Navigating in a Multi-Channel Environment

A Check-list Prepared by

Channel Management Professionals

© 2008 Channel Management Professionals

Two Important Truths to Acknowledge

1. Evolving from a predominantly “direct” selling organization to a multi-channel environment impacts every aspect of the business.

2. Evolving from a “direct” sales manager role to a channel manager role requires a 180 degree mind-shift.

Major Topics

• Strategy – are you clear on where and how channels will play in your business?

• Programmatics – do the components of your partner program support your strategy – can you SEE your strategy in the program?

• Relationship Management – Are you a good business partner – or is the way you are doing business adding extraneous cost to your partners’ businesses?

• Resource Considerations – have you addressed the needs and concerns of your major stakeholders as you evolve to a multi-channel environment

Strategy Coverage considerations

Where will your diverse channels play in the market/how are you segmenting? Size Verticals Geography

Does your planned coverage of your target customer segments match the market’s coverage? If not, do you know why?

Does your planned channel strategy provide coverage for all sales situations that you envision – i.e.:

Front market (greenfield opportunities) Aftermarket

Upgrades Replacements Add-ons

Cross-selling Win-backs

Coverage Policy – will your channel system be: Open Selective Exclusive A combination, based on the requirements of different customer/offer segments

Strategy Capacity Considerations

What level of performance is reasonable to expect from each channel type based on:

The channel’s total sales in your product category Your share of this category

Expected Sales Effort from Each Channel What role does your product play in the channel’s business:

Primary Secondary Tertiary

Results/Metrics Have you established a full set of metrics that include both

leading and lagging measures of performance? Are these linked to sales operations and Finance?

Programmatics

Competency Considerations Does the partner program assure the required level of

competencies – sales, marketing, technical, operational and financial – for each channel type? Do you have a formal Product Authorization process? Are you clear on the purpose of your certifications (if you

have them)– e.g. To create a branded channel To enhance the existing branding strategy To manage costs of technical support

What is the purpose of accreditation (“certification” of the business vs. individuals) – if you have it

Programmatics

Channel Value Proposition Does each offer have an compelling economic value

proposition for each channel type you want to deploy?Pricing/Cost Considerations

Are you taking full advantage of front and back-end pricing (e.g. discounts and rebates) to drive the channel behavior you want? What is the basis of your pricing to the channel

Volume Function/value-add

Are you paying the channel for buying (bad) or selling (good)?

Programmatics

Congruence of Program Benefits with the “Care-abouts” of Channels in Your System Have you segmented the channels in your system – and do you

know what components of a partner program are most/least important to them? e.g.:

Developers (ISV’s, OEM’s, MSP’s) Integrators Resellers Influencers

Do you know where the majority of your current dollars are coming from? How will this change over time?

Is the balance of technical, marketing and sales support properly aligned with the needs of the channels who are delivering the majority of business for you?

Programmatics

Investment in Partners What is your current policy regarding BDF (Business

Development Funds), JDF (Joint Development Funds) and MDF (Market Development Funds: Is use of these funds business-case driven? Does allocation go to those initiatives most consistent with

company strategy? Are there clear and measurable benchmarks before funds

are released? Is there a provision for “seed money” to accelerate the

performance of partners just entering your program?

Programmatics

Channel Marketing Initiatives Is the channel marketing team focused on

streamlining its offers (to the extent possible) for greater effectiveness and efficiency – e.g. Seminars-in-a-box Online campaign builders

Does this team track use of the various components of the program and make regular refinements based on partner feedback?

Relationship Management

Use of PRM System Do you deploy a Partner Relationship Management

System? If so, is it used primarily to: Aggregate information Track channel use of tech support, training and certification

levels, etc. Drive and support channel strategy decisions surrounding

coverage, capacity, competence and cost.Conflict Management

Have you developed and communicated a clear conflict management policy that includes: A statement of where conflict is expected to occur How it will be managed How problems/disputes will be resolved

Relationship Management

Deployment of Your People Resources Are you deploying your own resources with the right partners…in

ways that will benefit the business relationship – e.g. Joint sales calls Joint offer development Joint product announcements

Eco Partnering Does your relationship management process have provisions for

enhancing partners’ ability to work with each other? Do you currently have plans to work with your partners to screen

and marketing through their channels?

Resource Considerations

Training for the Organization Has there been (or are there plans for) training of

product managers, the direct sales team, the channel team -- and customer service -- on the role channels will play in the business

Is every function clear on what will change/what will remain the same, etc.?

Are there plans for continuing forums that bring partners and your employees together – to get to know each other and to resolve questions before they become substantial issues?

Resource Considerations

Communications Plan Have you created a detailed communications

for the channel strategy, including such factors as: Who will be impacted by the new strategy

(externally as well as internally) What are their concerns likely to be What will you say to address these concerns Who will convey this message What medium will you use When will you deliver it

Any Questions?

For additional information, please contact:Sue Heintz, President, Channel Management ProfessionalsWireline: 847.615.0325Mobile: 908.507.5005Fax: 847.615.9044