Monthly Archives: July 2026

When Sales Channel Transformation Drives Performance

Companies that can quickly adapt their sales systems to changing market conditions are more likely to improve their financial performance—but only when their sales channels are structured and managed effectively. That is the conclusion of a study involving 356 predominantly European companies conducted by researchers from the University of Cologne, HEC Paris, the University of Mannheim and the University of Manchester. Led by Dr Boas Bamberger, the research, published in the International Journal of Research in Marketing, found that sales system agility alone does not guarantee stronger profits. Instead, its success depends on how well companies organise and coordinate their sales channels.

Rapid changes driven by the COVID-19 pandemic, geopolitical trade tensions and AI-powered digitalisation have forced businesses to rethink how they reach customers. A Duke University survey found that 61 per cent of companies introduced new sales channels between 2020 and 2023. Yet becoming more agile remains difficult. A 2024 Quantive survey reported that about 90 per cent of companies struggle with organisational agility. The challenge stems from the fact that many sales systems depend on external partners whose priorities may not always align with those of the company. Changes to sales structures can create mistrust, resistance, reduced information sharing or even competition between partners, generating costly friction that can offset the benefits of greater flexibility.

To examine when agility actually improves business performance, the researchers surveyed senior sales managers, primarily from business-to-business companies, and compared their responses with objective financial data. They developed a seven-point scale to measure sales system agility based on three capabilities: detecting market changes quickly, making timely decisions and continuously refining sales structures. Their analysis showed that agility by itself had no statistically significant relationship with operating profit. Instead, profitability increased only when sales channel design and management minimised the costs associated with organisational change.

The financial impact can be substantial. Among companies with an average annual turnover of approximately €460 million, a one-point increase in sales system agility was associated with operating profit gains of as much as €52 million. Around €37 million of that improvement was linked to having an effective sales channel structure, while roughly €15 million resulted from strong channel management. These findings suggest that companies should view agility not as a standalone capability but as one that depends on complementary organisational practices.

The study found that the right mix of direct and indirect sales channels plays an important role. Company-owned channels reduce transaction costs, provide direct market feedback and allow businesses to adjust quickly, particularly for customer engagement before a purchase and support afterwards. Indirect channels, such as independent sales partners, remain valuable for completing sales because commission-based incentives encourage partners to promote the company’s products. However, overlapping channels targeting the same customers should be avoided, as internal competition between partners increases conflict and makes rapid adaptation more difficult.

Effective channel management is equally important. Companies benefit from retaining central authority over key decisions such as pricing, product ranges and sales territories while continuously coordinating activities across their partner network. This combination of centralised control and ongoing orchestration helps maintain stability even as sales systems evolve. “Agility does not happen automatically,” said Dr Boas Bamberger. “The rapid adaptation of the sales system only pays off if the channel structure and management are aligned with it.” Professor Dr Arnd Vomberg of HEC Paris added that companies should carefully review their sales channel mix, clarify responsibilities across company-owned and partner channels, and eliminate unnecessary overlap before pursuing greater agility.

More information: Boas Bamberger et al, When does sales system agility lead to organizational performance? International Journal of Research in Marketing. DOI: 10.1016/j.ijresmar.2026.05.002

Journal information: International Journal of Research in Marketing Provided by University of Cologne