Study Notes:

Introduction to B2B Sales and Channel Sales

Sales

Transfer of ownership from one company to another with respect to monetary or

nonmonetary terms

A sale is the act of selling a product or service in return for money or other compensation..

Sales management

• Sales management is defined as the management of the firm‟s personal selling functions while
distribution management is the indirect selling effort or selling through extra corporate organisations.
• Sales management tasks include analysis, planning, organising, directing and controlling of a
company‟s sales efforts.
• P O S D C + S = SM

Objectives of Sales Management

• Quantitative Objective
• 1. To retain and capture market share.
• 2. To determine sales volume in ways that contributes to profitability.
• 3. To obtain new accounts of given types.
• 4. To keep personal expenses within specified limits.
• 5. To secure targeted percentage of certain accounts of business.
• Qualitative Objectives
• 1. To do the entire selling job.
• 2. To service existing accounts, (customers).
• 3. To assist in training the dealers or retailers in selling the product line.
• 4. To provide technical advice wherever necessary.
• 5. To provide advice and assist the middlemen.
• 6. To collect and report market information of interest and use to the company management.
Personal Selling/ Salesmanship/ Face to Face Selling

• When you want to buy something you usually go to a concerned shop and purchase it from there.
But, sometimes you find people bring certain goods or products and make them available to you at
your place

For example, you find persons selling vegetables or rice by carrying the same in a cart and moving from door
to door to sell.

• You must have noticed persons selling sarees, carpets, electronic items, etc. in a similar fashion.
• While traveling in buses or local trains you must also have seen people selling pens, toys, books,
combs, etc. inside the bus or train.

Personal selling refers to the presentation of goods and services before the customers and convincing
or persuading them to buy the products or services. The technique of selling is known as ‗Personal
Selling‘ or ‗Salesmanship‘.

• The person who sells goods to you in this way is called a Sales Executive or Sales personnel
 • Personal selling is also known as face-to-face selling in which one person who is the salesman tries
to convince the customer in buying a product.
• Personal selling occurs when a sales representative meets with a potential client for the purpose of
transacting a sale.

Elements of Personal Selling

• i. Face-to-Face interaction:
• Personal selling involves a salesmen having face-to-face interaction with the prospective buyers.
• ii. Persuasion:
• Personal selling requires persuasion on the part of the seller to the prospective customers to buy the
product. So a salesman must have the ability to convince the customers so that an interest may be
created in the mind of the customers to use that product.
• iii. Flexibility:

The approach of personal selling is always flexible. Sometimes salesman may explain the features and
benefits of the product, sometimes give demonstration of the use of product and also faces number of queries
from the customers

iv. Promotion of sales:

The ultimate objective of personal selling is to promote sales by convincing more and more customers to use
the product.

v. Supply of Information:

Personal selling provides various information to the customers regarding availability of the product, special
features, uses and utility of the products. So it is an educative process.

vi. Mutual Benefit:

It is a two-way process. Both seller and buyer derive benefit from it. While customers feel satisfied with the
goods, the seller enjoys the profits.
DISTRIBUTION CHANNEL:

A distribution channel is a chain of businesses or intermediaries through which a good or service passes
until it reaches the final buyer or the end consumer.

Distribution channels can include wholesalers, retailers, distributors, and even the Internet.
One of the biggest challenges faced by every business is scaling their revenue. While they do have an in-
house sales team, those sales representatives have only a fixed number of maximum hours for each day.
Hiring more sales representatives to increase your revenue is one of the ways, but one which will increase
your operating expenses, lower your operating income and hence eat away at your profit margins.

One of the game-changing strategies which will give you all the benefits of hiring more sales representatives
and even more than those benefits, but simultaneously not eat away at your profit margins is a channel sales
strategy. The basic premise of a channel sales model is that your channel partner will market and sell your
products and services on your behalf and get a share from the total earnings.

INTERMEDIARIES

Intermediaries act as middlemen between different members of the distribution chain, buying from one
party and selling to another.

• Channel intermediaries are the external groups, individuals and businesses that help a company
deliver its products to customers.
• They also may hold stock and carry out logistical and marketing functions on behalf of
manufacturers.
 Business-to-business (B2B)
Business-to-business (B2B) describes a relationship, situation, or marketplace between one business entity
with another business.

B2B sales refers to a sales model or a category of selling wherein a business sells its products or
services to another business.

B2B sales usually involves higher price points, more complex processes, and several touchpoints over
multiple channels, B2B companies need to maintain a team of highly-trained B2B sales professionals in order
to drive revenue.

Examples of B2B sales include:

• Organizations that provide professional services to companies

• Businesses that provide digital/software services (e.g. CRM) to companies
• Companies that produce/distribute raw materials to manufacturing companies

A B2B sales representative is a professional who uses strategic sequences and specialized selling methods to
engage corporate buyers.

Corporate buyers tend to research products and services online before contacting a salesperson, these buyers
are often well-informed and comparing several competing products at once.

B2B sales representatives are responsible for making and answering sales calls, managing sales emails,
setting meetings, conducting product demos/presentations, building rapport, handling objections,
identifying pain points, and solving problems.

Business-to-customer (B2C) sales refers to a sales model in which business target individual customer.

• Examples of B2C sales reps would be sales reps selling cars, gym memberships.
While some B2C goods are at a high price point (real estate, cars etc.) the majority of B2C goods are at lower
price points with only one or two decision-makers.

As such, the typical B2C sales cycle has a much shorter sales cycle than the typical business-to-business
(B2B) sales cycle.
 Channel Sales
Channel sales include a middleman or a third party vendor who helps your
company to sell or distribute your products and services.
Channel sales is simply a sales strategy in which a parent company sells products through
another company.

A channel sales strategy allows you to leverage the help of third parties to sell your products
and services.

Channel sales strategy is about building partnerships with third parties in order to get a wider reach
for your products and services and hence facilitate business growth. Increased exposure for your
products and services will also lead to increased sales, revenue and gross profits.

Partnering like this allows you to leverage the existing customer base of an established brand such
that you can expand your own customer base. However, it often comes at the cost of giving your
products and services at discounted prices on these platforms. During such instances, what is then
calculated is whether an increase in sales volume makes up for the reduced profit margins in the
long run.

What needs to be kept in mind for succeeding through this sales strategy is that you will have to
work closely with your partners to make sure they are deploying the correct plans and strategies.

