Measuring Channel Enablement ROI for tech vendors is the holy grail. Building an effective channel partner ecosystem can result in numerous benefits, particularly increased sales revenue from end-customer growth and retention.
However, the majority of tech vendors are currently using outdated sales practices which no longer give results. Today we’re focussing on the 5 key problems tech vendors face with outdated channel enablement ROI practices.
1. No correlation between investments and profits
Most tech vendors currently base the success of their channel partners on the organization's sales revenue figures. However this is where the problem begins, basing success on sales revenue can only tell a vendor so much. With no metrics in place to measure channel partner performance the link between investments and profits becomes unclear. Vendors may see that their sales productivity has increased, say, by 5%, however how do they know which sales pitch or insight intrigued the customer enough to make the purchase.
2. Lack of consistency across channels
Managing channels when multiple channel partners are involved can become an extremely complicated process, especially when it comes to consistency. Technology is considered one of the fastest moving sectors in the world. Therefore vendors often struggle to organise their content effectively due to continuous product/service updates, launches and redundancies.
3. Competing for partner mindshare
Vendors need to ensure channel partners communicate one message by many voices. Bearing in mind channel partners often sell products and services for a range of vendors, competing for partner mindshare often becomes a problem for vendors. Vendors end up spending a large amount of their time ensuring their sales agenda reaches top-of-mind awareness.
4. Low training retention rate
Training sessions are often presented to channel partners by the vendor themselves, where partners are taught the ins and outs of the products and services. However, more often than not the retention rate of what trainees are taught is relatively low. Maintaining a regular vendor training schedule is difficult because of conflicting schedules and lack of resource. Therefore poor performance increases, with the likely result of decreased sales productivity.
5. Over engineering of marketing materials
Nowadays customers are becoming extremely educated due to the immense amount of content available. Vendors therefore tend to overcompensate by providing too much detailed content within marketing materials, resulting in overwhelmed channel partners. Overcompensating on in-depth marketing materials leads to increased inefficiency and ineffectiveness, studies have shown up to 40% of an organization's time is spent locating and adapting relevant content.
Tech vendors face numerous issues when it comes to channel enablement ROI. Vendors tend to spend more of their time undertaking inefficient sales practices with no results to show for it. Building an effective channel partner ecosystem is near impossible if Vendors continue down the track of using outdated practices.
As you can see there are a few things to keep in mind if you find you are struggling to determine ROI on your channel enablement investments. Successful implementation of channel enablement results in revenue growth from end-customer growth and retention.