Any long-lasting and beneficial relationship is fundamentally built on two aspects. Whether it is between you and your significant other or between a manufacturer and a reseller, the combination of trust and good communication are vital to success.
The funny thing with trust and communication is that without one you cannot have the other.
A proven method to enhance and strengthen the trust and communication with your partners is to invest in a channel sales software. Why does it pay off to invest in a partner management system?
Manufacturers that sell through channels have to put immense trust in their partners for the simple reason that partners do the sales and are the first point of contact. In the consumers’ eyes, your partners are the face of your product. A partnership also means you will have to give up margin.
All this boils down to your partners having the power to influence opinions and your sales figures. This is traditionally an acceptable risk because using resellers or channel sales partners also come with its pro's, such as not having to incur the labor cost, added reach and passing on trust. To learn more about how your Channel Sales can be optimized, contact our specialists here.
Reach, trust, and labor cost
Here is a short example of the benefits derived from Channel Sales:
An Indian company acquires a windmill from a local representative (Channel Sales Partner) of a windmill manufacturing company based in Denmark. The Indian company does not know the manufacturer but they know and trust the local dealer because they share culture, speak the same language and share concerns about the customer’s needs. Which are to solve the energy shortage in the customer's region.
– This is a great example of the reach and the passing of trust, partners can provide.
The Channel Sales Partner places an order to the manufacturer, which ships the parts to India, but the windmill needs to be assembled and installed to function properly. The local representative then takes on the responsibility to deliver, install and provide after-sales support.
- This is a great example of a manufacturer not having to incur labor cost.
For the Danish manufacturer, it simply wouldn't be practical and nearly impossible to make sucha sale without the partner. That is why one of the greatest benefits of Channel Sales is the added reach, trust, and minimized labor cost.
This example is simple enough, but what if the manufacturer has hundreds or even thousands of partners spread over the world?
That is where things get tricky. Fortunately, there is a way to successfully manage Channel Sales at any size. This is where Partner Relationship Management Software comes into the picture. Partner Relationship Management (PRM) What is it?
It’s a Channel Sales management system which serves every part of the value chain. Siesta 4.0 focus is on increasing channel sales revenues for both partner and manufacturer while simultaneously easing the common pains, managers of channel sales often face.
Common pains for Channel Sales managers: Lack of partner overview, inconsistent reports and doing time-consuming manual tasks such as writing/reading emails and making international calls.
Great Channel Sales Communication
Manufacturers should also consider the other side of the coin. Communication, or rather great communication. Anyone in a romantic relationship would say that a (Channel Sales) partnership is a two-way street.
This is evident when one side is not meeting the expectations of the other. When this happens between a couple, things can get rough. But fortunately, the problem can often be solved with a simple conversation.
On the other hand, communications between a manufacturer and it’s resellers are much more complex and decisions can either make or break carriers.
That is why most larger manufacturers hire channel sales managers to ensure an effective and smooth Channel Sales communication. Keep in mind that the bigger the channel, the more resources are needed to handle it.
Channel Sales managers can only work with the information that they possess. For a Channel Sales manager to do what is best for the manufacturer, they need to have 100% relevant partner information so they can make the right decisions to maximize the channel profits.
Common Channel Sales challenges and misconceptions
Siesta 4.0 addresses these common challenges associated with Channel Sales:
- Your partners will typically not put as much effort into selling your products as you would
- Two partners could end up serving the same region and compete for sales
- Most resellers sell products from multiple competing manufacturers
Channel Sales managers often make the mistake to only focus on product-training and expect great sales results. Unfortunately, it is not enough to only educate your partners on your products, you also need to educate them on best practices for selling in their markets.
Many of the highest grossing manufacturers are already aware of this trend and are now focusing on joint training as an integral part of their partner on-boarding. We at Napp are no strangers to this knowledge.
That is why Siesta offers Channel Sales managers to create and track multi-leveled and engaging training programs.
Don’t hesitate, because your competitors won’t
- Centralize and streamline Channel Sales communications
- Safe time and money by automating, repetitive tasks
- Ensure effective and mobile-first, product training
- Engage partners throughout the channel
- Integrate with your existing CRM, ERP and PIM systems
Stay ahead of the curve and leave your competitors behind.
Book a meeting with the experts to discover how to increase profits and build stronger Channel Sales partner relationships, today!