Use Channel Data to Drive Better Decisions
By Diane Krakora, CEO
Those who know me know I’m a data girl. I always have been. I thrive on numbers and charts and quantifiable information. It's increasingly important for channel leaders to collect, understand and act on data coming out of their channel initiatives to make effective decisions for growth. I'm excited to see data becoming more important in the hearts and minds of channel leaders.
The wonders of using data to make impactful and effective channel decisions was the topic of our latest webinar, “Data to Drive Decisions.” I was joined by Tim Harmon, principal analyst at Forrester Research, himself a self-professed “Data Boy” fascinated by the way data has the power to influence decision-making in all areas of business. We both take to heart Dr. W. Edwards Deming's famous quote, “In God we trust. All others must bring data.”
In the channel space, however, channel chiefs struggle to effectively use data to determine their return on channel investment (ROCI). “They are vexed by their inability to articulate or even determine that,” Tim said.
Moving from An Art to A Science
The use of data in making business decisions is nothing new — in the early ‘90s, enterprise resource planning (ERP) systems measured products and production in Operations environments. More recently, CRM systems are used to measure customers in Sales and Marketing environments. But, until now, using data to gain deep insight to channel effectiveness just hasn’t happened, for the most part.
Rather, channel management has been an art, of sorts, rather than a science. Channel chiefs have taken the attitude, “If channel revenue is growing, we don’t have anything to worry about.” But, Tim pointed out, that’s not necessarily the case — a company’s channel business could grow even faster (and smarter) if it took a more data-centric approach. Plus, the data could uncover some warning signs that could impact channel performance in the near future.
That’s why the trend now is to look at the data. Which is great, in theory.
The problem is, there’s too much data. Or not enough of it. Or it’s there and we can’t get to it.
It's time to increase Channel Investments
According to our 2016 State of Partnering study, most channel execs are getting their program data from three main sources: training certification/management programs, co-marketing fund management programs and partner enrollments. They’re also using partner profiles, sales forecasting and program compliance management programs. Of course, these can be good data sources. But are they the best sources, and are execs getting the right kind of information from these sources?
The survey also uncovered the top five technologies channel execs planned to focus on this year: dashboard reporting, content syndication to partners, partner directory, lead registration/management and business planning. These are the technologies that produce what I believe to be more relevant data sources when it comes to making effective channel decisions.
Pick the Right Place to Start
As you venture along your channel maturity model, you’ll discover more sources of data that will help in your decision-making. (Download our Why, When & What to Automate whitepaper for a full rundown.) Here's a quick overview of the systems and applications appropriate for each stage.
Looking at this graphic, finding the right data may seem like a daunting task, much like drinking from a fire house. Start with the key performance indicators for your company — or look at the ones we like. Then go from there. Once you start down the path, you’ll see the benefits of data in making effective channel decisions is as much about the journey as it is the outcome.
Diane Krakora is CEO of PartnerPath with two decades of experience defining the best practices and frameworks around how to develop and manage partnerships.
