industryopinion
Three vendor mistakes in channel management
Managing the channel has never been easy, but it has become even more complex in the wake of the pandemic. Sean Collins, VP of EMEA channel and sales at Extreme Networks reveals some of the most common mistakes.
F
or vendors, managing our network of partners – from resellers to distributors – is now a monumental task, and many of us have invested mountains of hours trying to
outwork the new challenges.
Mistake one: failing to train partners to add value In order to effectively communicate benefits and outcomes to customers, it is down to vendors to provide partners with the right resources, support, and specialised training needed to do so. Investing in training will strengthen relationships between you and your partners, which not only motivates them to deliver a higher quality service, but also empowers them to steer away from sticking to a product-centric approach. It’s only natural that we usually fall into this trap. After all, our
product is our business! If only prospective partners knew how great our products were, they’d buy and buy and… or would they? The truth is that the vast majority won’t care. And why should they?
Our product is but one in a sea of solutions where everyone claims they’re the only solution. Even if they are, how are prospective partners to know? All it does is breed suspicion, leading them down the road of ‘What’s so special about it? Why is it cheaper? More expensive?’ Therein lies the problem with a tech-focused approach – it puts
all the pressure on the product and its price instead of providing us with what both sides need, which is a conversation about business outcomes, common goals, and growth. In other words, the foundations of a long and prosperous partnership. A product-centric approach puts a tangible price on the
partnership and makes it liable to suffer when there’s a fault with the product or when there are delays. Products need to work. Every time, all the time. When they don’t, nothing is keeping our partners from swapping vendors. But by providing partners with the right expertise and changing
to an outcome-based approach, the relationship becomes a joint undertaking. A partnership. Instead of making decisions based on our partners’ preferred technology, we can establish lasting relationships that benefit all sides – vendor, channel, and customer – which is the optimal path to long-term growth and success.
Mistake two: pushing the channel too hard We all want to see our channel partners seize their opportunities to expand and grow. Right now, that’s easier said than done.
16 | September/October 2023 Managing through supply chain challenges and talent shortages, many
of our partners have been forced to focus on short-term deployment at the expense of new business and long-term growth. Naturally, that makes us worried. Not only for our growth’s sake but also for that of our partners. And, in our enthusiasm, we push. Yet, all that accomplishes is adding stress and strain to the relationship. That said, it can’t be ignored either. We need to be understanding. By taking an involved approach with
each partner, we can establish an open dialogue as the foundation for an informed solution that suits their individual needs. In other words, we must be willing to sacrifice short-term for long-term gain. The sacrifice must suit the partner, as some partners might benefit massively from a credit extension while others may be looking at a workload or workforce solution – which means automation and managed services could make a significant difference. There’s also a case to be made for facilitating growth on our partner’s behalf, but this can be a sensitive issue and must be suggested with as little pressure as possible. Again, keep an open dialogue.
Mistake three: one-size-fits-all and the absence of differentiation The final mistake we’ve identified has to do with one-size-fits-all programmes and failing to enable partners to better differentiate themselves for customers. One-size-fits-all programmes with flat incentives and lofty promises have become outdated and certainly don’t inspire loyalty anymore. We need to start creating training and badge programs with partner
diversity in mind if we are going to provide them with any competitive advantage. It has to be an investment that makes sense for the partner. That means going beyond the basics of how to get started, sell, and support their customers and onto things such as sector-specific certification badges, customer success support, and grant writing services. The key is to make it relevant to the partner. In today’s competitive market, it is not enough to simply offer a
programme that is similar to what others already offer. Customers are looking for vendors who can offer them something unique, valuable and tailored to them. And remember: at the end of the day, a partner relationship is a two-
way street. It needs to be built on trust and shared goals – the latter of which should centre around outcomes for the end customer – because that ultimately leads to loyalty and success for vendors, partners, and customers alike.
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