Crimson Consulting has effectively helped its clients to evaluate channel offers and optimize programs with sophisticated research design, implementation of program modeling, and analysis of results. Each analysis recommends which programs elements meet the business objectives, and which ones are counterproductive. While each analysis is different, we have discovered several themes that are common to many hi-tech marketing campaigns:

• The decision to purchase based solely on brand may overwhelm all other elements
• Increasing discounts seldom matters to the channel
• Returns processing time is inordinately important
• Technical support is often cited in qualitative research, but seldom affects choice
• Contract length can affect choice
• Larger channel players often need custom programs

In one case, a major distributor found its industry amidst a shift from one type of channel program to another. It was imperative to learn if there would be enough potential sales growth to offset the market hit. In this situation, bankruptcy was a distinct possibility. Modeling with conjoint and logit analysis revealed a need to change virtually the entire channel program, and illuminated which new elements would provide the best returns. After implementing the new channel program, the client increased its annualized revenue by 60 percent in the first quarter. As a result, it went on to become one of the top three distributors in its market.

Your company may be looking to improve the effectiveness of its channel programs. In today’s environment, it’s crucial to create correct programs, messages, value propositions, and go-to-market strategies. By so doing, these will help you to better engage your channel and partners, and enable them to sell your products. By using the same analytical modeling tools you apply to other areas of marketing, you can take control of these challenges and apply them to channel programs. With modeling you can optimize your channel programs with confidence— and know that you are deploying the correct elements that will reap the biggest benefits for lead generation and revenue growth.

For a more in-depth discussion of tuning your channel programs, please contact Dylan Charles, Partner leading the Channels & Partners Service at Crimson Consulting Group. You can get a .pdf copy of the entire paper on Tuning your Channels, on the Crimson Consulting website.

And let us know how modeling in your channel programs is paying off for you.