Cracking the channel code: solving the challenges of activating a partner ecosystem
In an era defined by collaboration and interdependence, businesses are discovering the unparalleled advantages of channel partner programs. It’s no secret that the partner channel can be a lucrative avenue for demand generation. The marketing landscape as we know it is shifting. Team sizes and budgets are shrinking while focus and tactic use is constantly changing. B2B marketers are being asked to do more with less, which has made a healthy partner marketing ecosystem become more than just a great revenue stream.
Partner marketing is at the heart of modern B2B marketing success.
In this blog, we’ll cover why a partner channel strategy has become synonymous with business-to-business (B2B) success, the challenges of implementing and/or maintaining a partner marketing program, and how we at Knack Collective help our clients meet these challenges.
Why activate the channel?
Consider this: According to Forbes, 95% of Microsoft's commercial revenue flows through its partner ecosystem. Yes, 95%.
While we recognize not all companies are like Microsoft, there’s one clear lesson to gain from this stat: that the channel works for one of the world’s most successful companies.
B2B marketers globally recognize that partner marketing is becoming a larger, more important part of any brand demand generation strategy. That’s especially true now as the marketing landscape undergoes a significant shift with innovative technology like AI and new rules regarding privacy and data collection online. Teams are feeling the pressure to produce more content, generate more leads, and spend less money to do it. The media landscape is changing as we find more providers sharing/tracking less data. Meeting organizational key performance indicators (KPIs) is becoming increasingly more difficult.
In a survey conducted by DIGIDAY at this time last year, 96% of respondents said that partner marketing would either stay at the same level of importance or grow in importance for their strategies in 2023—while only 4% said it would decrease in importance. If surveyed today, we suspect the same audience would provide the same stats and would argue that that 4% number would likely decrease based on the conversations we’re seeing in the market. In fact, according to Canalys, the channel software ecosystem is expected to generate $11.8 billion in revenue annually by 2028 (as compared to $5.3 billion in 2022), meaning the demand for solutions in this space is rising and rising fast.
The benefits of a solid partner marketing program are clear: increased revenue (and a lot of it) for all parties, reaching new audiences, and budget efficiency.
So why is it that so many companies have trouble activating their partner programs and turning them into the true lead generation powerhouses that marketers acknowledge they are?
Channel challenges
At Knack, we have been leading B2B channel innovation for the past decade. Here are a few common challenges we hear from our clients about activating their partner programs.
Teams are moving at lightning speed and lack agility and time
The B2B world, especially in the tech space, waits for no one. Campaigns are expected to be created and launched at record speeds, all while staying within budget and using minimal resources.
Organizational priorities shift consistently. Agility is a must, but it’s difficult to translate to traditional marketing management, especially when more stakeholders are involved.
Many organizations recognize the importance of the channel and see partner opportunities aren’t agile enough or able to scale enough to meet the demands of large, demanding partners.
A lack of trust and transparency
Working with the channel invites new players to the game. It takes time to build trust with new colleagues, new processes, and new ways to go to market on all sides.
The more hands in the pot, the more convoluted communication can often become. When working in the channel, there are often a number of parties that have close to equal stake in any project, and not communicating well can cause chaos and further distrust.
When good operational processes aren’t in place for channel marketing efforts, execution tends to be a bit more haphazard and can cause teams to work in ways that are misaligned.
Partner marketing has its own unique challenges, but is often not met with unique solutions
One size fits almost none when it comes to marketing programs within the channel.
Partner programs often require new messaging that’s tailored to combined audiences that can take time and resources that are scarce (see above) to craft and master.
The lack of rigor around tailored and meaningful joint value propositions means that materials that get to market don’t often provide the needed information for prospects in the market.
The Knack solution
At Knack Collective, our team has spent decades immersed in the channel and crafting solutions to address these common issues that partners face when going to market. You could say it’s our knack...
While yes, we are a marketing agency, our approach is far from the traditional Mad Men scene that might come to mind. Our team becomes true extensions of partner marketing teams, for both organizations to help solve the most common challenges by:
Completing a thoughtful and strategic partner discovery and intake process.
We’ve designed a process that’s low effort for the partners we work with that yields high understanding for our team. The information we gather directly from stakeholders allows our team to craft effective messaging and creative assets quickly, which means our partners start seeing tangible outputs and results faster.
Building demand generation engines that are repeatable and scalable.
Partners want results and they want them fast. Who doesn’t? We’ve mastered creating demand generation programs backed by quality assets that drive results for partners. Using content marketing, our specialty here at Knack, we create simple, effective lead generation engines paired with creative design systems that produce the ROI partners need for their own goals and the goals of their joint efforts. Our programs are easy to adjust for different co-sell combinations and solutions, eliminating the need to reinvent the wheel.
Reducing friction in the ecosystem.
We make partner solutions more discoverable to buyers and users, minimizing friction in the ecosystem and facilitating seamless collaboration for partners. For example, marketplaces have completely transformed the way in which partners go to market, making transactions faster and more efficient than ever before. At Knack, we can help partners optimize their listings or even build marketplaces of their own.
How do we do it? With the right combination of people, processes, and tech proven to drive maximum results for the partners we serve.
For us, partner activation isn't just a metric; it's our singular KPI. Our dedication revolves around fostering partner engagement, resulting in more qualified leads that significantly contribute to our partners' pipelines and, ultimately, revenue.
In conclusion, the success of channel partner programs rests on overcoming common challenges through effective communication, tailored strategies, and scalable solutions. At Knack Collective, that’s what we do every day. Are you ready to address these challenges for your partner program head-on and unlock a realm of opportunities for businesses engaged in collaborative partnerships?
Ready to take your B2B marketing to the next level? Book a strategy session with our team of channel experts here.