Advice For Verizon: Using Sugar Attracts A Good Channel, While Salt Destroys It
CRN's Dan Neel has been following this story, and a number of Verizon partners are telling him they are bracing for not just the exclusivity demand but also for reduced commissions and higher sales quotas under the proposed new contract. Does that sound like the kind of partner program you want to join?
Adding insult to injury, Verizon master agents tell CRN that the telecommunications company also plans to require them to hand over customers that bill-out at more than $20,000 per month. That's right, customers they have found, sold and nurtured will be handed over to the direct sales force. Does this sound like a company bent on destroying its channel or what?
Verizon declined to talk to CRN about all this but also wouldn't deny the claims. Given how poor the company appears to be at forging partner relationships, I thought I'd do a quick test to see how good it is at handling customer relationships given that I use Verizon as an ISP at home and have several phone lines and cell phones through the company.
Just for laughs, I called the sales office and told them I've been considering switching my wired phone service to a VoIP service via Vonage that would cut that single number phone bill from the current $70 I spend with Verizon to $29 with a VoIP provider. Switching would also mean an increase in features. I asked if there was anything Verizon could do to help me cut some costs while increasing the features in my plan. I got a big fat NO and quite frankly, this phone-based sales agent obviously didn't care if I walked.
If Verizon treats customers the way they have treated me and is preparing to squeeze partners as Neel's reporting suggests, you have to wonder if it isn't time to short the stock. Anyone who has read my past columns outlining 12 steps to a successful partner program would agree Verizon doesn't get it and is violating nearly every one of my rules. So let's contrast its actions with Hewlett-Packard's new Attach Plus rebate plan, which rolls out May 1.
HP also wants its partners to sell more of its products. But it understands that an approach in which both sides can see a path to more sales and profits is the wiser path to follow. Whereas Verizon is telling partners to sell more, while earning less in return, HP is telling its partners 'We want you to sell more and if you do so, we will pay you more.'
My father always told me you get more with sugar than you do with salt. This is a perfect example of how one company, HP, is using sugar to attract and reward in an effort to gain more business, while the other, Verizon, apparently can't find enough salt in the world with which to flavor its program.
Let's face it, these types of things come about because of leadership. HP CEO Mark Hurd appears to have done his homework. He sees the value of a strong channel and has set the direction that is resulting in improved opportunity.
Contrast him with Verizon CEO Ivan Seidenberg, who insults his customers almost every time he speaks publicly, and you begin to understand where this program originates. Do a Google search on Seidenberg's name and you will see a number of articles in which he calls the city of San Francisco "dumb" for considering building a municipal Wi-Fi network. He also has been quoted as saying: "Why in the world would you think your [cell] phone would work in your house?" An insult to his cell-phone customers.
Gee, Ivan, I don't know, maybe I expect it to work in my house because I pay for it to work. In the end, I think we can expect more of this type of salty, self-destructive approach from Verizon. So, you have to ask yourself: Is it really worth partnering with this company moving forward?
Make something happen. I can be reached at (781) 839-1202 or via e-mail at [email protected].