Making of a channel ecosystem - Value (Article 2)

An article by Ben Wong
https://www.linkedin.com/in/benjaminwongvt/

Value is a 2 way street! Many companies constantly question the value channel partners bring to their business without first asking the value they are providing to the partners.

Ask not what your partners can do for you, but what you can do together with your partners to grow!

Channel partners are in business for the money - we hear that all the time, but how are we as vendors or distributors any different? We too are widening our market reach to ultimately increase customer acquisition and revenue. Since we are singing the same song, why not figure the key in which to sing so that beautiful music can be made together? Let's take a look at some key elements necessary to create 2 way value.

Account penetration

Very often, as vendors, we have a set of large accounts where acquisition is mandated by senior management. It is also very often that the account managers do not have the relationships necessary with those accounts to sell into. This is where partnering will ease the burden of trying to open doors that are closed to us. You provide value by helping the partners better position themselves with their customers while you leverage them to acquire new customers. Win Win for both!

Leads management

As with every successful business, inbound sales leads have a propensity to grow to a point where it can no longer be managed internally due to resource constraints. This is where the partner comes in. Many of you will say that you have been there, done that and got the t-shirt to prove that results in many instances were dismal. Reason for this often lies in expectations on both ends. Work together to figure out a process that everyone agrees on, commits to and executes relentlessly. Consistently measuring and managing outcomes is key. Believe me when I say “Stamina and Gatorade are mandatory!” It will take a bit of time before the machine runs smoothly, but when it does, there will be lots of smiling faces.

Marketing

Many companies see marketing as a function of pushing out messages or organising events to acquire new customers. This is something all of us are too familiar with. What about doing the reverse where we invite the customers of our partners into events? Follow up will be easy as there already exists a relationship between these customers and our channel partners. I have successfully done this many times with great results. The key here is to brief your channel partners before the event because they will be barred from attending it. Why? Partners fear that their customers will be ‘taken’ by competitors. Remember that effective channel marketing drives sales whether you be farming or hunting. There is a lot to be said here which will be addressed in a subsequent article.

Enablement / Support

This is key if you expect your partners to be an extension of you. Sales, operations and technical enablement need be in place to skill partners in selling, delivering, supporting and managing your products. Without these skills, your partners will be seen as a liability to you. No fault on their part. I have encountered instances where enablement and support were not forthcoming. Trust me when I say that neither was success forthcoming. Invest in your partner so that they will invest in you. As your business grows, a pool of able bodied partners will be a boon to your business!

Partner portal

Every company that recognises the importance of partners will usually have a great partner portal in place. It is important for them to have a 'go to’ place where sales, technical and marketing resources are readily available for them to access. With readily available information, your partners will be able to sell for you at anytime and anywhere.

Greed

Walking together with the partner in a trusted relationship is the greatest of values! I have seen many instances where vendors got greedy by deciding to sell directly to the customer for one reason or another, cutting the partner out just to increase profit margins. This is bad, very bad. Always remember that like the weather, your business will have some bad days. Don’t sacrifice many glorious sunshines for a few storms!

Your partner is an extension of more than just your sales force as pictured above, just like the point of a sword is an extension of a fighter's fist. Use it well and the combination is deadly!

Start creating your value plan around the above. Figure out the gaps you might have and need to reconcile in order to create mutually beneficial value between you and your partners to conquer intended market!

We will next discuss markets and products in the context of your business within the channel ecosystem.