For many years, different companies in all parts of the globe constantly study the market to align their actions with the trends of consumption. Different business solutions are regularly updated, and the best marketing strategies are employed in order to make sure that the best products are supplied to consumers, and the maximum revenue is generated for the success of the business.
Businesses are now focusing their resources on one venture that is sure to remain constant throughout the coming years--technology. However, sales processes in technology can be very tricky and exponentially expensive. Companies are now utilizing a strategy that applies the distribution channel and indirect sales channels, which can include resellers, distributors, factory representatives, and other types of partnership. As reported by The Yankee Group, industries that are immersed in technology, packaged goods and manufacturing generate 60 to 70 percent of their revenues from indirect sales processes.
There are problems identified with the use of indirect channels in business, however. According to Patricia Seybold, the problems include the following: (1) the partners involved are rarely educated comprehensively about new product releases prior to its launch; (2) education and training for suppliers are usually given much later in the product cycle instead at the very beginning; (3) the proposal and negotiation processes take too long and make customers increasingly impatient with all the delays; (4) suppliers lack visibility and customer support interaction and; (5) companies hardly put enough effort into understanding customer upgrade scenarios, thus leaving the customers reluctant to repeat any activity or process with the same partner relationship.
To guarantee the success of indirect sales, these companies use a business strategy called Partner Relationship Management (PRM). PRM gives companies the chance to market to and deal with the needs of their consumers or customers because of increased organization in managing sales information and tasks. It enables partner companies to work collaboratively to increase their sales, reduce costs and improve customer services. The use of PRM tools and services will be able to address the issues and concerns related to customer dissatisfaction and problems. Partners would likewise be able to focus on the perceived values of buying through partners of customers such as hand-holding, a single line of contact for questions and concerns, and industry-specific insights and experience.
PRM is thus an effective way to manage a distribution channel and satisfy all of the partners involved in it. Any company that relies on its partners and the use of partner relationship management should constantly evaluate and re-evaluate the tools that they use to make sure that the customers are effectively satisfied.
Businesses are now focusing their resources on one venture that is sure to remain constant throughout the coming years--technology. However, sales processes in technology can be very tricky and exponentially expensive. Companies are now utilizing a strategy that applies the distribution channel and indirect sales channels, which can include resellers, distributors, factory representatives, and other types of partnership. As reported by The Yankee Group, industries that are immersed in technology, packaged goods and manufacturing generate 60 to 70 percent of their revenues from indirect sales processes.
There are problems identified with the use of indirect channels in business, however. According to Patricia Seybold, the problems include the following: (1) the partners involved are rarely educated comprehensively about new product releases prior to its launch; (2) education and training for suppliers are usually given much later in the product cycle instead at the very beginning; (3) the proposal and negotiation processes take too long and make customers increasingly impatient with all the delays; (4) suppliers lack visibility and customer support interaction and; (5) companies hardly put enough effort into understanding customer upgrade scenarios, thus leaving the customers reluctant to repeat any activity or process with the same partner relationship.
To guarantee the success of indirect sales, these companies use a business strategy called Partner Relationship Management (PRM). PRM gives companies the chance to market to and deal with the needs of their consumers or customers because of increased organization in managing sales information and tasks. It enables partner companies to work collaboratively to increase their sales, reduce costs and improve customer services. The use of PRM tools and services will be able to address the issues and concerns related to customer dissatisfaction and problems. Partners would likewise be able to focus on the perceived values of buying through partners of customers such as hand-holding, a single line of contact for questions and concerns, and industry-specific insights and experience.
PRM is thus an effective way to manage a distribution channel and satisfy all of the partners involved in it. Any company that relies on its partners and the use of partner relationship management should constantly evaluate and re-evaluate the tools that they use to make sure that the customers are effectively satisfied.
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