Tuesday, June 30, 2009

Strategic Planning

Strategic Planning seems like a logical place to start, but it is too often limited to just a few key stakeholders, and often does not consider the full suite of available data.

Channel Connexions looks at strategic planning as a holistic cycle that starts with the application of market analytics. By continuously examining the data (quantitative and qualitative), you will be able to proactively identify new opportunities.

I think the most common mistake that channel marketing managers make is that once an opportunity is identified there is an immediate push to develop a campaign and execute. While the intent is correct, there are other considerations. Ensuring that back-end business processes are in place to support the campaign is extremely important. Can we track and measure the campaign? How will we deliver training and customer/channel communications? There are countless other considerations, but establishing the business processes is an important next step.

Considering and selecting the appropriate financial performance goals is extremely important. Your goals can revenue growth, profitability, product/service attachment, share of wallet gains, or some other measurement. Make sure you select the right goal and have the business process to measure.

As you review your business process needs, it is likely that you will identify technology needs to support your campaign. For example, call center queues may need to be established or you might need a variable data management system for your multi-channel needs. This should be coordinated and established before the campaign launch.

After all of these considerations, you will now be ready to launch and manage your campaign. A strong channel marketing team is required to coordinate the strategic planning process and provide continuous oversight and management of the program(s). It should be noted that it is common for multiple campaigns to be in different stages of the planning process at any one time. Adherence to the process will help with the overall coordination of the efforts.

As you may have guessed, the effective planning of channel marketing requires the active participation of many different functional teams including Sales, Marketing, Finance, Product Management, Service, Operations, and the Executive team. You must be willing and able to engage each of these functional teams and build a collaborative effort to execute effectively.

Monday, June 29, 2009

Channel Connexions Process

As I have previously mentioned, I like systems. They help organize and enable consistency. Systems need to be flexible in order to adapt to different environments, so please keep that in mind as I introduce the Channel Connexions process.

At the heart of the process is a model that I have adapted from the SAS Institute. I like this model because it is very flexible and yet offers a clear path to effective channel program execution.

In upcoming posts, I will elaborate more on each of the components, but let me start by stating that it is incredibly important as a channel marketing professional to engage a wide constituency in the development and execution of an effective channel program. Sales, Marketing, Product Management, Finance, Operations, Service, and the Executive team all provide the necessary functional expertise required with a great channel program. Additionally, these constituents will be of great value during the launch and execution stages of the program.

In simple terms, the Channel Connexions Process is:

  • Planning: Alignment with the company strategy and individual functional teams
  • Target: Find your audience and adapt your message accordingly
  • Act: Effectively deliver your program
  • Learn: Measure and adjust your program for effectiveness

Customer and channel data is an important part of this process. Both qualitative and quantitative data should be used in each part of the process.

PLAN --> TARGET --> ACT --> LEARN

Connect, Collect, Revive

I was just made aware of a new blog...and eventually a new company that has developed a marketing methodology that I think is worth taking a look at. Clearly they understand the need for an effective blend of marketing art & science to take advantage of the changing marketing landscape. While Channel Connexions specifically focuses on go-to-market challenges and channel execution, the ccr method offers a more holistic approach to marketing challenges. Keep an eye on these guys...

http://theccrmethod.wordpress.com/

Friday, June 26, 2009

State of Co-Marketing

Unfortunately, it seems that a lot of creativity has disappeared from co-marketing programs over the past few years. Perhaps companies are reluctant to continue to invest in programs where the return on investment is difficult to measure during a tough economy. Whatever the reason, the lack of new collaborative ideas has caused two things:

  1. Co-Marketing programs do not offer companies a competitive advantage. They are table stakes, but not game changers.
  2. There is a great opportunity for a company to change the rules and reset the playing field.

The basic idea behind co-marketing is for the vendor and channel to jointly invest in programs that will create demand and increase sales for a particular solution. To accomplish this, vendors establish a funding mechanism, typically based on a percentage of revenue, that can be used by the channel partner to engage is demand generation programs. Since the vendor is funding the efforts, they typically reserve the right to approve or decline specific initiatives. Sometimes, there are pre-approved programs that can be used without pre-approval.


The Market Development Funds (MDF), as they are sometimes called, are managed and controlled by the vendor. With sometimes thousands of channel partners, the management of the funds can become quite complicated. As such, basic programs are typically developed and reused across multiple channels.


Typical co-marketing programs include (but are not limited to):

· Lead Generation (telemarketing or DMDR)
· Deal Registration
· Co-advertising
· Sales Training
· Collateral Development
· Customer Events (typically regional or local)
· Partner Events

It should be noted that, if executed effectively, there is nothing wrong with any of these activities. The main issue is that they do not provide any competitive differentiation for the vendor. It is reasonable to assume that your competition is engaged in the same activities with your channel partner.

The other consideration in regards to co-marketing is that they tend to be generic in their application. All partners, regardless of size, location, competency, relationship, loyalty, or purchase history, are granted access to the same types of programs at the same time. It would be inefficient to have a unique co-marketing program for each and every one of your channel partners. Or would it?

If you could improve your Return on Investment, provide higher quality leads, and engage customers with unique programs, it would be possible to rethink co-marketing programs. Not only can you provide a competitive advantage, but also create switching costs and loyalty from your channel partner(s).

Thursday, June 18, 2009

Content Personalization

I just purchased a new computer and started the task of moving information from the old to the new. One of the last things to do was to move my iTunes library over to my new computer.

Sidebar: I was expecting this to be a somewhat torturous task, but I was pleasantly surprised with the simplicity.

As a loaded iTunes, I realized why I am such a fan. It is not that the library is actually pretty good, but rather the manner in which Apple treats me as an individual. The Genius application analyzes my purchase history and presents me with recommendations on songs and artists that I might not have previously discovered. I love it. Sometimes the application misses the mark (especially if my kids have been downloading Miley Cyrus or Demi Lovato), but in general the recommendations are pretty good. Yesterday, I purchased seven new songs.

The use of purchase data and applied analytics has built loyalty with me...their customer. Part of loyalty is because I really do like the service, but perhaps a bigger part is the switching costs they have built. No other service can offer the insight into my tastes and present appealing options than iTunes.

Why shouldn't we do the same with our channel partners and enable them to do it with their customers? We should.

Tuesday, June 16, 2009

Channel Connexions

Channel Connexions is an idea that I have been considering for quite some time. Having worked for companies that sell predominately through indirect channels, I have seen commonalities in effective channel management that truly span industry segments. Channel Connexions will be a blog that takes some of my thoughts on channel relationship management and builds a structure to enable companies to take advantage of some basic principles to improve not only the way in which we manage partner relationships, but also enable partners to be successful.

I have formed a consulting company to work with companies that want to build a best-in-class channel program based on these principles. Whether a small company just building their channel ecosystem, or a large, established corporation wanting to differentiate themselves within their partner community, the services that Channel Connexions offer will be of great benefit. In the near future I will launch a website to further elaborate on these services.

The blog will enable me to share some additional insights and hopefully engage a community in some dialog that will challenge the prevailing thoughts on effective channel management.