Edit
4Cs to achieve channel nirvana
By Dhaval Valia
 The Channel Champions survey is one event that everyone at CRN looks forward to. The rich insight into the psyche of the channels that the survey provides is ample reward for the huge effort that goes into this annual exercise.
In tandem with the extensive channel satisfaction study that we deployed, each of the CRN team members spoke to around 200 resellers. The qualitative inputs thus obtained substantially supplemented the quantitative findings of the survey.
Every reseller who took the poll had much to say about their expectations from vendors. At one end of the spectrum we had large tier-2 systems integrators, while at the other end were tiny mom-and-pop outfits in upcountry locations. Despite the wide range, when we analyzed what they expected from vendors it boiled down to four elementary things, which I believe are essential to any kind of relationship.
I call them the 4Cs of channel nirvana, which, if followed by vendors, will indisputably ensure their success in channels.
Commitment: This is the first step to every relationship. It is safe to assume that all vendors featured in this year’s channel survey are committed to doing business with channels.
Clarity: Once the relationship is established, it is important to clearly define the parameters of this commitment. The level of commitment, will differ from vendor to vendor and vice versa. What this means for both sides is clearly laying down bilateral expectations on targets, price, warranty policy, rebate structure, etc.
Communication: Relationships are organic, and bilateral expectations change with growth. From the channel’s perspective, they desire very regular communication from vendors regarding price cuts, new products, policy changes, and schemes, as all these have a significant impact on the business. This also requires regular engagement to understand each other’s changing expectations and resolving any resultant differences.
Consistency: Finally, it’s consistency that drives relationships. In a bilateral relationship, the two parties need to behave consistently within the boundaries of their engagement (commitment). Channels expect consistency in policies, channel management, pricing parity, etc.
After analyzing channel perceptions about polled vendors, I sincerely believe that a majority of vendors are doing a good job of meeting the 4C tenets of channel engagement.
The basic objective of Channel Champions is to provide vendors with a reason to go back to their resellers and ask: “I may not be your preferred vendor, but how do I become one?” I hope we have managed to create a positive feedback loop between vendors and channels.
View the results of Channel Champions Survey 2008
|