Five Best Practices in Channel Management Software and Strategy

Channel management and the use of various channel management software is currently one of the biggest trends in the world of business. However, not everyone uses it correctly and end up failing at their attempts. Overbalancing the scales of service to the partners, including the distributors, dealers and resellers, is how an organization can enjoy the benefits of being able to grow and expand as a business. It is important to be aware of the best practices in channel management in order to avoid being just part of the bandwagon and instead of being a leader.

The best practices in this strategy entails more than just substantial amounts of trust and shared risk in system, process and role. In dealing with technology, it is important to remember that things constantly evolve. So it is wiser to add in the influence and impact of social media and networking and the real-time engagement and information dissemination made possible through Facebook, Twitter and other social networking platforms. Here are the Five Best Practices in Channel management:

(1) Kill Hype before it Kills Channel Programs - Trust has become a key being able to genuinely compete in the market. It has become so much more significant because it eliminated the need to be dependent on the influence of hype or complex programs that are so hard to implement. Instead of "hyping" others by telling partners, customers, suppliers and prospects of how great your company is, just provide them with insights of how to solve problems is not right.

(2) Trust is More Important than Margin in Managing Channels - It is critical that you set a strong foundation for shared risks and rewards. Keep the channel loyal with trust, transparency, and the appealing ability to get them to their financial goals.

(3) Make Complex Channel Problems Your Own - It is already a given fact that introducing new products, changing pricing strategy and discontinuing old products proves just how challenging, intricate and complicated it is to implement these strategies, especially in multi-level environments. However, no matter how difficult it is to execute them, a good company will take on the most perplexing challenges if it is to help make their partners grow.

(4) Foster a Healthy Relationship with Partners through Communication - It is important that channel partners are updated on changes in strategies, results and direction to make these changes lasting. Remember that what's involved is a shared vision of what needs to be accomplished in order to succeed. Partners will only buy-in if they are aware of what's going on, and this is the most critical and elusive of best practices. The steps to attain this most difficult aspect of best practices are: 1. Passionate leaders of change; 2. Nurture ownership to the process level with key employees and; 3. Measure and celebrate all improvements and advances.

(5) Simplify Integration to Manufacturing and Fulfillment Systems for Maximum Benefit - This is not just about using the most popular channel management software or populating a portal with order capture, status, pricing and other applications. It is about improving communication and collaboration between a company and its partners by giving them real-time status of their orders, requests and status of RMA or Return Materials Authorizations.

Avoid Channel Management Worst Practices

Channel management is a great way for companies to enjoy exponentially more profitable businesses through channel partners. Establishing strong business relationships with these partners or affiliates who sell the products and services of a parent company are critical elements for better performance and productivity, and ultimately success. A lot of the best practices in this strategy are widely known and practiced, but worst practices are often overlooked. It is advisable to become familiarized with the worst practices in managing channels in order to get a clearer picture of what to avoid.

Channel Management Worst Practices

• "One-and-Done" Mentality - Having this kind of mentality with lead management, order capture and service is unfavorable. Usually, once the management system has finally been launched, managers, directors and other higher-ups of high-tech manufacturers in various industries known for cut throat pricing become lax and feel relieved that they can settle back into old routines. This means that things will go on as before despite the fact that there is now system in place that cost substantial amount of financial investment. The people who were once so involved and passionate about it are focusing on new projects. The management system of the channels will not change or evolve for the better.

• Losing Touch with Sales - Manufacturers who achieved initial success with their strategies take their high-performing managers, directors and VPs, turn them into problem-solvers and then long-term business process owners. An unfortunate situation that continues to take place in various companies is when an effective director focuses all of his or her energies on making the management system of channels perfect. He or she most likely worked diligently with necessary tasks such as system integration and collaboration with IT managers to work out the kinks. The problem with this scenario is that the marketing director was so focused on organizing the system that sales were neglected.

• Lack of Integration Expertise - Struggling vendors tend to exaggerate or overstate their ability to handle integration during recruitment. There are manufacturers that simply rely on the references the vendors provide them without conducting a thorough review of their references and background.

• Vendors that Wait for the M & A - Predictably, there will be more than forty different mergers and acquisitions all throughout the enterprise software. Three of these will particularly realign overall CRM and channel management. It is important to be wary of vendors who are waiting for M & A. It is imperative that a manufacturer stays away from vendors that have experiences of battling with investors and boards, rapid turnover at the top and trading below cash. Keep an eye out for vendors that can thrive even if they are integrated into another company. Such positive qualities to watch out for are a large and profitable customer base, process-centered applications, strong cash position and established sales and channel organizations.

• Ignoring W2 - It is vital that the combination of streamlined manual processes and their automation for ease of sales must echo on the W2s of the salespersons who rely on them.