Channel programs must constantly evolve, not only in response to market conditions, but also in anticipation of changing customer needs and demands. Manufacturers that fail to stay ahead risk being left behind in a cloud of dust generated by the competition.
But before rushing to implement a new or changed program, it’s best to get it done first by your channel partner. Your new ideas may very well be the best thing since sliced bread, but the chances of them fully meeting the needs of your partners and ultimately your end users without your input are risky at best. .
Change is good. But introducing change for change’s sake, without partner feedback that can make or break your ultimate sales success, is short-sighted and foolish. Do not do it! Instead, create new programs in cooperation with your resellers, those trusted advisors and value-added sales agents you’ve hired to increase your company’s reputation and the value of your products in the eyes of end users. These end users, after all, have the ultimate power over your bottom line revenue and profitability.
More is not necessarily better. New, as far as the channel’s programs go, is not necessarily better. Listening to your partners’ needs and helping them better sell their products as part of a solution suite or independently will foster continued (and hopefully stronger) ties with those who first brought their offerings to the end-user dance. Just ask them!
Did Coca Cola executives ask generations of loyal consumers if “old Coke” needed to be replaced? Generations earlier, did Ford Motor Company really believe that the American motoring public was clamoring for the Edsel? Perhaps the needs of your partners and end users are diametrically opposed to the key elements of your proposed new channel program.
Don’t take chances. If your revenue is lagging or there is evidence that your partners have lost interest in promoting your offers, don’t call or email them. Rather, pay them a visit. Be frank, but instead of using accusatory tact, ask them to share their business challenges and concerns regarding your product.
And before you make a new advertising program for your company, sprinkle some promotional campaigns first. The results should provide a treasure trove of information about the market for your product: who exactly is buying it, where, and along with what other products or solutions. This data will provide an accurate measure of your partners’ ability or willingness to leverage advertising, marketing, or marketing development (MDF) dollars.
At this stage, and again before you entertain any idea of randomly launching a new program, carefully measure how your partners are using each of your marketing tools and how this translates into revenue generation. He shares his findings with them, not wielding them like a stick, but dangling them like a carrot. The goal is to gain valuable feedback on how it is performing and meeting their needs as you market your product to end users, your mutual end customer.
Only then can you begin to design a new channel program.