Overcoming the Trap of Sub-optimal Levels of Distribution Metrics

Overcoming the trap of sub-optimal levels of Distribution Metrics

Using Analytics backed Strategy and Holistically Building People Capability

Mention of the words “Activation*”, “Recruitment/ Empanelment” invites a weary look from Sales leaders. These words are often preceded by 'low', as Low Activation, Low Recruitment/ Empanelment of Channel Partners is seen as a major success challenge across Sales and Distribution teams.

Over the years, these Distribution Metrics have settled at a low threshold, attributed to changes in the market environment, open architecture, challenges in scaling up etc. There is a tacit acceptance of low levels of these Distribution Metrics and this thinking finds its way into the Operating Plans. As a result, the Reality is often even lower than the expectations, leading to an inherently inefficient sales engine.

Both traditional organizations and new-age tech-enabled ones seem to face this challenge. Typical solutions like tweaking KPI/ incentives parameters, implementing activity management tools or conducting reviews are tried. Organizations know 'what' is to be done, but struggle on the 'how'.?

Sales organizations must address Metrics like Low Activation and Low Recruitment/ Empanelment of Channel Partners holistically and sustainably. Here are some thoughts:

1. Slice and Dice

Deep Distribution Analytics is critical to understand the state of Distribution at a very granular level. It helps to identify and gauge engagement levels of Channel Partners - by Vintage, Profile, Sales Unit, Geography and Consistency. By investing in Data Analytics and using tech tools, organizations can build Activation Propensity Models and provide proactive inputs to Sales teams.

2. Segment, Target and Nurture

Segmentation of Distribution Channels is done basis the business performance (largely, for structuring the Rewards and pay-outs). But now it’s time to take a fresh perspective and segment Channel Partners on Input parameters like the Channel Partner Persona and Psychographics, and Relationship Strength measured through an objective assessment. Also, there is a need to touch base systematically with inactive Channel Partners before deciding on a High Touch or a Low Touch model to manage this pool.

3. The 'People' factor

The Data Insights provide a solid foundation for understanding the state of Distribution, but the real change is executed through People and Process. Effective change needs Sales teams that are truly enabled to interpret their Sales Performance, and formulate their Action Plans and Processes based on their Reality.

Sales Supervisors and Sales Leaders play critical roles in shaping priorities and culture. Their early involvement is essential in any Transformational intervention. Giving them Clarity of expectations (coaching and enabling people rather than just being 'aggregators'), and empowering them through capability development, can set the stage for a more structural change.

4. Hiring Right, Onboarding Well

Getting it right at the time of Recruitment/Empanelment of Partners is the key. Sales teams must understand the successful profile/persona for their own Unit/Geography, and customize their Prospecting efforts. Setting right expectations with the potential hires and then following a robust selection process comes next.

Similarly, while there will be a standard organizational training architecture for onboarding-related functional inputs, onboarding is effective when it is personalized. Sales teams need to have the skills to evaluate and mine the motivators and driving factors for channel partners.

An integrated approach of an Analytics backed Strategy and People Capability will go a long way in improving the sub-optimal levels of the Distribution Metrics, and build confidence to ensure that the change is lasting.

?* Activation generally refers to the number or % of Channel Partners who are active by sourcing some business in a period of time; typically measured month on month