Value added distributors and channel partners need to work jointly to increase their differentiation in the digital marketplace, provide a range of services to meet market demand, and invest in technology skilling of their teams, says Fadi Matta at Mindware.
Traditional IT distributor roles are rapidly shifting. Digital transformation is becoming a fundamental driver of industry growth. Businesses are rapidly turning to digital technologies to improve customer experience, streamline processes, and gain a competitive advantage.
As a result, IT distributors will need to provide a diverse set of value added solutions and services to assist their channel partners and customers in navigating this transition in order to stay relevant and add value. Offering value-add services for channel partners sets a distributor apart from its competitors. The market is competitive and will become increasingly more competitive.
As technology continues to integrate into both businesses and personal lives, there is a growing demand for services such as managed services, cloud services, security services, and consulting services to help organisations maximise the value of their technology investments.
Growing services market
In response, technology companies and channel partners are offering a wider range of services to meet these demands, and many are investing in building out their service capabilities to remain competitive in an increasingly services-focused market.
For channel partners, the key lies in providing tailor-made solutions that address the specific needs of their end-customers. The shift to cloud computing has opened up significant opportunities for channel partners to offer cloud-based services like cloud hosting, software-as-a-service, and cloud-based data storage, and providing end-users with scalable and cost-effective IT resources.
With the increasing threat of cyberattacks, there is a growing demand for cybersecurity services. Channel partners can offer end-users solutions to protect their digital assets, including security assessments, threat monitoring, and incident response services.
Data analytics has become a driving force behind many projects and discussions, it is imperative for channel partners to provide data analytics services to their customers. This way channel partners can help businesses make informed decisions and unlock hidden opportunities for growth
Emerging technologies such as Augmented Reality, Virtual Reality, Artificial Intelligence, and Internet of Things are reshaping industries and opening new avenues for innovation. Channel partners should enhance their technical expertise and consulting capabilities to provide solutions in these areas, implement smart solutions, and integrate AI into multiple business processes.
Value services from distributors
Value added distributors need to understand the significance of channel partner loyalty and the cost-effectiveness of retaining existing partners compared to acquiring new ones. Value-services from the distributor, such as technical support, training, and marketing assistance, empower channel partners to enhance customer satisfaction, foster loyalty, and retain their customers.
Value added distributors recognise the importance of differentiation in a crowded marketplace, which goes beyond simply offering a portfolio of hardware and software products. They should possess the expertise to integrate and build solutions for channel partners, enabling them to stand out from their competitors.
Value added distributors empower partners with access to technology to keep them ahead of the curve. Once the channel partner has decided to specialise in a particular technology considering the market demand and its customers’ needs, the value added distributor in collaboration with its vendors play a role in supporting the channel partner’s strategy.
They can assist the channel partner in choosing the right technologies, training and enabling the presales, sales and technical teams. They provide additional support in positioning the technology solutions, with the right narrative and relevant marketing tactics to generate demand and reach the addressable market.
It is imperative for channel partners to invest in upskilling their workforce to stay relevant in today’s age and provide value to set them apart.
Value added distributors offer marketing and sales assistance. By providing marketing collateral, lead generation tools, and sales training, helps channel partners increase their visibility and generate more leads. These value-add services create opportunities for upselling and cross-selling complementary products or services.
Providing simplified and efficient supply chain processes ensures that products reach channel partners quickly and easily, strengthening their position with end customers and enhancing partner satisfaction and loyalty.
The primary focus of a value-added distributor, is to support and enhance the profitability of its channel partners. Value added distributors need to provide competitive pricing and flexible payment terms to help partners manage their cash flow effectively
By investing in value-added services, channel partners are at an advantage and can set themselves apart, while increasing their revenue and staying profitable.
Mindware’s go to market
Mindware is driving digital transformation and innovation with its Cloud Marketplace, automation tools, supply chain capabilities, and as-a-service education portals. Mindware saw this as an opportunity to fill the gap with resellers by assisting them in navigating complex XaaS licensing models and simplifying their purchase process and launched its marketplace few years back.
Mindware’s marketplace, offers channel partners a range of aggregated cloud solutions from various hyperscalers, private cloud providers, and ISVs, in addition to its cloud professional and support services. This approach helps partners and their clients with their cloud transformation journey and enables them to cross-sell and upsell.
Mindware has the capability to collaborate with partner management team and provide insights regarding market trends and needs. In such cases, the role extends beyond a traditional distributor and takes on an advisory role.
Some of the value-added services that Mindware provides includes:
- Dedicated team of technical professionals, who have in-depth knowledge and experience with product portfolios of over 45 vendors that Mindware distributes. This covers infrastructure, cloud, security, DevOps, AI, IoT.
- Teams are ready to assist with product inquiries, troubleshooting, installation, implementation, consultancy, managed services and problem resolution.
- Continuous learning and certification in the fast-paced technology industry. This is comprehensive, region-specific training programmes and certification courses. Training resources are designed to enhance channel partner product knowledge and service delivery.
- Variety of tools, resources, programmes to help partners promote and sell their offerings more effectively. This includes tailored marketing materials and co-marketing opportunities to reach a wider regional audience.
- Flexible payment terms, credit facilities, financing options, to help cash flow and investment in inventory for channel partners.
- Simplified and efficient supply chain processes to ensure products reach channel partners quickly and easily.
Best practices for channel partners
- Diversify product offerings which includes value-added services, in order to differentiate offerings and increase chances of upsell.
- Streamline operations by implementing efficient processes and systems to reduce costs and improve efficiency, such as automating order fulfilment and invoicing. Invest in the right tools.
- Focus on customer satisfaction since it is cheaper to retain existing customers than identify and acquire new ones.
- Providing customer service and support can help increase customer loyalty and generate repeat business.
- Monitor prices and margins and adjust them as needed to stay competitive and maintain profitability.
- Build a long-term relationship with suppliers and benefit from loyalty programmes and volume rebates.
- Monitor the cash conversion cycle to control and manage finance cost.
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