Every company shares a common goal and that is to drive more sales.
Partnership marketing is an excellent way to do that.
With partner marketing, you can improve your marketing campaign performance whilst reducing your cost per customer acquisition.
But you’ll need to have the proper partner channel management system in place to do so.
If you’re new to partnership marketing or looking for ways to improve your existing partner channels, keep reading.
Today we’re discussing what partner channel management is, why you want it, and how it can boost profits.
What is Partner Channel Management?
A partner channel refers to the use of third parties to promote your business and increase profits through indirect sales. Partner types can include affiliates, other brands, distributors, or entities that take a commission for every sale they drive to your site or service. But you can’t just connect with any publisher or organization that’s willing to promote your brand. For partner channels to be effective and successful, you need to find the right people to work with.
And that’s where partner channel management comes into play. Partner channel management retains the right channel partners for your brand, as well as your customer relationships. It also includes planning channel partner media campaigns, relationship lifecycles, and partner sales goals.
Management techniques vary from organisation to organisation, and there is a variety of companies that provide these services. However, a one-size-fits-all management solution doesn’t work.
It’s important that every brand seeks out a custom solution and finds a partner management strategy that works for them.
Related: What is Partnership Marketing
How Can a Partner Program Boost Profitability?
A productive partner ecosystem involves a lot of moving parts. When those parts come together effectively, you’ll see better results and increased channel sales.
But it’s not just about getting some additional sales.
A successful PRM (Partner Relationship Management) solution will also boost profitability. It will ensure that the commissions you’re paying your channel partner network are worth the sales you’re getting in return.
A partner program starts by finding your ideal partners profiles. It’s important to engage a channel strategy that uses channel partners that are in line with your brand vision and able to propel your brand forward. If your partners and publishers aren’t able to reach your target customer, they’ll be of little use to your bottom line.
Channel partners provide a way to reach better business outcomes without having to hire a larger sales team. Creating channel partnerships is the equivalent of hiring a sales force. But instead of paying them a salary, you only have to pay a commission on the sales they drive to your site.
Paying commissions to channel partners is much more cost-effective than hiring more salespeople to work directly for your company.
Your PRM solution should also monitor your existing campaigns and help to build new campaigns. With the proper strategy in place, you can find opportunities to make those campaigns more profitable and effective.
An additional part of the strategy is to test different promotions and marketing campaigns with your partners. This is one of the best ways to learn what campaigns are working and which affiliates are the best to work with.
By managing your partner channels strategically, you can ensure that you’re working with the right resellers or affiliates and running the strongest campaigns. Together, these two elements will boost profitability and improve your bottom line.
Best Practices for Partner Channel Management
To make your partner channels as lucrative as possible, your management solution should center on a variety of best practices. There are six vital aspects to focus on to build the most robust partner channel possible.
1. Strong Onboarding
Start every channel partner relationship off on the right foot.
To do so, you’ll need to provide your partners with the proper training and educate them on your products. Without knowledge of your products, they’ll be at a disadvantage right off the bat.
Set up a comprehensive onboarding process to ensure that your affiliates know what’s expected of them. For even stronger results, create a system that provides ongoing training about your practices and your products.
2. Establishing Goals
You can’t expect someone to reach a particular goal unless they know what that goal is. At the start of every relationship, define your goals, and discuss the results you expect to see from the partnership.
The key to establishing a healthy partner relationship is to ensure that the partnership works for all parties. It should be a win-win for everyone involved.
3. Partner Relationship Management
To build your business, you’ll need to build relationships with partners that can propel your business forward. Make sure that you have an open line of communication with your partners and can share data with one another. There are several PRM systems out there for example PartnerStack
The better the relationship is, the more likely your partners will want to work with you going forward.
4. Sharing Results
Monitor the results of your campaigns with your partners. Together, you can analyze performance, look for opportunities, and make improvements that align with both of your goals.
5. Hiring the Right Team
Any business can find an affiliate or two to start promoting their products and services for a commission.
But that will only get you so far.
To build the strongest partner channels possible, hire a management team at CloudTask. We focus on partner channel marketing so that you can focus on other areas of your business.
We recruit new partners, plan media campaigns, monitor results, and ensure that your goals are being met.
With proper partner channel management, you can grow your business and boost profitability.