According to research by Rosetta Consulting (part of Publicis Groupe), engaged customers spend 97% more and 94% more frequently than other consumers. Why is this important? Because having loyal and engaged channel partners can be highly profitable as they help capture consumers on their end.
Here are our tips on how you can build strong and profitable channel partner relationships:
To build strong and profitable relationships, you need to build trust first. For this, it’s important to be clear about the goals, objectives and general rules both you and your channel partner expect from each other.
Most performance (and therefore profit) issues stem from a lack of trust and not aligning objectives early on. As such, to improve your relationship with channel partners, setting a trusting tone from the beginning is critical.
Profitable relationships cannot be sustained without both parties gaining from the partnerships. When you want to engage your channel partners more effectively, it’s important to approach it with a win-win mindset.
From a psychological point of view, asking for input and adjusting processes when needed is the key for success. According to Dr. Russell Grieger, an expert in conflict resolution, making a partner feel valued by emphasising two-way communication can both resolve issues early on and strengthen relationships.
One of the more measurable ways to increase channel partner profitability is to offer bespoke incentive programs. Besides nurturing a trusting relationship with open dialogue and clear expectations, establishing an incentive and rewards scheme that is unique can take your relationship to the next level.
Research by Accenture has even proven that 41% of people are loyal to a brand because there are personalised or bespoke options available.
You can tailor bespoke solutions to a channel partner’s exact needs and build on collaborative goals to offer unique benefits such as travel incentives or merchandise rewards. From aligning your objectives and communicating with a positive outlook to offering bespoke engagement programs, the more you strengthen your channel partner relationships, the more beneficial the outcome.