How should channel chiefs respond to increasing channel complexity?

Chanan Greenberg, Senior Vice President & General Manager High Tech, Model N 

Today’s channel chiefs are facing a market landscape that is nothing like even the recent past. The experiences consumers have with online brands and disruptive businesses such as Uber and Lyft have resulted in a level of product and service delivery that wasn’t even possible a decade ago. These seamless consumer experiences have impacted expectations in all areas of commerce. Whether a consumer is at a local shop or making a purchase decision at their place of work, they expect a high level of service, a transparent price, and rapid delivery.

Channel chiefs are working to meet these elevated expectations by investing in their channels. According to a survey by the 2112 Group, in 2018 80 per cent of vendors are expanding the number of partners in their programs, 67 per cent are increasing incentive budgets and 60 per cent are investing more in partner enablement. The net result of their investments is that channel chiefs are adding more types of partners and more layers so they can deliver the right experience in a timely manner. While they may be improving the buyer experience, for many organisations these increased investments have led to a significantly more complex channel. Managing channel sales partners in this increasingly complex market can have a negative impact on revenue and margins due to an increased likelihood of incentive overpayments and price erosion through channel competition.

The good news is that there are organisations that have successfully managed to meet consumer expectations while simultaneously maintaining revenue growth and margins. After taking up the effort to reinvent their channel strategies, these organisations have been able to reduce overpayments, respond more effectively to market changes, maintain stable prices and grow revenues. In fact, some of them have been able to improve revenues by up to $50million on every $1billion in sales. Chanan Greenberg, senior vice president and general manager for high tech at Model N, sat down with Business Reporter to discuss the challenges and successes that some of these organisations have had.

How do successful Channel Chiefs reinvent their channel strategies to grow revenues? Watch this interview to find out.


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