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Incentives: The Secret Ingredient of a Successful Channel Enablement Strategy

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Incentives: The Secret Ingredient of a Successful Channel Enablement Strategy

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When it comes to enabling your sales channels, it’s important to have partners you can count on to help you move your products effectively and efficiently.

But how do you design and implement a channel strategy that will get their buy in and enable them to succeed? It’s all a matter of asking the right questions.

When it comes to enabling your sales channels, it’s important to have partners you can count on to help you move your products effectively and efficiently.

But how do you design and implement a channel strategy that will get their buy in and enable them to succeed? It’s all a matter of asking the right questions.

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Incentives: The Secret Ingredient of a Successful Channel Enablement Strategy

  1. 1. Incentives: The Secret Ingredient of a Successful Channel Enablement Strategy PARTNER BUSINESS INSIGHTS
  2. 2. INTRODUCTION LogicBay understands the importance of incorporating an effective incentive and enablement strategy into any channel program. The LogicBay ChannelStackTM technology is always advancing, most recently by integrating with HMI Performance Incentives, a global leader in designing and operating effective incentive solutions. This integration brings an interactive and on-demand rewards-based fulfillment platform that includes measurable results reporting that track both partner- and individual-level successes to ensure effective incentive distribution. 2
  3. 3. When it comes to enabling your sales channels, it’s important to have partners you can count on to help you move your products effectively and efficiently. But how do you design and implement a channel strategy that will get their buy in and enable them to succeed? It’s all a matter of asking the right questions. 3
  4. 4. WHAT IS CHANNEL ENABLEMENT? “Enablement” has become something of a derogatory term these days; to be seen as an “enabler” means you have allowed someone to do something they probably shouldn’t be doing in the first place. But when it comes to channel sales, this is the opposite of how enablement is viewed. When a manufacturer “enables” their channel partners, what they’re really doing is empowering a network of resellers to better sell their products or services. In this sense, the focus of a channel enablement strategy is on strengthening these partnerships and working to align channel partners’ marketing and sales approach with your objectives and solutions. 4
  5. 5. To do this effectively, it’s important to cultivate partner relationships by offering the right resources, tools, and processes to support their business. Resources often include content for marketing campaigns, training and certification programs and sales playbooks. Tools (like a Learning Management System to track training completion, reporting dashboards for tracking KPI, and integration to other internal systems. Processes relate to the ability to conduct business and help each other grow, from execution of joint marketing campaigns, to lead management (distributing leads and deal registration). All of these aspects, when done right, will enable your partners to be more successful. Of course, the final component of a good enablement strategy is to reward your channel partners for behaviors that lead them to engage with these resources, all of which can be included in a channel incentive program and which, unlike a traditional sales incentive, involve a more indirect—but no less effective—link to sales growth. 5
  6. 6. WHY FOCUS ON CHANNEL ENABLEMENT? It’s been said that sales reps spend over 30% of their work week searching for and creating sales content. If we had to guess, we’d say that this number is even higher for certain industries and sales channels where the products or services are particularly complex. Regardless of industry, what this means is that channel sales reps waste nearly one-third of their time figuring out how to sell their products and services rather than actually selling them. 6
  7. 7. 7 So, for starters, a good channel enablement strategy should be designed in such a way that it cuts down on this inefficiency by arming channel partners with the knowledge and tools to sell more effectively. But a lack of resources and support isn’t the only reason why channel enablement incentives are so important. These kinds of strategies can also strengthen your existing partner relationships, helping you gain valuable mindshare by providing your channel partners with yet another reason to do business with you. Additionally, with so many channel partners, it can be hard to know exactly who you should be reaching out to and motivating. One thing a channel enablement solution can do is help you identify and target the managers and salespeople who are the most valuable points of influence (POI) in your channel, saving you time and resources on this laborious process. Finally, a good channel enablement approach can be accomplished when delivered through a single partner portal. In organizing your partner support efforts, you should be able to more consistently streamline your brand messaging communications, simplifying and enhancing the channel sales process.
  8. 8. HOW DO I IMPLEMENT AN EFFECTIVE CHANNEL ENABLEMENT PROGRAM? As an indirect sales tool, an effective channel enablement program should follow a strategic approach: First, you need to identify and target key performance indicators (KPIs) in your channel. Most common KPI are the ones that are easiest to track: revenue. But you may also want to monitor the right types of activities that lead up to the sale. So, you can reward for “steps-to-the-sale” activities. You may be focusing on eLearning tactics as well. You can measure and reward how many test, quizzes, or certifications are taken by your channel partners. 8
  9. 9. Second, you’ll want to develop a scaled incentive strategy that tracks the rewards given out to channel sales reps for reaching each one of these KPIs. The shape and scope of this strategy will depend on your specific channel, your channel sales objectives, and your budget. Third, it’s important to communicate effectively with various members of your channel program (sales reps, service techs, sales managers, etc.) Again, a partner portal that is role-based to provide the right information to the right user is a great way to achieve this. 9
  10. 10. Fourth, measuring the progress of your audience – and providing them access to the same reporting measurements - will demonstrate to participants that you’re right there with them and invested in their engagement. With real-time dashboards that are configured to match your KPI, all parties will be aligned toward common goals. Fifth, you’ll need to analyze the results of your enablement initiatives and modify them on an on-going basis to ensure continued engagement and success. For example, if you notice that your sales materials aren’t being read or utilized, it’s incumbent on you to find out why. Taking the time to conduct regular business reviews with your partners and asking for their feedback can be a step in the right direction Finally, reward goal achievers with rewards that motivate them. Whether this means a grand prize incentive trip for long-term engagement and sales success, or merchandise/experience rewards for reaching short-term goals or succeeding in a special promotion, these incentives are what really motivate the engagement and enablement process. 10
  11. 11. WHERE SHOULD I DEDICATE MY RESOURCES? So, who should you enable? The easiest answer is, “everyone who contributes to your success”. But the more complicated answer will depend on your goals and your current sales channel relationships. Perhaps the most pressing question is: should you devote most of your channel enablement resources to your largest enterprise-level channel partners? While your instinct might be to go after the “big fish,” it’s also important to consider what we refer to as the “middle 60%,” that is, the small and mid-sized partners who aren’t necessarily your top performers. Because after all, channel enablement is in large part dependent on strong partnerships, so devoting resources to these smaller channel partners who you can develop more intimate and trusting relationships with may end up proving a smart bet. It’s often these partners who have more opportunity to contribute to future growth. 11
  12. 12. SUPPORT, MOTIVATE & OBSERVE THE CHANGES Whether your business is focused on adding new channels partners, or simply wants to increase the efficiency and effectiveness of current channel partners, a channel enablement strategy is key. Very few partners will invest the time and energy needed to be successful if they don’t see how they will benefit in the long run. For them to be effective during the sales process it’s going to require them to demonstrate an in- depth knowledge of your solutions and services, as well as an understanding of how to define and position them for their clients and prospects. So why not offer these partners the tools and support they need, saving them time and effort during their sales process while motivating them to follow and promote your branding and marketing principles? Help your channel partners help you, so that you can effectively change the channel. 12
  13. 13. The combined solution: • Provides the hard data you need to determine your top performers. • Creates training programs, tracks, or tiers which are accessible based on performance. • Flags or notifies as appropriate when partners qualify for rewards. • Allows partners to implement and manage their own internal incentive programs. • Makes your brand highly attractive to channel partner staff who want to succeed. 13
  14. 14. THANK YOU! GET IN TOUCH WITH US! https://www.hmiaward.com/contact/ https://www.logicbay.com/contact-us

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