How Do You Integrate Multiple Channels?
By Diane Krakora, Principal, Amazon Consulting
It seems easy, doesn’t it? Just pick the channel type corresponding to the level of market maturity. Well, that’s only a benchmark to use when a specific type of channel partner is the primary focus during a particular stage. In reality, you’re developing relationships with all types of channel segments during all the growth stages. Employing a true multi-channel strategy is more of an art than a science.Integrating multiple channels into a cohesive structure is a complex process. Each market segment needs specific products, services, and support to address customers’ needs. And, those segments need to fit together in a clear strategy for effective communication, education, and motivation.
As an example, Adobe Systems is challenged with bringing together seven channel programs in a cohesive strategy. The company integrates programs for OEM relationships with direct sales, Independent Software Vendor (ISV) and Independent Hardware Vendor (IHV) alliances, system integrators (both big and small), resellers, consultants and distribution partners. Adobe’s challenge is clearly defining and communicating the relationship goals and value proposition for each partner program. Without this clarity, the channel partners are confused as to which programs to join, and the end users are confused about who works with Adobe and in what context.
Each channel type has its own specific challenges in the partner development cycle, but all channels must also fit together to avoid confusing the end-customers or the channel members. The Amazon Consulting 9-stages of Partner Development helps guide companies through the processes of successfully developing channel and alliance partners. This cyclical model of attract, engage, educate, motivate, support, manage, optimize, extend and feedback reminds companies to continue to attract partners back to the relationship.
Another challenge companies face in creating an integrated multi-channel strategy is how to manage the potential conflict that may arise between channel segments. Channel conflict is a multi-faceted issue, since both good and bad channel conflict exists. In good channel conflict, your partners are competing against each other on a level playing field, and the ultimate winner is that partner who best serves the customer (also considered healthy competition). If you’re competing against your partners directly, or different types of partners are competing against one another when one has a distinct advantage (usually price) – that’s bad channel conflict. One key to more harmonious multi-channel deployment is to provide partners with the tools, materials, motivation, and support they need to be successful without creating an unfair advantage for one segment.The dynamic nature of business today adds yet another level of complexity to the multi-channel model. Channel segments, participants, and customer requirements change very quickly. The traditional VAR/distribution relationship is rapidly disappearing, while a new affinity for services is blooming. The Application Service Provider (ASP) and Managed Service Provider (MSP) channels available today were not around three years ago. The rapidly changing market requires not only a cohesive, integrated multi-channel strategy, but also one that is agile and can quickly adopt new elements to maintain a competitive edge.
There are many benefits of adopting multi-channel sales model. You can greatly increase sales leverage, make it easier for customers to buy your products, and exceed customer service expectations. However, engaging a multi-channel model is a complex process of designing an effective strategy that balances the benefits received from each route to market with the challenges and risks of each new relationship.
This is the fourth of a 4-part column on increasing sales through a multi-channel strategy.
To view Part 1 of this column, please click here.
To view Part 2 of this column, please click here.
To view Part 3 of this column, please click here.
Questions and comments welcome to dkrakora@amazonconsulting.com.