ICT vendors are heavily dependent on the channel generating revenue and creating brand awareness for them. Many channel networks have been built up over time or been acquired through mergers and acquisitions.
This has resulted in some vendor’s having a mixed bag of partners who are no longer capable of generating revenue or have a different focus which is no longer in line with the vendor’s strategy.
As strategies change and new products come to market, it is important to review your channel and determine if you are working with the right partners.
Here are some key questions that you need to ask yourself:
– Is my channel providing the right geographic and skills coverage for me?
– How loyal and motivated is my channel?
– Am I getting visibility of all leads generated from my co-op funds?
– Am I receiving business that is generated from my co-op funded activities?
– Are we wasting valuable marketing time and budget trying to inject life into a non performing channel partner?
Once you have answered the above questions, you need to decide what actions need to take place to ensure you are getting maximum return from your channel. Here are some key guidelines which will help you get the most out of your channel.
Define your channel model
Before embarking on a channel programme, you need to define and review your channel model. A good channel model ensures that the channel dynamics and programmes are aligned with your key propositions, target markets, demand generation and business goals.
Consideration should be given to characteristics such as performance metrics, promotion strategies, and competitive positioning and differentiation. By using this model, you will be able to map out a channel suited to your business requirements and work with a partner that can generate demand and drive revenue for you.
Review your channel partners
You should review your channel partners on a regular basis to ensure that they are still right for your current goals and capable of generating revenue and demand for you. Using a review programme will enable you to objectively identify partners who are a good fit with your current focus, and help you identify those that are a poor fit. As a result, some partners may need to be dropped and replaced with more suitable ones whilst some might be identified as having good potential but require retraining.
Identify, recruit and onboard the right new partners
Channel partners prefer to do business with vendors who have strong brand presence, are easy to work with and whose products will generate revenue. Before selecting or recruiting the right partner you need to have a strategy with clear targets and objectives to help you identify partners that are willing and capable of generating revenue for you.
As with any marketing campaign, partner recruitment needs to communicate a clear and compelling partnership proposition to a well defined audience. A variety of tools and mechanisms can be used to support this, including high profile brand campaigns, events, seminars, and targeted research. Researching and profiling the partner community will provide valuable insight into existing channels, potential new channels and competitor channels.
Educate, Motivate and Reward your partners
Once you have established a set of strong channel partners, you need to invest time and effort in them. The most efficient way is to create and implement an integrated channel strategy consisting of regular communications, incentives and training programmes.
Effective channel strategies need to be supported by programmes and activities that can reach more customers, sell more products, deliver a high ROI and create brand awareness. Well planned integrated channel strategies and campaigns can increase revenue, mindshare, loyalty, and unify brand experience, communications, and engagement across multi tier, multi territory channel environments.
Rewarding loyalty, performance or excellence is a valued and powerful business tool for generating revenue and increasing ROI. Incentive programmes and reward schemes are an effective way to motivate, manage and create loyalty within your channel.
A successful channel strategy should results in programmes and campaigns that address each tier of your channel, to:
– Improve internal sales and marketing capability
– Innovate distribution strategies and dynamics
– Increase 2nd tier channel performance, motivation and efficiency
– Inform end user markets to generate demand.
