Most sales organizations understand that channel partnership is a good thing. It broadens choices for customers while increasing revenue opportunities for the company at the same time. However, businesses need to keep up with current trends to make the most of these partnerships. Below are some trends expected to take hold in 2019 and beyond.
Although this is not a new trend, it’s one that’s here to stay and will only increase. The ability to analyze and capture data in real time enables companies to increase profit by maximizing business practices. A single platform that enables sales organizations to capture collaboration, video, and voice will continue to be the best option for growth.
Channel Sales Will Continue to Drive Up Revenue
According to the 2112 Group, channel sales contributed an average of 11 percent to a sales organization’s revenue in 2017. Two years later, that number has already jumped to 15 percent. Channel groups have grown an average of 16 percent over the past three years, a number more than three times greater than the IT annual growth rate of three to five percent. Nearly 90 percent of executives in vendor channels expect indirect sales to increase positively over the next year.
On-Premise Services Will Continue to Decline
Businesses are always looking to cut expenses, and the rise of the smartphone application generation has enabled them to do that by eliminating monthly per-user rates and capital expenses. That means sales companies will feel pressure to scale their businesses in the cloud to give Millennial and even younger workers the resources they feel most comfortable using.
The Rise of Managed Services
Partners and vendors are frequently turning to managed services to increase company revenue. In fact, the typical partner today earns most of its profit from professional and managed services. These services often cross over one another and feel more connected that separate. Additionally, it’s becoming more common for vendors to push managed service models and offerings they have created through a channel to add to its streams of revenue. This strategy also adds new revenue segments.
Currently, 40 percent of executives for vendor channels believe that managed services will provide the most indirect revenue in just the next four years. This should be a strong statement to anyone with an interest in channel partnerships.
Investing More Time in Building Partner Relationships
With far too many channel partner relationships dying of neglect, observant salespeople have stepped in and vowed to not let it happen to them. Sales professionals who want to make the most of the partnership spend time answering questions, going out on sales calls, attending social activities together, and presenting a united front to others.
They don’t resent the effort but rather see the reality that their own success depends on how much they support their channel partners. The result is a smoother business relationship and greater profits for both sides.
Whether a salesperson or a channel partner, this is an exciting time to be in the industry. Keeping up with technology is key to sustaining growth.