3 Ways to Get Your Channel Program Ready for the Eventual Upturn

Working in sales, marketing, and partnerships is not easy right now. Many businesses are suffering from a sudden drop in demand — and even the tech companies whose business is booming with new work-from-home demand are working through new challenges of managing a shifting supply chain, getting customers what they need, and optimizing channels.

But I see a silver lining on the way. Eventually (I won’t guess exactly when, but eventually), an upturn is coming. I have led tech companies through devastating crises like 9/11, the 2008 recession, and major shifts in technology. One trend was true for each of those uncertain moments: Eventually, there was an upturn. And the companies that spent the downturn studying their business, optimizing processes, and thinking creatively about their resources were best primed to succeed when “business as usual” came back.

So, my question for you: As you look at your revenue strategies and your channel program, what could you work on? What strategies could you rethink? Which partnerships are driving success, and which are hurting your business? The work you do NOW will prepare your business to thrive in the coming years.

Here are three ways to make sure your channel program is optimized and ready to thrive when days are brighter.

1. Take an X-ray of your channel partner pool.

Review your channel partners and rank them. Which partners are growing each year? Which are steady? Which partners are you investing the most in — and are they delivering an appropriate return on that investment? Are you putting reps on the partners that could use their energy the most? How could you shuffle your resources to change the results? Ranking your partners will help you learn lessons from the top-performers — and might help you rethink some partnerships.

2. Get strategic about your investments in specific channel partners.

Over the course of our careers at tech companies, we’ve seen leaders make one mistake over and over: They “peanut butter” their budget. In other words, they spread their budget for channel partners equally across all partners. Instead of blindly distributing equal resources, this is a great time to look more closely at your partners and your budgets and strategically invest in the partners that are ready and willing to go the extra mile, and that have proven success turning marketing and sales dollars and turning them into revenue.

3. Set a clear example.

A crisis is not a time to hide, stay quiet, or leave people guessing. Just as employees expect their company leaders to be visible and vocal right now, your channel partners need you to over-communicate and clearly demonstrate a strategy they can follow. Be a leader. Tell your partners your plan and your message for customers. Clue them in on your supply chain timeline and your upcoming product launches. Show them what you’re changing or improving right now, and tell them what you expect from them. 

Who should lead the communication to channel partners? In my view, the more senior the leader the better. If I were leading a channel organization, they would hear from me, but I would also get my CEO to pen a letter to them. It would give them "cold comfort" to know that the CEO is thinking about channel partners. 

One way to lead by example: create a digital marketing campaign blueprint for your partners. Many partners are new to online marketing, and they may need instructions on how to reach out to customers and drive demand. 

Be a guide for your partners, and don’t leave them guessing. 

Crises are scary, uncertain times. But I have learned that being smart during a crisis — examining your business, being strategic about investments, and clearly communicating your plan — can pay off with long-term success once the storm clouds clear. My challenge to you: Don’t waste this opportunity to examine and improve your organization. 

During these uncertain days, we’re working with manufacturers to improve their channel programs, respond to new levels of demand, and prime their business for the upturn. If you’re looking for advice, we’re here to help.