No matter how well your channel program is doing, there’s always room for improvement. If your goal is to take your program to the next level, you need to develop, implement, execute, and optimize an effective channel strategy.
What is a channel strategy?
At a very basic level, your channel strategy describes your processes for getting your products into the hands of customers. As a technology vendor selling powerful digital solutions to other businesses, you will likely have a channel strategy that focuses on working with value-added resellers, systems integrators, and other partners who go to work on your behalf. When you begin putting your channel strategy together, you’ll need to think about how you’re going to set your partners up for success.Optimizing your channel starts with incentives.
Would you work for free? We didn’t think so—and your partners won’t either. When it comes down to it, the cornerstone of any successful channel program is a generous incentive schedule. Just to be clear: When we say incentives, we’re talking about money, or at least something comparable (e.g., an all-expenses-paid trip to Hawaii). Generally speaking, the more incentives a channel program includes in its channel strategy, the easier it will be to drive the desired behaviors in partner sales teams. Keep in mind that, when it comes to incentives, paying your channel partners when they close deals isn’t enough on its own. For the best results, you need to incentivize your partners across a number of different vectors, including:- When they complete training or certifications
- When they register deals—and when they take each step along the way (e.g., updating deal close dates, stages, and amounts)
- When they actively track and report on campaign participation
- When they demonstrate their loyalty to your channel program with repeated business