Actionable Insights for Building Strong Partner Relationships in Uncertain Times
- Develop a Compelling Partner Value Proposition: Focus on market momentum, relationships, and economics to create a competitive edge that attracts and retains partners.
- Prioritize Relationships Over Economics: In today’s market, partners prioritize trust and collaboration over financial incentives, making strong relationships critical.
- Leverage Automation for Efficiency: Use Partner Relationship Management (PRM) tools to streamline operations, freeing up time for strategic, human-centric partner interactions.
- Invest in Partners During Crises: Offer flexible program requirements, enhanced training, and financial support to demonstrate commitment and build loyalty.
- Use Data to Understand Partner Needs: Track performance and market trends to identify thriving partners and tailor support to their evolving business models.
In a recent webinar hosted by Baptie & Co., industry experts Kerry Desberg from Impartner and Dan Overgaag and Richard Flynn from Spur Reply shared critical insights on fostering indispensable partner relationships during uncertain times. Drawing from their extensive experience in channel management, they explored how vendors can adapt to shifting market dynamics, particularly in the wake of the COVID-19 pandemic. This blog post distills their key points into actionable strategies for channel marketing professionals looking to strengthen partnerships and drive mutual success.
Understanding the Partner Value Proposition
Dan Overgaag, Managing Director at Spur Reply, kicked off the discussion by emphasizing the importance of a robust partner value proposition (PVP). A PVP articulates the value partners gain from selling your products or solutions, serving as the foundation for recruitment, planning, and program design. Overgaag outlined three core components of an effective PVP:
- Market Momentum: Partners gravitate toward products with high customer demand, strong market share, and technological leadership. Understanding your market position—whether you’re a leader or a niche player—helps craft messaging that resonates.
- Relationships: Alignment with a partner’s strategic objectives, a positive vendor reputation, and seamless engagement experiences are critical for building trust.
- Partner Economics: This includes not only profit margins but also the costs of onboarding, certification, and ongoing program participation, as well as halo benefits like enhanced marketability.
Overgaag noted that many companies focus heavily on customer value propositions but neglect their PVP, leading to lackluster channel adoption. A poll conducted during the webinar revealed that only about one-third of attendees felt they had a strong, well-articulated PVP, underscoring the need for greater focus in this area.
The Shift Toward Relationship-Driven Partnerships
The webinar highlighted a significant shift in partner priorities. Overgaag and Flynn, both seasoned channel experts, observed that over the past 18 months, relationships have become the top driver for partners when choosing vendors, surpassing market momentum and economics. This shift is particularly pronounced during the COVID-19 pandemic, which disrupted business models and selling motions.
“Partners are now looking at relationships as the key driver of the vendors they choose to do business with,” Overgaag explained. “It’s about their experience with you as a vendor and what you’ve done for them.” This reprioritization reflects partners’ desire for vendors who demonstrate commitment and flexibility in challenging times.
To capitalize on this trend, vendors must position themselves as trusted allies. Overgaag suggested benchmarking your PVP against competitors to identify strengths and weaknesses. For example, if your market momentum is weak, enhancing economics or alignment can offset this. Regular assessments ensure your channel efforts remain effective and aligned with partner needs.
Navigating Uncertainty with Strategic Actions
The pandemic has upended traditional channel strategies, forcing vendors and partners to adapt quickly. Overgaag outlined three key areas for vendors to focus on to solidify relationships:
1. Empower Your Teams with Information
Remote account management is now the norm, and Overgaag predicted it will remain so post-pandemic. Equip your field and telesales teams with robust systems to track partner needs and performance. This data-driven approach ensures personalized support and informed decision-making.
2. Simplify Remote Transactions
Partners are in “learn mode,” using downtime to upskill. Make training and certifications accessible and free to facilitate this. Overgaag cited NetApp’s example of extending certification deadlines by six months, demonstrating flexibility that keeps partners engaged.
3. Focus on Partner Activation
Structured onboarding and activation are critical, especially when partners are distracted by economic uncertainty. Proactively assess which partners are thriving and tailor support to their needs. Overgaag highlighted NetApp’s extension of eligibility for partner growth programs as a smart way to maintain engagement.
The Power of Automation in Channel Management
Kerry Desberg, from Impartner, a leading provider of Partner Relationship Management (PRM) solutions, underscored the necessity of automation to scale and pivot in today’s market. “Without automation, you’re simply not going to be able to scale and capture the revenue you’re desperate to keep,” Desberg stated. She shared compelling examples of clients adapting to rapid market shifts, such as a company onboarding 2,500 new partners in just 20 days and another seeing a 50% surge in portal logins.
Desberg outlined seven ways PRM solutions enhance partner relationships:
1. Recruiting and Onboarding
Automation streamlines partner onboarding, enabling rapid scaling. Desberg noted that Impartner’s clients saw a 45% increase in their ability to recruit and train new partners with PRM tools.
2. Sales Enablement
Automated training platforms ensure partners are equipped to sell effectively, especially in competitive markets like cybersecurity. This led to a 35% increase in channel revenue for Impartner’s clients.
3. Deal Registration
PRM systems reduce channel conflict by protecting partner deals, fostering loyalty. Desberg cited an 80% reduction in channel conflict for clients using robust deal registration tools.
4. Performance Tracking
Automated dashboards provide visibility into partner performance, allowing vendors to reward success and pivot strategies. This resulted in a 50% increase in channel account managers’ ability to meet quotas.
5. Marketing and Communications
Automation enables rapid, targeted communication, critical for addressing market shifts. Impartner’s clients reduced marketing time by up to 50% while keeping partners informed.
6. Engagement
A modern, user-friendly partner portal is your “digital front door.” Desberg referenced a study showing 86% of partners judge vendors based on portal experience, with Impartner clients seeing a 41% increase in engagement.
7. Shadow Channel Management
Referral partners, such as accountants and consultants, are increasingly vital. Automation helps manage these relationships, driving a 30% revenue increase from referral partners.
Long-Term Impacts of the Pandemic on Partnerships
The webinar concluded with a forward-looking discussion on the pandemic’s lasting effects. Overgaag predicted a permanent shift to remote selling and account management, breaking old habits and necessitating new technologies. Desberg emphasized that automation will become non-negotiable, as it frees up time for strategic conversations by eliminating repetitive tasks. Flynn added that partners will remember which vendors supported them during the crisis, cementing loyalty for years. He also warned that the pandemic could reshape partner ecosystems, with some large partners failing and smaller, agile ones rising.
Key Takeaways for Channel Success
The insights from Desberg, Overgaag, and Flynn offer a roadmap for channel marketers navigating uncertainty:
- Invest in Relationships: Be a supportive partner by offering flexible terms, free training, and financial assistance, as exemplified by companies like NetApp and Dell.
- Automate to Scale: PRM tools like Impartner’s enable vendors to manage growing partner ecosystems efficiently, saving time and resources.
- Leverage Data: Use performance tracking to identify opportunities and support partners effectively.
- Adapt to New Realities: Embrace remote selling and digital tools to stay competitive in a transformed market.
By focusing on these strategies, vendors can build indispensable partner relationships that drive mutual success, even in the most challenging times. For more insights from industry leaders, visit Baptie & Co.’s Channel Focus Community and explore upcoming webinars on reopening channel programs and gaining partner mindshare