Four Keys to Success: Channel Enablement

Transcription

1 Four Keys to Success: Channel Enablement What are the risks? Where does it go wrong? In our global landscape, companies are finding ways to expand their workforce and establish collaborative partnerships by exploring channel opportunities. But is the investment worth it? How can you build successful partnerships that grow with your business? Toll free: PulseLearning

2 01 U N D E R S T A N D T H E R I S K S. W H E N I T C O M E S T O CH A N N EL E N A BL E M E N T, TH E RE I S A L O T O F M O N E Y O N T H E LINE. In the past three years, spending on enablement programs has been steadily rising among companies with an ecosystem of 500 partners or more. (Sales Enablement Best Practices, 2012) This trend is showing no indication of slowing down. The price tag for 2013, estimated by global research and consulting firm Forrester, is close to $63 BILLION (USD) including approximately $50 billion on partner incentive programs. With so much at stake, companies are continually re-evaluating their return on channel investment (ROCI) and looking for ways to improve their bottom line. Research shows that successful enablement programs are costly to design, launch, and maintain. Partner ecosystems are in flux and channel partners are required to adapt to shrinking product margins, skills shortages, and new competitor types. (Tim Harmon, 2013) Without the proper training in place, companies may be confronted with a loss of market share and lack of control in the distribution pipeline and customer experience. H O W E VER, I N V E ST M E N T I N TR AI NI N G IS N O T E N O U G H. Enablement programs need to be aligned to partner interests to foster loyalty. Otherwise, partners may leave for a competitor, taking all their training and lessons learned with them. Considering the risk, why do companies continue to invest in this form of market penetration? Quite simply, the overall earnings on both ends increase exponentially when a partnership is successful. It pays to invest when the win is so big! ENABLEMENT IS CRITICAL TO SUCCESS In a study published in May, 2013, Gartner highlighted that the most successful companies with global supply chains are investing time and resources in expanded university relationships, rotational programs, multichannel learning options, certification programs, leadership development and others. They understand that to capitalize on channel partnerships, they need to invest in training. PulseLearning

3 02 A D D V A L U E T O Y O U R P A R T N E R. N O O N E I S A S I NT E RESTED I N M A KI N G Y O U M O N E Y AS Y O U AR E. You want your partners to independently drive the sale cycle in your desired markets and grow with you. You need them to identify new customers for your product or solution, engage with decision-makers, and communicate a clear value proposition. But before you invest more money into a one-size-fits-all solution, make sure you understand who your partners are and exactly what they need. M O N E Y I S O NL Y P AR T O F T H E E Q U A TI O N. Compelling research shows that financial incentives, commonly the driving force behind channel engagement, are only effective in the short term. (London School of Economics, 2011) Considering the investment required to enable your channel, it is critical to think long term. For example, when faced with shrinking budgets, companies may choose to redistribute their funds and invest in growing strategic Value Add Reseller partners versus delivering blanket programs that treat VARs and resellers alike. Certainly, financial incentives are a key component of enablement programs in general. However, the emphasis on money alone could open the door for a competitor to sweep in with a higher bid that offers greater margin or bonuses. GI V E P AR T N ER S A R EA S O N T O I N V ES T I N Y O U. Consider proactive training that is focused on aligning company and partner strategies, as well as channel enablement programs that help your partner motivate its workforce. Providing training in solution PARTNERSHIPS THRIVE WHEN YOUR PARTNER IS INVESTED IN YOUR SUCCESS. selling, drafting value propositions, and so on may help your partner establish itself as an authority, enhancing partner credibility and your bottom line. HEL P Y O UR P AR T N ER G R O W. To increase your ROCI, you can offer enablement programs that support your partners in these areas: M AR K E T POSITI O N CLIENT SATI SF A CTI O N INNOVATI O N C O M M E R CIAL VAL U E DIFFERENTI ATI O N PulseLearning

4 03 I D E N T I F Y T R A I N I N G N E E D S. TR AI NI N G C O M E S I N M A N Y SH AP E S A N D S IZES. Some channel enablement programs offer instructor-led courses, while others may provide channel training entirely online. Between support materials, s, and marketing collateral, it is highly likely that your partners are exposed to large quantities of information. But, do they understand it? The goal of channel partners is to sell your product or service and make you and their company money. When a partner is unsuccessful, the first line of defense is to provide more marketing materials or target incentives. Before sending out more information about your product or dismissing a partner's growth potential, ask: Why isn t your partner succeeding as you would like? L O O K F OR A K N O W L E D G E GA P. Partners who have difficulty formulating value propositions do not stay true to program requirements, are not leveraging rebates, and so on may have a knowledge gap that needs to be filled. In some instances, a phone call by the relationship manager can clarify doubts around topics such as incentive programs or rebates. Where ecosystems are too large to make one-on-one contact sustainable, you can distribute online information with assessments and surveys that measure comprehension. Consider offering brief web modules that communicate features, advantages, and benefits (FAB) to increase product knowledge. Draft mini scenarios to help partners understand how customers might use the product or service in specific markets. Most importantly, confirm that all your partners can quickly identify where to get help and answer questions within your company. I D E N TIFY S KIL L S PR AC TICE A N D M A ST ER Y O PP O RTUNITI E S. Partners that fail to identify market growth opportunities or do not work independently throughout the sales process may benefit from skills training. Delivery formats can vary from weekly s with tips and tricks to fully immersive online scenarios. Consider supporting customer service skills by deploying telescripts, which are accessible on mobile devices. Provide on-the-job support with QR codes on product packaging that link to additional information. Train representatives from the partner company to serve as on-site coaches, carrying out skills practice within their teams. Make sure your partner is aware of and using the tools you provide. These include marketing collateral, HTML assets for web sites, content for partner use, and so on. Some companies are successfully developing apps with sales playbooks to support their products and services. Others are investing in story-driven scenarios for their partners to practice key skills such as identifying new customers, engaging with decision-makers, and PulseLearning

