Channel Loyalty - Is It Possible Today?

The short answer is yes.  But this would rank right up there as one of my top 10 boring-est blog posts if that was the only answer I gave.

Most of the posts on this blog focus on the employee side of the equation.  That’s natural given the state of the economy, layoffs, employee fears and the need to engage your employees to weather the storm.  However, if you rely on independent channels to distribute and sell your products now is a very, very good time to really look at the way you’re engaging them and how you’re helping them weather that same storm.  Sharing their pain now will lead to benefits tomorrow.

Work Hard to Make Your Customers Successful

Most channel partners are small businesses.  There are a few that are very, very large but the majority of the people you rely on to represent your brand and connect with your end users and final customers are small to medium-sized businesses.  This means they are feeling the pinch as much if not more than you.  And who will they remember when this economic kidney stone passes? 

They will remember those vendors and suppliers who helped them stay in business, helped them get new customers, helped them reduce costs and helped them be better businesses in the future. As a partner in their success, you need to really dig into the market right now and find out what needs they have and how you can help address those needs. 

Are You Waldo?

Creating a strong program that drives performance for you - and helps drive business for them is critical.  But I offer this word of caution.  Just as with employee programs the old standby's won't work.  The best way to sum it up is with this cartoon from Tom Fishburne... (If you don't subscribe to his site you should - great management/marketing cartoons.)

Focus on Them!

Not unlike other types of loyalty applications the first step is to check your ego at the door.  Don't assume because you NEED their loyalty they WANT to give it to you.  You're not the only suitor.  But if you're smart you just might be the only suitor that actually listens and responds to their needs.  Ask them questions (don't judge the answers just yet)...

• What is their point of pain dealing with their vendors - all of them - and you in particular?
• What does their business need?  Don't ask about lowering prices - ask about employee turnover, accounting issues, tax support, other business activities. (Remember - don't judge the answer yet.)
• What are their customers saying?  What help does their customer base need?
• What can you do for them?

Once you understand their pain you can find ways to connect what you do to what you can do for them.  Maybe offering SMB services at discounted prices through third-party partnerships will drive them toward your offerings?  That would be more valuable to them in the long run than simply dropping the price 10%.  Don't assume just because you manufacture widgets you don't have a way to help with their employee turnover problem.  As a manufacturer or vendor - you may have more clout than a small business would and could help them access resources they wouldn't normally be able to.

In most programs targeting the distribution channel, price and promotion lead the discussion.  "Buy more and I'll drop the price."  But look around - everyone is saying the same thing.  Try putting yourself in their shoes.  They need less help buying your stuff and more help selling their stuff.

Don't follow the traditional path.  Ask yourself "Does my loyalty initiative focus on what I need or on what they need?

Start looking at loyalty as a "giving" program - not a taking program and I'm sure you'll find more partners willing to help you out as well.
 

 

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