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Sales channel development in B2B

28th June 2019

With revenue generation being a top priority for salespeople, companies do their best to account for the working hours their sales teams invest on. Nonetheless, it is sometimes not possible to assign 100% of their working hours to selling simply because they often have other job responsibilities which lessen the number of selling hours in a day. As a result, companies invest on developing their sales channels by handing over their sales responsibility to a third party through affiliate partners, value-added providers, resellers, independent retailers and distributors.

So how can you effectively establish and develop your sales channel?

By-channel sales goal

Establishing a sales and pipeline growth strategy with each partner is important. It is also crucial to ensure that your partners are aligned with your sales goals. Being precise about the expected sales and revenue yield from the channel relationships curbs any future issues that may arise.

Accurate sizing of the channel

Having an accurate picture about the number of prospective clients involved, which market position those clients hold and the sales potential each client has. Do the calculations upfront on how much revenue you should expect from the channel participants.

Track performance

Driving sales from new partnerships in the first month is infrequent however, you should have a clear forecast of lead generation and sales & revenue generation. Identify the leading-indicator metrics such as offer penetration, message penetration and communication channels through which you can determine when to expect the project to pick up. It is important to have a clear quantitative method to measure the progress.

Sales toolkit

Designing a common sales toolkit for all partners will not only help in enhancing your value proposition but also in accelerating the sales growth. This includes messaging platforms, sales collaterals, case studies, webinars, white papers etc. And as a best practice, integrating the Partner Experience Maturity Model (PXMM) which of tools custom-made to meet the partners needs. Implementing a Channel Marketing and Management (CMM) platform is the perfect way to meet that requirement which helps to foster a rewarding partner experience.

Advantages of using a Sales Channel Model

Built-in trust – If your channel partner is already a well-known brand within a market, you won’t have the task of establishing a brand presence. Because of their endorsement, your product or service automatically becomes credible. Hence using a sales channel increases loyalty and engagement.

Effective selling – Using a sales channel model is the best low-cost method to increase the sales. This can be established through outsourcing, co-marketing, revenue sharing or any other scheme. The sales channel helps you to scale your business through the inclusion of global partners. And because a partner is able to handle multiple partnerships, this enhances your efficiency in revenue generation in place of having an entirely new sales team which leads to higher productivity.

Cost effective – There are numerous experienced, trustworthy and well-positioned channel partners who have proven their brand through their great track records. Expanding your global footprint is easily made possible through recruiting one of these sales channels who will handle your business. The sales partners help you to enter new markets and regions in a cost-effective way.

Rapid testing – Working with channel partners gives you the possibility to experiment with new products and services, customer bases, promotions, packages or marketing campaigns at a low-stakes environment.

Client success – When your client needs: onboarding, implementation services, support and training, collaborating with vendors whose core competence is to offer these services allows you to focus on creating new business opportunities.

With the sales departments of big companies widely spread across the globe, companies can streamline their sales channels by implementing innovative, hands on programs such as performance dialogues, train-the-trainer and field and forum approaches which further drives sales growth.

What’s your take on using sales channels? Let us know on the comment section below

Article by: Evelyn Kamau

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