To meet customer expectations and remain competitive, IT channel partners must focus on high-value activities that allow them to increase their margins.
The business model of IT channel has changed in recent years, making it more difficult for partners to maintain sustainable profits from pricing alone.
With digital transformation, the market is no longer driven solely by hardware; now the software comes first, although there is also a greater focus on services. This has led forward thinking partners to evolve their offering to include IT management, consulting and solution development.
With this they are focusing on the needs of the client and creating services around those requirements. Undoubtedly, something very positive for customers and IT companies, but for many partners it is still not profitable.
Cloud companies, Managed Service Providers (MSPs) and Value Added Resellers (VARs) that are unable to save time throughout their customers’ sales cycle are unlikely to have the resources to better understand customer needs and expand their services.
Partners need to focus on higher value activities instead of spending so much time and energy solely on sales
To solve this problem, following a series of recommendations can be very useful to become more efficient and increase your margins.
Selling products can consume most of a company’s time and resources. That means there is less time for innovation and the implementation of initiatives that help scale the business.
To live up to customer expectations and remain competitive, partners need to focus on higher-value activities instead of spending so much time and energy solely on sales.
What can solution providers do to meet today’s challenges and increase revenue?
The necessary evolution of partners
With the rise of hybrid work models, clients are seeking unique platforms to accommodate their internal collaboration and external client communications.
Partners can address this need by moving away from a time-consuming, multi-vendor approach and partnering with cloud providers that offer the communication tools that companies need for remote and hybrid work.
Companies that unify employee and customer communication platforms see 12.4% annual revenue growth
Doing this leads to higher customer satisfaction because it allows them to increase their own revenue: Companies that unify employee and customer communication platforms see annual revenue growth of 12.4% year-over-year.
Also keep in mind that channel partners are rarely just IT vendors as they offer pretty much everything from plug-ins to comprehensive service management.
To remain competitive, it is key that they rethink their approach to services. It is no longer enough to sell IT products and make a profit on the margin.
To offer a higher level of service, sales and customer management must be different than years ago. Solution providers need to work with a provider that simplifies their work, leaving them more time to build relationships with their customers, understand their needs, and offer an IT product and service model that solves all their problems.
initial image | Guille Alvarez