Alignment of channel program goals with overall business objectives

Like a good spring cleaning, an economic downturn presents an excellent opportunity to thoroughly reassess and, if necessary, reorganize existing channel schedules. But be careful! Unlike sorting through items in your basement or garage and placing them in junkyards or “keepers,” judgmental decisions regarding channel shows and partnerships are more complex than the question “Should I stay or should I go?” ” posed by The Clash in a popular song from the 1980s.

Underperforming distribution channels are a major source of frustration, though lagging sales during tough times are a little easier to understand (but not accept). Before you rate your partners’ performance, and certainly before you recklessly brandish your red pen to signal your failure, take a deep breath and ask yourself the first of many questions: “What did you hope to accomplish through this channel program?”

While the response(s) may be highly predictable, such as gaining consistent incremental revenue, increasing geographic coverage, reaching new end-user groups, or simply achieving greater market coverage without hiring For additional internal information, these objectives are essential elements for an effective evaluation and possible reorganization of your channel program.

Don’t stop there. You may need to convene an all-inclusive meeting of the minds, encouraging an open and candid discussion between senior executives and sales people from your own company and your channel partners. Just as important, you need to survey a full spectrum of end users, from your oldest and best customers to budding buyers who need attention to grow.

Only after everyone is involved will you be able to accurately and objectively assess your original and existing business objectives and determine if and how your channel program needs to change. In addition to synergies with your overall business goals, ask yourself and your partners the following:

o What is the rationale for your existing channel program? Have you strayed unnecessarily from your original intention or goal? Or have changes in your business or the economy in general dictated changes?
o Are there effective criteria to measure the success of your program? What changes should you make to achieve a more meaningful and accurate measurement?
o Aside from increasing product and service sales, what behaviors are you trying to inspire among your channel partners? Are the carrots you provide tempting enough? Or are they the size of a snack?
o Is your suite of products and services current and in demand?
o Do you have a channel program execution strategy firmly tied to your overall business objectives?

There’s no question that your channel program and partners are the keys to your organization’s success. Its encouragement of an open dialogue between all partners will clear up any misconceptions or misunderstandings, providing a level of satisfaction and mutual benefit that far exceeds the temporary good feelings evoked by a clear garage or basement.

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