Wednesday, December 15, 2004
Channel Tactic: Channel Value Propositions
Good channel value propositions need to be about the channel partner's business, not the product. The product is proof of the proposition, not the value. Why? Because the channel partner is not using the product. Its features are of no value to the channel unless they help address a business issue such as sales, gross margin, operating costs, asset utilization, inventory, etc. As we teach at Executive Conversation, if it is not in the financials, it is not an executive business issue.
Thumbing through CRN this week (12/6/04), most of the ads were still user and product centric. However, the message is getting through to some of the vendors. Symantec's pitch on page 43 gets to the heart of partners number one issue, sales. "Increase the odds of closing a sale by 500%. " Proving it could be harder though. Having five products does not necessarily increase the sales. Symantec channel reps will need to show evidence of impact on the close rate, not just product specs.
Channel Ventures has a five step process for building solid channel marcom.
This is difficult for most vendors. Having created the products, they fall in love with themselves. But products themselves have little lasting differentiation. Ditto for programs. Kyocera, on page 38, says it is partner friendly. Why? Products, programs and support. Any bets HP can credibly make the same claim? Obviously this ad gives Kyocera no added differentiation.
How channel relevant is your marcom?
The Channel Pro
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Good channel value propositions need to be about the channel partner's business, not the product. The product is proof of the proposition, not the value. Why? Because the channel partner is not using the product. Its features are of no value to the channel unless they help address a business issue such as sales, gross margin, operating costs, asset utilization, inventory, etc. As we teach at Executive Conversation, if it is not in the financials, it is not an executive business issue.
Thumbing through CRN this week (12/6/04), most of the ads were still user and product centric. However, the message is getting through to some of the vendors. Symantec's pitch on page 43 gets to the heart of partners number one issue, sales. "Increase the odds of closing a sale by 500%. " Proving it could be harder though. Having five products does not necessarily increase the sales. Symantec channel reps will need to show evidence of impact on the close rate, not just product specs.
Channel Ventures has a five step process for building solid channel marcom.
- Identify the business issue
- Learn the customer's metric for the issue
- Address the business issue directly
- Link your solution to the business issue
- Demonstrate your product's impact
This is difficult for most vendors. Having created the products, they fall in love with themselves. But products themselves have little lasting differentiation. Ditto for programs. Kyocera, on page 38, says it is partner friendly. Why? Products, programs and support. Any bets HP can credibly make the same claim? Obviously this ad gives Kyocera no added differentiation.
How channel relevant is your marcom?
The Channel Pro
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