Types of Channel Sale (FMCG):

 General Trade,
 Modern Trade,
 HORECA (HOtel, Restaurant and Catering),
 D2C
 CSD (Canteen Stores Department)
How Can Channel Sales Strategy Help Your Business
Grow?
Channels sales strategy is usually implemented as a part of your business growth effort. The 3 ways
in which channel sales strategy can help your business grow are:

 To reach new customers who do not buy directly from the vendor, preferring to instead buy
from consultants or resellers.
 To sell products or services through third-party marketplaces and managed service
providers, which may offer package deals to customers and appeal to buyers looking for
different product options and deals.
 Channel sales programs can help you find business in new geographic regions.

While channel sales strategy is not for everyone, it is still one of the best ways to level up your
business. However, what needs to be taken care of is that your channel sales strategy does not cause
any conflict with your direct sales initiative. To ensure this, your channel sales should be targeted at
those markets and demographics that cannot be reached by your direct sales team.

A company will always benefit the most from a well-designed, complementary direct and channel
sales strategy.

Channel Sales Vs Direct Sales

In the case of channel sales, a company sells its products and services via a third party. However, in
the case of direct sales, the company sells its products and services directly to the consumers.

Companies that use a channel sales model, do not need an in-house sales team, though they can
have a mixture of direct and channel sale strategies to increase their revenue by increasing their
sales.

In contrast, in the case of direct sales, it is your in-house sales team that is responsible for increasing
your revenue. They might do so by using a mixture of inbound sales and outbound methods, where
the prospective leads are found, qualified and then turned into closed deals.

Types of Channel Partnership Models

Some of the examples of channel sales partnerships, who are those groups of people who do not
work directly for you are:

 Affiliate Partners
 Resellers
 Value-Added Resellers
 Referrals
 Consultants
 Distributors
 Managed Service Providers
 Agents
 Dealers
 Influencers
 Marketplaces
 Independent Retailers
Depending on the type of product and service you have for sale, your company size and the
industry that you cater to, you might be able to include several of these partnership models in your
sales tactics. Whether you decide to sell to or through your partner is entirely up to you. If you sell
to your partner, you will have to be proactive by pursuing new partners. On the other hand, having
others to sell for you is most likely to set you up for longer-term, consistent profits.

Types of Channel Partnership Models

Referral Partners and Affiliates

Referral partners and affiliates are popular sales channels for both SaaS and digital goods. The
concept of a referral partner is: someone (a person or a company) refers the lead for a sale to the
vendor. The vendor in turn sells directly to the customer and pays the partner a fee when the sale is
closed.

These affiliates are responsible for affiliate marketing and promoting of your product and only
getting paid once the sale is made. The vendor maintains ownership and ongoing management of
the customer. Hence, affiliate programs will allow your company to boost your revenue and
facilitate word of the mouth marketing at the same time.

Resellers

Resellers are those who directly purchase your products from you if your product is a physical
good. After selling, the profits earned from what they have sold is kept by them as an earning. In
this channel sales strategy, the customer will go to the reseller to make a purchase and the reseller
will work with its sourcing companies to fulfill the order.

Value-Added Resellers (VAR)

Value-added resellers are different from the resellers in that they add features or services to an
existing product and then resell it as an integrated product to the final users. The additional features
or services added by them are above and beyond the features of the standalone product.

Value-added resellers are most often seen in the case of SaaS, electronics and the IT industry. An
example of a value-added reselling product is a bundle of software applications with the hardware
that they supply.

Distributors

Distribution channels provide products directly to the consumers. Some distribution channels are
agents, websites or businesses that serve as intermediaries between the companies that produce the
product and the final buyer.

Wholesalers

A wholesaler is a type of distributor who specializes in getting the physical products on the store
shelves to be purchased by the consumers. Wholesalers tend to have sales representatives who work
to sell their products to the retailers. Wholesalers buy in bulk from the source company and hence
get them at discounted rates, which are then sold to the retailers after keeping their profit margin.

With increasing purchases by the retailers, their net profit will increase too. However, for the
retailers to buy from them, they need to have trust in the wholesalers and the products- old or newly
launched that they provide. The most common example of wholesalers is the suppliers who sell
food and other goods to the restaurant.

Independent Retailers

An independent retailer is a business owner who has a retail business that is not tied to any major
brand or franchise. For example, an entrepreneur who has founded and runs a clothing boutique
without the support of a parent company is known as an independent retailer.

Dealers

Dealers sell the products directly to the final consumers but work differently from the retailers who
sell several variations of wide varieties of products. For example, the business owner who sells and
leases cars directly to the final consumers is known as a dealer.

Agents

In this channel sales strategy, agents are those intermediaries who do not have any ownership over
the products and services that they are selling. Agents are those who facilitate deals between buyers
and sellers, hence assisting with the negotiation process.

For example, a real estate agent or broker is not the owner of the property being sold to the buyer.
However, they are responsible for overseeing the process until an agreement is reached and the sale
is closed.

Consultants

Consultants support the creation and efficiency of different sales channels. Consultants help in
connecting the retailers, manufacturers, distributors and vendors to ensure smooth delivery of the
product to the consumers. Channel consultants do not sell directly but play an integral part in the
smooth functioning of channel sales.

Marketplaces

These are those places where the third-party sellers list their products and services and the
consumers buy from them. In the case of online marketplaces, it is the marketplace that processes
the transactions and not the sellers directly. With each sale made, they get a portion of earning of
the total amount, which becomes their earning.

Influencers

Influencers are those who have a good following, enjoy the trust of their audience and can refer
your products and services for purchase by the final consumers. Considering that this
recommendation comes from an individual that the audience looks up to, they are more likely to
purchase the product or services that was referred to and which solves their problem. In the era
of social media marketing, influencers have become a vital part of channel sales partnerships.

Types of Channel Sales

Pros of Channel Sales Strategy
Adopting a channel sales strategy for your business will have a wide range of benefits apart from
one of the benefits being that you will be able to downsize your sales team. These pros of channel
sales strategy are:

Pros of Channel Sales Strategy

Scale Your Business

Even if your internal resources are limited, with a channel sales strategy, you will be able to scale
your business by allowing your channel partners to attract leads and convert them into final sales.
Channel sales partners would be able to help you in expanding your network by getting you in
touch with those clients that you would not have been able to reach with direct sales strategies.

Such clients would most likely become the bulk of your revenue. However, your channel partners
will have to be trained and brought up to date with your products and services. This training will
take lesser efforts and time than setting up your direct sales channels, which makes channel sales
strategy more profitable for your business.

