Channel Management: Key for Resilience & Growth

In today’s rapidly changing business landscape, resilience is the key to surviving unexpected disruptions and challenges. To achieve this, UK businesses must prioritise and invest in strengthening their distribution channel relationships, as they play a critical role in connecting companies with their customers. A survey by the Chartered Institute of Marketing (CIM) revealed that only 35% of UK businesses actively invest in developing and maintaining these vital relationships. This lack of focus can lead to lost opportunities and decreased profitability.

To thrive in a competitive marketplace, recognising the significance of channel relationships and implementing practical strategies to improve them is not just an option but a fundamental necessity for those businesses seeking sustained growth and success. These relationships form the critical link between a company and its customers, directly impacting the efficiency, effectiveness, and profitability of the entire supply chain.

Often, business prioritise product development, marketing and direct sales while overlooking the importance of channel relationships. It is crucial to understand that even the best products and services are ineffective if they do not reach customers efficiently. Robust channel networks are the backbone of a successful business.

Some businesses might perceive investing in these relationships as costly and time-consuming, however, failing to do so can lead to greater costs in the long run due to reduced market reach, lost sales and, potentially, reputational damage. Effective partnership management is built upon developing open lines of communication, establishing trust, and working collaboratively to identify and solve problems as they arise.

Businesses often use Customer Relationship Management (CRM) systems to analyse data about customers, streamlining processes and driving customer focused business decisions, but this is only part of the story. Managing channel partners requires a deep understanding of how channel partners are interacting with the business and its customers. Factors such as lead management, promotions, quality, and customer satisfaction are crucial to the business’s performance but, as many elements of this may be managed by the partner, may be invisible to the company and its leadership. Tools are available to help company’s manage partner relationships, either through extensions within existing CRM systems such as Salesforce, or through specialist digital platforms such as Impartner’s Partnership Relationship Management tool an effective digital solution. PRM platforms integrate into existing CRM systems providing seamless channel partnership management.

Impartner’s channel management platform allows you to manage, optimise and accelerate every aspect of your channel management.

During times of disruption, developing new client and channel relationships together with maintaining strong relationships with existing partners and customers is crucial. Channel partners play a key part of this success. The pandemic drove many businesses to seek new channels, often digital, driving innovation and change. As the economic impact of the current global financial and political turmoil continues, successful businesses will focus on both their direct customer relationships and the indirect relationships through partners. Research shows that effective partner strategies drive increases in both revenues and profitability, as well as increasing brand awareness and market presence.

Just adding partners will not however drive results, just like any relationship, it takes time and commitment. Some of the pitfalls are:

• Poor alignment – ensuring that the businesses internal teams are aligned with those of the partner.
• Passive relationship – a lack of participation and activity will result in low activity and expectations.
• Weak commitment – ensuring partners are excited and committed to supporting your brand and product, and your teams are committed to supporting the partner.
• Unclear return on investment – both parties must be able to see a clear benefit and worth in the relationship with the other party.

Many businesses currently fail to invest in developing and maintaining these relationships, there are a range of strategies that can be employed to improve them. By focusing on building strong partnerships, investing in technology, and providing staff with training and development opportunities, businesses can ensure that their channel partners relationships are efficient, effective, and profitable.

Channel management experts, such as Where Now Consulting, and digital tools such as the Impartner partner management tool can drive real results. Forrester found that companies using Impartner as part of the composite organisation saw a return on investment of 296% over 3 years with a 50% increase in partner sourced deals.

Our team of channel experts would be delighted to discuss your channel challenges or arrange a demonstration of the Impartner PRM portal.