Overcome the Channel Conflict Challenges
Preventing and/or mediating channel conflict is one of the greatest challenges for manufacturers with multi-tier channel distribution strategies. In addition to energetic rivalries and competition among channel partners for their piece of the market pie, channel conflict can include collisions between a manufacturer’s own sales force and its channel partners. Deal Registration programs are designed to mitigate such channel conflicts. The best deal registration practices Improve your channel partners’ performance
Benefits of Deal Registration:
- Enhanced communications
- partners motivated to write more business
- Increased reseller loyalty by ensuring better margins for those that initiate sales opportunities
- Larger deals priced in a more consistent manner
- Improved record keeping and compliance with government regulations and industry standards
- A better understanding of how business is trending overall
These best deal registration practices hope to help you establish a program that will help eliminate the main source of channel conflict; by guaranteeing priority of a sale to the partner that registers it first.
Best Deal Registration Practices for Overcoming Channel Conflict:
Set Overall Objectives and Strategies
Confirm that your company is fully committed to a channel sales strategy. So, if your partners are uncertain about the credibility of your deal registration process, they will be likely reluctant to share sales information. They will not want to be undercut.
Modernize, Automate and Implement
Traditional deal registration practices have involved a set of document files used to collect data. The information was then spread by email or during costly telephone conferences. However, moving the process to a web-based application can remove the extraneous steps. Automating the process can ultimately give you the tools to eliminate any channel conflict.
Integrate Channel Programs
Market experience shows that deal registration programs are more effective when fully integrated with other channel activities such as POS data collection, opportunity management, co-op management or special pricing requests.
Reward Value-Added Selling, Discourage Deal Poaching
Require partners to demonstrate competence in reselling by establishing minimum criteria for them related to technical training or verified support levels delivered to end customers.
Once partners have satisfied prerequisites, and successfully registered the deal, they will be rewarded with priority to close without the threat of another partner stealing it.
Prevent Duplicate Registrations to Reduce Conflict
In order to receive the benefits of deal registration and reduce channel conflicts, require partners to provide comprehensive information about each deal—customer details, descriptions, quantities, dates etc.
Create and Enforce Program Rules Consistently
The value of a deal registration program lies in the credibility perceived by your partners. Therefore, if they do not trust that the information they are submitting will be safe, they may not feel comfortable disclosing it to you. In order to maintain credibility and eliminate any channel conflict, maintain and follow the rules you have set up.
Comply with Antitrust and Price Discrimination Laws
Moving your program to an automated deal registration software and a web-based system allows for easier monitoring and compliance with the rules that businesses may not think about every day.