Built-In Trust

If your channel partner is someone who is already known in the market, you would not have to
work in bringing about your brand awareness in accordance with your brand positioning statement.
Your product will become credible just with their endorsement. This will save time and efforts
taken for building trust through direct sales and help you to make more sales and have higher gross
income. This will also quickly improve your cash flow.

Increased Efficiency

When comparing the costs of bringing a certain amount of revenue, the costs would be lower in the
case of a group of channel managers as compared against the same size group of the salesperson.
Additionally, it is easier to bring in a new partner than hiring a new salesperson. This is especially
applicable when your channel sales strategy is ready and so are all of its niches and kinks.
Similarly, because the channel partners tend to be those with already established credibility and
access to a wide customer base, by having them partnered with your channel sales strategy, you will
be able to reduce your marketing costs as well.

Rapid Testing and Experimentation

Another benefit of adopting a channel sales strategy is that channel partners will let you experiment
with new customer bases, products, packages, promotions and marketing campaigns in an
environment that holds lower risks. This ensures that after a period of time, your business will be
well acquainted with all the specifications of your sales that perform the best for your business.

Empower Your Sales Representatives to Focus on Their Strengths

Channel sales strategy with its partners will help in taking off a load of unrealistic targets from the
in-house sales team and operations. By handling the tasks that will meet the business goals and
targets, your in-house sales team will be able to focus on building direct relationships with the
customers.

This will ensure that you always have your customer‟s loyalty on your side, with the building up of
relationships encouraging returning customers, improving customer retention and making sure your
relationships with the customers do not decay.

Customer Success

If your new customers need help with training, on-boarding, implementation support and service,
partnering with vendors who offer these services would be beneficial for your business. This is
because by having vendors manage your new customers and hence closing new businesses, you
will also be able to focus on your existing customers.

Cons of Channel Sales Strategy

While there are lots of benefits of adopting a channel sales strategy, it does come along with some
drawbacks that make it less ideal as well as effective for few businesses. These cons are:

Cons of Channel Sales Strategy

Less Control Over Sales

One of the biggest drawbacks of channel sales strategy is that you have hardly any control over the
sales. Even if your channel partner is mismanaging the deal, your salesperson would not be able to
jump in and take back control to rectify the situation.

Additionally, your sales team will have no say over the timeline of the deal, which will make it
frustrating for your business especially because it will lead to unpredictable revenue.

Brand Risk

If through your channel sales strategy you end up partnering with someone who has a bad
reputation and mistreats the customers, your association with them will have a negative impact on
your brand image. This will affect your sales, revenue and even the future of your business.

In order to avoid such a situation, it is important to choose a channel partner who is known for his
excellent customer service and has a good reputation.
Reduced Profits

In exchange for closing and acquiring the deals, your partners will get a part of the earnings, which
will hence lead to you getting reduced profits per each sale. However, it is quite likely that the
operating expenses for getting the deal would be cheaper, leading to collectively higher operating
incomes.

Harder to Manage

Channel sales strategy is harder to manage because you will be asking multiple external groups to
update their sales strategy, change their messaging, add a new product or make any kind of such
major shift. For such an adaptation to take place across multiple external groups will not only take
time but would also become trickier to manage.

Slower Feedback Cycle

Considering that it is not your in-house sales team, but rather your third party partners who are
talking to some or all of your customers, feedback is slow and will take longer to get to you. In
addition to this, even if your partners are trustworthy, the feedback received by you might not be
100% accurate as there might have been a difference in understanding, they might have used
unreliable methods of gathering or analyzing the results, they might have asked bad questions or
they might have used biases in the interpretation. This will hence hamper your chances of
understanding your customers perfectly and delivering what they want.

Potential Competition

It can become very messy for your business when your direct sales team starts competing with your
partners for channel sales strategy. For example, your sales representative decides to remove your
partner from the deal so as to not give up the commission.

If your partners come to know about this, they will stop passing along the leads, which will lead to a
lack of lead management from your side. This will lead to losses incurred by your business along
with a permanent severed relationship between your sales team and channel partners.

Reduced Time Spent With Your Customers

With the involvement of third parties through your channel sales strategy, it will lead to less time
spent with your customers. This will hence also reduce the time spent with them talking,
understanding their unique needs, challenges, pain points and desires. This tends to happen more
often than not as the third-party vendors do not prefer your salesperson to directly talk with your
customers.

However, your channel partners like vendors will assist you through this drawback of channel sales
strategy by passing along customer feedback, providing vertical expertise, functional expertise,
competitive intelligence, beta testing, product road mapping and many such services which will be
beneficial to your business.
How to Know Whether the Channel Sales is Right For
You?
In order to assess whether channel sales is the right model for your business, you need to consider
the model with consideration of the state of your company, product, sales processes and many more
such factors.

Company Size and Maturity

If your company is small, having a channel sales strategy will help your business to grow without
having to invest in and hire a sales team, who will also need to be trained. Having a channel sales
strategy will also save on your brand building and other marketing costs as the channel partner
would be selling your products and services based on their own reputation. You can shift to having
a complementary direct and channel sales strategy or just direct sales once your company grows.

Product Maturity

If your product is something that is new and therefore still immature, having direct relationships
with customers becomes beneficial for you as this will let you find out what is working, what is not
working and what to build next. In such a scenario, the channel sales model would not be the right
fit for your business.

Sales Process Maturity

It is important for you to know your own sales processes before you can teach them to others. Such
a sales process involves understanding the various stages of the sales process, knowing the most
important buying triggers, knowing which customer stakeholders tend to be involved, the average
time taken for each deal to close and other such details.

If you are yet to know your sales process in this manner, you will have to wait before incorporating
channel sales models for your business. Additionally, if your sales process is lengthier and more
complex, it will be harder for your channel partners to sell your products and services. This means
that shorter and simpler sales processes are ideal for channel partners.
Location

If your business offices are spread out across different locations, using channel sales strategies will
make more sense than creating multiple sales teams. This however does not mean that you cannot
have an in-house sales team. But maybe, you can have a mixture of direct sales model and channel
sales model, with your in-house sales team for direct sales present in your prime offices.

Revenue Needs

To have a partner involved in your sales processes will require a lot of time and effort. If time is
something that you do not have, and you need quick revenue, the direct sales model is your
solution. Only after you have satisfied your initial revenue needs, can you move forward to setting
up your channel sales strategy if you think that is the correct fit for your business.

How to Implement a Channel Sales Strategy?

