Friday, May 1, 2009

Understanding the channel mindset

As part of the channel management, I was working with the world wide channel for distributing our CAD add-on products. I tried to find out the mindset of the channel so that I can position our products in their mind and motivate them accordingly. There were 3 key reasons which drives them for resellership:

  1. Revenue : Falling short of revenues from the current portfolio and hence a need to generate additional set of revenues.
  2. Entry strategy: Use the add-on product(s) as a door-opener to sell their other products.
  3. Competition: Prevent competitors carrying same / similar products to enter their customer base or enter into competitor base.
So every reseller that I sign up, I figure out their motivation behind selling our product and then work with them accordingly. Many a times, I have asked time directly for the reasons they would like to be a reseller and I have got an answer which coincides with one or more of the reasons above.

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