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By Michael Johnson, CEO, InfoNow Corporation
Using channel management and PRM solutions, companies can support their
channels to their customers’ benefit and make use of the Internet’s sales
potential, without alienating the partners who are so critical to their success.
If you aren’t staying focused on your end customers—their needs, how those needs are growing or changing, and what you can do to keep them as customers—it’s unlikely your company will succeed. For companies that sell heavily through indirect channels such as resellers or distributors, a central question arises: How do you leverage your partners’ strengths to deliver a quality experience to end customers when you may not have direct access to them?
For example, in industries such as insurance and computer hardware sales and service, the middleman is closer to the end customer because of frequent contact and the value added services he or she provides. If these customers’ sales and service needs aren’t met, they may choose another vendor. Clearly, companies that sell through resellers and distributors have a vested interest in keeping the end customer happy, despite the fact that they are one organization removed from them.
The desire to make use of the selling power of the Internet, coupled with the temptation to control the customer experience more directly, has led some companies to begin selling direct through e-commerce sites. For many, this has resulted in alienation of their indirect channels as well as in a decline in customer satisfaction (because the reseller’s expertise is in customer care).What is the best way to control customer satisfaction when your customers interact primarily with your partners?
An enterprise that sells its products and services through channels should not take control over the customer experience, but instead should provide capabilities to help its partners do so more effectively. In return, these capabilities can offer the enterprise insight into the customer’s buying habits, changing business needs, and satisfaction levels. Companies can directly affect customers’ experiences by supporting and guiding partners’ efforts. Partner Relationship Management (PRM), which is similar to and sometimes considered a subset of Customer Relationship Management (CRM), is a class of enterprise applications that focus on improving relationships with suppliers and channel partners. With the best channel management and PRM solutions, companies can also support their channels to their customers’ benefit and make use of the Internet’s sales potential, without alienating the partners who are so critical to their success.
The best channel management solution is one that offers services that reach into the CRM realm. Different PRM applications have varying degrees to which they support the customer through the partner (or even to a certain extent directly). Consider the following ways in which Internet-based solutions can support the end customer by extending PRM to touch customers:
Providing timely information. A solution that improves data flow to the partner has a direct effect on the timeliness of information delivered to the customer. Companies seeking a PRM solution should evaluate it for reliable, easy-to-use mechanisms for automated, customized data flow to partners. Such data can include pricing, inventory updates, etc.
Distributing customer requests for information. When a customer asks to receive more information about your products or services, whether they make that request via your call centers, Web site, or reader response cards, a quick and appropriate response is vital to maintain the life of the sale. A good channel management solution will support your total referral and lead distribution process, no matter how complex, incorporating all lead reception and distribution methods.
Closing the loop on lead management. If a customer’s request for information is distributed to the most qualified partner but never acted upon, the customer will likely evaluate other options. Lead management doesn’t end with distribution—a strong channel management solution will follow the lead through to closure, ensuring that the customer was contacted and that the partner addressed his or her needs appropriately. Because routing and rerouting leads can be an intricate business, Web-based solutions are light years beyond their predecessors, such as phone, fax and paper. Closed-loop lead management can help the organization improve customer response time and determine which partners are best meeting your customers’ needs (and which are more effective in closing sales).
Making partners more accessible online. While recent years have seen an increase in online buying, most experts agree companies have yet to see the tip of the iceberg. Through channel management applications, enterprises can assist partners in building co-branded e-commerce sites, making them more available to potential customers. This also makes it possible for enterprises to tap into the Internet’s sales potential without having to resort to direct selling.
Supporting the partner/customer relationship. Many of an enterprise’s lower volume partners may not have communications processes in place to keep in contact with customers. PRM solutions can offer applications that provide these tools to your partners (such as personalized e-newsletters, service notices, e-mail promotions and more) so that they can build loyalty within your mutual customer base.
When channel management and PRM are executed properly, it can result in repetitive business and a satisfying customer experience. Channel management solutions can also include tools that reach directly to the end customer. One example is a tool that allows manufacturers to direct customers to the partner best suited to that customer’s needs, employing the right business logic and partner profiling capabilities. Channel management technology can even assist the partner in building a co-branded online storefront so that customers can shop online through the channel. The direct beneficiary is the customer, who is quickly given stronger access to information, products, service, and support.
While the Internet has changed the way companies do business, for the multi-channel sales organization, it has proven a powerful tool for increasing efficiency, customer satisfaction, and sales. The Internet has accelerated the ease in which the partner relationship—and thus the customer relationship—can be supported, as well as the reach of the individual partners and suppliers. Many companies with multi-channel sales models are realizing that the Internet offers enormous benefit through support to loyal partners. Through these improvements, the customers are the big winners.
Michael Johnson brings nearly 20 years of consulting and management expertise to InfoNow. As chairman and chief executive officer, Johnson is the visionary behind InfoNow and is responsible for managing the strategic growth and direction of the company.
Michael is a native of New York and received a B.S. in Applied and Engineering Physics and an A.B. in English from Cornell University, a Diplôme from Université de Paris, and an M.B.A degree from Stanford University Graduate School of Business.
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