Implementing a channel sales strategy requires research and planning. If your business is planning
to have multiple sales channels, you will first need to finalize a process that can be rolled out and
replicated with each and every partner or channel you pursue in the future. The key steps to doing
this are:

Confirm You Are in the Right Stage For Channel Sales

The first step for implementing a channel sales strategy is assessing whether your business has the
bandwidth required for the implementation of channel sales and its success. This assessment should
be done before looking for your channel partners. Doing this will ensure that you do not end up
disrupting your well-performing sales process.

The 2 main pointers to confirm whether you are in the right stage for channel sales are-

 You have a defined, proven sales process that can be replicated

 You have a clear understanding of how to sell your products to your target audience, and
there is enough awareness about your product so that someone else can sell it too.

While these are important factors needed before implementing a channel sales strategy, what needs
to be remembered is that some of your channel partners would be able to help you through
developing your sales process and finding the right target audience.

Make Sure Your Partners Are a Perfect Fit

The way to find partners that are a perfect fit for your business is by developing a partner profile
that has all the attributes that you are looking for to give you the best chance for success.

The basic requirements for a partner to be a perfect fit for your business irrespective of your
geographical location and industry are:

 Have a deep understanding of your target audience

 Provides a service or has subject matter expertise in an industry that complements your own
 If they are working in a new market, it should be a market that carries the potential of your
business growth
 Have the skills and resources to market and sell your products and services
Entice and Empower Your Partners to Perform

After you have found your perfect fit partner, it is time to tell them how this partnership is
beneficial for them and what are the gains that they should look forward to. This should be shared
in a manner that empowers your partners to sell you products and services with the same
enthusiasm and vigor that your direct sales representatives carry.

Types of extra rewards that can fuel their vigor are:

 Revenue share
 Competitive referral commission
 Discount
 Tickets to exclusive events
 Access to beta features
 Features in your email newsletter
 Premium listing in your directory

And more such rewards that will also make them take your offer more seriously.

However, educating your partners about your product is an important part of enticing and
empowering your partners. This education involves teaching them everything about your product
and services and what it does for your customer. To do so, resources like webinars, tutorials,
testimonials, product specifications and demos will play a big role.

Further on, you should even consider setting up different tiers for your partners. The benefit of
having a tier system is that it will enable you to manage expectations with smaller partners and
those with a wider reach. It will also incentivize your partners to do more sales, so as to move up
the tier system and have higher benefits. However, what needs to be taken care of is that each tier
should have its own specifications like sales and technical certifications, sales and marketing
training and product training.

Additionally, all the past analyzed data in regards to your customers and sales will aid your partner
in understanding your business trends and your target market trends better. In short, your partners
should have all the tools necessary for closing deals with your customers.

Consider Hiring a Channel Sales Manager

If your business is one that has decided to have channel sales as one of its main sales models, hiring
channel sales managers to partner relationships is of utmost importance. This will ensure that each
of your partners gets the attention that they deserve in order to be successful.

In addition to this, channel sales managers will also be responsible for providing the necessary
resources to the partners and keeping tabs on their performance. They can also help the partners
with deal strategies while motivating them to perform better.
Channel Dynamics
• Distribution channels may not be same forever. Distribution channel should be changed
according to environmental changes.
• Changing of channels according to time is called channel dynamics.

Vertical marketing system (VMS):

• A vertical marketing system (VMS) is distribution channel—producer, wholesaler, and

retailer—work together as a unified group in order to meet consumer needs.
• These work together with the intention of profit maximization.
• Example, a water pumps manufacturer sells the goods to water pumps contractors as well
as installers.
Horizontal Marketing System (HMS)

• A Horizontal Marketing system is a form of distribution channel when two or more

companies at one level join together to follow a new marketing opportunity.
• Examples of companies engaging in horizontal marketing system are Johnson & Johnson
• Google joined hands with the intention of creating a robotic-assisted surgical platform.

Horizontal marketing systems are when two or more companies at one level join together to
follow a new marketing opportunity.
Companies combine financial, production, or marketing resources to accomplish more than any one
company could alone.

Multichannel Marketing Systems

Multi-channel (often called hybrid marketing channels) refers to the use of several media
channels for spreading marketing messages. This can include email, social media, print, mobile,
display ads, television, and more.
Leveraging multiple channels allows brands to interact with their customers across multiple
touchpoints for a more comprehensive campaign.

OMNI-CHANNEL

An omnichannel is a sales and marketing approach that provides customers with a fully integrated
shopping experience. Omnichannel strategies unite user experiences across multiple touchpoints

For instance, a clothing brand might sell its products on its website, app, Instagram's
―Shopping‖ tab, and Amazon etc.
Examples of the Omnichannel:

Starbucks reward application

• With Starbucks reward app, Starbucks provided an excellent seamless customer experience
for their users.
• Every time the customers buy a product at Starbucks store, they can check and reload
immediately their reward points via a physical card, on the Starbucks‟s website or on their
smartphone.

Primary Sales:
Primary sales is the sales from a manufacturing company or national supplier to a
city/state/region distributor.

For example when a brand is invoicing the product to a distributor in one city is called as 'Primary
Sales' transaction.
 Company invoices the product at distributor price, and revenue generated from this transaction is
the net revenue of the company.

Secondary Sales
Secondary Sales – When a distributor invoices the product to a retailer, the transaction is
called as ‗Secondary Sales‘.

In this transaction, distributor keeps its margin and invoices the product at dealer price (also called
as retailer price).

Tertiary Sales

Tertiary Sales – When a retailer sells the product to a customer (end consumer), the
transaction is called as ‗Tertiary Sales‘.

The product at this level is sold at either of MRP (maximum retail price) or MOP (Market operating
price).

Direct Sales vs Channel Sales:

• Direct sales, involves the manufacturer selling the product directly to the consumer.
• In channel sales, there is a third party involved in selling the product to the final consumer.
The third-party may be a distributor hired by the company, a retailer, or a wholesaler.
 D2C Sales

Digital sales:

• Digital sales involves converting leads into prospects. The digital sales team will be
responsible for convincing the potential customers to purchase the company‟s products.
• Digital sales involves provide education, and ultimately offer a solution that uniquely
meets their needs.
• The goal is to build relationships on digital platforms and turn online connections into
offline sales conversations.
• They will take the customers through a list of their products to ensure they close the sale.

