When you think of channel partners, what’s the first thing that comes to mind?
- Driving new sales growth
- Channel partners’ revenue growth and profitability
- Improved competitive advantage
What’s missing from this list? Channel partner loyalty.
Your organization can master partner loyalty with “the loyalty effect.” Originally defined by Frederick F. Reichheld and Thomas Teal in the mid-nineties, the concept “provides the bridge between the world of corporate ethics and the world of hard-core economics.” In today’s competitive environment, your organization can no longer afford to ignore the loyalty effect when it comes to channel partners.
Shouldn’t this be the year that your team stops holding meetings about finding new channel partners while existing partners are walking out the back door? Let’s look at the top three channel partner loyalty failures to determine how the loyalty effect can help.
1. Channel Partners Are a Revolving Door
The reason behind channel partner failures? Businesses are using new technologies (and spending valuable budget dollars) like never before to step up their game regarding cloud and data technology, but no one is paying attention to channel partner success.
Partners leave as often as they sign up because you’ve delivered a string of stitched-together portals for the management and control of partners without a “wow” factor. Technologies that focus on helping partners succeed will eliminate the channel-partner revolving door.
2. Supplier-Agnostic Partners
In their book “The Loyalty Effect,” Reichheld and Teal state that “making loyalists out of 5% of customers would lead, on average, to an increased profit per customer of between 25% and 100%.” If such a small improvement in customer evangelism has such a great effect on your business, imagine how valuable the loyalty of your partners —your resellers, distributors and agents— could be.
Don’t leave room for your channel partners to be supplier-agnostic. Instead, deliver an experience that not only gives them the tools they need, but takes it one step further: Help them deploy content campaigns that will revolutionize the way they interact with prospects.
3. Failure to Define Value
Why do your channel partners go to a competitor when the contract expires? Why don’t they recommend you to other industry connections? If you define your value by delivering a model of collaboration and empowerment, outline a channel experience that’s impossible to ignore, and ask for referrals from mutual industry contacts, your organization will reap the rewards of the loyalty effect.
Attend our 30-minute webinar, and learn how to revolutionize and provide sustained value from your channel-partner program. At the end of the webinar, you will know how to stop channel-partner churn and how to build a community of loyalists that will outperform competitor channel partner programs.