Channel partners bridge the gap between your company and your current and potential consumers. With every business fighting for customer attention, many rely on channel partners for promotions and distribution.
Strong relationships between companies and channel partners allow for increasing sales opportunities, which otherwise would not be possible should the company solely rely on its operational force. Additionally, satisfied channel partners will come in with their expertise, positively affecting a company’s mode of operations.
In this article, we will discuss how you can build lasting relationships with your channel partners – so that you both can work together towards sales growth.
6 Tips to Improve Channel Partner Engagement and Relationships
We know how essential a good channel partner is to business success. Therefore, we have six tips to help garner healthy relationships with your channel partners.
1. Maintain An Uninterrupted Flow of Information
Work towards building an effective supply chain. Value your channel partners by providing them the information and support they need for optimal performance.
Ensure a direct communication link that allows smooth flow of information upwards and downwards the supply chain. Your channel partner should not just be concerned with his direct dealings. In the same way, you should inform of any problems at the beginning of supply chains to the wholesalers, retailers, and distributors. Failure to do so could result in massive problems in terms of product supply.
Even if you are unlikely to operate a fully centralized supply chain, make sure the exchange of information is not only restricted to direct dealings. This will help foster reliability and channel satisfaction, as it would drastically reduce supply and demand issues through miscommunication.
2. Aim for A Strategic Partnership Rather Than a Transactional Relationship
Many businesses only have transactional relationships with their channel partners that are strictly on a need-be basis. However, a much more fruitful partnership is a strategic partnership – in which both parties enjoy a profit.
A strategic partnership is only possible after both parties align their goals. On paper, this sounds simple; after all, both the company and partners are looking for growth in sales and overall business; however, it is not that easy.
You need to ensure that your partners recognize that you want just as much success for them as you want for your business. You can do so through strategic collaboration to benefit the entire channel.
When channel partners see that the company’s interests are aligned with their own, they are more likely to perform better.
3. Reward Your Best Performing Channel Partners
To put it plainly, channel Partner Incentive Programs work. According to the Silicon Valley Research Group, you can boost profits and partner sales by up to 40% using incentives. If you want to procure a loyal partnership, reward programs can help motivate your partners to do better.
Studies have proven that vendors who reward their reps with incentives have better relationships with them. Moreover, these rewards also determine the effort a channel rep will make towards increasing product sales for varying vendors.
With a channel partner incentive program, you provide your reps with the added support they need to succeed in their business. In return for the rewards, like wholesale products discounts or growth rebates, your channel partners can help you with networking. A satisfied partner can help you co-brand with another company.
4. Provide Thorough Training and Set Targets
Do not assume that just because your channel partners have sales experience and network, they will automatically be able to sell your products.
For your channel partners to be able to do their job well, you need to provide them with proper training and familiarize them with your products or services.
Once provided with the right training, the channel partner will be able to sell your products to potential buyers. Taking the time out to train your sales rep will make them feel like a valued part of the team. This consideration on your part will not only help your product’s sales pitch but also make your channel partners advocate for your product outside of business.
Remember that a channel partner can only work as well as you facilitate them. Set realistic targets for sales growth and then back them up with the needed resources – like certifications, for example.
Your backing will help improve channel partner performance, and when it does, show appreciation for their efforts.
5. Respect Differing Priorities and Empathize
Understand that while both parties benefit from aligned goals, it will not always be the case.
Realizing that your channel partners may have different priorities than yours is the key to respecting their needs. The ability to make short-term compromises will help you build long-term relationships with your partners that will last years.
Empathy goes a long way when it comes to channel partners, considering the channel hierarchy. Instead of blaming the channel rep for a business downfall, try to reflect, get to the root cause of the problem and then rectify. We are not asking you to outright ignore negligence from the partner, but try to understand where they are coming from.
Flexibility and willingness to listen on your part contribute majorly to developing resilient channel partner relationships, where they will go the extra mile for your sales and do so for a longer time.
6. Motivate Your Partners
Yes, we have talked about incentives, but motivation does not only come in the form of tangible and intangible rewards. Like employees, a motivated channel partner will perform better, and a better turnover will help them establish a healthier relationship with your company.
You can motivate channel partners like you would your employees. Behavioral motivation can be to entrust them to make the correct decisions, valuing their input, asking for their expertise when needed, providing them with resources as required, and keeping them informed of any changes in the supply chain.
A motivated channel partner is much more likely to associate himself with your brand, even outside of business dealings, and bring you more business growth.
Major Takeaways
Channel providers are pivotal to business growth, thus building lasting – trusted relationships with them is not only beneficial but necessary. The key to building healthy channel partner relationships is to properly train and inform them of any issues in the supply chain.
Moreover, trust them to make the right decisions, understand their needs and reward them through an incentive program when they reach sales targets or improve performance.
Working in collaboration with your channel partner will boost sales, allow co-branding opportunities, and improve your market share.