Channel Conflict Management

The Channel Conflict arises when the channel partners such as manufacturer, wholesaler,
distributor, retailer, etc.
 • Conflict can take the form of a direct sales force competing with an independent
distributor, two different types of competing distributors, two like distributors competing
for the same sale, or all of the above.
• A few facts about achieving an appropriate balance between coverage and conflict:
• Lack of any channel conflict in a marketing strategy usually indicates gaps in market
coverage
• Conflict cannot be eliminated. The goal of marketing management must be to optimize
market coverage and manage a healthy level of channel conflict so that it does not become
destructive
• Market share erosion and declining street prices are evidence that channel conflict is
becoming destructive. Channels are responding to excessive competition by de-
emphasizing the brand or by giving away too much in order to keep an account
• Every manufacturer will likely face destructive channel conflict at some point. As markets
evolve and mature, many manufacturers will be required to add new, lower-cost channels in
order to cover all major market segments. Often, destructive conflict arises because changes
in the manufacturer's go to market strategy lags the market changes associated with market
evolution.

Applications:

Four Technology Solutions That Improve B2B Sales

As the world of B2B sales becomes more competitive, companies like DealHub, LemList, Gong,
and Walnut have risen up to streamline the process. From facilitating easy cold pitching to
delivering world-class personalized product demos, these tech solutions can do it all.

Successful Product Demonstrations with Walnut

One of the biggest challenges that B2B businesses run into during the sales process is the
inability to convert from demos. This is often due to the fact that product demos can feel
impersonal, heavily staged, and lacking inspiration. Walnut, an interactive and personalized
product demo platform, sets out to solve these problems.

 Walnut allows businesses to personalize demos, curtailing the experience to match up

with what that specific client is looking for. Considering that a recent McKinsey study
revealed that enhanced personalization can lead to 40% more revenue, Walnut is actively
making the B2B sales process faster and more profitable for businesses.
 Taking this one step further, Walnut offers businesses a suite of data-driven insights,
helping them to continuously improve their product demo experience.
 The service that Walnut provides helps everyone, including marketing and sales teams, as
well as customer success and presales. By saving time, providing a better use of
resources, and helping to generate personalized campaigns, Walnut is boosting
conversions across the board.

Turn to Data-Driven Customer Interactions with Gong.io

Collecting data for analysis and using it to create high-quality insight is one of the strongest
methods for businesses to grow. Across the board, no matter the industry, understanding your
client or customer through their data will give you a better idea of how to market to them, how to
approach them, and how to convert them into paying customers.
  Gong.io are masters of customer interactions, capturing communication streams across all
of your social channels and feeding them into a singular source of truth. Gong‟s AI
platform takes all of this customer interaction data and then outputs a number of B2B
sales insights, guiding companies toward better customer relations.
 Based on a holistic picture of your marketing team and your customers, Gong will
suggest actionable insights to increase both interaction and conversion. As this guidance
is personalized for the client, this is a surefire way to increase customer satisfaction and
speed up the sales process.
 As an all-in-one platform, Gong also offers B2B sales teams personalized coaching based
on their communication styles. This coaching will help them refine their skills and forge
better relationships with current and potential clients down the line. It‟s a master class in
data-driven communication.

Convert More Cold Pitches with LemList

It‟s a fact of the world of business that, from time to time, your company is going to have to send
out some cold pitches. Maybe you‟re looking to get some early clients in or you‟re just looking to
scale to a new base of customers – whatever your story, Lemlist can help.

LemList is a three-step cold email system, allowing business managers to find leads, create
hyper-personalized messages, and boost cold pitch conversion rate. Their core focus is on
booking you more meetings, helping to convert 17% of cold pitch leads into a meeting, based on
nearly 40,000 case studies.

 As cold pitching goes, this A/B tech solution lets you constantly refine your messaging,
getting closer and close to that perfect pitch. Not to mention that it takes a lot of the
monotony out of the cold pitching process, as well as saving users time.
 And, with more time and a list of meetings in the calendar, your team can focus on
closing more B2B sales than ever before.

Get an All-In-One Revenue Management Center with DealHub

The sales funnel is far from simple, with moving stages, changing paces, and the simple fact that
every customer is different. A lot of wasted time in the B2B sales process comes from businesses
having to spend time configuring price quotes for unique circumstances. DealHub helps to
remedy this problem, among a handful of other common issues that B2B sales representatives
will run into.

 DealHub is an expansive sales platform, offering a full CPQ suite for creating customized
quotes for each customer. No matter how complicated your product or offering is,
DealHub finds a way to get your quote bang on.
 If you‟re short on customers, DealHub also acts as an open marketplace, helping to find
together buyers and sellers. In this sales-oriented atmosphere, you‟ll spend less time
looking for new clients and more time selling your services.
 DealHub is a fantastic centralized revenue tool, covering everything from quotes and
contract development to subscription management and even billing. Empower your team
with this all-in-one tech tool.
 SALES PITCH
A sales pitch is a quick presentation, made in person or over the phone, explaining the product, its use
benefits to the client. All this happens in less than a minute or two, so they‟re also popularly termed
“elevator pitches” as the time one gets to influence a client is approximately the same as an elevator
ride. If you make a good sales pitch, chances are your client will be interested and you'll get more
time to explain your product. So, a sales pitch is both a first impression and an opportunity to open a
two-way dialogue with your client.

Successfully Pitch Over Phone

Being a cold call without face-to-face interaction, the individual at the other end may be less
receptive. You have limited time to establish your credibility, build trust and win over your prospect.

Here are some tips to help.

1. Prepare and do your research before the call to know your client's possible problems
and how your solution might help them. Have a clear understanding of your product
and its key features and anticipate any questions and objections too.
2. Craft your pitch to be concise and crisp. Get to the point right away.
3. How you pitch matters as much as what you're pitching. Keep your voice professional
and speak slowly and clearly.
4. Finally, practice! Playback calls to evaluate your performance, identify areas of
improvement, and act upon them. Get feedback from coworkers and watch YouTube
videos on sales pitches over the phone. Experiment with different techniques to
identify what approach works best. The more sales you make over the phone, the less
fear you will have about cold calling.

Up next is a step-by-step guide to draft a selling pitch that has a high success rate.

How to Make Effective Sales Pitch

Familiarize Yourself with the Different Components of a Product Pitch

A sales pitch has three key components.

 The first part is the opening-- a brief introduction. The goal here is the catch the prospect's
attention and it works best if you've researched your product and the client's needs.
 Your opening line can make or break the deal-- the customer will make a snap decision
whether to engage further with you or not.
 The second part is the body of the pitch, where you explain how the product works. Here,
speak to their needs, like a specific problem the product can solve, or emotional benefits such
as being respected, liked, and recognized. Avoid industry jargon and connect with them at a
human level, so they can engage.
 The third part, the conclusion, consists of a "call-to-action," where you ask the prospect to
take your desired action, such as agree to sign up for a demo or place their order.

