The Importance of Channel Management in Today’s Business Landscape

 

Channel management is crucial for businesses of all sizes in today's competitive landscape. Recently, I had the unique opportunity to discuss this topic with some dynamic and high-performing Nigerians during a two-day program titled ‘Business Enhancement Program for Channel Managers’.

The event was an engaging and enlightening experience, where we honed our skills, tackled industry challenges, and explored new strategies. At CPPL, we believe in running programs rather than courses. Programs allow us to address specific challenges within a function or field of study and develop practical, workable solutions.

Key Topics Discussed

Some of the key topics we deliberated on included:

• Value Creation Leadership Mindset
• Managing Channels for Value
• Channel Management Performance Models
• Go-to-Market Strategies
• Maximizing Relationships with Channels
• Personal Effectiveness

We began with a session on value creation leadership mindset, which is fundamental to doing business. Value creation is the primary aim of any business entity, and it must be sustainable. As Ken Favaro aptly put it, “If you put value creation first in the right way, your business will know where and how to grow; It will deploy capital more efficiently; and it will develop more talent than the competition.” A value creation mindset gives any business an enormous advantage in achieving profitable and long-lasting growth.

Effective Channel Management

Beyond creating value, it is essential to manage the business that supports you—the channel partners. Many channel partners are not adequately equipped to run their businesses. The Channel Management function must provide the necessary support to ensure these channels operate profitably. Effective channel management ensures that your value proposition is brought to life at every touchpoint, maximizing opportunities.

Channel management has evolved from manual tracking and ad hoc systems to sophisticated, integrated solutions that encompass data management, revenue management, sales management, and relationship management. Today, it involves an enterprise-grade approach where all phases of channel management are integrated into a holistic system.

Channel Performance Management

We also delved into channel performance management. The goal was to motivate participants towards sales excellence by improving their interactions with channel partners and driving efficiency across all channels. Understanding the importance of channel performance evaluation is crucial for gaining insights into market activities. We emphasized avoiding common mistakes such as focusing solely on internal business silos rather than on the customer experience.

Channel Relationship Management

The role of channel relationship management is vital. We discussed the question: who is the channel partner to the organization? A partner, a pest, a disturbance, or an essential stakeholder? We agreed that channel partners play a critical role that can make or break a brand. They represent the organization and enable cash flow, making them a vital part of the value chain. Therefore, managing these relationships to create win-win scenarios is crucial.

Personal Effectiveness

Lastly, we discussed the importance of personal effectiveness in consistently creating and delivering value. Personal effectiveness involves utilizing all your resources—talents, skills, energy, and time—to achieve both work and life goals. How you manage yourself directly impacts your effectiveness. In the workplace, personal effectiveness leads to improved organizational and personal performance.

Conclusion

The program concluded with a discussion on how best-in-class organizations manage their channel partners. They build strong relationships, engage in constant affirmative and supportive interactions, and work towards achieving joint objectives through the partner planning process. They understand the business models of their partners and have the influencing skills to manage changes and investments effectively. They implement a channel partner lifecycle management strategy, lead partners to identify and resolve barriers to success, and enable them to generate higher sales revenue.

Feedback from participants was overwhelmingly positive. Gomenti Friday stated, "This program is a must for all channel partners (account managers)." Chinyere Ikechi recommended the training to colleagues, noting it would provide valuable insights into channel member management.

This program was designed and facilitated by Customer Passion Points Limited (CPPL), a firm of value-creation consultants specializing in marketing consulting and training. Are you a channel manager, or do you want to develop and manage your channel partner relationships better? We can work with you. For more inquiries, visit www.cppl.com.ng or contact Chinwe at 0803 201 2458. You can also email us at info@cppl.com.ng.