In developing channel strategies, the vendor must be aware of the proper steps to improve existing standard operating procedures for channel management as well as for designing channel procedures from scratch. This is also helpful for figuring out the right channel partner portal to use in streamlining the process.
I. Declare company objectives as it relates to channels
Every company has a vision-mission statement to guide the employees’ actions in fulfillment of that mission. The same is true with the channel partner relationship. The elements of the business organization that includes the vendor and the reseller must move towards one goal. This goal must be clear from the start to avoid mismatched objectives. For example, if the company is a vertical market that caters only to architectural firms, then the channel should not market the product to construction or engineering firms because that is not the goal of the company.
II. Define channel requirements, scope and limitations
Channel requirements vary from vendor to vendor. There should be clear delineation of what the channel’s role is. A reseller for example should not be expected to market the product. That’s the job of a vendor.
III. Developing channel procedures
A partner portal would be a definite asset to a vendor. A decade ago, channel procedures would mean faxing, orders, reports, telephone conversations, physically meeting with vendors etc. The Internet has made it possible to eliminate unnecessary travels, communication glitches, etc. Vendors can hire third party solution providers to provide portals where the reseller can update their data in real time. This means streamlining channel procedures where in the past, resellers would need to fax reports, now they can just update a form in the portal. All needed leads and information is available anytime and anywhere.
IV. Channel recruitment
Probably the most important step is finding the right reseller for a product especially in vertical markets where the product is so specialized; there is limited number of resellers that are qualified to handle the transactions.
V. Set expectations for channel and vendor
This step is an extension of setting objectives. There should be a list of expectations from the channel so they have a guide of what the vendor wants to achieve. As this is a partnership, there should also be expectations from the vendor. For example are incentives and bonuses for the reseller.
VI. Improvement of Channel
As the saying goes, there’s always room for improvement. This is especially true when developing channel strategies from scratch. On the first run, problems are to be expected. As the vendor establishes the process, then the procedure may expect major problems turn to minor glitches.
VII. Evaluate performance of channel
Monitor the activity of the channel and evaluate the efficiency of the process. Do the channels conform to the objectives of the company? Do they meet the vendor’s expectations? By answering these questions, vendors can easily track their partner’s progress. A partner portal is a valuable tool for channel evaluation. It would include a comprehensive view of all the channels in the vendor’s roster.