Brian, how would you describe a good channel strategy?


Brian English: Large companies have processes for a wide variety of activities, but channel development is often left to individual country managers. The result is different policies and practices in different markets. Good channel development is strategic; it means having a clear understanding of what is to be sold to whom, where they prefer to buy these products, and appointing the right channel partners to service the customers.

Is channel management already a topic in traditional seminars or eLearning programs?


Brian English: From what we can see, it is generally included in route-to-market and channel-marketing material, but is seldom taught as a stand-alone subject. This is strange since it is almost impossible for a company to grow internationally without the use of third-party channels.

What is so special about trainingPACT?


Brian English: TrainingPACT is hands on. It does not teach abstract theory but is full of practical tools and templates to help practitioners build up their own strategy while working through it. It covers every aspect of channel development, from the strategy to best practice. Finally, it is coupled with a MySQL database, where the practitioners can quickly build up profiles for comparison and selection purposes.

How long does the training take?


Brian English: We recommend spending between twenty and forty hours on the program. This would include completion of the templates and some search and selection.

Do the participants study on their own, or do you offer forums and blogs too?


Brian English: The license fee includes three months of e-mail and telephone support, so there is coaching provided. Our blogspot is in the process of getting started. We have not yet developed a forum, but since we have just published our courses on www.learnpipe.ie and started a GoogleAd campaign, we will launch a forum in the coming weeks.

How can you train content like measuring the state of readiness or identifying target groups?


Brian English: The practitioners who use our material generally have rich domain experience - they know their products, applications, end-customers, and competitors. We give them a toolset to apply to their businesses and guide them through the steps to do this most effectively. For better comprehension, we break every major task into smaller sub-tasks.

Do you only train your clients, or do you also search for channel partners for them?


Brian English: We do both. We do fully outsourced channel development, and we do a combined learning, coaching, and consultancy program called channelPACT. In this, we deliver the content and then coach the practitioners from the client company for two one-week periods in our offices.

Could you give some examples of content modules?


Brian English: In our module on Pricing Strategy, for example, we talk about anti-competitive pricing practices, the law in relation to commercial agents, termination conditions, compensation and indemnity payment, and US anti-trust legislation. It never ceases to amaze us how many of our clients, including multi-billion-euro corporations, are very poorly informed about legal obligations and practices.

Another module deals with Capturing Mindshare and Optimising Performance. We teach the concept of placing channels and organizing resources around them. This is a stretch for many companies because they see channels as something external and fail to recognize how critical they are to their success. In this module, we discuss scenarios in which the monetary impact of poor channel management is measured.

Please give one or two examples of a successful case study.


Brian English: In 2007, we were introduced to Frothaulait, a US manufacturer of a range of electrical milk frothers for cappuccino. They had established good business in Germany, but virtually none anywhere else in Europe. We did an initial workshop by telephone and began the process of finding and appointing channels on a fully outsourced basis.

By mid-2009, we had built up a network of channels including wholesalers, retailers, importers, distributors of complimentary products, and some of the world's largest coffee roasters. In September 2009, Qupact was appointed as master distributor for Europe by Frothaulait, and we moved from being an outsourced channel-development consultant to a buyer and reseller of the equipment with a warehouse and full-service offering. In 2010, sales, excluding Germany, will reach several million euros.

Another client, a UK supplier of consumer electronics products like speakers, iPOD accessories, laptops, etc, was trying to develop channels outside of its home market. It is a sizeable company with considerable resources but little knowledge or understanding outside of its home market. They contacted us at the end of 2008, and since then we have developed sales channels in several continental European markets. The agreement required us to deliver learning in the whole area of channel development and to facilitate the execution.

By the end of the third quarter, we had identified and engaged with five major distributors in the Netherlands, Belgium, France, Germany, and Switzerland and had generated over twenty million euros in RFQs from big media stores as well as large discounters. By the end of 2009, orders were already being placed.

How can you tell whether your consulting and training have been effective?


Brian English: Generally, it is very easy because at the start the clients either have no channel or a non-performing channel. With our intervention, whether directly or through the training program, effective channels are identified and contracted. The only measure of effectiveness is an increased sales result.

Please describe your licensing model. How much does it cost?


Brian English: The online entry-level product is a single-user license for 495 euros, including twelve months of access and three months of support. A one-day, in-house session for twenty people, including support, costs approximately 4,500 euros. In a public session, the fee per participant is 600 euros - including material and three months of support. The fixed fee for channelPACT is 16,000 euros.