Is Your Channel Management Working?
Companies today are more dependent than ever on partners as their extended sales and support teams. For these companies, building and managing a channel ecosystem is critical.
This raises the stakes around channel management. It is not enough to seek operational excellence from your partner efforts. You must seek competitive advantage.
Sadly, many companies are failing to achieve this type of success. By some estimates, as many as 70% of alliances fall short of expectations for both the channel partners and for the companies selling through those channels.
But how can you tell if you are one of these companies?
There are some tell-tale signs that a company’s channel management is under-performing:
- Poor alignment between how sales, product teams and the partner program define "best" partners.
- Weak performance by significant numbers of top-tier partners.
- Unclear ROI due to a lack of understanding of how partners deliver value.
- Unsuccessful attempts to drive new partner behavior through existing partner relationships.
- Passive execution that reacts to rather than fuels business outcomes.
Often, the root cause of a company’s channel management problems is not its people or its positioning, but its approach.