A safe pair of hands in the channel

The three pillars of trust

Any manufacturer who operates on an indirect distribution model needs to be able to place trust in the expertise of its partner community. Our channel partners are an extension of Samsung. Thanks to their knowledge, customer service and proximity, our partners deliver an unquestionable return on IT investment.

Having met and talked with several partners at our Annual European Reseller Conference recently, it's clear that the holy grail for the majority of them is to work with vendors that can underpin their product roadmap with a longer term strategy, allowing VARs to plan ahead with confidence. If vendors can show their partners they have a solid strategy in place, the relationship can grow and develop, instead of being focused just on short-term sales.

The 3 pillars of Samsung's partner programme - Consistency, Predictability, and Transparency, whether they form part of a written or unspoken agreement - should ideally form the structure and foundations of the vendor/reseller relationship. Ultimately both parties need to operate under these pillars for the relationship to be mutually successful and profitable.

Posted by Neil Sawyer, Head of Marketing, European Printing Operation, Samsung | 01 Oct 2009

Mutual respect is essential

If a lack of trust exists in some areas of the channel, I believe it is often due to a disconnect between the channel and vendors. It's true that this is often caused by overbearing vendors - all too often the customer loses out as result. The 'Value Add' aspect of the channel partnership becomes forgotten as relationships get tied down by focusing too much on process and logistics. In such circumstances, the customer's priorities fall by the wayside and the channel partnership fails to deliver. I've watched the industry develop over the years and have seen lots of promising channel partnerships fail to deliver due to an overt focus on process at the expense of results.

Both parties need to remember the other's different priorities and business models to ensure best results - mutual respect is key. To ensure best practice, companies must always focus on the customer's priorities to make sure they find the right balance when it comes to delivery of service. When VAR and vendor alike work together, focusing solely on the customer's requirements all three players become aligned perfectly. This leads to a solid business result which includes value add for the customer, business benefits for the reseller and sales for the vendor. I've long been a big believer that business is all about the customer - companies forget that at their peril.?

Posted by Bryan Richter | 28 Sep 2009

The vendor needs to asses who is eligible to be a partner as in our Business competence is the key

In the last 20 years I have run several sales teams within distributors, as well as managed vendor relationships. I have also built up and run a multi-million pound VAR and now I'm heading up supply channel for a software vendor. In all this time I have seen many scenarios where the vendor builds the channel and then 'dumps' all over it when the figures are down. I have also seen very large vendors lose grip of there market share (attempting to get short term gain) because they let just about anyone sell there product with out really thinking about the consequences.

So with my experience what constitutes 'TRUST' with me?

Is it when the vendor sticks to the margin discounts stipulated in the partner contact in order that the partner benefits that has invested both time and money isn't beaten in a bun fight?

Is it that 'Jon' is a very good account manager who is always available to take the call and will insure to the procurement officer that he will endeavour to get the delivery there pre 9am?

Is it that when the ICT manager needs to know how to set up a dynamic Vlan on his new switch that he can call his pre/post sale contact at the reseller and be assured which is the correct way?

Or indeed is it that the purchaser knows he will get the best price from Jon (even if it's at the reseller's cost in some instances).

In my eyes the answer is all of the above scenarios plus 1000 more like them.

'TRUST' comes in hand with competence and reliability. If you want your customers to be loyal then the answer in my eyes is simple - Invest in the correct resources , use integrity at all times and make sure your staff are competent on all aspects of their job role especially if you're offering post and pre sales support.

Being philosophical for a minute. What ever happened to True Value Add? Some say it's going to make a triumphant return to the channel. Of course there are partners out there who do take pride in there business ethic and strive to service there customer with 100% integrity ? but these days anyone can sell IT solutions with a bit of Money behind them and lets face it perhaps that's where the channel is losing its integrity and trust.

