3 Tips to Improve Communications with Channel Partners

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Strategies for better engagement, participation, and results

Effective communication between colleagues and co-workers who all work under the same roof is tough enough. For companies that operate using an indirect sales model, the hurdles that stand in the way of effective communication can seem overwhelming.  

For all the obvious reasons, communication has long been a challenge for companies that sell through distributors or channel partners. And it’s hardly surprising why. Numerous systems and processes across multiple regions and multiple distributors is a recipe for inefficiency. Stuff falls through the cracks. Important stuff, like leads and opportunities. Cumbersome processes, outdated or irrelevant information and poor pipeline visibility all result from poorly executed channel communications.

That said, for those that get it right, communication can also be a major source of competitive differentiation From increased channel partner performance and better conversion rates to stronger, more mutually beneficial distributor relationships — the potential benefits are game-changers. Because at the end of the day, better communication makes it easier for your network partners to do their job of selling and servicing your products every day. So, what does effective channel communication look like?

1. Focus on simplicity

We call it the manufacturers’ “black hole” — when a sales lead or opportunity is sent to a channel partner and no one is quite sure what becomes of it. At least not easily. Was the lead contacted? Where is it in the pipeline? Is this information easily accessible in real-time or do you have to dig for it? Effective communication can and should give you crystal clear, up-to-the-minute pipeline visibility. To do this, focus on simplicity. Your channel partners or distributors are already overwhelmed with plenty of “noise.” Don’t add to the clutter by asking them to log-in to your special portal, or sift through generic emails combing for information relevant to them. Provide a solution that allows them to quickly and easily communicate the quality and status of each lead they receive.

2. Be helpful at the right time

Timely and contextual communication is critical to effective partner engagement. Sending information too early adds to the overload your partners are already experiencing. Not to mention, the longer the information sits before it’s relevant, the greater the chance that it will be forgotten or misplaced. Of course, information that is sent too late is useless. Be helpful by providing product line updates, sales materials and other updates by stage and location at precisely the right time. Your distributors will feel supported and be better positioned to convert opportunities into sales.

3. Create a closed communication loop

Channels communication and collaboration work best when both manufacturer and distributor are working from the same information at the same time. If feedback on the quality and needs of sales leads is limited, or acquired through call centers or blanket surveys, the result will be data that is dated, incomplete and unhelpful. The key is to create “a closed communication loop” in which both manufacturer and channel partner are communicating via the same platform in real-time. All parties can easily view the status, quality and needs associated with every opportunity — the kind of feedback and visibility that leads to huge gains in sales performance.

Want more expert tips on effective channel communication? We can help.

Why Channel Forecasting is a Challenge, and How to Fix it

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The ability to see a clear view of current and anticipated sales has long befuddled companies who sell through distributor or channel partners.

And for good reason.

The challenge

Unlike traditional B2B or B2C sales models, companies that sell through distributors or channel partners often deal with a host of different systems, processes and even sales definitions. For large companies that might mean hundreds of disparate methods, which makes accurate and meaningful forecasting an inherently difficult process.

Sure, your channel tools may give you a clear view of the numbers at quarter’s end, but from a business performance perspective this information is too little too late to be meaningful.

And as much as you may want a tighter forecast, your arms-length relationship with your external partners means you have less control.  Plus, since your partner likely represents multiple vendors, is doesn’t make sense for them to provide separate forecasts for every vendor they work with.

The potential payoff

The ability to see a clear, real-time picture of your current and predicted sales has significant benefits to all aspects of your business performance, including your sales, finance and manufacturing teams.

Accurate financial forecasts are particularly important for publicly traded companies that provide quarterly guidance to investors. Manufacturing benefits from improved alignment between production and sales, preventing stock outs, optimizing inventory and aligning production schedules with actual market demand.

Meanwhile solid forecasts boost sales performance and promote realistic goal-setting. When you can eliminate weak opportunities from the pipeline, your partners can avoid wasting time and resources on an opportunity that is not likely to close.

Finally, a current view of the opportunity pipeline enables pipeline managers to identify early warning signals and glaring risks that may pop up, giving them a chance to tackle these issues at an early stage before they affect the performance of your partner.

Take the guesswork out of forecasting

Here are 4 strategies to fix a broken (or non-existent) forecasting process so you can gain crystal clear pipeline visibility:

1. Deploy a single, shared platform among your network of distributors for one overall system of record.  One connected network of channel partners all communicating and collaborating on the same platform about action items, deal status and opportunity tracking will give you the pipeline visibility required for accurate forecasting.

2. Single, shared definitions of deal stage and closing probabilities. If you are all speaking the same language — and seeing the same view of opportunities — it’s far easier to see an accurate picture of your overall pipeline across distributors, and react to it.

3. Near-time/real-time updates on deal progress made possible by integrated system and process integrated with how distributor sells. Leveraging data such as conversion metrics, response times and trend analysis provides an up-to-the-minute view of channel performance.

4. Closed-loop communication across all distributors in network. A real-time tool that enables ongoing feedback between you and your partners creates a “closed loop” around opportunity status, lead quality and needs — without the hassle or cost of surveys or call centers.

Adopt these 4 strategies and your channel sales forecasting efforts will go from cloudy to abundantly clear in no time.