Tweet

How A Channel Conflict With Partners Can Be Resolved To Improve ROI

Guest post by: Dandy Rockwell

Article Overview: Conflict is a common ingredient between enterprises and their channel partners. A web search of "Channel Conflict" generates many articles, most of which are generally related to pricing issues with, or between, channel partners. However, channel conflicts can occur in a much broader spectrum in the channel, and many manufacturers aren't even aware of the conflicts. The consequences of ignoring "hidden" conflicts can rob a company of a significant portion of its ROI.

How A Channel Conflict With Partners Can Be Resolved To Improve ROI

Conflict is a common ingredient between enterprises and their channel partners. A web search of "Channel Conflict" generates many articles, most of which are generally related to pricing issues with, or between, channel partners. However, channel conflicts can occur in a much broader spectrum in the channel, and many manufacturers aren't even aware of the conflicts. The consequences of ignoring "hidden" conflicts can rob a company of a significant portion of its ROI.

For instance, maybe you hear your partners say things like this:

• "Why is it necessary to have so many websites, usernames, and passwords to get the information I'm looking for?"

• "How can I get my new employees trained? Where can they go later when they need instant information?"

• "We feel like we're the only ones out here. How do we get in touch with other people - either an expert at the company or another dealer - who can help me?"

Or maybe, your people say things like this:

• "Why do my partners let the good leads we give them go dry?"

• "Even my own people are frustrated with our current partner systems."

• "Our partners don't possess the brand loyalty we think they should have."

If you've heard these questions or comments from your dealers or your own staff, then you know there is more than just price conflict in the channel, and you know there is a cost associated with this conflict. And if you haven't heard them, maybe you should ask.

Research shows there is often a significant gap between how managers at the manufacturer level perceive how their partners feel about the level of support they receive and how the channel partners themselves perceive how they are being supported. In one study (Abistar Group, 2010), the gaps were shown to be significant. In a key area of Partner Management, Marketing and Communications, managers scored what they thought their partners' satisfaction to be at 77% while the partners scored it well below that, at 59%. Similar gaps were noted for Training and Certification, Performance Management, and Collaboration.

These gaps produce friction between the enterprise and its partners. This conflict can eventually lead to reduced revenue, slower growth, and higher administrative costs. Likewise, resolving this kind of channel conflict can improve ROI.

Partner Relationship Management Systems Can Reduce Channel Conflict

Companies have reduced channel conflict by incorporating a Partner Relationship Management (PRM) system in the channel. PRM systems are web-based software solutions that unify all facets of managing a distribution channel into a single partner portal. In conjunction with continuous improvement programs and the application of best practices, companies have been able to increase channel productivity and lower costs using a PRM system. These initiatives, when combined, make it easier for partners to do business with the manufacturer. Let's take a look at some specific ways ROI can be increased using the same four partner management activities assessed in the survey.

Marketing and Communications

Effective channel partner marketing is critical to the success of any company selling through an independent channel. Partners need to see clear, understandable communications coming from one source. They need alerts, reminders and announcements about product introductions sent on a timely basis. And they need to be able to quickly find past communications. A PRM system allows a company to successfully synchronize all business communication activity within a channel. If you communicate your products and brand effectively, your partners will be more informed and enthusiastic about your company, and more likely to effectively sell your product, increasing ROI.

Training and Certification

Today's PRM technologies manage and deliver online training, classroom training, assessments, webinars and other e-learning activities. This provides employees and their managers the ability to create, manage, and view a defined learning plan and certifications for specific job roles. This kind of well-balanced, channel training can contribute significantly to reducing partner ramp-up time and costs, and increasing individual performance, delivering a positive impact on a business's ROI.

Performance Management

Measurement is an important key to successful enterprise performance because it helps managers make more effective decisions. Today, most channel management technologies include a reporting dashboard for managers to access information about the people and organizations they manage. Having good information at your fingertips helps you make good decisions and increase ROI, particularly as an enterprise scales up and adds more partners.

Collaboration

Given today's acceptance of social media, employees are "expecting" to be able to collaborate with others in their channel. A Partner Relationship Management (PRM) system can provide a good forum for this to take place, where it can be overseen and managed to the benefit of the enterprise and its channel partners. This peer-to-peer communication can help resolve current issues by providing a repository for best practices. Companies who just a few years ago were trying to stifle this kind of communication today are embracing it because they know it produces more informed, more effective, and more brand-loyal channel employees. As the level of information shared by many people increases, so does ROI.



Channel Conflicts Can Be Resolved

Instituting a web-based Partner Relationship Management (PRM) system can increase ROI. The most successful companies using PRM systems have combined them with a continuous improvement and measurement program, along with instituting business strategies based on the best practices found in channel management today. When all combined, this strategy can reduce the cost of managing and administering the channel, and eliminate many of the causes of the conflicts themselves, improving the company's return on investment for the long term.

Related Articles
  Working Around Channel Conflict
  Partner Relationship Management Guides
  Channel Management Training
  How To Reduce Channel Conflict - Understanding Industry Best Practices
  Greatest Practices for Partner Management on Channel Partners
  Channel Training Trouble? Where to Look for Help
  Effective Partner Portal Strategies
  Channel Partner Marketing Solutions
  Partner Management Strategies
  Starting Over Every Day
  Boot Camp Training for Conflict Resolution Skills
  Partner Management Ideas and Pointers
  Leave Your Ego at the Door, Please
  What do your reality shows reveal about you?
  Power of Partnerships
  Coworker Conflicts: Eight Rules for Fair Fighting (Even When You’re Mad)
  Conflict Resolution
  The Conflict Transformation of a Leader
  Top Ten Things You Need To Know about Conflict Resolution
  Conflict Resolution

Article Tags: channel management software, partner management, partner portal, partner relationship management



Related Forum Posts
Re: Make Friends...Literally BUILD them! - Hi All' Any one watching Caprica on the Sci Fi Channel?
Re: Partnership questions - Thats a tough one. Partners are not my favorite. How much development do you have left and how much time and cost will it take to get you to a finished product?
Selling on the Shopping Channel - Thanks Kevin - it certainly was an interesting experience and it was fun to learn about the direct selling via tv model. The two things we were told afterwards were that the testimonials should have been bigger (as you suggested) and that we should have had older models (nobody under 35) in the background because the demographics of the Shopping Channel are older viewers.
Re: Make Friends...Literally BUILD them! - [quote="barrysarner":xrsxaosp]Hi All' Any one watching Caprica on the Sci Fi Channel?[/quote:xrsxaosp] Hey Barry, I've seen it advertised but haven't watched it. What's it about?
Email marketing system - Hi Louis - as discussed at our last meeting, the company which contacted me regarding their email marketing system and said that they did not require a double opt in was Got. The direct contact was: Maxine Grossman | maxine@gotcorp.com Dir. Channel Sales Tel: 514-282-0595 ext. 233 | Fax: 514-282-1908 permission | relevance | intelligence


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Leader's Success Secret: Celebration

Leading with Discernment

The Pure FUN of Learning & Using NLP

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.