Most hi-tech enterprises, including the large players, use channel partners to increase their reach and capture a larger share of the market. They know that indirect sales get access to new business opportunities faster and with lower risk. Channel partners help hi-tech enterprises to market and sell their solutions across the globe, opening new markets and creating opportunities that the internal sales team may not have access to. That’s why it is important to treat channel partners differently and not as an extension of your sales team. Their priorities lie first with the customer and then with you, and they try to integrate multiple solutions from different vendors and not necessarily sell your pure solution as it is.
Channel partners need to be engaged in new and meaningful ways to avoid channel conflicts and communication gaps, build loyalty and set clear delivery expectations. From “how much did you sell” the conversation needs to begin with “how can we help you sell better”. Today, almost 90% of hi-tech sales in business technology1 are generated through a channel partner, dealer or value-added reseller. A higher dependency on channel partners warrants the need for partner engagement programs to be established formally.
Here are five key suggestions for channel partner engagement that could help build a more mutually beneficial relationship:
1. Explain Your Business Strategy
Keeping partners happy is no longer just about investing more money in support services.
The end-customer is asking channel partners for more, who are therefore demanding more attention from hi-tech firms. Providing a clear view of the corporate and business strategies helps build commitment among your channel partners. It also gives them a clear understanding of their role and aligns their sales effort with your corporate objectives. Do note that a partner relationship is primarily quid pro quo. So, while you’re pushing your business objectives with the partner, you also need to be mindful of their requirements, such as revenue targets, business goals, complementary offerings, etc., as well as their technical expertise.
2. Compensate Them Well
Channel partners are not additional salespeople. They are more like an extension of your enterprise itself and need to be managed and motivated differently. While generous incentives encourage better performance, hi-tech enterprises must realize that the basic carrot and stick system won’t work. Partner compensation schemes need also to take in the intrinsic motivational factors of channel partners, and lure them with pricing, margin, sharing qualified leads and training incentives, and not just a sales percentage-based payout. Some other options for exciting incentives are a marketing development fund (MDF) for driving partner marketing activities and sales performance incentive funds (SPIF) where rewards and incentives are given to the sales rep with the maximum sales.
3. Empower with Information
Channel partners love selling new products and solutions but do not have the time required to learn every detail about a new offering. A channel program is usually designed to generate incremental sales and partners are seen simply as a source of new clients. What hi-tech enterprises need to remember is that enterprise customers typically do thorough research and due diligence online before reaching out to vendors and don’t want generic marketing or sales jargon. They want a targeted approach that addresses their particular problems.
Spend time planning and providing adequate information and training to your partners in easy-to-consume packets such as sales collateral, elevator pitches, pricing guides, short videos and other forms of documentation. This will also help them align their sales strategy with changing buyer needs and center their performance around your corporate objectives.
Remember, the easier you make it to sell your products, the more your channel partners will sell. Make information readily available instead of making them wait for emails and updates.
4. Enable with Technology
Give your channel partners high-end technological tools that will boost effectiveness and increase sales, such as the best CRM platform available out there today. Remember that if your channel partners find it hard to sell your offerings, they will switch to selling competitor solutions that provide them with ease of doing business. The key objective of sales enablement tools such as Seismic, Highspot, Brainshark, Clearside, Mediafly and others being offered to partners is to take administrative tasks off their plate so they can focus on what they do best: closing deals.
5. Organize Channel Partner Meet and Greets
Complement your channel partner program with in-person partner conferences, trainings, roadshows and workshops. Such face-to-face meetings are a certain way to engage your partners and build a long-term relationship. It allows you to learn about individual pain points and requirements and address them later. However, keep a mixed bag of multiple events spread throughout the year instead of one huge partner event that can be impersonal and intimidating. You can also co-host events with your channel partner and invite customers and prospects to a seminar, roadshow or conference.
Successful hi-tech enterprises are those that have realized the critical role channel partners play in revenue growth and have invested time and money in building and engaging their partner base. Channel partner relationships are fostered over time and require you to consider them as a business entity. Talk to your channel partners to validate your sales and go-to-market strategy. There’s no better source of information than your channel partners if you want a true evaluation of your positioning, pricing and promotion efforts. They can help you better track the industry, your competitors and changing customer needs.
References:
http://the2112group.com/product/2112-channel-chief-outlook-2018/
