In today’s fast-paced business environment, the dynamics of sales channels are undergoing a profound transformation. Traditional methods are being challenged by evolving consumer behaviors, technological advancements, digital transformations, and the emergence of new stakeholders. As businesses adapt to these changes, the impact on channel partner programs becomes increasingly significant. Let’s delve into how these shifts are reshaping the landscape of channel management and what strategies businesses can employ to navigate this evolving terrain.
New channel partner roles
One of the most notable changes in channel management is the emergence of new types of partners and distinct roles and business models. The digitization of products and services gives rise to an expansive demand ecosystem, encompassing entities like hyperscalers, managed service providers, and original equipment manufacturers (OEMs). Unlike traditional intermediaries, these partners often play non-sales roles, focusing instead on customer discovery, engagement, and retention.
In this evolving landscape, new roles, such as referral agents, influencers, and retention partners, are gaining prominence. Plus, with the adoption of subscription- and consumption-based revenue models, the party initiating a sale may differ from the one executing it, adding complexity to partnership dynamics.
Referral agents
Referral agents help companies identify and refer new customers. Usually, when the referred customer makes a purchase, the current customer or entity is rewarded with discounts, credit, a gift, fee, or other offer. They are similar to influencers in the fact that they leverage their own network to generate value.
Influencers
Leveraging influencers can be an effective part of marketing and help promote or sell a company’s services or products through their established networks and influence. They can vary from individuals like James Hoffmann (for all you coffee lovers out there) to celebrities like Taylor Swift to third-party entities. Influencers play a crucial role in expanding market reach and enhancing brand reputation.
Retention partners
Retention partners are third-party entities or vendors that help businesses maintain and enhance their relationships with existing customers to ensure long-term loyalty. Types of retention partners might include customer success managers (CSMs), loyalty program providers, and customer feedback and survey companies.
To effectively manage these diverse channel partnerships, businesses must prioritize closer collaboration, clear delineation of roles, and robust oversight mechanisms. Building strong relationships with partners and aligning incentives are crucial for maximizing mutual value and driving success in the channel.
Effectively manage channel partner relationships
The shift from linear transaction-focused channels to ecosystem-based models requires new processes and metrics to effectively manage partner relationships and optimize performance. Traditional metrics may no longer suffice as businesses embrace innovative revenue models and address evolving concerns such as environmental sustainability and social responsibility. For example, in response to growing environmental, social, and governance (ESG) considerations, businesses must automate the validation of partners’ ESG credentials and embrace circular economy practices.
Enabled by technology, streamlined processes are essential for delivering exceptional partner and customer experiences. Automation can help track customer satisfaction, recommend responses, and validate the partners’ ESG credentials. In a competitive market, even a slight advantage in partner retention can significantly affect revenue and market share. Leveraging technology, including Artificial Intelligence (AI) and machine learning, can enhance efficiency and facilitate data-driven decision-making in channel operations.
Holistic channel management
In the face of these transformative shifts, businesses increasingly turn to holistic channel management approaches. This model recognizes the interconnectedness of all channel stakeholders and emphasizes the need for integrated strategies across processes, programs, and technology. By adopting holistic channel management platforms, organizations can gain comprehensive insights into partner performance while enhancing engagement across the ecosystem. These platforms facilitate collaboration, innovation, and value creation, empowering brands to deliver differentiated solutions and drive revenue growth.
Key dimensions of holistic channel management:
- Processes: Establish streamlined processes prioritizing partner and customer experience, leveraging technology to drive efficiency and agility.
- Programs: Develop tailored programs that incentivize and support partners throughout the engagement lifecycle, driving mutual success and long-term partnerships.
- Technology: Invest in robust technology infrastructure that enables seamless collaboration, data-driven decision-making, and automation across the channel ecosystem.
A holistic channel management platform enables organizations to understand and optimize performance across their entire ecosystem, increasing partner engagement and delivering higher-value solutions to their customer base. By breaking down functional silos and aligning resources with the partner engagement lifecycle, organizations can improve the partner experience and drive revenue growth.
Framework for alignment and engagement with channel partners
A simple and adaptable framework can help drive alignment and expectations with all stakeholders, ensuring long-standing and fruitful partnerships. To effectively manage the evolving channel landscape, organizations must prioritize the following:
- Planning: It’s the essential first step in channel framework – establishing a common set of goals that you and your channel partner will pursue. Putting your shared goals in writing gives you and your partners tangible reasons to share the goals with your teams and helps you hold each other accountable.
- Enablement: To achieve your joint goals, your partners will need support from your company, like training and sales collateral. Understanding what your partners are trying to do and how they are trying to do it will help create the right mix of enablement tactics for your channel.
- Communication: Effective communication with your channel partners is critical and often challenging. Try to share ongoing updates with your partners and solicit communication from them about their needs.
- Demand creation: The most critical component of your channel framework is how you help your partners create demand for your solutions and their value-added products and services.
- Evangelism: Beyond demand creation, the most desirable way for you to engage with your partners is for them to act as evangelists for your company and co-promote your key marketing messages. While generating awareness may not lead to direct revenue, it will help others learn more about you and your company.
There is no doubt that change has a profound and far-reaching impact on channel management. By embracing new partners, processes, and technologies, organizations can navigate these changes successfully and drive growth into new markets within an increasingly competitive landscape.
How e2open can help grow channel partner programs
To learn more about how e2open helps customers grow through successful channel partner program development, take a look at this brief about a multibillion-dollar organization that leverages e2open’s channel management solutions and expertise to drive unparalleled growth. Connect with e2open to discuss how we can help propel your business toward greater revenue success through stellar channel partner strategy and collaboration.
