the retailer’s site, the consumer may be influenced by competing brands. We have seen countless examples where the desired product is not in stock, forcing the consumer to search for alternatives. The result is a complete loss of the brand experience the manufacturer has worked so hard to deliver, the potential for a lost sale, the ultimate loss of the relationships between the manufacturer and the consumer and all of the geo-demographic, psychological and purchasing data associated with the consumer.