Sales & Distribution

The Complete Guide to Channel Sales

What channel sales actually are?

Channel sales involve firms selling their products through intermediaries, known by various names such as partners, dealers, distributors, brokers, resellers, agents, affiliates, and more, depending on the context. This business strategy, also referred to as indirect selling, utilizes these intermediaries to reach customers effectively.

Implement a Channel Sales Strategy

1. Create clear policies and guidelines

Always create clear policies and guidelines so that there is no confusion between your company and your partners.

2. Find the right match

Spending  time in qualifying, and understanding partners. The wrong partners will always consume lots of valuable time and resources.So always focus on quality over quantity.

3. Invest in enablement and training

Develop comprehensive training schedules and  programs so that partners know your goods in a good manner. Always be ready to answer the questions of your third-party partner. 

A) Design your Company’s Channel Partner Program

When structuring your firm’s channel sales partnerships, first and foremost determine what type of partner(s) your company needs, based on your goals. Here are some common objectives.

1. Partners for delivery and implementation

Is your company  expecting to accelerate growth? Your company might be facing a shortage of manpower to deliver at a faster pace, but partners could not have shortages of manpower. 

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2. Partners are for solutions, support, and maintenance

Partnering with another company will  actually deliver that third consumer or client  requirement allowing your company to meet this need more quickly than delivering that capability yourself. This may also extend to the maintenance and support of your goods or service.

3. Partners for sales reach

Maybe your company doesn’t have enough salesmen in a particular market or a region. Perhaps your company wants to break into a new industry. Then you would  want to find third-party  partners who have an existing reach in the market or industry your company is targeting.

(B) Consider these Questions Before Connecting with Partners

Get clarity on these important  areas before contacting or inviting potential partners to contact your company.

1. What are your company’s expectations of them?

Understand what type of commitment your company is  seeking from partners. Consider both the partner performance and partner engagement  indicators, like  leads generated or converted,  completion of training or certification, and total revenue brought in.

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2. What your company can offer potential partners?

Your company’s partners will want to know what type of support and service you intend to provide, such as access to sales, a dedicated account manager, incentives, comprehensive training marketing tools, technical resources, and rewards.

(C) Recruit channel sales partners

Once your company is  outlined your goals for partnering and structured your program accordingly, your company  can develop a list of prospective  third-party partners by industry, technical capabilities,  geography, and other factors. Make sure that your company must pick the right partner based on capabilities. Two approaches to recruiting partners are.

1. Outbound recruitment

Identifying partners and contacting them proactively rather than waiting for them to contact your company is another option.

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2. Inbound recruitment

It happens when potential partners come to your company. For example, you may set up a form on your company’s  website where potential partners can express interest in selling your goods and services. 

(D) Hire a Channel Sales Team

Introducing a successful third-party channel sales program required for the establishment of committed team members armed to assist both the program and your company’s partners. To efficiently cover the spectrum, ensure about the following important roles and the beneficial soft skills each demands.

Important Roles and Responsibilities for Channel Sales Team Members:

1. Channel Operations or Portal Manager:

Mostly referred to as partner program management, this role includes the administration and design of the partner portal. Such a partner portal caters as the central hub where third-party partners approach workflows and beneficial resources.

Soft Skills Required:

  • Design and UX Proficiency
  • Project Management

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2. Channel Sales Leader

Accountable for gaining partner revenue objectives and assuring a prompt sales funnel, the Channel Sales Leader directs and oversees the entire channel sales plannings, initiatives, and policies.

Soft Skills Required:

  • PlannedLeadership
  • Sales Technique Development

3. Partner Account Manager (PAM) or Channel Account Manager (CAM):

CAMs deliver an important role on the front lines, cultivating and sustaining strong relationships with partners. From onboarding to granting ongoing support for sales resources, Channel Account Managers are an essential to creating and maintaining pipelines with third-party partners.

Soft Skills Required:

  • Relationship Formation
  • Coaching and Motivation

By deliberately organizing such roles and encouraging the essential soft skills, your channel sales team members can efficiently navigate the difficulties of third-party partnerships. Such approach assures that your company’s channel sales program is assisted by skilled and committed team members, guiding the way for collaborative achievement with external partners.

(E) Support your channel partners

Your company has brought new partners up to speed and they are off to the races. Now what? Third-party Partners need ongoing support and assistance throughout their involvement with your company. Below are a few ways to show your company’s assistance and set partners up for success.

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1. Provide quick access to resources

Partners will need access to marketing assets, product specs, pitch decks, or more. Making all these resources available on demand empowers and helps partners to be more fruitful and lessen the back-and-forth with internal channel managers.

2. Offer omnichannel assistant and peer groups

Are sure partners must have email, chat, or phone support for when queries arise. You can also give offers like a B2B social media community for partners, where they will find applicable success stories, can ask questions from each other, and share best practices. 

3. Provide prepackaged campaigns

Some partners do not have dedicated marketing salesmen or departments or any resources, so offering them can prebuilt campaigns, brandable content, or trade shows in a box makes it easier for them to market your offering.

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(F) Measure your company’s channel sales programs

Your company can use metrics to identify your most important strategic partners which can help in boosting the revenue margin of the company, so you now know where to invest your funds. Your partners may use analytics to discuss where they need more assistance or training or to benchmark where your partner stands against other partners.

Always consider sharing and tracking these partner success metrics:

  • Partner pipeline for the quarter
  • Partner leadership scoreboards
  • Total marketing funds used for ROI
  • Partner pipeline for the year
  • Total revenue driven

Conclusion

Enhancing support for partners, vendors, and customers alike, a robust channel sales program is essential. Efficiently crafting each phase of the process, spanning from recruitment to the measurement of channel sales, companies can cultivate enduring support and reap lasting benefits from their indirect selling endeavours.

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