Channel Management Insights

TRUST – The #1 concern partners have expressed when introducing a channel program to them. “If we can’t trust the vendor it will be a challenge to work and communicate with them effectively.” This comes in different forms of course and is a two-way street. What level of transparency will the vendor provide? Are there mechanisms in place to resolve conflicts? Does every partner adhere to the same rules of engagement? Can the vendor trust that the partner is also being transparent and putting their product and/or service in the best light? How dedicated is the vendor to their program and the partner to the vendor?

Business Partners in the IWMS industry tend to be geared more towards service partners, solution providers, or implementation partners. Sure, there are technology and integration partners as well, but from a revenue-producing aspect, most are service-related. Because of this focus, the program itself should reflect that, while still incorporating the goal of selling product. It’s not a traditional reseller model so the software sale becomes a welcome residual of the partner providing their comprehensive implementation and value-add services.

To build this trust and take the partners business model into consideration, there are some key components of a successful channel program that should include, but not be limited to:

·       Lead registration program

·       Deal registration program

·       Transparency/Visibility (BETA testing, pre-launch correspondence, etc.)

·       Strong partner training program/certification

·       Tiered commission structure

·       Rules of Engagement

·       Mechanisms to hold partners accountable (scorecards, quotas, etc.)

·       Partner portal for marketing and sales materials (toolkits)

·       Knowledge sharing

·       Collaborative marketing efforts

·       Consistent correspondence/communication

Another way to help build trust and make the partner feel more comfortable may be to introduce a Partner Liaison. Depending on the size of the vendor this could, and typically is, the responsibility of the Channel Manager, but the introduction of a dedicated person can prove to be beneficial. The Liaison can be the Single-Point-of-Contact (SPOC) to address conflicts (conflict resolution is the #2 concern expressed by partners), connect the partner to the correct vendor resource, introduce new features, and help with RFP’s and proposals among other tasks. They are the connection between sales and support that the partner can count on to keep the lines of communication open. This allows the Channel Manager to focus on their tasks including sales, strategy, and program. On the partner side, they may also want to consider introducing a similar position. A liaison-to-liaison relationship can be even more beneficial and help strengthen the relationship further.

For years the CAFM/IWMS industry has been somewhat stagnant from a technology perspective. Although vendors were certainly upgrading and enhancing their products, they were primarily on-premise solutions. The industry is now evolving rapidly, and true cloud-based SaaS technology has been adopted over the last few years. It has since taken off and now includes the Internet of Things (IoT) and many integrated products and services, evidenced by the M&A’s that are happening in the industry. Therefore, the vendor sale extends beyond the core product and knowledge of the integrated products by both vendor and partner is key.

While each situation is different, whether it’s developing a channel and/or program from scratch or enhancing an established one, there are different strategies to consider. Transitioning to current technology can play a large role. Whether its partners transitioning from traditional on-premise solutions to cloud-based SaaS solutions - or the vendors doing the same - different programs, policies, and procedures may need to be incorporated.

The revenue stream from a cloud-based SaaS solution is different from that of an on-premise solution as well. Service packages may be smaller, but projects can be turned over quicker allowing partners to acquire more projects and new logos throughout the year. Software revenue is also different. Instead of a large upfront payoff, it becomes more of annuity providing long-term sustainable revenue, provided the customers are kept happy. These are adjustments partners need to make that can prove beneficial in the long run.

When considering a channel program, these trends and the vendor's and partner's current business models should be taken into consideration - where they are today, and what are the short and long-term goals. Although we all know revenue growth is the driving factor and overall goal, without the proper partner strategy in place to achieve that, and executive buy-in from the top down, it can be an even more challenging road.

While vendors make these adjustments and tailor their programs towards their partners, the partner also needs to take responsibility knowing that the vendor is investing in a program and trusts the partner will invest in learning everything they can about the product, train their staff to sell and implement successfully and adhere to the program's guidelines as well. Partners need to be held accountable and establishing regularly scheduled cadence calls to review pipeline, opportunities, proposals, product, training and more is a key factor in doing so. When partners are held accountable, they begin to perform better and understand that they are important to the program.

All things considered, there needs to be a mutual understanding between partners and vendors that they are both in the business to succeed and be profitable. A little give-and-take from both sides can prove to be beneficial in making that happen. Once everyone is working together and the trust is there, everything else will fall into place and good things will happen.

ABOUT THE AUTHOR

Rich Peacock is a seasoned professional with over 30 years of experience in the Facility Management and Workplace Management fields who excels at analyzing a situation and putting the correct plan in place to either change the course or enhance the process and make it more successful.

He has been responsible for selling Computer Aided Facility Management (CAFM) and Integrated Workplace Management Systems (IWMS) software solutions for 16 years. Prior to this he was implementing these solutions and transitioned into direct sales and eventually channel sales for the same vendors he worked with as a partner. This has been a factor in his success in implementing channel programs that incorporate what a partner is looking for while focusing on the vendor's goals as well.

Rich’s approach is to look at the big picture, strategically look at what needs to be incorporated, and execute that strategy to its success. He has been praised for developing programs that have been fair and equitable to both parties and has established strong, long term relationships with partners that he still communicates with today. He has worked with many of the same partners over the years (in various roles) and believes that the trust and respect he has developed with them supports his views on what a successful channel program can be.