What is Channel Management? · 2017-10-07 · Partners will Serve my Ideal Customer Profile?...
Transcript of What is Channel Management? · 2017-10-07 · Partners will Serve my Ideal Customer Profile?...
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What is Channel Management?
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Building a True Channel Management Program
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Sales Channel Methods Create Channels to Map the Way Customer Prefers to Buy
Develop Go-to-Market
Plan 2
Sales Force Structure Organizational model effectiveness vs.
efficiency
Sales Force Size Match selling capacity to market demand
Design Sales Force 3
Sales Infrastructure Create performance conditions for optimal results
Build Infrastructure 4
Account Segmentation Segment accounts by Ideal Customer Profile
Lead Management Generate MQL/SQL/SAL
Sales Process Map customer/prospect buying process to custom built sales process
Develop Sales Strategy 1
Sales Force Assessment Framework
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Finding Your Ideal Channel Partner
• Local or National Focus?
• Generalist or a Specialist?
• Expert in Field or New Entrant?
• Expertise: Installation, Sales, Customization
Ask Yourself: What Channel Partners will Serve my Ideal Customer Profile?
Account Segmentation
Many Channel Managers say working with Wal-Mart is a mixed blessing. While they have great scale, margins are squeezed extremely low.
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Build Marketing for Channel Partners to Attract Customers
• Marketing Materials
• Website Landing Pages
• Best Practice Sharing
• Devoted Lead Development Reps for Channel Partners
• Vendor Distributed Leads
Lead Management
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Design and Create a Sales Process for Marketers
• Is My Channels Partner’s Sales Process Aligned with the Buying Process?
• How Do I Incentivize Channel Partners to Train Their Sales Professionals on my Product and on Sales Process?
• How Do I Set Up a System to Provide Exclusivity to a Channel Partner on the Current Sales Opportunity?
• Do My Partners Have Materials for Each Stage in the Buying Process?
• Are my Channel Managers Coaching Their Reps On This?
Sales Process
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• Creating a Standards/ Programs that Require Certain Staff for Desired Channel (Field Reps, Sales Engineers, Consultants)
• Creating Materials for Field Sales, Inside Sales, Website, Trade-Shows, etc?
• Customer Service In-House or Partner Specific?
• Do My Channel Partners Send to End-User retail shops?
How Should My Channel Partners Sell?
Best Buy’s huge recent losses came as buying behavior shifted from Store-Based purchasing to Online Purchasing. Even Lower-Tier Buyers have shifted to websites like amazon.com.
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• Should I have Multiple Channel Partners in the Same Territory?
• How Many Should I have?
• As Partners Increase, Do Margins Erode to Make My Offering No Longer Attractive?
• How Do I Segment Channel Partners- Geography, Industry, Product, Activity?
Channel Partners Structure/Sizing
Fast Food Franchisee’s Are Often Given Exclusive
Radius to the Territory To Reduce Direct Partner
Competition
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Creating the Program to Harmonize Vendor – Partner Relationships
• Quota (Volume) and Comp (Margin) Mix – Don’t cut margin just to get the Whale Partner
• Tiered Channel Partners to Hit Parameters
• Training Programs / Onboarding Programs
• Partner Based Comp Programs (Vacations, Club)
• Key Account Management
• Vendor Program Management
Sales Infrastructure
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Creating a Tiered Partner Program
CISCO is Widely Recognized as Creating One of the Best Tiered Partner Programs in the IT Industry
Note: This Should Always Be a Reciprocal Program. IE – What Do I Get for Moving Up Tiers besides Margin?
Vendor Wants: Expert Sales Reps (Product and Process) Smooth Implementation High Close Rates In Competitive Sales Reputation for High Quality Solution Maximize Revenues/ Profitability
Partner Wants: Great Margins High Quality Leads Product with High Demand Marketing Support Sales Specialist/Engineer Support
Margin % Increases to Compensate for extra expenses
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Partner Training
CISCO Provides High Quality Training to Channel Partners, Who Must Meet Certain Personnel Requirements in Order to Obtain Certain Tier Ranking. Vendor / Partner Training Payments Generally Vary Depending on Strength of Vendor.
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Manage Vendor Performance
Above is an example of an individual vendor scorecard. Many vendors utilize Channel Management Software to
automate tracking of vendors
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More on Channel Management Strategy:
http://www.salesbenchmarkindex.com/?Tag=Channel+Management+Strategy