What are channel management strategies?

Channel management strategies are indispensable in today's business world. It has shed light on more pressing management needs such as partner satisfaction and improvement. All strategies have certain key components that ensure its successful execution. For channel partner management, partner portals are ultimately essential.

Partner portals are web based applications that allow parent companies to communicate and collaborate effectively with the different members of their channels. It enables them to work alongside their partners efficiently as formed business relationships are nurtured and managed optimally. When these portals were not yet the standard in channel partner management, the various distribution channels used to accomplish tasks through methods such as telephone calls, fax, email messaging and the like. Although useful to a certain degree, such technologies do not guarantee rapid results, accuracy and optimum efficiency. But now, thanks to these innovations, parent companies can easily connect and interact with their partners so that their channels can perform at their best.

2 Big Reasons to Use Portals:

1. Business Process Improvement

A partner portal requires partners to provide authorized logon credentials so that they may enjoy real-time access to the application and the many benefits it offers. It permits them to take advantage of the various information, reseller programs, deal registrations, leads, contacts, support and other resources they would require to function well for the channel.

Since the members of the channel can gain access to all the resources, information, programs and support they would require, and then they will be satisfied. The parent company can enjoy loyalty and commitment from these partners if they utilize portals to take care of business relationships. It is not enough to simply recruit a high-performance company into the channel. Manufacturers should do well to remember that a company will not strive to do well for one manufacturer if nothing is in it for them. That's the reality of the business world.

Furthermore, there is increased transparency in channel management thanks to the applications' real time environment. Parent companies can easily identify areas that require modification, and the partners that are proving to be assets or mere liabilities. This way, management tasks can be executed accurately and effectively.

Through enhanced collaboration and communication, partners and partnerships are managed, maintained and improved. Members that perform well equate to a successful and efficient channel distribution network, which in turn implies an exponential progress in business processes and productivity.

2. Channel Conflict Prevention

As mentioned earlier, there is transparency within a channel thanks to portals. Behaviors, performance and partner needs are easily identified which in turn allows managers to act accordingly and provide the best possible management strategy. The proper management of a channel distribution network is dependent on having a clear and direct view of channel activity and keeping track of sales contribution. If this is not accomplished, a series of problems can arise which may potentially harm the network.

The best way portals prevent channel conflict is by integrating deal registration. Deal registrations benefit channel members by deepening and widening business relationships. The end result is a significant decrease in conflict and an increase in sales volume and partner loyalty.