Make a Comprehensive Introduction

Your name, designation, and company are enough detail. Don‟t provide too much information about
the company, except the punch line, like "we are a leading internet marketing agency with a decade of
experience" or "a startup to make candidate background checks affordable for SMEs". The
introduction has to be short so that you get to the main point.

Depending on the vibe, you may ask a question, like how their business survived before the pandemic
or their opinion on a particular industry news item.

Modify Your Pitch When Needed

Cultivate the ability to modify your sales pitch on the spot. The best way to do this is to overprepare,
research and respond proactively to the customer's unique context and constraints. Prepare different
sets of pitches for different clients, such as price-sensitive clients or those with specific problems or
concerns. Remember any objections they may have and prepare a rebuttal. Be confident and if you
fumble, stay calm and rely on your practical industry experience.

Define the Product USP

You have to define the USP of your product in the body section. The USP is something your product
has that is beneficial to your prospective customers, and not offered by your market rivals. Do your
research here about why you're unique and offer relevant examples to demonstrate.

For instance, you could mention your product is both electricity and battery-operated, so if there is a
power failure even for a minute, business operations wouldn't be affected. In general, avoid using
price as your USP, unless you're priced significantly lower than your competitor or the client is highly
price-sensitive.

Keep Your Typical Customer in Mind

One of the most important aspects of preparing a well-crafted sales pitch is to know your customer
persona and tailor your pitch delivery to the person you are speaking with. Be aware of key
demographic details such as age, education level, and income. Identify their pain points, and how
your product can solve them. You have to imagine them using your product or service, so take them
into consideration before you pick up your phone and make a sales pitch.
Add Probing Questions to Understand your Client

When you are drafting the body of a sales pitch (after you introduce yourself and before your USP)
make sure to include probing questions to dig deeper into your client's pain points, and offer the best
solutions.

For instance, if your digital marketing agency makes a pitch to clients, ask how the COVID-19
pandemic has affected their sales? When do you think things will improve? Mention aspects of your
USP the specific client finds valuable to genuinely draw their interest. But don‟t overdo this-- if your
prospective client is not willing to answer your query, move on.

Set Goals

Begin by figuring out your goal-- what you want to happen at the end of the call. Are you in pursuit of
asking for a FREE demo? Do you want them to place an order? This will guide you in preparing a
confident closing statement and call-to-action.

Quickly discern whether your prospective client‟s needs are met by your product. Are they willing to
take the pitch or do they need more information? If your goal is getting approval for a product demo,
then the focus of your sales pitch must be primarily on the features & benefits of the product demo. In
case you want them to place an order, then include the pricing aspect in the sales pitch. Explain how
competitive you are, without being too salesy.

Essential Qualities to Become a Good Sales Rep

Be a Great Listener and Ask Good Questions

To achieve better sales results, ask questions about your buyer's goals and pain points.

 If you're wondering how to become a good salesperson, you need to pay attention to your
prospects and customers and be fully present any time you have a conversation with them.
 One of the most effective selling tactics is to listen to the customer carefully. This way, you
can understand their pain points, challenges, fears, and expectations to connect with them on a
personal level and show them that you genuinely want to help them out.
 When prospects are relaxed, they typically discuss their actual issues at hand and be open to
providing you with all the information. Ask the right questions to move further and
understand your prospect better.

Practice Team Selling

 A handful of sales reps assume that the fastest way to make a name for yourself in the
company is by blowing away your competition. This approach is not only isolating, but you
will also miss out on a lot of bonding and learning. Modern salespeople, regardless of their
experience level, must practice and embrace team selling.
 Bring in experts such as product managers, senior sales reps, or anyone relevant to the
conversation to close more deals. You'll also learn valuable skills along the way, and regularly
meet your quota at the end of each quarter.

It's a win-win!

Build Lasting Relationships with your Customers

The most important quality to imbibe is to build long-lasting relationships with customers.
  As a good sales rep, your goal must be to help the customer and get the results they want.
Remember that customers are less interested in your product but more inclined towards the
results your product can help them achieve. Your product may only help them solve a part of
their problem; but you can help them solve other parts, too.

Extensive Product Knowledge

According to the LinkedIn State of Sales Report 2021, the number one deal-breaker revolves
around the lack of product knowledge. 48% of buyers agree that misleading about the product
can be an instant deal-killer.

 Sales reps need to understand the product‟s USP, benefits, features, competitor‟s products‟
weaknesses and effectively communicate to the lead. It is essential for the reps to know all the
sales collaterals inside-out to ensure that they don‟t undersell or oversell the product benefits,
and ensure long term customer retention.
 Organizations typically have sales enablement content and collateral to ensure consistent
messaging and positioning of the product at every stage of the customer journey and touch
point.
 But, a good sales rep must be able to tweak and add in a more personalized touch to the
communication to ensure maximum success.

Objection Handling

In sales, dealing with objections and roadblocks is inevitable, and also, challenging for most sales
reps.

Objection handling is an art and the process entails following specific actions and skills that involve a
bit of learning. Some soft skills to learn to manage objections easily are -

 Gathering background knowledge about the prospect

 Mindfulness
 Leading with compassion
 Asking open-ended questions

In general, objection handling requires a certain level of deftness. It requires a level of product,
industry knowledge, and prospect background to handle. This insinuates that knowing how to
overcome objections respectfully and with compassion, even in unexpected situations, is a must.

Understand the Right Lead to Sell to

This sales quality is one of the most important and leading qualities of inbound sales.

 Marketing teams spend most of their time pushing out leads in the sales funnel, however, not
all the leads they send are relevant to your product.

When asked which marketing tactic provides a higher quality of leads for the sales team, 59% of
marketers said inbound, and 16% reported outbound.

This is the power of inbound marketing.

  Create and curate high-quality and highly relevant content for prospects to genuinely help
them with the issues they are facing, and let them come to you. This not only brings in high-
quality leads to the funnel but also improves your chances of closing a sale.

Be Tech-Savvy

Technology is a crucial part of the sales process.

