Optimizing Channel Partner Incentive Programs
“We’re spending all this money, but our channel partners aren’t providing the value that we expect. They simply feed off their existing base instead of driving new business.”
– Senior Channel Sales Executive
Aligning incentives is a major issue for all companies with significant partner-driven revenue. Challenges include a need for pay-for-performance within the channel incentive program, stemming from channel program investments that are not aligned with business objectives.
Common symptoms of a poorly aligned program include the inability to recruit, enable and retain the right partners, lack of a compelling partner value proposition and rewarding partners for behaviors the selling company does not value.
Channel strategy constantly responds to industry, customer and internal changes, including market and business conditions, which will impact the channel strategy in three areas:
Sales and service objectives reflect the change to a customer-centric focus as companies evolve their product and service offerings. As a result, companies continue to change their go-to-market coverage, expand into new markets and adapt to continuously changing partner roles.
Receiving the intended value and return from a partner program investment requires leadership commitment, advanced technical capability, and adapting to a continuously changing business environment. Ultimately, all channel partners must align with and drive behaviors toward a single customer value proposition.
Partner program investments will improve their ROI by combining efforts that address all channel partners’ needs.
Incentives and rewards can include finder’s fees, deal registration, discounts and rebates, and special incentives and rewards
Sales and Marketing can combine forces by offering consistent marketing materials, joint marketing funds, joint development funds and lead generation
Advanced tools and information can improve visibility throughout the channel and include dealer portals, product promotions, newsletters and insights
Training and certification programs improve the knowledge base and are shared with customers, including product training, technical training, authorization and product or solution certification
A successful channel partner programs allow companies to focus on growing their business, differentiating rewards for specific sales objectives, differentiating programs by partner type and ultimately enhancing partner capabilities with advanced skills, marketing support and unique offerings.
Alexander Group understands your revenue growth challenges. Since 1985, we’ve served more than 3,000 companies across the globe. This experience gives us not only a highly sophisticated set of best practices to grow revenue—we also have a rich repository of unique industry data that informs all our recommendations. Aligning product, marketing, operations and finance efforts behind a successful sales organization takes insight and hard work. We help the world’s leading organizations build the right revenue vision, transform their organizations and deliver results.
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