Six Best Practices for Channel Sales Strategy
December 1, 2010In developing channel sales strategy, one of the key features is the planning. While some may take this stage or aspect in strategy for granted, for a vendor’s channel partner program to attain longevity, long term planning and forecasting has to be taken seriously.
Here are some of the best practices in developing and maintaining channel sales strategy:
1. Put customer’s needs first – A successful sales program always reflect the relationship with the customers. While it is also important to please the channel partners, distributors, wholesalers, and VARs or Value Added Retailers, the customer’s needs have to come first. The vendor is not the only player in the channel sales game. The channel partners’ relationships with the customers have to be considered as well. By having adequate or above-par customer service before and after the transaction, customers are assured that the product or service they are getting is the best and they will be able to reward partners and vendors with their continued patronage and loyalty to the brand.

channel management software
2. Recruit the right channel partners – Vendors are often too quick to sign with channel partners. Just like hiring employees, vendors should be wary about inexperienced firms taking on products with high value and could be considered vertical products. Background checks and comprehensive interviews should be done before signing on with new players. Certifications and training coupled with experience is the right combination to assure vendors they are aligning themselves with strong firms capable of introducing their product to the market they are targeting.
3. Monitor performance of partners – The channel sales strategy does not end with the recruitment. Regular evaluation of sales performance is necessary to ensure that the channel partner is performing as planned and not being idle and incompetent. The vendor invests a large chunk of capital with channel partners and they should expect a Return of Investment even if it takes years. Proper check up and monitoring is important to gauge whether a partner is underperforming or not.
4. Allot necessary investment of time and money to channel partners – Not all companies are capable of handling multi-channel sales partnerships. There are necessary investment like marketing allowance, training and certification involved in signing on partners to sell vendor’s products. In planning channel partner programs, there should be a clear specific accounting of all expenses and investment necessary so vendors can expect and include them in the budget.
5. Commit to channel partners fully and consistently. There are instances where vendors would chose to ignore their agreement with channel partners. Channel conflict between vendors and channel partner happens when a vendor betrays their partner by closing deals behind their backs, depriving them of incentives and income. These low blow strategies can seriously derail partnerships and cause confusion with customers. Neither party would benefit from such a dirty tactic.
6. Provide training and certification – Vendors cannot always find the perfect company to partner with because of lack of experience in their product. Parent companies should provide training and certification to sales teams so they may answer questions about the products and concentrate on selling to their target market.
Posted by Robert Steve.
