Channel communications: adapt or die

Technology vendors are adapting to the changing needs of their customers and, consequently, their channel communities are becoming increasingly fragmented and diverse. At the same time vendors are being constantly challenged to maximise the performance of their channel programmes.

With decreasing budgets and limited headcounts, it is vital for vendors to effectively segment their channel universe and deliver relevant communications to the right partners, in a timely manner using the most effective media. Vendors are constantly striving to achieve 'cut through' whilst their partners expect more relevant communications aligned to their individual needs.

The key questions that need to be answered in creating a successful channel communications strategy are as follows:

1. What are partners worth to the vendor today?
2. What do partners' need from the vendor?
3. What opportunities are there to influence partners' behaviour?
   What are your partners worth to you?

Many vendors have different methods for measuring partner value. While a traditional model focuses primarily on measuring the partner's transaction volume, there are other important metrics to consider in fully assessing a partner's true value,and correspondingly their individual needs.

Many channel programmes are still structured according to vendor-defined segments that are often too broad and do not necessarily reflect the partners' needs, be they a reseller, integrator, service or solution provider.  As part of their recent program review, Oracle proactively sought a greater understanding of their partners, how they classified themselves, and most importantly, the ways they wanted to work with Oracle. 

As a result, Oracle radically simplified the Oracle PartnerNetwork programme to allow partners to choose the areas in which they want to specialise.  Partners are able to cherry-pick products and services to suit their individual business objectives - enabling them to diversify into new areas, explore new opportunities and differentiate themselves based on their business focus, not just their size.  Oracle is subsequently able to provide more relevant communication, support and rewards to those partners in the way they want it and when it is required.  

Building relationships

Understanding partners and their value is just the first step in best practice relationship marketing.  Behavioural segmentation and predictive profiling can further help vendors to identify the high performers and the partners with growth potential that should be nurtured. 

With these insights, a vendor can create and maintain a profitable relationship via the channel partner programme. They can gain better understanding, and make informed choices on key decisions about channel investment, marketing strategy and even channel capacity planning.

Vendors must measure partner engagement in different ways. New opportunities are being identified with the convergence between IT and communications industries, and more recently between the mobile and audiovisual channels. Relationships are becoming ever more important and complex. Each channel partner now has their own business agenda, with differing needs which can often be very specific. Profitable relationships will develop from understanding, commitment and communication within the channel. 

Through its Intel® Technology Provider program, Intel has actively extended its dialog with the channel from its conventional focus on System Integrators to embrace Value-Added Resellers and Solution Providers who recommend Intel Architecture without direct purchase of Intel components. By providing sales tools and customer ready marketing materials, Intel supports its channel partners development of business-oriented propositions for their end customers.      

Driving greater engagement

The solution lies within relevant communications - vendors and partners must go back to basics and listen to each other's needs to ensure the most effective partner programmes are devised. These should be flexible in order to evolve within a dynamic and fast-paced marketplace.  

The foundations for a more intimate relationship can then be established between vendor and partner, and evolve from mere dialogue between companies to discussions between people. There are potentially many different roles within a typical Channel Partner - which implies different people have different individual needs and motivators. Whilst larger partners may comprise clearly defined roles, individuals within smaller partner organizations often wear several hats.

So, as modern communication techniques and social media allow us to be more personal and more responsive, the individual within the partner organisation is equally more empowered and is defining the nature of the dialogue he or she wants to have with vendors. 

Across the organisation, IBM has credited its active corporate adopting of social media with improving search satisfaction by 50%, delivering $4.5m in productivity savings per year and $700k savings per month in reduced travel. Their channel community alone includes over 250 LinkedIn IBM Groups, more than 400 Facebook IBM Groups and in excess of 500 Blogs in addition to 15,000 IBM PartnerWorld members.[1]

A data-driven segmentation strategy is integral in demonstrating that a vendor understands their Channel customers' needs, values and opportunities.  It creates the ability to develop a more intimate dialogue with the right customers, which will help meet both parties' business objectives.