Posted by Christopher Stockley - Head of Channel Netop UK | 09 Sep 2009

Trust in collaboration

Tough economic times has definitely meant a more competitive environment for the channel to thrive in. But all this means is that to succeed we must collaborate to successfully meet the customers changing demands, and to achieve this, more trust, not less is called for. Ultimately trust is earned, with the proof very much being in the pudding. At Expand we've worked to provide our channel partners with as many collaborative opportunities as we can to maximise the investment that can be made in WAN Optimisation technology...things like(such as) trade up programmes, co-branding demand generation campaigns, joint end-user marketing campaign and PR and professional services.

In nurturing and working closely with our channel, the trust tends to flow, which in turn is reciprocated. Tough times are often the times that test the mettle and trust in a channel relationship, but they can also solidify them and strengthen partnerships if approached with the right attitude to open collaboration.

Posted by Adam Davidson, Corporate VP Sales and Marketing, Expand Networks | 26 Aug 2009

Consistency is the key

Consistency is the key, if you want to partner with a distributor or a reseller, you have make a series of commitments to them and make allowances for their business priorities.

Vendors have to be careful about changes they make to their strategy and accreditation programmes. They must operate incentives strategies and schemes over a period of time so that resellers can build their business around them and earn the rewards.

Although we've seen rapidly changing market conditions over the last 12 months or so, vendors must resist simply changing their partner programme every year, otherwise trust will be eroded. In the past, there has been a tendency in some quarters to treat accreditation in particular in a rather flippant way.

At Siemens, the GoForward! programme was developed to bring together all the advantages of working with us into an all-embracing approach. We spent a lot of time on structure and benchmarking. Whether we like it or not, resellers do tend to perceive the vendor as the expert, which is all the more reason to be consistent and build on what you have.

You have to enable resellers and distributors to reap the benefits of partnership. An important part of building trust is to be open and honest. We share market intelligence and our reports with our partners. Of course, if your partner represents you and a competitor, you might
have to be circumspect in what you share but the best partners are in place over a long period, so you will certainly build up trust over time.
As you build relationships over a long period of time, some will inevitably start taking things for granted. All of us, vendors, distributors and resellers need to keep challenging each other and making things go forward.

Posted by David Dyer | 26 Aug 2009

Trust has always been an issue in the channel

Trust has always been an issue in the channel, and it's probably no worse today than it ever has been. That's why it's never really a surprise when you open CRN and read stories about 'channel conflict' or resellers complaining about vendors going direct - that-s just the way it is!

Trust is obviously important, but you've got to earn it - each and every day. This means you need to have a proposition that allows you to be open with your partners, and that leaves no room for uncertainty. For example, when we set up Intact five years ago we set out our clear, 100 percent channel-only approach, providing lifecycle services to complement our partner and systems integrator customers' existing business. While our proposition was clear to us, we've found that it has got a whole lot clearer since we moved out of the Logicalis Group and started operating as an independent subsidiary. It's been a move that not only clarified our distinctive business proposition, but also has broadened our addressable market.

Trust sounds like it should be a constant, but it's something that organisations and individuals need to work hard to maintain. The key element here is direct contact ? whether that means taking time out to stay close to vendors and tracking their business strategies, or talking every day with your channel partners and listening closely to find out where the opportunities really lie. In today?s market conditions, this becomes even more important - particularly as financial pressures can quickly increase an organisation's reluctance to collaborate.

As ever it comes down to the people involved - reputations and trust are based on direct personal contact and transparency across the whole channel, and there aren't any short cuts!

Posted by Bob Dalton, MD, Intact Integrated Services | 25 Aug 2009

Trust in the channel - does what it says on the tin

Without a strong level of trust between a vendor and strategic reseller, a partnership simply won't work from the start. Trust has to be at all levels in order to create a profitable relationship for all parties involved.

The key to a successful relationship is delivering what you say you will deliver - be realistic, respect each party's business and understand that partners have to take into account a number of different factors. If you don't encompass all these areas, true understanding cannot flourish between partner and vendor. If either party to the partnership fails to fully respect all required levels of trust, once trust is lost, it is hard to regain.

One key factor to take into account is that both parties should be aware that each side's operations are driven or influenced by pressures and motivators that won't always be shared. Both parties in a partnership need to remain conscious of this in order for the partnership and trust to continue.

Another key factor contributing to the element of trust in the channel is achieving continuation and stability. CA is very aware that stability is a bedrock of trust and we strive to ensure that there are no significant changes on a regular basis ? same people managing the same partners, same contact points across the organisation continue to be in place, etc. as relationships are based on development over time with the people involved from both parties. This fundamentally builds trust. If change is unavoidable, the vendor or the reseller must manage it effectively and make sure there is minimal change to the strategy and thus minimize any potential effect upon the partnership.

At CA we are proud of our strong and trusted relationships with partners that we have developed over the years and strive to continue these partnerships and build upon these strong trust foundations.

Posted by Tamar Brooks, Channel Sales Director, UK and Ireland | 25 Aug 2009

Earn trust and the benefits will follow

I certainly believe that trust has to be earned - once a channel organisation has built this then they will reap the rewards, as partners will open up to them and have a completely transparent approach - with benefits including sharing customer and forecast information and opening up sales opportunities.

It can take years to build trust in the channel, but only an instant to lose it - bad news travels fast in the channel and companies should bear this in mind!

To be fully effective, channel organisations and vendors should be completely open with each other and ensure they understand each other's goals - something of particular importance in today's economic climate

Experience shows that those companies that build trust with partners are the ones that are often the most successful.

Posted by David Ellis, director of e-Security, professional services, and training | 24 Aug 2009

Communication, strategic understanding and focus

I think there is a common theme to this debate in that vendor & reseller trust and partnership is based on open and honest communication. The best channel relationships exist when peering is done at all levels of the business and when both businesses truly understand each others strategies. Like many things what you get from the relationship is proportional to the effort and focus you put into it.

It is apparent in the channel (and as you would expect) that the best vendor and reseller partnerships are where the partner is focused on selling one specific vendor technology for each solution.

Posted by Jon Pickering, MD, Block Solutions | 21 Aug 2009

Trust is paramount

The channel cannot work without trust. However, at the moment there is a need for greater communication between vendors and their partners. Resellers should be thought of as an extension of a company. To do the best job they can, they need to know exactly what the vendor is doing - neither party can be successful at what they do without 100% transparency.

Communication is paramount - vendors must ensure they are investing in their channel partners at all times and aim to provide resellers with advice and resources to allow them to increase their revenues through value-added items like training and support services. It's important to have a programme in place which rewards resellers and incentivises them to get sales but also provides them with all of the information they need in a simple, understandable fashion. This will ultimately allow them to generate more revenue.

The current economic climate has hit the channel hard and we recognise as a vendor that we need to be there to support and trust our partners.

Posted by Jason Ellis, Symantec EMEA Channel VP | 20 Aug 2009

Trust is earned and lost in the trenches

A vendor's channel strategy and program offerings are both important in developing a trusted relationship with the partner community. However, the single most critical component of a mutually trustful vendor/partner relationship is what happens rep to rep in the field. The best channel program cannot redeem a vendor from the effects caused by a field rep that can't be trusted by his partner. Likewise, the executive at a Partner can do little to regain the trust of a vendor's field rep when a partner sales person steers a deal to a competitor. Trust in the trenches is earned and lost on a daily basis. There are few second chances. As critical as it is for both vendor and partner sales people to expect and demand trust from each other, it is equally important for them to openly communicate and give each other the benefit of the doubt. Having a negative, knee jerk reaction based on less than complete information is not the way two people who trust each other should act. I expect our sales people to invest the same energy in maintaining partner trust as they used to gain it in the first place.

Posted by Richard Marquez, Vice President, Worldwide Partner Sales, LogLogic | 20 Aug 2009

It's a three way game

Although the 'gentlemen's agreement' is now part of a bygone era, fundamental ethics should still be observed in business, even in the 21st century.

Trust in the channel has recently been compromised, with resellers competing for the best deal from the market, coupled with end-users trying to play one vendor off against another.

I strongly believe end-users can create mistrust in the channel by pushing resellers too hard for deals. They need to understand that the purchasing department would not be doing its job correctly if the best price wasn't already available.

Ultimately, all parties need to be demonstrating cohesion support, and essentially trust, for other players in the market. Resellers must choose their vendor, and route-to-market, while supporting it 100 per cent - focussing on the value added to the end-user.

We are though currently in a chicken and egg situation; with neither the vendor, reseller or end-user wanting to make the first move in this 'respect' stand-off.

Posted by Olly Carter, channel director, EMEA at Proofpoint | 20 Aug 2009

The need for greater consultation

A problem resellers can face when partnering with vendors is that there can be, on occasion, a lack of adequate support and consultation. When times are hard, vendors cannot afford to lapse on customer service. Resellers need to be confident that their vendors have 24/7 back-up systems and support teams in place so that they can call on them for help and advice when they need to.

It is crucial that vendors go the extra mile to build and maintain strong relationships with their resellers from the outset. They should also take steps to understand the dynamics of their channel partners' businesses so they are well-placed to resolve issues and enquiries as and when they arise. An effective way of doing this is by making regular visits to their partners' workplaces to make sure they understand their business culture and the nature of problems they may encounter. With more deals around and competition tougher than ever before, now is the time for vendors to up their game and to offer a greater degree of consultation.

Posted by Rakash Gupta, CEO, PineApp UK | 17 Aug 2009

Exec relationships need to improve

I run an independent channel consultancy organisation and am currently working with a major infrastructure vendor to build channel growth plans.

In preparation for the exec workshops that we are facilitating, we meet each partner and providing confidential analysis of their organisation and it's capabilities.

50 per cent of the organisations invited to participate in the programme take a lot of persuading and then 80 per cent of the people that we interview are very cautious about what goes into our report, even though we are under NDA not to disclose it to the vendor. There is still a lot of mistrust about customer data and organisational issues finding their way to the vendor.

However, the Exec Workshops are the exact opposite and we find that CEOs, Sales Directors etc are much more willing to open up, be honest about their organisations shortfalls and discuss clients with their peers in a structured and relaxed environment.

As a result, relationships improve, growth plans are created and exec sponsorship for that vendor within the reseller improves significantly.

Posted by Antony Young, Director, Demuto | 12 Aug 2009

It is about keeping trust

I don't believe that a lack of trust exists in the channel. The very concept of the channel is to build strong mutually beneficial relationships. In my experience, it pays to retain the trust of partners. In this sector, losing this trust is something that is very hard to recover from.

Having extensive experience as a hardware reseller ourselves, we have an invaluable insight into what our partners need and how to provide them with it. This is the reason that we're so successful at what we do. As we're also selling services, mutually beneficial relationships are required and need to be nurtured to ensure that the partnership is fruitful.

In the Managed Services arena reputation is everything. It would be foolhardy to break the trust that you have spent time building. The ramifications of an action like that could be catastrophic for the channel.

Posted by Jason Vaughan-Phillips, Channel Director at ControlCircle | 12 Aug 2009

Lean on me...

No business relationship can survive without an element of trust between the two parties; and the Channel, certainly, is no exception. Yet, more crucial than trust is the mutual acceptance that they are both dependent on each other. To what extent depends on the nature of the relationship, but one cannot be successful without the other.

The basis of a successful relationship with the Channel can be summed up in three points:

- Establishing regular communication. A regular and transparent level of communication is necessary to build trust between the vendor and reseller. Resellers are an extension of the vendor and therefore need to be aware of what's happening on the other side. Prior communication of important events, deals or special offers is often a sign of trust in the reseller. At the same time, resellers don't feel they are just there to push products, but are business partners that the vendor depends on.

