bChannels structure of indirect channels
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1) There are many routes to market for vendors including distributors, system integrators, resellers, retail chains, and direct sales. Measuring "sales out" to end customers is important for understanding true customer demand. 2) Most channel programs sort partners into tiers based on factors like sales volume, but this can neglect the needs of smaller partners. The optimal mix of partners balances revenue contribution across partner sizes. 3) An effective partner program balances measurable requirements from partners with measurable benefits and rewards to find a return on investment for both partners and vendors. It involves analyzing, targeting, managing, measuring, and engaging partners to create awareness and leads.
![Measuring Sales
Why ‘Sales Out’ is so important
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FOCUS. PEOPLE. COMPETENCY](https://image.slidesharecdn.com/bchannels-structureofindirectchannels-120717061930-phpapp02/85/bChannels-structure-of-indirect-channels-4-320.jpg)
bChannels structure of indirect channels
- 1. bChannels Structures of Channels FOCUS. PEOPLE. COMPETENCY
- 2. The Market Triangle – few big companies + lots of little companies Optimum IT Corporate Resellers business split* Corporate, 20% Pull Corporate 500 employees Vendor Large Large, 20% SME, 60% Business Resellers & 100 employees Retail Push * Source Gartner/IDC Small/Medium (SME) 1 employee FOCUS. PEOPLE. COMPETENCY
- 3. Many Routes to Market Different end-customers buy in different ways Vendor Sales In Distributors Sales Out Sales Out System’s Integrators Catalog/ Corporate Local Resellers Retail Mail Order Resellers (2-Tier) Chains & eTail Corporate SME SOHO Consumer 500+ 10-500 1-9 1 End users by size of company (number of employees) FOCUS. PEOPLE. COMPETENCY
- 4. Measuring Sales Why ‘Sales Out’ is so important Sales “in” Sales “out” “True” sales Distributor End Vendor Distributor Reseller Distributor [No Stock] Customer Stock Measuring sales to Measuring distributors ‘sales out’ is a just measures very good how much indication of you are filling real customer their purchases warehouse FOCUS. PEOPLE. COMPETENCY
- 5. Program Tiers What’s the best mix of partners? 20% Partners 80% Revenue 5% Partners 50% Revenue 45% Partners 45% Revenue 15% Partners 30% Revenue 80% Partners 20% Revenue 30% Partners 15% Revenue 50% Partners 5% Revenue FOCUS. PEOPLE. COMPETENCY.
- 6. The Terrible Tiers or how many vendors think about their channel You buy a lot. So you must be pushing our products. We’re not clear about that. We’ll spend a lot of time with you anyway. Sorry, no humans available. Managed You must interact with us through our ” website. Remote Touch We have no idea who you are. You must not be important. Unmanaged FOCUS. PEOPLE. COMPETENCY
- 7. The ‘sweet spot’ Which bChannels can find and help you exploit Value ($/€/£) Difficult to significantly grow existing managed accounts Biggest Growth opportunity Growing low- value accounts yields low revenues Top Top Reseller Size Biggest 100 500 Smallest Managed High value Low value Accounts unmanaged Accounts Accounts FOCUS. PEOPLE. COMPETENCY
- 8. Partner programs have to be balanced It’s not all about what the vendor wants The partner program must balance measurable requirements with measurable benefits. Invest Reward Sales Financial Skills Access Service Recognition The Partner Program must provide a return on investment for both the partner and the vendor. FOCUS. PEOPLE. COMPETENCY.
- 9. Core Partner Program Methodology Analyse, Identify classify + Build effective and target partners Manage partner value propositions Measure Communicate + + Reward Engage Create awareness Deliver Deliver and leads ! program communication benefits to the channel Establish program requirements Channel Partners FOCUS. PEOPLE. COMPETENCY