When it comes to utilising the strongest and most effective sales channel possible, quality is definitely better than quantity. Get rid of zombie channel partners or resellers not doing their best for your business and focus on rewarding your best with a Channel Partner Incentive Program.
When it comes to a channel partner network, is bigger really always better? A diverse reseller portfolio means you cover a broader geographical area with a wider customer base, but what if this results in frequent miscommunication about sales strategy, amongst other problems?
Tech developers Citrix cut 12 per cent of their resellers - increasing their customer base by 30 per cent.
A few strong sales channels, with the right Channel Partner Incentive Program in place to drive improved performance, is just as effective as an extensive reseller network, despite the number of advantages that come with having many resellers.
Three benefits of using a large channel partner network
B2B partner experts Tenego Partnering identifies three key advantages of having a large number of channel partners:
More geographic expertise: A web of global resellers offers you hard-to-come-by insight into the workings of the local market. This information is invaluable when it comes to creating regional marketing strategies that are more likely to succeed.
Broad base of expertise: Working with a larger number of resellers offers you access to a broader pool of sales experience and methods for hitting the mark.
A louder megaphone for your own brand: A larger reseller network translates to greater exposure in different markets. Even if your resellers are not actively pushing sales of your brand, your simply being there is free advertising in and of itself.
Three drawbacks of using a large channel partner network
There is, however, such a thing as too many channel partners. With too many resellers working with your brand, you run the risk of:
Losing touch: Trying to keep communication open between your strategists and numerous channel partners can be challenging. If you struggle to keep in touch with everyone, resellers can quickly become frustrated with your efforts (or lack of) and look for new sales channels.
Miscommunication over sales strategy: Failure to keep resellers up to date with your marketing strategy or sales data can result in them working inefficiently or focusing on promoting products/services that are no longer your priority.
Crossing paths: A number of resellers in one market can result in your channel partners competing against each other, which will ultimately lower your sales.
Too many sales channels become difficult to manage and fewer committed resellers means you can foster stronger sales relationships.
Focus on a quality few with a Channel Partner Incentive Program
American multinational software provider Citrix championed this doubling-down on committed resellers in 2016 when it announced a 12 per cent reduction in its channel partner network in the EMEA market. This resulted in a 30 per cent net new customers by the year's end.
There are a number of positives to trimming the fat off your reseller web:
Improved communication: By reducing the number of inactive partners, you can focus on targeting committed resellers with more up-to-date sales information and building better marketing relationships.
Protecting your brand image: Uninterested channel partners can lead to your product/service being marketed irresponsibly. Keeping your loyal resellers onside and getting rid of the rest minimises this risk.
Drive sales channel growth through rewards: Reducing the number of partners on your portfolio means you can focus on recognising the efforts of your best-in-class with a higher rewards budget and more personal prizes.
Using a Power2Motivate Reseller Program
Improving the business relationship with your chosen few resellers should be built on an incentive strategy that clearly lays out your sales goals and rewards high performers.
Power2Motivate Australia boast a large team of industry experts in managing Channel Partner Programs that deliver the right incentives at the right time. With a unique points-based system that can be tied to campaign or wider sales KPIs, you can ensure resellers are rewarded for their efforts with a gift that is individual to them from our Global Rewards Gallery.
For more information on rewarding your streamlined reseller network with a Channel Partner Incentive Program, contact Power2Motivate Australia today.