Part II: Measurement Only Way To Assure Ongoing Channel Program Success
I'm not going to recap last week's column because it's easy enough for you to view it on crn.com. But before I get into the final six criteria, let me once again state that without a channel-friendly compensation policy that cuts across a wide swath of a vendor's senior management team, none of these steps can work for any length of time. Here are my final points:
7. If a vendor has both direct and indirect sales, the sales managers must be responsible for both parts of the business. This is a critical point when it comes to managing channel conflict. If there are separate sales managers for the direct and indirect sides, then you are inviting conflict inside the organization as well as between your channel partners and your direct-sales force. Nothing can tank the channel's loyalty to a vendor more quickly than a direct-sales force that competes with the solution providers representing its own company. A much better structure is one that forces a partnership between direct sales and the channel by setting the internal sales number at such a level that it would be impossible to get there without the channel.
8. Be clear about the rules of engagement for direct sales. Channel partners need and want to know the guidelines for when a company wants to take business direct and when it will automatically push it to the channel. These rules must be clear and indisputable, and they should be communicated to both the direct-sales force and the channel partners. This is one of those areas where companies can often avoid conflict by being up front. When the rules aren't adhered to, the vendor needs to take some clear action to make sure they are.
9. Marketing and communications are key components of any channel effort. Just because a vendor has a good channel program and quality products doesn't mean the channel will beat a path to its door. It's up to the vendor to make sure the channel understands its goals by putting an advertising, public relations and general marketing plan in place, and then measuring how well the message is getting across. Too often, a vendor assumes the channel is getting news about its products and programs from its channel organization, which generally isn't funded to accomplish this. Central marketing often isn't measured on channel awareness, despite the fact that much of the company's sales go through the channel.
10. Leverage distribution when appropriate. Not every product is appropriate for distribution, but more often than not, distributors can help. When the decision is made that distribution makes sense, the first step is to choose one carefully and then make sure it has the right solution providers for the vendor's product set. Distribution is one of those machines that pays off in multiples when the effort is made. Vendors need to provide training, MDF and sales incentives, and rebates to drive sales. It's not a lot different from any other sales channel, it's just that a pound of effort can produce thousands of pounds in return.
11. Honest communication is the best policy. When something goes wrong, admit it and commit to fixing it. Nothing builds stronger relations than admitting your mistakes publicly. It's a rare strategy, but it builds trust, and that is even rarer in this business. Train your field sales reps to do the same.
12. My final point is, a vendor must measure what it is doing. Just because you want something to happen and you believe you have good programs in place to make it happen doesn't mean it will. You have to be willing to learn and adjust all the time. The only way to do that is to measure your results.
Make something happen. I can be reached at (516) 562-7812 or via e-mail at [email protected].