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Golden rules for successful Channel Management


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Channel Management: hoe u een succesvol distributienetwerk uitbouwt en laat renderen!

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Golden rules for successful Channel Management

  1. 1. Unfold your potential Channel Management: Successfully Managing Your Distributors
  2. 2. The Most Heard Complaints About Distributors  They don’t execute our strategy  They are not performing well  They always want exclusivity  They are not spending enough time on our products  They always try to renegotiate prices  They create channel conflicts  They need too many times too much of our support  And many more… 2
  3. 3. The 15 building blocks for successful channel management 3
  4. 4. Why Channel ‘Business Planning’ matters  More depth in your partner sales meetings  Better prioritization of your activities and support  More realistic and better accepted targets  Higher probability of completion, execution of the plan  Higher achievable targets and additional business opportunities  Areas to better support the partner relationship  Acceptance by your management of necessary investments
  5. 5. One Of The Toughest Calls… Changing Channels  Similar Market conditions?  Copy/paste of successful concepts?  Wait until current channel strategy fails?  Point of no return?  Impact on still successful channel?  Ready, Able to implement change?  Pioneers’ reactions?  Revenue gap during transition? requires strong leadership ! 5
  6. 6. Your Business Partner Profiling Checklist  Coverage (geography, demography, segmentation, …)  Market & customer intimacy  Size (sales & service staff, infrastructure)  Financials (revenue, cash,…)  Portfolio (product categories, competitive offerings,…)  Brands represented (competition products, …)  Strategy (positioning, target segments, roadmap, marcom, …)  Business plan (intentions with your portfolio)  Reputation (customer feedback)  Skills (technical, application, language …)  Access to DMU’s (key opinion leaders, …)  Motivation, willingness 6
  7. 7. The Key Roles of Your B2D Sales Staff Facilitator Get things done Inspire the distributor Take ownership Follow up Expert Industry expert Create credibility Negotiation power Integrator Secure strategy alignment Supply chain Processes Negotiator Represent both parties Defend both interests 7
  8. 8. The Golden Rule in Business To Distributors 8
  9. 9. Why Customers Buy From Us = PERCEPTION The Onion Model 9
  10. 10. Your Value Proposition Toolkit  For…(your target customer or segment)  Who… (key qualifier, description of your customer activities)  Our product…(name)  Is… (product category, what it does)  That provides… (key benefit, solution to customer).  Unlike… (reference competitor or technology)  Our product… (key point of differentiation, your unique selling points) Source: ‘The Valueselling Toolkit’ (Jan Flamend, Peter Tans & De Cavalerie bvba – 2011) 10
  11. 11. What Distributors Are Generally Looking For 11
  12. 12. Why Your Distributors Always Discuss Price  They do not really want to buy your product (but are afraid to tell you)  Because they are paid / incentivized to do so (purchasing dept)  They need to bring down their overall costs  They are dissatisfied with your performance  They are ready to work / stay with competition but need ammunition to bring those prices down still  Because it is part of the business culture (country, market segment) 12
  13. 13. The 10 Most Common Price Negotiation Techniques 1. Sandwich technique 2. Price of the smallest unit 3. Depreciation over time 4. Comparison 5. Differing the price issue 6. Calculating together 7. Part of the broader whole 8. Defending Total Supply 9. Trading Concessions and… 10. Walk away from deals ! 13
  14. 14. Top 10 Mistakes with Distributor Agreements 1. Giving away too much too fast 2. Termination for cause only 3. No annual termination and semiautomatic renewal 4. Exclusive or non-exclusive 5. The frequency of price changes 6. Termination by one party only 7. Frequency of amendments 8. What happens after termination 9. No comparison with proven industry agreements 10. Leaving the negotiation process strictly to attorneys Source: 14
  15. 15. The Channel Conflict Negotiation Matrix High Accomodative A concern to the distributor’s interest Low Collaborative / Problem Solving Compromise Competitive / Aggressive Avoidance Low A concern to your interest High Source: Slideshare – Channel Relationship – Jigar Mehta 15
  16. 16. Some Great Channel Management Quotes  “It is not about the size of the dog in the fight, it’s the size of the fight in the dog” (Mark Twain)  “The closest a distributor ever gets to perfection is during his application interview with a potential supplier” (based on job interview quote)  “If the distributor is not interested, it’s maybe because you are not interesting” (unknown)  “The earlier you send a quote to your potential distributor, the higher the likelihood that it will not be the winning one” 16
  17. 17. Inschrijven voor de training Channel Management? Alle informatie op onze website Author: Paul Sysmans – Sysmans Consulting BVBA – Training Information: Gude Verhaert – Unfold your potential “Best Learning, Coaching & Development Company”