The problem with this kind of segmentation is that it completely misses out on one of the most important factors in channel performance management — relationship quality.
Research over the last 15 years by Alliance Best Practice has shown that relationship quality is the pre-eminent factor in predicting channel partner success. In short — the better the relationship, the better the results. “Better” in this context means relationship effectiveness and efficiency.
To succeed it’s important to do the right things at the right levels to develop the relationship type that you are looking for (effectiveness), and you need to do things right to succeed (efficiency).
Let’s illustrate what we mean by comparing a typical segmentation pyramid with a relationship segmentation pyramid.