THE DEATH OF PARTNER SEGMENTATION - it’s time for a change?

PARTNERSHIPS ARE EASY?

Said no one ever.?

They are complex and dynamic beasts, even under perfect conditions, and can dazzle as much as they delight.?

That said, there's been some great discussions around improving the overall PX (and CX) here on LinkedIn in the past few weeks.?

But these exist because we know something is missing.?

It has long been recognised that the quality of post-adoption engagement in many programs is sorely lacking due to a diminishing partner lifecycle experience.?

I, like many others, once believed that all partners were created equal, and should be treated accordingly.?

It was only when I started to lose partners that I began questioning it.?

So, I asked an ex-partner - 'I give all my partners equal status and attention; why was it you left the program?'?

'Because you gave all your partners equal status and attention.'?

'Wait... What?' I remember asking.?

'I wanted you to talk to ME, not US.'?

Mind blown.?

That was the moment when I understood the vital importance of partner segmentation.?

But what does it entail exactly??

On the surface, it's a categorising tool to quantify the value of a partner to your program.?

But on a deeper level, it means consciously driving a quality of care through your ecosystem by treating each partner as an individual.?

Traditional segmentation, or tiering models, helps to identify and reward your channel partners based on the scale of their commercial and brand impact, their P.A.C. (partner acquisition cost), L.T.V. (lifetime value), location, industry type, size, etc.?

You'd I.D. your partner types, categorise your partner tiers, assess your partner segments, customise your partner programs to suit, before?monitoring your partner metrics.?

Makes sense.?

But while there has been continual partner segmentation restructuring and optimisation over the years, we must start admitting to ourselves – it just isn’t working.?

?A BETTER WAY?

Here’s the problem.?

Most of the hierarchy of partner segmentation is traditionally based on revenue or volume.?

So, if you are a big player segmented by volume in the top tier of a program, you gain a significant advantage over middle and bottom tier players through enhanced innovation and opportunity based on your size.?

Hence, the large get larger, the smaller stay small, and the disadvantages don’t only lie at the feet of the little.?

It indirectly drives?the larger orgs into maintaining their status by defaulting to the numbers game.?

This may?generate a larger number of leads/sales, but the by-product becomes one of diminished core values, like the personal customer service partners require and a lack of focus on the right solution for the right problem at the right time.?

And what about the end-client? It’s no secret that channel and ecosystems require a more customer-centric approach, so why should this principle be absent when regarding partner segmentation??

End-client value propositions are the reasons partner programs exist. A B2B customer rarely considers anything other than a partner’s ability to solve their problem, how many times have they done it before, and how good they are at delivering on their promise.?

So, based on my research and experience, partner segmentation should be based on 3 primary factors:?

?? Skills?

?? Mapping?

?? Expertise?

It needs to be specialised, working on both vertical and horizontals axis, with vendors focusing on partners specialities, i.e.:?

Vertical – Sector?

Horizontal – Technology?

THE OUTCOME?

This model then allows - ?

? ?the vendors to focus on partner assets, and switches?to a knowledge, skills and expertise-based incentive initiative. ?

? vendors are considering all implementation procedures and sectors, while maintaining partner differentiation.?

? vendors to overcome the inherent challenges of scale by segmenting partners according to expertise and skill to paint a clear picture of what their partners need?

? creates a consistent monitoring and mapping process when dealing with the complexities of customer trends, changes in market and social or economic influences.?

As with most channel and partner ecosystem frameworks, segmentation should also be subject to the same laws of advanced?adaptability.?

This agile mindset helps partners adapt when required, and prioritises the most effective support and skills are deployed to the right market at the right time.?

And we need to keep in mind that the ecosystem will develop over time.?

Skills and contacts will be shared within it, so some of the support won’t necessarily come from vendors.?

It’s time for a change for the better.?

If we adopt an expertise-based segmentation process backed up by best-practice?ecosystem monitoring and mapping, we not only create a better experience for the end-client, but healthy channel creating maximum opportunities for everyone involved.?