 Modern-day customers are highly evolved and purchasing trends have drastically changed
over the years. Applying the sales tactics of 2011 with the hopes of increasing sales volume in
2023 will most definitely not work.
 Understanding and implementing the latest sales technologies such as sales automation, sales
enablement, and optimization is the key to not just improving as a sales rep but also running
your business more effectively.
 Automation tools make sales reps live much easier, giving them the leeway to actually focus
on making a sale, as opposed to spending half their time doing administrative tasks.

Tech-savvy customers know who exactly to purchase from without even going through an endless list
of options if they feel their needs are not catered to. Ensure you leverage the right technology to make
the sales process seamless.

Ambition to Sell

 The most successful sales reps have clear goals and are constantly updating and
upskilling themselves to ensure career progression.
 They are aware of the industry trends (both theirs and their buyer‟s), know their
competitors inside out, are aware of the buyer‟s needs and concerns, and personalize the
pitch to improve engagements.
 Also, successful sales reps network to build relationships within the seller‟s community
and are open to learning from both practitioners and other sources.
 Their willingness to learn, clear career goals and perseverance, and patience, and sales
reps put them on the path to success.

Competitor Understanding

The saying, "Keep your friends close, and your enemies closer", could not be more true in this
context.

 Regardless of how evolved your product may be, learning about your competitors in the
market is absolutely necessary to succeed.
 To learn about your competitors, you need to do a SWOT analysis of your competitors. Read
through review aggregators like G2, TrustRadius, Software Reviews and other online
communities, and know how your competitors are viewed by the market.
 “Your competitor is charging 30% lower as compared to you” - this is one of the most
common objections you‟ll face when talking to the leads, and you need to be in a position to
clearly articulate the benefits of your product and explain how you deliver better ROIs than
your competitors.
 This can only come from thorough research and knowing your competitors inside-out.

Interact with Sales Reps in your Network to Always Be on your Toes

The sales world is practically different than any other profession.

  As a successful sales rep, you must constantly be on the lookout to learn new skills, whilst
chasing monthly and quarterly quotas and goals - this can, indeed, be quite stressful.
 To make this easier, talk to people from your network to understand how they upskill
themselves, and how their positions function and be wary of current trends to get a general
sense of the skills you should be focusing on to be successful.
 Be consistently active on social media channels such as LinkedIn and Twitter to connect with
peers and leaders from your industry. This way, you're always up to date and can move
progressively further in your career.

Critical Thinking
TalentLens, a Pearson company, surveyed over 400 HR professionals and found out that -

 The most crucial skill HRs look out for from their employees is critical thinking. In addition,
critical thinking ranked first among a range of personality traits and skills.
 Critical thinking exceeded the need for innovation and IT applications at workplaces.

Critical thinking is a necessity in most occupations, and sales are no different. Critical thinking entails
decision-making, problem-solving, and a myriad of ranges of thinking possibilities to resolve issues,
close deals, and push forward prospects in the sales cycle. With critical thinking, sales reps can solve
any customer challenges with ease.

To promote critical thinking when selling, follow these quick tips -

 Identify the customer's challenges and expectations

 Research existing solutions that may help your customer accomplish their goals
 Discuss and interact with the possible solutions
 Present a personalized offer
 Analyze their final decision
 Channel Incentive Program for FMCG/FMCD Businesses

According to HBR, by rewarding partners for data sharing, manufacturers improve visibility into
customer needs, an activity that most manufacturers fail to do.

According to Incentive Research Foundation, the per person incentive spent is expected to rise to
$806 in 2022 from $764 in 2021. As a result, the overall incentive budget will increase by 34%.

1. Sales incentives

Sales incentives are a way to reward channel partners once they reach or exceed a specific sales goal.
It is not only the most widely used incentive program in the FMCG/FMCD sector but also a proven
technique.

Sales incentives are usually given as point-based rewards, gift cards, single-use debit cards, etc.

• Goals: Sales incentives help the company scale in all directions. It depends on the purpose
they are being used for. You can leverage sales incentives to meet short-term (revenue
targets) and long-term (build brand loyalty) business goals.
• Challenges: Since sales incentives focus only on „sales,‟ partners often concentrate on
revenue-generating activities while losing interest in other business aspects like building
relationships. They are expensive, which makes it hard for small businesses to afford them.
Small companies new to it might not have the budget to afford a sales incentive program.

2. SPIFs or SPIFFs (Sales Performance Incentive Funds)

SPIF is a short-term, incentive-based initiative that motivates sales representatives to achieve business
targets.

• Most SPIF incentives are financial, but prizes, vacations, and recognition can all serve as the
basis for an effective SPIF program.
• Gift cards are also a safe bet, but they lack the expression of thoughtfulness at times. If
salespersons need to speak to multiple decision-makers to close a deal, it will warrant a lot of
phone/call time.
• Goals: The main aim of SPIFs is to meet sales goals for a particular product or service
quickly. In addition, SPIFs increase channel partner engagement and help boost low
performance. One can also use them to accelerate pipeline, finish old stock, support a product
release or take advantage of new market opportunities.
• Challenges: There‟s a chance that giving SPIFs can create unhealthy competition amongst the
partners. While some channel sales reps might try to get the most deals, some might not even
try much because of the program's competitive nature. There‟s also a chance that sales reps
might not work beforehand in anticipation of a SPIF in the future, which is called
sandbagging.
• Example: Samsung Mobile Valued Partner (MVP) Program was designed for Mobile B2B
resellers to build shared momentum, empower Samsung‟s mobile business partners with
innovative technology and solutions, and help them create more significant sales
opportunities.

3. MDFs (Marketing Development Funds)

Marketing Development Funds are incentives rolled out to channel partners to increase future sales by
creating brand awareness. Unlike other incentive programs, MDFs are provided in advance to selected
partners who agree to use the said funds for the specific purpose they‟re allotted for.
These funds are generally allocated for channel partners to perform specific ancillary marketing
activities. These could be developing marketing materials like email lists or organizing educational
and lunch-and-learn events.

• Goals: The goal of MDFs is to help partners build sales and marketing campaigns to increase
brand awareness. An ancillary goal is to build a trust factor between the business and its
partners. If used correctly, MDFs can make developing strongholds in local markets easier.
• Challenges: An MDF is an investment in a plan that a third party executes. So, it becomes
difficult to monitor the use of the money rolled out. Estimations can go haywire; execution of
the plan may cause changes in the use of the MDF. It‟s almost like placing a bet with no
certainty about the outcome.
• Example: LG, an electronics and home appliance company, provides its channel partners with
support at every step. They help them expand their market during demand generation, pre-
sales, and post-sales.

