Without trust between vendors and resellers, it is near impossible to implement an effective sales strategy. Fostering a stronger business relationship requires vendors to motivate their channel partners with personal Reseller Incentives. Improving trust starts with a Channel Partner Programme!
The bedrock of any long-term business relationship is trust. Going beyond KPIs, vendors and resellers need to be able to trust one another. From believing in the accuracy of sales data to having faith in the selling power of a vendor's brand, trust is important in channel partnerships.
From the vendors' side
The Channel Data Management Barometer report identified that, with no way of checking for accuracy, more than half of all surveyed organisations had to simply 'trust' in the sales data their channel partners had provided. In a struggling partnership, this simply wouldn't work.
Trust is a key part of an effective channel sales strategy.
Key to developing a greater bond of trust is opening lines of more frequent communication. Vendors should expect that their distributors:
Regularly share customer information;
Remain vocal about risks in the current market;
Identify opportunities in new markets;
Offer feedback on sales strategies;
Indicate end-customer insights.
More than 50 per cent of all surveyed organisations had no choice but to 'trust' in the sales data their channel partners provide.
If your resellers have gone quiet, it is possible they have lost interest in your sales channel, a sad fact of doing business; only 25 per cent of retailers attain trusted partner status among the companies they represent according to Accenture research. If this is the case, you are better off finding new channel partners worthy of incentivising.
From the resellers' side
Resellers need to believe in the strength of your brand and product/service. If a channel partner isn't entirely confident that what they are distributing will sell, they may not put all of their effort into your brand, or simply lose interest in the relationship over time and find a new vendor. Accenture found that a quarter of channel partners drop out of a typical B2B network annually - it seems there are too many businesses who aren't making the most of their sales channels.
Vendors can rectify this issue by:
Offering valuable sales data that will assist your resellers strategy;
Effectively aligning them with your other channel partners; and
Celebrating their achievements by implementing Channel Partner Incentives.
How do Reseller Programmes help foster greater trust?
Once one of your distributors meet a KPI or sales target in line with your overall strategy, you should reward them instantly with a personalised prize.
The joy of success is sweetest in the moment, so instantly celebrating this success encourages your resellers to continue positive performances. Similarly, offering each individual the opportunity to choose their own reward will pay immediate dividends to your business - not only will the reward mean more to them, but you will also start to build a more personal and trusting relationship.
Using Power2Motivate's Global Rewards Gallery, you can deliver your channel partners any prize they want, from:
Luxury electronics and goods from big-name brands like Apple, HP and Xbox, to;
Books, CDs and other home entertainment options, to;
Amazing opportunities to enjoy live experiences like concerts, festivals and shows.
Rewards for your Channel Partners should be instant and personal to each individual.
Using our online platform to track and select prizes, your channel partners' decisions are available for programme managers to view. By monitoring platform activity, you can judge how your resellers respond to preset KPIs and sales targets. This data can then be reported to your sales strategists to plan targeted campaigns that will boost revenue.
Trust in the Power2Motivate
Accenture shows eight out of ten customers will not do business with companies they don't trust. Foster a more trusting business partnership by investing your effort in an industry-leading Channel Partner Programme. For more information about incentives that drive change, contact the Power2Motivate UK team today.