If you want your channel to reach its full potential, you need to avoid channel conflict. It’s that simple. Unfortunately, many channel programs fall victim to channel conflict. Some companies might mix direct and indirect sales, essentially negating the purpose of the channel in the first place. Others might give partners too much control over pricing, thereby enabling some partners to charge different prices than others. Channel conflict can also stem from having too many partners and using mixed marketing messaging (i.e., different partners saying different things). Beyond that, conflict can arise when partners refuse to adapt to new workflows. Suffice it to say, there are many potential drivers of channel conflict. The good news is, it’s relatively easy to eliminate conflict. You just need to take the right approach.
Ways to Eliminate Channel Conflict
1. Implement fair rules and stick to them.
One of the easiest ways to reduce channel conflict is by creating fair rules, enforcing them consistently, reporting on them regularly, and sticking with them throughout your program’s lifespan. The more comprehensive your rules and the more open you are about them, the less likely you’ll be to confuse your partners.2. Use deal registration.
Another straightforward way to improve your channel is by implementing a deal registration solution that enables each partner to gain the exclusive right to work on a deal for a certain period of time (e.g., one quarter). In doing so, you can ensure that partners aren’t overstepping their bounds and interfering with each other’s deals. As you implement your program, you will need to determine the specifics, such as whether partners will be allowed to work deals after the period of exclusivity has expired, or if they will be permitted to ask for extensions. The more thorough you can get with your rules, the better.3. Communicate openly.
Would you rather work for a boss that maintains open dialogue, or one who never tells you what they’re thinking or planning? Just as you prefer working with folks who are open and honest, so do your partners. By establishing and maintaining open lines of communication with each of your partners, you can keep everyone on the same page and reduce conflict.4. Measure partner performance.
The possibility of channel conflict rearing its ugly head increases as more partners are added to the mix. That being the case, you can reduce conflict by making sure that you don’t hire too many partners. If you think you have too many partners on board, study their performance to find the lowest performers and consider ending the relationship. Some performance metrics to focus on here include:- Deal registration submissions versus deal acceptance rates
- Deal acceptance/opportunity versus opportunity closed won velocity (i.e., sales cycle length)
- Conversion rates
