When you think of channel partners, what’s the first thing that comes to mind? Driving new sales growth Channel partners’ revenue growth and profitability Improved competitive advantage What’s missing from this list? Channel partner loyalty. Your organization can master partner loyalty with “the loyalty effect.” Originally defined by Frederick F. Reichheld and Thomas Teal in the mid-nineties, the concept “provides the bridge between the world of corporate ethics and the world of hard-core economics.” In today’s competitive environment, your organization can no longer afford to ignore the loyalty effect when it comes to channel partners. Shouldn’t this be the year that your team stops holding meetings about finding new channel partners while existing partners are walking out the back door? Let’s look at the top three channel partner loyalty failures to determine how the loyalty effect can help. 1. Channel Partners Are a Revolving Door The reason behind channel partner failures? Businesses are using new technologies (and spending valuable budget dollars) like never before to step up their game regarding cloud and data technology, but no one is paying attention to channel partner success. Partners leave as often as they sign up because you’ve delivered a string of stitched-together portals for the management and control of partners without a “wow” factor. Technologies that focus on helping partners succeed will eliminate the channel-partner revolving door. 2. Supplier-Agnostic Partners In their book “The Loyalty Effect,” Reichheld and Teal state that “making loyalists out of 5% of customers would lead, on average, to…
Read More: Don’t Miss Out on the Loyalty Effect With Channel Partners
