Channel Readiness Blog

Channel Management Execs Share Wisdom: How to Improve Profitability

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In the past 90-days LogicBay has hired a third-party analyst to interview more than 50 senior executives all with Channel management responsibilities.  The findings reveal that most executives perceive that their support of the dealer channel is satisfactory, but this one way perspective may not be the whole story.
 
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WHY IT’S IMPORTANT TO KNOW WHAT DEALERS ACTUALLY THINK

THE MANUFACTURER/DEALER PERCEPTION GAP – STUDY RESULTS

All companies strive to optimize their performance. It’s natural and fundamental. Those selling through their own direct channel have a great deal of control over how their products are marketed and sold. However, manufacturers selling through dealers, an indirect channel, have less direct control and must find ways to successfully work with and through their dealers to achieve optimum financial success.

Many studies have shown that manufacturers who are "easy to do business with" have the most financial success selling through their channel. This ease of doing business creates a greater degree of "engagement" from the dealer, which creates more satisfaction and brand loyalty. Studies, like one done by Towers and Watson show a direct link between higher levels of engagement among manufacturers and dealers, and improved financial performance for both parties.

IS PERCEPTION REALITY? OR IS THERE A GAP?

It’s natural for a manufacturer to believe that they are pretty easy to do business with and that their dealers, for the most part, are engaged and generally satisfied with business in the channel. However, our experience and studies have shown that there is nearly always a "gap" in the perceptions of the manufacturer and the reality from the dealer’s viewpoint.

The Abistar Group surveys thousands of organizations and their distribution partners each

year to measure how a company’s dealers perceive the company’s performance in four key areas:

• Collaboration

• Marketing/Communication Effectiveness

• Training and Certification

• Performance Management

As you might guess, there is a measurable gap. Dealers rank the actual support they’re getting from the manufacturer much lower than the manufacturer’s perception of support they give. So a gap exists between perception and reality. This gap produces "friction" in the channel. The greater this gap, the more friction that exists. The result is a decrease in dealer engagement. Friction is the antithesis of engagement. The better the quality of engagement there is between a manufacturer and its dealers each day, the less friction there is. Top performing companies have minimal gaps across the four key areas of support. Companies that struggle with their dealers have large gaps.

LogicBay’s Partner Relationship Management (PRM) Technology is rich with best practice workflows making it easier for organizations to do business with channel partner re-sellers. The result: More engagement and Mindshare. Greater Efficiency and Cost Savings. Alignment with Channel Partners. And, Performance Improvement for the Entire Sales Enterprise.

	Download this premium white paper to learn Channel Management Best Practices – Make it easy for dealers to do business with you, Heighten dealer engagement, Gain mindshare and maximize financial returns. Learn about LogicBay’s 4Core Best Practice Framework including methods for more effectively training and monitoring dealer employee certifications.
	Link to LogicBay’s Library of Partner Relationship Management White Papers. These white papers provide best practice ideas on a Channel Readiness and Performance Improvement strategies. Topics include subjects such as: Effectively launching a LMS for the Channel, Applying Lean Principles to Channel Management, Channel Life-cycle Management, Partner Portal Technology Unification, and much more.
	Link to LogicBay’s Library of Client Case Studies. Learn how LogicBay’s PRM Solutions and Technology have created significant performance gains for clients such as Caterpillar, HP, Daimler Trucks and Outdoor Living Brands.