Why Relationships Fail

Soooo…. the last few weeks we defined the ideal channel partner relationship. So of course, we can’t miss talking about what are the reasons they often go wrong. Like some other relationships, it comes down to understanding the other’s expectations , and good communication.

Where should we start? Everyone is different. It is important to remember that a Channel partner is a separate entity, not a part of your organization. This fact can be easy to forget. Every partner has a distinct mission and priorities that are not always aligned with your own. Consequently, specific challenges arise that are unique to the channel model.

1) Channel partners do not intuitively know or understand the vision and missions of their corporate partner. This creates a problem: channel partners who are poorly versed in the corporate partner’s product narrative cannot be expected to communicate it effectively to their own prospects. The product message breaks down and prospects are lost because the message loses relevance.

2) Corporate partners have to deal with the reality that they are not, for lack of a better term, in a monogamous relationship. Theirs is not the only product or service line represented by an individual channel partner. As a result, if they don’t succeed in making their products the most attractive to sell, they’ll fall into the “back of the catalog”. Corporate partners need to find a way to convince each channel that their product can be sold more easily, and with better revenue yields, than any other. If they fail to do this, they won’t be given much attention.

Another area that challenges potential revenue streams is the complexity of marketing from the channel’s perspective. Channels may find the generic, mass produced marketing collateral generated by corporate marketing departments to be ineffective in their regional or local segments. In the face of this type of collateral, they may limit their sales efforts for that vendor in favor of another who does a better job. Equally discouraging, they may try to create their own personalized material that compromises the branding. When this happens, the original corporate marketing messages goes off the rails.

Similarly, there is the problem of how confusing corporate marketing tasks become when multiple channel partners are engaged simultaneously. In this scenario, corporate marketing departments have to respond, train, and provide support to multiple, unrelated entities–each with its own needs, structures, demands and markets.

Finally, measurement can be weak. Analytics to measure partner engagement and performance are often limited or non-existent.

In summary, there are a variety of challenges to the channel model. However, that doesn’t mean it isn’t an excellent model. Once we recognize the challenges, we can recognize the opportunity to overcome barriers and enable this powerful model.

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