Getting the best from your channels

Multiple sales channel systems can be highly complex and managing them to gain optimum performance is not a simple process. There is often a separation between corporate goals and channel activity and bringing these two in line is a key objective in channel management.

Your organisation needs to build management and performance measurement processes that avoid the pitfalls of over complexity.

You need to set overall sales objectives and performance targets then develop channel metrics. These will allow you to quickly identify performance gaps and set action plans in place to overcome them.

• Are you managing for revenue or for revenue and profit?
• How will you decide which channels to invest in? When and how much?
• How will you measure and manage the channel?
• What will you do when the channel doesn’t achieve.
• Building a channel metrics model, what information should you expect from your partners?
• Will your model allow you to change and develop your channel over time?

Orientation and Alignment

The starting point for your organisation in this process is one of orientation. You need to be sure that the overall goals of the entire channel system match your corporate goals. This is key.

The realisation that corporate goals are not being achieved often results in activities that are detrimental to the performance of the channel, often creating a foundation for channel conflicts.

Channel Performance Targets

Setting the overall sales objectives is the foundation for developing individual channel performance targets. These specific targets must reflect the unique role that each of your channels play in the channel system.

Having designed the targets for the channel, you must then develop specific tasks and activities that will help to drive the channel towards its performance targets. Using these tasks and activities allows you to develop metrics and quantitative measures. These then allow you to guide and monitor channel activity and results.

Channel Performance Metrics

Channel performance metrics allow a cyclical process to be developed. Exceptions can then be identified as they arise, and changes can be made to the channel action plan.

ProSecta management has many years of experience in developing and managing channels around the world. ProSecta will develop processes specifically designed to manage the performance of your channels. We believe that our processes avoid the problems of over-complexity and resistance. Our processes will improve your ability to track and influence performance, whilst not forcing a specific sales approach on the channel partner.

We believe that blending the right mix of metrics and targets added to careful relationship management will allow you to successfully develop your channel performance over time.