How to Boost Your Sales Through Channel Partner Sales Strategies: The Ultimate Guide to Growth

The events of 2020 irrevocably changed the landscape for businesses worldwide, making the need for a flexible, responsive, and technology-driven approach to channel sales more important than ever before. As a result of the pandemic, the line between B2C and B2B buying behaviors has almost disappeared. Whether it is a Tonal fitness machine or enterprise-level software, the focus now is speed, convenience, and remote access. According to a study by TSIA, for the past decade, the trend in product vs. service revenue has dramatically reversed: in 2010, it was 64% product and 36% services; by 2020, that had flipped to 37% product and 63% services.

This drastic shift will throw specific challenges to both vendors and channel partners and demand a rethinking of business models. Major vendors like Cisco, Dell, and IBM have all fully transitioned into a 100% subscription model. So keeping that in mind, here are six best practices that will help you make the most of your channel partners and increase sales for you.

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1. Define What Success Looks Like for Improving Channel Partner Performance

It sounds almost too obvious, but a clear and shared understanding of success between you and your channel partners is critical. Understanding the specific goals you want to achieve with your partners can ensure that your resources are aligned to drive maximum value.

Many businesses use these clear success metrics to ensure growth. Some common channel objectives include:

• Maximizing revenue through upsell and cross-sell opportunities.

• Outsource professional services such as marketing, sales, and legal assistance

• Renewal rate improvement (for instance, aiming to improve by 10% in renewals).

• Enhanced customer engagement coverage through services, such as customer support, inside sales, and other customer success initiatives.

Cisco's SVP of Renewals, John Wunder, held a TSIA webinar, highlighting the need for a simple, actionable partner program. His team noted that clear strategies must be defined and quickly adjusted according to changing market dynamics.

Case Study: One client realized a 15% increase in channel revenue within six months after aligning their success parameters around customer engagement KPIs and cross-selling opportunities.

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2. Launch a New Incentive Scheme That Inspires Action

There cannot be a successful channel sales optimization techniques unless you inspire your partners to take action. You achieve this by offering incentives that help spur action for consistency toward achievement of, and exceeding targets.

Here are some different types of incentives we can recommend to drive growth forward, among others:

• Referrals: The partner will receive a commission for each sale resulting from their referrals.

• SPIFFs (Sales Performance Incentive Funding): Sales reps get a percentage of the sale.

• Rebates: Partners get a percentage rebate based on the volume of sales.

• Activity-Based Incentives: Partners earn incentives for specific strategic goals, such as managing client relationships.

• Enablement: Reward partners for completing online training, certifications, or attending conferences.

A clear, easy-to-follow incentive structure is crucial. If partners know exactly how to earn their rewards and when they will be paid, they will stay focused on your goals.

Case Study: A SaaS provider client saw a 20% increase in quarterly sales after rolling out a new partner incentive program tied to customer renewals and new product adoption.

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3. Track Performance with KPIs to Measure Success: Sales Improvement for Channel Partners

Measurable KPIs are the only way to understand and improve your channel's performance. Some of the KPIs that we recommend that you track include:

• Customer NPS Scores: Track how likely your customers are to recommend your product.

• Retention Rates: Measure how many customers renew their contracts on time.

• Conversion Rate: How effectively are your partners converting leads into sales?

• Resolution Rate: How quickly are partner teams resolving customer issues?

• Account Growth: Percentage growth in revenue from existing accounts.

All this data is integrated into a single CRM system, giving real-time visibility into partner performance, allowing easier tracking of sales, engagement, and payouts. This also streamlines the sharing of marketing materials and other assets, ensuring your partners always have what they need.

Case Study: A global technology partner reduced reporting times by 30% after integrating CRM systems, allowing for faster action on key sales opportunities.

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4. Establish SLAs to Ensure Effective Customer Interactions

Setting up expectations around service levels, including response times, is the key to ensuring customer satisfaction and long-term relationships, particularly for renewals and customer support.

Vendors and partners should agree on how quickly partners should react to leads or customer inquiries. A clear Service Level Agreement (SLA) makes sure the response is timely, and accountable service delivery is ensured. In addition, defining the renewal timeline in specifics- such as contacting customers 90 days before renewal- will also help improve overall renewal rates.

Case Study: A partner program implemented a standardized SLA, which improved on-time renewals by 25% and decreased customer churn significantly.

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5. Understand Customer Decision-Making with Reason Codes

Understanding why customers convert or cancel is a powerful tool for optimizing your sales strategies. Tracking reason codes can reveal why customers make buying decisions, providing insights into the effectiveness of your sales partner sales process and product offerings.

Some key reason codes to track include:

• Conversion Reason Code: Why did a customer choose to convert to your product or service?

• Cancellation Reason Code: Why are customers canceling? Is it because of price, service issues, or competitor offerings?

This valuable data will help you refine your sales approach and product offerings.

Case Study: After implementing a reason code strategy, a partner pinpointed a 15% customer churn rate due to service delivery issues, which they addressed with an updated customer support system.

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6. Establish a Comprehensive Customer Success Strategy

A Customer Success Strategy is essential for keeping customers happy and ensuring long-term growth. Regular, proactive conversations help to spot risks early and provide opportunities for upselling and cross-selling.

You may conduct quarterly or bi-annual health checks with your key customers and try to understand their pain points, achievements, and sentiment. Your partners can leverage these insights to adjust strategies, making sure the solutions and product offered are aligned with customer needs and capitalizing on opportunities for growth.

Case study: After implementing a quarterly health check program, a partner raised its upsell revenue by 30% through better relationships with customers and increased product knowledge.

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Ready to increase your sales through channel partners?

As the market continues to evolve, adapting your channel sales strategy is pivotal to staying competitive. The best experts will help you bring out the best in channel sales and lasting customer success.

Are you ready to transform your channel partner program and accelerate growth? Contact us today for how we can help in optimizing your strategy and the achievement of your business goals.

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