How NOT to do channel marketing

by ryan




How NOT to do channel marketing – a guide for vendors and distributors

 

Some time ago I was asked to write a piece of advertising copy for a distributor that was looking to
promote its products and services to the reseller community. To assist me in understanding exactly
what resellers would like from both vendors and distributors, I contacted a few of my clients and asked
them that question. The results were very interesting. All of these situations are ‘live’ examples which
actually happened.




Top Ten Things that DO NOT work for resellers

1. Being given a sizeable chunk of cash by a very large network provider but being made to spend it
within a set number of months, even though it could have funded a whole years-worth of structured
and relevant activity.

Result – an expensive but rushed and ineffective campaign.

2. Being made to use specified suppliers for data supply and telemarketing who were overpriced,
ineffective, inaccurate and inexperienced.

Result – a overpriced campaign with poor results leading to funding not being given the
following year.

3. Being made to include a vendor logo on printed items even though the normal approach for that
reseller would be a ‘consultative selling’ one.

Result – making specific vendor alliances immediately obvious and so having a negative effect
on the audience as they no longer believe the reseller is ‘independent’.

4. Being given boxfuls of pre-printed mailers which were not relevant for an individual resellers’
audience, and when the reseller needed work doing to their database first.

Result – expensive mailers either sit under desks gathering dust or are mailed to inaccurate or
irrelevant audiences, taking up employee time, incurring postage costs and generating no
positive result.

5. Being given funding without additional marketing support and advice when there is no real
marketing expertise in-house.

Result – poorly devised and managed campaigns, or funds being spent on engineers t-shirts or
sales jollies instead, giving no additional revenue generation.

6. Being made to use heavily vendor-branded materials or an ‘e-lateral’ type system where predesigned
mailers are available on-line for customisation, both of which do not allow for any reseller
differentiation.

Result – e-lateral type systems are fine for communicating with existing customers but no good
for new business activity as a prospect could receive the same mailer five times from different
companies each with a different logo on. Also, with any branded materials there is little or no
opportunity to promote the individual reseller’s skills and complementary services, giving no
ability to tell a prospect why they should buy a product from one reseller rather than another
reseller who is offering the same thing.

7. Being made to use existing advertisements even if they have been designed for a foreign audience.
Vendors have been known to offer to pay for advertising space if resellers use a pre-created advert,
but if that advert has been written as a general communication piece for a US audience, it is unlikely to
have a positive effect.

Result – funds wasted which could have been spent on a bespoke advert that would have been
far more likely to generate additional revenue.

8. Being tied into a cumbersome and complex funding system where it is virtually impossible to find
out how much co-op funding you have accrued and even harder to gain approval to spend it.
Result – funds left unused and being lost, plus hours of reseller marketing personnel time
taken fighting their way through the system to request allocation or claim the funds.

9. Being made to abide by ridiculous rules to claim funding. Example: to claim co-op funding for a
customer seminar, instead of asking for an invite list, an attendee list and a follow-up report showing
meetings generated, one large vendor asked for a ‘photo of the event’ and a copy of the invitation!
Result – no trackable ROI for the vendor and no ‘education’ for the reseller.

10. Being made to log in to multiple impersonal ‘reseller areas’ on various vendors’ websites just to get
something as simple as a logo. Often if a reseller is working with numerous vendors they will
have many different log-ins, passwords etc. and many different systems to find their way around.

When contracting for a reseller I once spent an entire day fighting my way through six different ‘partner
areas’ just to get six logos!

Result – time wasting and frustration.

How to get it right – a message for vendors and distributors

1. Take time to find out about each reseller’s marketing plans for the year and make sure that large
chunks of cash, when available, are allocated in a manner which enables the reseller to make best
use of them.

2. Trust your resellers to use their own suppliers, vetting them where necessary, or make sure that
suppliers whom you recommend or insist on are capable of doing the job properly.

3. Try to understand that plastering your logo all over a piece of sales literature may very well have a
negative effect on the audience, not a positive one. If you are a sufficient percentage of that reseller’s
overall business, then a consultative selling approach should be encouraged, with close monitoring.

4. Ensure that your resellers have the basics in place first. Better to fund someone to help your
reseller clean up their database first and then get it segmented properly, rather than supply lots of
expensive mailers which are not used at all or which go to inappropriate audiences.

5. Educate your resellers in basic marketing skills and encourage them to recruit in-house marketing
managers or employ experienced external consultants and contractors, possibly funding these also.
Once there are good solid marketing skills in house there will be noticeable improvements in quantity
and quality of marketing activity.

6. Promote the use of ‘e-lateral’ type systems for communicating with existing customer bases only.
Then assist resellers in developing bespoke materials which promote their individual skills and abilities
to new audiences, but which can also promote your products in a softer way where appropriate. The
message should always be: ‘your product – but your reseller’s company/skills/complementary
offerings’.

7. Do not cut corners by trying to make resellers use existing materials which are not relevant for UK
audiences. You must allow the piece to be customised, or re-created in a way which will suit that
reseller’s target audience and geographic location.

8. Understand that reseller personnel do not have time to wade through reams of rules and regulations
just to find out how to claim a few quid. Make your co-op funding systems simple to work with, so
resellers can easily see how much they have, when it must be spent by and what supporting
documentation is required to ensure the funds can be claimed. Sometimes it seems that you are
making it complex on purpose so that funds are not spent.

9. Vendors and distributors must devise sensible rules and regulations for reseller co-op funding which
ensure ROI tracking and educate the reseller in the process, and these should never be set in stone,
as what might be appropriate for one reseller will not be acceptable for another. For example, funding
towards cleaning up a reseller’s database might be appropriate if they sell your products alone, but if
they sell four different competitor product ranges then obviously the campaign will need to be more
specific to ensure benefit for you.

10. Vendors and distributors seem to have opted for partner interaction systems which require minimal
human intervention, thus saving on personnel costs but at the same time becoming impersonal and
alienating the reseller. As it is often said ‘people buy from people’ in this industry and putting a ‘partner
area’ between you and your reseller and not having someone on the other end of a phone who can
help is not good customer service. These do have their uses of course but you must remember that
the reseller IS your customer.

If I call your marketing department to ask for a logo file to be emailed to me the answer I want is “No
problem, what format would you like?” not “No problem, if you log on to
impersonalvendor.co/partnerarea/marketingdownloads/ and key in your username and
password (What username and password? Do I have one? Could you email it to me again please I
seem to have lost it . . .?!), then go to logo files, then click on the format you want, then click on
download jpeg file . . . . ” zzzzzzzz, sorry, I’m asleep already . . .

Conclusion

All of the above comes down to one thing. Vendors need to go back to giving resellers the personal
touch. Trying to automate everything and have just one set of rules which do not take into account the
fact that each reseller is an individual business with individual needs does not work. Resellers need
help, support and education when it comes to marketing, and most of all they need flexibility.

However large a vendor you are and however many resellers you have to manage, make sure you build a
‘customer service’ mentality, investing in people first and technology second.




Previous post:

Next post: