March 5

CEO Blog: Channel Partner Show Diaries – Partnerships

Posted by Carolyn Bradfield
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Carolyn Bradfield

Carolyn Bradfield

One of the key things to remember about the Channel Partners Show in Las Vegas is the word “partner.”   Channel partners are independent business people who are experts in telecommunications services and  “partner” with technology providers to recommend and offer services to their customers.  Their customers are not large enough to staff up with a telecommunications or IT professional, so having an independent 3rd party help them make these types of decisions is critical to having the right services at the right price.

Copper Conferencing has a number of partnerships with telecommunications agents as well as technology providers.  Here are some thoughts about partnerships, focusing on what makes a good partnership and what destroys one.

Good Partnerships

  • Partnerships are based on trust. You have to trust your partner to represent you appropriately and they have to trust you will deliver what you promised when you promised it.
  • They have well defined relationships. Anxiety always comes from un-met expectations.  If partners know what to expect from each other, misunderstandings and conflict are minimized.
  • Partnerships hold boundaries. Once the partnership rules are defined, if either of the partners operates outside of those defined rules, then the partner must communicate that a boundary has been breached and how to re-establish it.
  • Partnerships are collaborative. Sometimes the rules need to change.  Sometimes what is being delivered needs to be adjusted.  Good partnerships make change a collaborative process, involving all parties.
  • Partnerships must have processes to resolve conflict. If there are disagreements partners must have a plan and process to appropriately communicate and resolve the issue.

Interestingly, one key topic of conversation at this particular show was the issue of “channel conflict.”  Channel conflict specifically refers to organizations that use partners to generate revenue alongside with having their own direct sales force.  Conflict results when that direct sales force encroaches on a partner’s customer.  Because a direct sales force can likely sell services at a lower price than the partner, then conflict becomes inherent if there are no rules of engagement, little pricing discipline, or mechanisms to determine which channel is best positioned to serve the customer.

At Copper Conferencing, we have both channel partners and a direct sales force.  Our rules of engagement are quite clear relative to our partners.  If the partner is in a deal, we withdraw because generally the partner has a broader relationship with the customer and is better positioned to make conferencing a part of their overall package.  We discipline our sales organization with pricing controls so they are not undercutting our partners inadvertently.  If we encroach without realizing it, we immediately communicate to the partner so they are aware that their customer has been entertaining offers outside the influence of the channel partner.

This is a respectful way to do business and creates the trust that the channel partner needs to know that we are focused on what is in the best interest of Copper Conferencing, the partner, and the partner’s customer.  Unfortunately, this philosophy is not consistent in our industry.  The largest conferencing company (and we all know who they are) doesn’t respect the need to manage channel conflict.  They unleash their direct sales organization on anybody and everybody, have very little pricing discipline not thinking twice about undercutting their partners, and no mechanism to determine who is best positioned to serve the customer.

In the short time that I wandered by their blue and white booth, I overheard several agents with their list of customers that this provider encroached on and the unfortunate channel managers who had to explain that there was nothing they could do about it.  Wake up channel partners!  If you are in a relationship like this, then think long and hard about whether there is trust in this relationship.   It’s not enough to like your point of contact.  They are probably really nice people.  However, your provider must have a mechanism to define boundaries, rules of engagement and resolve conflict.  Otherwise, every customer you do business with is at risk.  What kind of partnership is that really?

Carolyn Bradfield is the CEO of Copper Conferencing, a leading provider or audio and web conferencing and wrap-around services to enhance customer experience. To learn more about Copper Conferencing, visit www.copperconferencing.com.

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This entry was posted on Friday, March 5th, 2010 at 6:20 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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