Channel Sales

A channel sales program incorporates all of the things your business needs to do in order to drive orders for your product or service through your channel partners. Your marketing plan will build awareness and interest, while your sales plan builds preference and action to purchase your products.

The key to a successful channel sales program is to make sure that all the people involved are enabled, and both your business and the channel partner are ready to do business together.

People Readiness

The first consideration for your sales readiness, is to make sure all the people involved have the proper skills and knowledge. Skill and knowledge level will very among individuals.

Decide what skills and knowledge are most important so your channel partners can sell your products. Once you have identified that information, assess your partners to see how well they match those criteria.

Using that assessment, determine what information, skills and knowledge you have to deliver so your partner will be successful. Work with your channel partner to identify the most critical training needs, and put a program together to make them proficient with their customers.

It is important to have some type of lead generation program in place. Consider having an inside, or telesales program to help generate leads.

Review your direct sales process with your partner, and integrate it into a joint methodology that works for both of you.

There may be strategic or large accounts that require account management and cooperation within the account. Determine ahead of time what your account management rules and processes will be.

Business Readiness

Aligning your two businesses to work together, requires you to consider all parts of both companies that need to connect. Consider the following areas:

• Deal registration is a critical area to ensure proper recognition and payment.


• An opportunity management methodology is important so both sales teams are speaking the same language.


• A sales process map will ensure that your partners are correctly moving through the sales cycle.


• Standard proposal forms and an RFP response process need to be established.


• Pricing needs to be determined, and a special discounting procedure should be defined.


• As your sales develop you'll want to have a pipeline management process and schedule in place.


• Order entry, processing, and order management need to be clearly documented.


• Support for both presales and post sales need to be established.


• A mutually accessible CRM tool and sales portal are key for sharing valuable information.


• Consider infrastructure requirements such as phones, internet, websites, portal and other key items.


• Administrative systems need to be in place that integrate with both companies.


• All required templates, documents and terms and conditions need to be established before the first order comes in.


• Shipping logistics of your product to your partner and your customer need to defined and documented.


• Financial organizations of both companies need to be introduced.


• Gain agreement on a channel marketing plan.

Tools

Depending on the nature of your product or service, your partners may need demo products or loaners to help them sell to their customers.

Consider the customer facing sales collateral, and information that you will make available to help your partners sell.

Your partner sales team may also need special communications access and consideration to take your product to the marketplace. Consider your partners sales team as part of your own, and equip them with the tools they need just as you would your own direct sales team.

Metrics

You and your channel sales partner need to decide the best metrics to help monitor and manage the results. There are many things that can be measured. It is up to you to determine what is most important to track. Keep in mind you don't want to unnecessarily burden each company with administration.

Some of the key metrics you need to consider:

• The number of leads given to and developed by your partner
• The size of the pipeline
• Average size of identified opportunities
• Velocity of your opportunities through the sales process
• Number and size of orders
• Relationship enhancement with your partner and customers
• Marketing program results
• The type and frequency of reports

Having a well functioning and trouble-free channel sales operation, is probably the most important thing you can do to ensure an excellent working relationship with your channel partners. Take the time to do what is necessary to make your joint sales efforts work effectively.

Related Articles

• Channel Partner Planning
• Recruiting Channel Partners
• Channel Marketing
• Channel Management

Return From Channel Sales To Home