How to Work with Channel Management Software Vendors

Published: May 6, 2016, 6:07 p.m.

b'As more and more companies add channel to their sales equation, the competition to reach the end user via channel has increased substantially. New partners enter the marketplace in the same way vendors do, but in the end what matters is having access to a group of successful partners who have been in business for a while. This is not easy without a structured channel management approach. That\\u2019s where automation comes in. Organizations need to pick the right channel management software platform, not only to make sure their go-to-market approach via channel is fully optimized and earns the respect of their channel partners, but also to substantially increase sales productivity.\\nWith that as a backdrop, let\\u2019s look at some things to consider when selecting a vendor. It\\u2019s important to keep in mind that channel management software is a new category. While partner relationship management (PRM) software concepts and even tools have been around for more than a decade, until recently truly affordable solutions didn\\u2019t really exist. Also, PRM by itself does not address the full range of channel management challenges, but requires a complimentary solution that most analysts call today through-channel marketing automation (TCMA). So, for channel management automation to be complete, an organization needs to select the right vendor not just for PRM, but also for TCMA. This increases the complexity quite a bit, especially in light of the fact that not a lot of data exists about most of these vendors.\\nSo what is the right approach in selecting a vendor for channel management software? That is exactly what we will explore in the five steps outlined below.\\n\\n\\n \\tSelect the right criteria for your organization. Before you can begin vendor selection, you need to think through your own channel strategy and objectives for the next three years. Is your strategic focus going to be primarily partner recruitment? Partner training? Partner enablement (like demand generation, etc.)? Managing the partners for maximum productivity? You may also have one or more objectives. Before you can begin to engage with a channel management software vendor, you truly need to think this part through. A channel management software vendor can help you execute your strategy better, but they cannot develop one for you. That\\u2019s your job, and it\\u2019s a very important step.\\n \\tPlan your deployment in sequence. Once you have figured out what your priorities are, the next step is to make sure you plan the deployment of your channel management software in sequence. Why is this important? Before deployment you are likely to have a lot of manual processes in place, so ripping everything out at once could cripple your ongoing operations. Therefore, you need to make sure that your channel management software vendor does all installation work and maintenance work in a stepwise fashion\\u2014and before or after normal work hours\\u2014so you can integrate automation into your workflow one module at a time with minimal disruption to everyday business.\\n \\tDefine channel requirements three years out. Once your deployment plan is in place, the next step is to project where you want your channel management automation to go beyond the first year. In fact, you may be better off thinking through the first three years before you turn your focus to the first year. It\\u2019s not unusual for an organization to seek a channel management software vendor without having a clear picture of what their objectives are for the next three to five years. I realize that in today\\u2019s fast-paced business environment, five years may seem like a lifetime. But you should be able to articulate at least a one-to-three-year vision that establishes your channel management priorities. Are you going to focus on recruitment? Do you have plans for segmenting the partner base in multiple ways? Is there a specific geographical evolution that is going to drive your investment strategy? Are you planning a major product launch in the next 12-1...'