Falling Down: When Good Vendors Come Up Short

Page 1 of 3

For two glorious years--2002 and 2003--Symantec reigned supreme in partner satisfaction for security management software, taking top honors in the VARBusiness Annual Report Card (ARC). Since then, the company's third-party allies have given the company poor marks in partner satisfaction, much as they did before the security software giant mounted a focused campaign to change key business allies' perceptions at the end of the last decade.

This year, Symantec finished fifth out of six in the ARC's Security Management Software category. The showing was disappointing and frustrating, but not unexpected.

"We know we're not firing on all cylinders," concedes Randy Cochran, Symantec's vice president of U.S. channel sales, "but we are committed to improving partner satisfaction and have plans in place that will make a difference." Unfortunately, Symantec now finds itself in the position that Hewlett-Packard, IBM, ViewSonic and others have found themselves in previously: playing catch-up.

At one time or another, each of these companies has had to ask themselves, "Why do previously successful plans and policies come up short when it comes to partner satisfaction?" This feature examines why once-laudatory companies stumble and what many are doing to regain partners' confidence.

Taking Partners For Granted

Vendors rarely shift strategies completely and fall out with partners all at once. More often, vendors stumble when they make seemingly subtle shifts in go-to-market plans that coincide with changing customer buying habits.

Take HP, for example. The tech giant hoped its server partners would tolerate some increased competition with its own direct-sales machine when rival Dell's efforts to cater directly to customers began to meet with market favor. "Why not?" HP figured. Analysts were pressuring the company to increase direct sales at the expense of customers, and new supply-chain theories suggest that HP could indeed take more business direct. Besides, the company concluded, Dell customers seemed to love buying directly from a manufacturer.

What HP found, much to its dismay, was that reality failed to match lofty ideals. Beating Dell in supply-chain economics proved impossible. Partners were incensed when they saw their one-time ally trying to steal their business. Many gave HP low marks for partner satisfaction, and a few chose to resell products from archrival Dell.

The miscalculation cost HP. In the 2002 ARC, HP lost to Dell in the Entry-Level Servers category. The poor showing caused HP to regroup and redouble its efforts to help partners. The work paid off. This year, HP finished tied for first place with IBM in this category, well above a fallen Dell.

The experience taught HP a valuable lesson that many vendors would be wise to heed: Challenge partners at your peril. While that may be the first rule of smart partner management, it's not the only one. Indeed, vendors must compensate, support and promote partners to receive high marks for partner satisfaction. They must also avoid some common pitfalls. They can't fumble when it comes to communication, consistency and basic execution.

Misjudging the Competition

One of the best ARC ratings ever in terms of partner satisfaction was earned by ViewSonic, the Irvine, Calif.-based monitor company. It won the Display Technology category a record five years straight. But then things began to unravel.

Executive moves, policy changes and competitive pressures contributed to ViewSonic's slide in scores. So, too, did its failure to recognize its rivals were improving greatly with each passing year. ViewSonic was hurt by an inability to respond with a clear, concise marketing message after Samsung, Acer, Sony and others made serious runs at eroding its channel base.

Samsung, in particular, claimed the mantle of "best in class" with a targeted recruitment effort, a world-class sales and technical support program, and an unprecedented financial incentive package. In a category where partners can swap out vendors in less time than it takes to say "refresh rates," the combined strategy proved to be ViewSonic's unraveling. By 2002, it was no longer best in class.

ViewSonic, however, reworked its strategy. It established an advisory council as a way for individual partners to provide feedback. It overhauled its partner portal, which made it easier for allies to participate in promotions and find the support they needed. And, it reassigned several dozen employees to call on resellers instead of users.

All told, the combined efforts have had a positive impact. After a slip, the company continues to climb its way back. Although it finished in third place again this year, its scores were improved year-over-year.

"It was a long crawl, but we're thrilled partners are responding positively to all of the changes that we've made," says Jeff Volpe, ViewSonic's vice president of channel-partner marketing.

Never again, he vows, will ViewSonic rest on its laurels.

1 | 2 | 3 | Next >>

Tweet

   

More Channel Programs