4. Rebate incentives

A rebate is a refund or a money-back. Businesses encourage channel partners to increase their orders
of products or spend larger amounts of money investing in stock from these businesses by offering
rebates. Rebates are rolled out either as refunds or in the form of rewards or points.

• Goals: Like all other incentives, the primary purpose of a rebates program is to increase sales
quantity, in this case, specific products or services. You can also use rebates to encourage
data collection that helps businesses create more effective marketing strategies in the future.
• Challenges: Management of rebate and reward programs are a challenge for companies.
Unless a well-functioning solution is in place, running an effective program is almost
impossible. The other side effect of rebates is the likelihood of unhealthy competition
between the partners.

Example: Amway, an FMCG company, is dependent on its vast network of channel partners. Its
rebate program is very simple, straightforward, and effective. It is a two-pronged program where
partners receive a specific percentage of sales that they have made as rebates and enjoy rewards from
a point system.

5. Co-operative marketing funds

Co-op marketing funds are reimbursement of costs incurred in conducting a marketing initiative -
usually shared by the company and channel partner. MDFs are a pre-initiative incentive, whereas co-
operative marketing funds are given out after completing the marketing activity.

• Goals: A cooperative marketing fund aims to get both parties (e.g., distributor and partner)
equally devoted to a common goal. The common goal is market expansion.
• Challenges: An understanding and an element of trust is a must to run a successful Co-Op
Marketing Fund program. If there is no understanding between the two, rolling out funds after
the program could lead to a strained relationship.

Example: Huawei is a leading electronic manufacturer. It offers a well-structured program for its sales
and service partners that combines different types of incentive programs. One of the offerings in the
program is cooperative marketing funds to help partners in lead generation.

6. Deal Registration Incentives

The incentives that are tied with the size of the deal are called deal registration incentives. It gets
difficult for sales teams and channel partners to push sales on high-cost products.
 • In such cases, deal registration incentives can effectively motivate partners to make sales. The
more conversions or deals registrations sales reps can make, the higher their incentives.
• Goals: Encouraging on-ground sales reps is the primary goal of this kind of program.
Incentivizing with money is a great way to keep sales reps engaged and motivated. High-
worth incentives give partners a reason to participate and give their best.
• Challenges: Since deal registration incentives are targeted at and work best when rolled out to
individuals who make the sale happen, it can get hard for the business to keep track of the
deserving candidate and ensure that the incentive reaches the right person. Another possible
challenge is the change of hands or roles that can occur during the deal registration process
where it becomes difficult to identify and attribute the deservedness of the incentive to one
person, making participants reluctant.

Example: Monte South, a real estate company, has a very straightforward deal registration program.
They give a fixed percentage of commission on a specific number of deals.

7. Value-added reseller incentives

Value-Added Resellers (VARs) Incentives are rolled out to channel partners to allow them to add an
extra feature, product, or integration to improve an already existing product - yours - as a part of their
resale activity. These value-added products become a „one-stop solution‟ for customers‟ needs.
Adding value at the sales level helps encourage the purchase.

• Goals: Your on-ground channel partners have the best view of the market and customers. By
incentivizing partners to add value to your product, you are working to increase your
stronghold over a particular market. The creation of product and brand enthusiasm is another
goal of VAR Incentives.
• Challenges: Creating trust with Value Added Resellers becomes a challenge. Allowing
another company to add value to your product means extending freedom. Running a VAR
program means having intermediaries involved. Such incentive programs decrease profit
margins and may not be as lucrative as other incentive programs. If gathering customer data is
a goal, acquiring that information from VARs is a trade secret they may not want to share.

Example: TTAP - a Singapore-based subsidiary of Toyota, a car manufacturer, needed a new platform
to connect real-time car data. They partnered with a Value Added Reseller (VAR) called Techblocks
to get the technology. Here‟s a case study to help you understand TTAP‟s requirements and see how
Techblocks fulfilled them.

8. Referral incentives

When channel partners identify and refer potential customers, you can reward them with referral
incentives. Referrals add credibility that encourages purchase.

• Goals: Referral incentives have a twofold objective. The first is to encourage channel partners
to act as brand ambassadors. The second is to give you more customers and sales. After all,
word-of-mouth referral is the most powerful marketing tool.
• Challenges: Efficiently tracking referrals and rolling out incentives can pose a challenge.
Running a referral incentive program is also capital-heavy. A business must have enough
revenue to invest in to ensure growth.
Example: Suppose XYZ Builders, a real estate company, offers a referral incentive of up to INR
9,12,000 per referral sale. This is a perfect example of making an alluring referral program.

9. Enablement and Training Incentives

Enablement and training incentives are the incentives given for the time your partners invest in
learning about your product to make more sales. You must equip your channel partners with the best
education to help them answer customer questions confidently.

A channel partner who doesn‟t know what they‟re selling can make you look bad. Enablement and
training incentives are a long-term investment in building a reputation. These incentives can be set up
as points-based rewards or tied with other performance-based incentives such as retreats and
getaways.

• Goals: The primary purpose of enablement and training initiatives is to educate your channel
partners about your product and brand. The more they learn about your product, the more they
want to sell it. You can also inform your partners about your ethos to make a more profound
impact.
• Challenges: As good as your training and enablement programs may be, there is never a way
to ensure that what you teach is being used. It is challenging to check implementation and
measure the results of execution. It‟s an investment running on faith with the hope of
favorable returns in the long run.

Example: Cisco, a networking hardware company, has a comprehensive channel partner program.
They have a detailed channel partner guide. This guide can help you with great insights into
enablement and training incentives.

10. Loyalty incentives and partner retention

You might have partners who are already performing their best and don‟t need any of the above
incentives to stay „motivated.‟ They may already be skilled and very competent. But they are also
high in demand.

Partner Retention incentives are vital to ensure that you don‟t lose these gems to the ever-growing
competition. That‟s when you roll out these initiatives - to show that you value your partners and their
loyalty and to encourage them to continue the good work.

• Goals: Establish a connection with your channel partners to earn their loyalty by showing that
their contributions are highly valued. Partner retention is thus the primary goal. These
incentives also help you maintain a certain brand and business image which can prove
beneficial.
• Challenges: Loyalty incentives are no guarantee of channel partner retention. They are you
fertilizing the soil without knowledge of whether or not your tree will fruit.

Example:

JK Tyres, an automobile parts manufacturer, is acing the loyalty and partner retention game through
its point-based system. It recognizes and rewards its esteemed channel partner. They even have an app
where partners can see their real-time progress and track their rewards.