SOURCE: Channelinsight

June 29, 2011 08:00 ET

New Research Shows How Lack of Information Impacts Channel Sales Teams; Data Focuses on Incentive Programs and Customer Segmentation

Over 100 Sales, Marketing and Channel Operations Executives Weigh in on How They Gather Sales Information, What They Know and How They Pay

DENVER, CO--(Marketwire - Jun 29, 2011) - Channelinsight, a leading provider of cloud-based channel sales management solutions, today announces new research that highlights how the lack of information available to channel sales executives results in loss of revenue and opportunity. The survey, which solicited responses from 112 senior channel sales and marketing executives -- all members of the Baptie Channel Focus Community -- focused on two distinct areas: incentive program performance and partner and end-customer identification and segmentation information.

Only 33 percent of survey respondents are somewhat or very satisfied with their incentive program performance. This is due to several factors. Many incentive payments are inaccurate (on average respondents believe they overpay on incentive programs by six percent, which for a $600M company translates into over $2M), and there is a lack of a simple, automated system for managing incentives (only 40 percent of respondents indicate their channel incentives are calculated and processed automatically). Respondents also report incentives are rarely paid quickly, with only seven percent paying rebates in less than 14 days and 78 percent paying in 30 days or more.

"In any industry, information and insight are keys to success, but when it comes to channel sales, information is at a premium. Without quick, accurate sales data, companies experience lost revenues, overpayments and ineffective incentive programs," said Mark Geene, CEO of Channelinsight. "Today's survey results validate the need for greater visibility into channel sales and demonstrate that companies need new tools to help them attain this information."

The Channelinsight survey also found that while companies know their partners (87 percent can always or usually segment their channel revenue by partner type), they rarely have insight into market segments (54 percent of respondents said they cannot identify partner market segments). What's more, while 68 percent of respondents can usually or always identify the end-customer in their indirect sales, of that 68 percent, only half can usually or always identify the end-customer market segmentation. This means that only 34 percent have actionable end-customer data.

Other findings include:

  • 57 percent of respondents rely on internal team research as a primary source for end-customer segmentation information with just 28 percent using a third-party service.

  • 66 percent believe it is important, or very important to use partner and end-customer data in planning and decision-making.

  • Only 39 percent of respondents are somewhat or very satisfied with the customer and partner data available.

For its indirect sales survey, Channelinsight, and its partner Baptie, surveyed 112 sales, marketing and channel operations professionals in large and mid-sized companies in the high-tech and software industries. The survey was conducted March 18, 2011 through April 14, 2011. Half of the respondents work for companies that drive more than 60 percent of revenue through the channel.

About Channelinsight
Channelinsight offers the only complete channel sales management solution in the cloud, providing technology manufacturers with visibility into every partner and every end-customer in every transaction in real-time and allowing them to gain the insight necessary to drive sales and optimize inventory. The company processes over 120 million POS and inventory transactions per year. Channelinsight is backed by Rho Ventures, Sevin Rosen Funds, Sequel Venture Partners and Vedanta Capital, with headquarters in Denver. For more information visit: www.Channelinsight.com.

Contact Information

  • Channelinsight Media Contact:
    Jennefer Traeger
    Emerge Media Communications
    Email Contact
    720-988-6149