By Cindy Kennaugh, On The Mark

Communicating with customers is obviously important and gets the attention of marketing channel managers. However, communicating with channel partners is just as important but often gets second billing. That's an unfortunate and costly mistake. Channel partners and their customers are your customers, too.

The value of communication

Communication is a powerful tool for managing channel partners. Its value is second only to that of financial incentives. Communications with your channel partners should be cost effective and behavior oriented. In your communication materials, focus on exactly what you want your channel partners and their customers to do.

Not all channel partners are created equal

Active communication with each channel partner is critical. This is true whether your channel schema has one layer (for example, retailers) or multiple layers (for example, wholesalers and retailers). However, you don't have to communicate with each partner equally. In fact, you shouldn't.

Communication frequency and intensity depend on the value that each channel partner brings to your distribution chain. The more value a channel partner adds, the more you should communicate with them. Determine a channel partner's value by asking:

• How much does the channel partner interact with end users?
• How visible is the channel partner?
• How much does the channel partner add to your product? How many important components does the partner add?
• How actively does the channel partner push your product versus pushing mass inventory?

Three levels of channel communication

Marketing channel communication should focus on three levels:

1. Communicating to your channel partner, including training and motivational materials
2. Communicating through your channel partner, including tools for channel partners to share with end users
3. Communicating for your channel partner, including materials that drive end users to your channel partner

Communicate to your channel partner

When you communicate to your channel partners, you speak directly to the channel. This type of communication typically focuses on training and motivating your channel partners.

Training communications explain:

• What you want the channel partner to do (for example, push this, up-sell that).
• The features and benefits of your products and services.
• How to best position each of your products — against each other and against competitors' products.

Motivational communications explain the rewards that channel partners receive if they do what you want. These materials usually describe promotional activities such as:

• Incentive programs
• Special pricing
• Sales contests

Provide a clear, visible message

Communication to your channel partner should be clear and highlight your products. You want to keep your company and your products on the tip of your partner's tongue. Make sure that channel partners know what to do and how to do it.

Some examples of valuable communication tools are:

• Sales guides (delivered on paper, on the Web, or on CD or DVD) that clearly and concisely define your products and explain how to sell them.
• Training sessions (delivered in person, on the Web, or on CD or DVD) to educate and interact with channel sales reps.
• Newsletters (delivered by mail or e-mail) with current information about your products and promotional activities.
• Short notices or flyers (delivered by mail or e-mail) that highlight your promotional activities.
• Free trinkets with your logo, tag line, or contact information (for example, pens, CD holders, and coffee mugs).
• In-person visits to channel partner managers and sales reps.

Communicate through your channel partner

Communicating through your channel partners gives you an opportunity to control what your channel partners say to end users about your company, products, and services. In customer-facing materials, you can:

• Maintain consistent positioning of your products against each other and against competitors' products.
• Reinforce your branding investment with consistent messaging.
• Enhance the effectiveness and efficiency of your channel partner's sales efforts.
• Leverage other end-user communications that you deliver.

Provide ready-to-use tools

Your goal is to help channel partners sell your products and services. Your partners need simple, easy-to-use, and direct communication tools.

Sales materials   These are materials that end users use for one-on-one selling. Examples are brochures, flyers, and datasheets.

Point-of-purchase (POP) materials   Retail channels with storefronts and customer spaces use POP materials. POP materials typically reference selling features, pricing, and promotional information. Common POP materials are product displays, merchandising materials, and in-store advertising such as posters and banners for wall, window, or easel display.

Promotional kits   You can use promotional kits to provide channel partners with your company and product information. Your partners can use this information on their Web sites and in their advertising, customer literature, and other promotional materials. Promotional kits might contain your company's logo, product photographs or illustrations, sample copy, and other graphics about your products.

Marketing toolkits   To guide channel partners through a specific marketing activity, offer them a marketing toolkit. A marketing toolkit for conducting a direct mail or e-mail campaign might include complete copy and graphics for developing a letter, as well as step-by-step instructions for incorporating the channel partner's logo and contact information, acquiring a mailing list, finding a mailing house, and following up after distribution.

Market development funds (MDF)   You can offer MDF to help channel partners conduct advertising, direct marketing, and other promotional activities for your products. MDF often come with many requirements, including:

• A minimum number of channel sales reps who must be trained on your products
• Volume guarantees or minimums
• Access to new customers or new types of customers
• Approval of budgets, subcontractors, target audiences, and deliverables
• Sharing of resulting sales data

You should carefully manage MDF to ensure a reasonable return on investment (ROI) and to avoid abuse. Forecasting and tracking a written, detailed ROI is important. Start slowly. Choose partners that you already have a good relationship with.

Communicate for your channel partner

Communicating for your channels means promoting your channel partners. Your objective is to pull customers to your channel partners. Pull communications are powerful and help build your partner's trust in you and build the partner's success. Pull communications usually feature the following information about your channel partner:

• Company logo
• Contact information
• Promotional offerings

You can place your channel partner's information on your existing Web site and in advertising, direct marketing, collateral, and other marketing vehicles.

Communicating is good for business

By carefully communicating with your channel partners, you provide them with the tools that they need to successfully promote your products. Communicating with your partners also shows them how valuable they are to you. Well-equipped and valued channel partners are crucial to the success of your business.

More information

• Planning guide for communicating to channel partners (Microsoft Office Word 2003 template)
• Planning guide for communicating through channel partners (Microsoft Office Word 2003 template)
• TAP for channel partners (Microsoft Office Word 2003 template)
• TAP for channel partners (Microsoft Office InfoPath 2003 template)
• TAP for end users (Microsoft Office Word 2003 template)
• TAP for end users (Microsoft Office InfoPath 2003 template)
• Discover the importance of target audience profiling
• Learn the key concepts of messaging
• Message testing questionnaire
• Channel marketing budget

About the author   Cindy Kennaugh is president of On The Mark, a Silicon Valley–based consulting firm specializing in all aspects of business-to-business marketing in the high-technology industry.