- Help the reseller. Deal registration is a perfect example of how a vendor can help resellers protect their businesses and instill greater trust. By registering the deal with a vendor, the latter is aware of what that reseller is doing and can give additional support to the reseller to conclude the deal. This approach gives resellers peace of mind that the vendor will not attempt to take the business directly or try to out-price the reseller.

- Partner Program. An essential cog in the vendor /channel wheel, a partner program can greatly help to foster the relationship and build trust. A clearly defined program that explains in detail what is expected of the reseller, what can be expected from the vendor and how both can benefit from being partners is a must.

Trust needs to be earned but the process has only just started when this occurs. Both parties need to work hard at maintaining and strengthening the relationship. It only takes one misunderstanding to ruin years of hard work. Just as vendors must not take resellers for granted, neither should resellers expect the goods if they don't uphold their part of the bargain.

Posted by Angela Leech, Channel Marketing Manager, GFI Software | 10 Aug 2009

Money talks...

There is a lot of trust that is based on finance and credit!

Posted by James Dempsey, MD, Sothin Solutions | 07 Aug 2009

Trust is good, considering the situation

I would not say so. I think there is still a consistent trust in the channel. I would still say the trust is quite high, as opposed to the fact that there are credit issues and uncertainty. I don't think there is a lack of trust at the moment. For most companies, it is an industry that's had its ups and downs.

Posted by Neil Honda, marketing manager at Gem | 07 Aug 2009

I don't think there is a lack of trust

I don't think there is a lack of trust. I think for most companies, it is an industry where a lot of the bigger brands are marketing themselves with services, providing to SMEs -- the likes of myself, for instance. There was a big shift away from the corporate market. Many smaller businesses are getting into IT services. And because of that, because of now, a lot of these bigger brands really want resellers and partners to concentrate on selling their products but also on their customer services to B2B. So that means it is more so.

Posted by Simon Bond, director, Cyan Solutions | 07 Aug 2009

Online resellers in race to the bottom?

I am not so sure there is a lack of trust in the channel. The biggest problem is the online resellers. Basically they are driving the market down to a point where it's not sustainable. They can only try that for so long, though. What I think will happen is that they will get to a point when they will have to reduce the number of products on offer, because they will only offer certain products at a certain price point.

Posted by Mike Dalton, MD, A&M Systems | 07 Aug 2009

Communication is key

Vendors, VARs and resellers need to remember that they?re working towards the same goal ? increasing sales and ensuring they have a healthy pipeline of satisfied customers. This goal can only be achieved if all sides of the partnership are working together effectively and that requires trust.

If communication is poor, there is always the potential for things to turn into a game of Chinese whispers. This instantly erodes trust.

To avoid this, it's essential to ensure that all communications are honest, effective and timely. Resellers must feel that they're receiving the best levels of support possible and that their partner, be it VAR or vendor, is willing to go the extra mile to help them make a sale.

Listening to partner feedback is vital to this and it's a two way street - the communication channels must remain open on both sides for things to run smoothly. Everyone needs to know what is and isn't working in order to improve or refine the situation. If things aren't kept open, one side will immediately assume that the other has something to hide, breeding suspicion and paranoia.

In a business like ours, where we're working closely with vendors like Microsoft and Vodafone to introduce new, cutting edge products all the time, communication becomes concerned with education. What are the products? What are their benefits? How can you use them to increase your margins?

We've found that by keeping in touch with our partners on a regular basis, making them understand how valued they are by us and listening to any feedback they have for us, trust grows quickly and naturally. As well as having account managers, we use a variety of communication tools such as the web, email bulletins and bi-annual forums. If you know you can depend on someone then you tend to trust them. Vendors, VARs and resellers should be able to count on each other - especially at times like these. If that's the case, then trust will always exist.

Posted by Adam Cathcart, head of channel development, Outsourcery | 05 Aug 2009