Like a good spring cleaning, an economic downturn presents an excellent opportunity to thoroughly reevaluate and, if necessary, re-equip existing channel programs. But be careful! Unlike sorting items in your basement or garage and placing them in garbage or “gatekeepers” piles, judgment decisions regarding channel shows and associations are more complex than the question “Should I stay or should I go?” posed by The Clash in a popular 80s tune.
Underperforming distribution channels are a major source of frustration, although lagging sales during tough times are a bit easier to understand (but not accept). Before you rate your partners’ performance, and certainly before recklessly wielding your red pen that signifies your failure, take a deep breath and ask yourself the first of many questions: “What did you hope to achieve through this channel program?”
While the response (s) can be highly predictable, such as achieving consistent incremental revenue, increasing geographic coverage, reaching new end-user groups, or simply achieving greater market coverage without hiring additional internal staff. 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 minds, fostering an open and frank discussion between senior executives and the sales staff of your own company and your channel partners. Just as important, you need to poll a full spectrum of end users, from your best and oldest customers to fledgling buyers who need nurturing to grow.
Only after everyone intervenes will you be able to accurately and objectively assess original and existing business goals 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 deviated 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 attractive enough? Or are they the size of a sandwich?
o Is your suite of products and services up-to-date and in demand?
o Do you have a channel program execution strategy firmly tied to your overall business goals?
There is no doubt that your channel program and your partners are the keys to your organization’s success. Your incentive for open dialogue with all partners will clear up any misconceptions or misunderstandings, providing a level of satisfaction and mutual benefit that far outweighs the temporary good feelings evoked by a clear garage or basement.