5 communicating a clear value proposition. Regardless of the format, consider discussing your training needs and exploring opportunities with an expert to ensure you are investing in the right tool for the job. M O TI VA T E Y O U R PA R T N E R S T O S ELL. Partners that know how to sell and understand your product but fail to meet targets may lack motivation to do so. What is in it for them? Are your rewards aligned to what they care about? Traditionally, channel enablement will include programs, incentives, and rebates. Rather than simply adding percentage points to margin or commission, consider training programs on how to fight the competition, improve retention of sales people, build customer loyalty, and so on. Are you mitigating risk for your partner as you would for yourself? VAR partners may already be putting their independence and flexibility on the line by partnering with you. Help them increase their market share in exchange. HEL P Y O U R PA RTNER OV ER C O M E E N VIR O N M E N T AL H U R DLES. Partners that are committed to the channel relationship, know how to sell, and understand the products are highly likely to succeed. However, in some cases they do not. Why? Consider the market conditions for your channels. How easy is it to sell your product or service? Are you building customer demand and marketing yourself? Is there a competitor that has long held on to your partner s territory? Partners with knowledge, skills, and motivation are a boon to the channel model. Make sure they are set up for success by helping them identify and resolve external factors that are affecting their growth. CL O SE T H E F EE D B AC K L O O P. Your channel has something to teach you. Does your training encourage open communication on behalf of your channel participants? Or is it a one-way street where you send out information and close the door? If the lessons learned from channel sales do not make it back to you, you are losing valuable knowledge capital that you cannot get back. The question "What have you done for me lately?" applies to your channel partners as well. Make sure to check periodically and confirm that you are adding value to them in return for their work. H O W A R E Y O U T R A I N I N G? ON-BOARDING FOR NEW PARTNERS BREAKFAST SEMINARS CERTIFICATION PROGRAMS WEBINARS MOBILE JOB AIDS MENTORSHIP CALLS FEEDBACK SURVEYS ON-SITE COACHES MONTHLY CHANNEL CALLS ENABLEMENT PODCASTS LUNCH AND LEARN SERIES ANNUAL RETREATS BUNDLED PROMOTIONS WEB MODULES QR CODES ON PACKAGING TIPS AND TRICKS S ONLINE SCENARIOS SALES PLAYBOOK APPS SALES SKILLS WEBINARS ROLE PLAY LABS PulseLearning

6 04 T R A I N F O R T H E F U T U R E. TR AI N P ARTNERS WI TH ST RATEGIC P O T E NTI AL. Rather than value a partner based on their current revenue, consider their untapped potential and how valuable they may become. Are your high-revenue partners getting all the attention? Larger channel partners tend to bring in greater revenue. It is tempting to focus on growing a partner that is already working. But consider this. The larger the channel partner company is, the more likely it is that it has fixed company policies and processes in place that may or may not support your strategic goals. What if you invested time in growing and training smaller volume partners that are aligned to your company's vision and strategic direction? Remember, large transactional partners can be easily swayed to switch to a competitor if the price is right. Partners that are invested in the strategic direction of your company are less likely to switch boats. Revenue does not equate loyalty. SUMMARY Channel enablement is an expensive proposition. To grow your ROCI, give partners a reason to invest in you. Help your partner grow by providing the training that fits your channel needs. Look for knowledge or skills gaps and provide just-in-time solutions. Increase motivation and support your partner in growing the market. Establish a culture of open communication and emphasize partners that are strategically aligned to your organization s most critical priorities. Most importantly, make sure the tool you are investing in is right for the job! For a closer look at how channel enablement solutions can be tailored to meet your needs, contact the team at PulseLearning. PulseLearning creates learning solutions that bring measurable business value to our clients. We achieve this through a high-energy, client-centric approach that combines excellence in people, process, partners, technology, and innovation. Our vision is to be the dominant provider for learning solutions within our chosen sectors. Visit our website for more information: PulseLearning