Business executives are constantly looking for revenue growth opportunities. They often direct their focus internally to improve efficiency, train sellers, innovate products and services, or develop new marketing campaigns. These areas of focus enhance the organization’s ability to target and convert new leads and grow their relationships with existing customers, but true growth comes from expanding market share.
Many enterprises see revenue increases by forming partnerships with other successful companies that can reach new markets, add value to their services or enhance their delivery capabilities. Alexander Group can help your business establish and strengthen these mutually beneficial channel partnerships.
A channel partnership is a relationship with a third party for the purpose of expanding the revenue and sales team’s capabilities. Deployed effectively, channel partners can open new markets, engage certain customer segments more effectively, and provide value-added products and services.
Channel partners earn revenue through referral fees, resale margins and by selling products or services that complement the company’s offerings. The ideal channel partnership is mutually beneficial, allowing both parties to access more customers and expand their earnings.
Channel partners can include indirect sales partners, affiliate partners, managed service providers (MSP), system integrators, value-added resellers (VAR) and others.
Regardless of how large or small the channel program or the types of channel partners managed, having an indirect sales force can have a big impact on revenue growth. But indirect channels can also be complex. Optimizing the channel sales model at each stage of program development will increase channel effectiveness:
A well-executed channel sales program can extend market reach, add critical expertise to the sales organization and help you meet your revenue growth goals.
Expanding channel partnership investment returns requires a diligent, hands-on approach, but it pays dividends in the value gained from the partnerships. Businesses can improve channel partnership success by gathering information to better understand the partner mix and makeup of the channel portfolio. The right information and analysis can help with the decision of whether a partner is the right fit. Any partner analysis toolkit should include 10 regular actions:
This deeper insight allows channel leaders to optimize indirect channel effectiveness, minimize costly and unnecessary actions, and provide the insight to ultimately determine the required channel mix (direct vs. indirect) to maximize the profitability of your go-to-customer strategy.
Alexander Group can help you strengthen your existing channel partnerships and help you choose new partners that will provide the most value to your business. We leverage our experience, frameworks, research and benchmarks to produce actionable recommendations to help you produce sustainable growth in revenue and profit.
Contact us today to find out how Alexander Group can help you create a world-class channel partner program.