In an era where technology evolves faster than a TikTok goes viral, partners in the tech channel can no longer afford to go solo. Why not? Well, we can start with the fact that solutions have become too complex for many partners to be “one throat to choke” for all solutions. Secondly, recent data suggests that more than 60% of companies will consolidate vendors and providers in the coming three years. Faced with these two risks, co-selling may be just the solution your firm needs to stay relevant, billing, and profitable.
As a result of this – Co-Selling, the collaborative approach of aligning with vendors, partners, and even competitors in some markets has transcended from being a nice-to-have strategy to a critical component of success. But why has this transition happened? Let’s explore a few co-selling scenarios for partners (#MSP, #agent #advisor #SI) to learn more.
1. Co-Selling with Vendors: A Win-Win Strategy
Mutual Benefits: It’s a symbiotic relationship when tech companies co-sell with vendors. Vendors gain access to new markets and customer bases, while companies benefit from the credibility and advanced solutions that established vendors bring.
Innovation at the Forefront: Vendors often have the resources and expertise to innovate. By co-selling, tech companies can offer cutting-edge solutions, staying ahead in a market where yesterday’s innovation is today’s norm. Let’s take a deeper dive into strategies and best practices for vendor Co- Selling:
Getting Vendor Co-Sell right is rough on our vendors and suppliers – we all know that. Those numbers-focused CFOs don’t want to “double comp,” their CROs worry they are de-positioning their sales teams. The average CMO doesn’t always want to invest in ABM with partners…. the list goes on and on of excuses for the “why not,” but I am here to reiterate that they are all WRONG reasons.
Co-selling is good for business – can you hear me in the back? Let’s repeat that – Co-selling is good for business. Co-selling is more profitable in the long term, better positions the vendor firm, and keeps both parties engaged and selling more. Knowing those truths, what should the average partner do to ensure they have the proper focus on co-selling?
Strategic Alignment: Successful co-selling begins with aligning partner business goals with those of your vendors. This alignment ensures that both parties work towards common objectives, such as penetrating new markets or enhancing product offerings. If you can’t get aligned or a vendor is trying to tell you that they “own” an account you’ve had for years, it’s time to turn away from that vendor and find some new, more strategic ones.
Communication and Transparency: Regular and open communication with vendors is crucial. It helps in anticipating market changes, understanding evolving product lines, and aligning sales strategies. Show the vendor how you add value to the account to ensure no misalignment in your long-term value.
Joint Business Planning: Develop a joint plan with clear objectives, target markets, and roles – do not wait for the vendor to come to you with a plan; go to them with yours! This plan should include a roadmap for product integration, marketing, and sales strategies.
Training and Enablement: Ensure that your sales team is well-versed with the vendor’s products and vice versa. Cross-training can lead to more effective sales pitches and better customer service. But also ensure your sales team has the data set to win; work with vendors and distributors to get the correct data to predict the customer’s needs and next moves.
Shared Resources and Tools: Utilize shared CRM systems and marketing resources. This promotes a unified approach to the market and streamlines the sales process. If you have a vendor who won’t share with you, consider having them chat with a firm like PartnerTap, which can help them see the error in their way. How does this all work? Let’s consider an example of co-selling success in the cloud computing space:
Background: A mid-size software company specializing in data analytics teamed up with a significant cloud services vendor.
Strategy: The two companies aligned their sales teams and created a joint go-to-market strategy. This included shared training sessions, combined marketing efforts, and collaborative product development. They also made account-based marketing plans for each joint account.
Outcome: The partnership led to a 30% increase in sales for the software company, while the cloud vendor expanded its reach into new industries, such as healthcare and retail, where data analytics is increasingly crucial.
Key Takeaway: This case study exemplifies how effective co-selling can lead to expanded market reach and enhanced product offerings, benefiting both parties.
2. Co-Selling with other Partners: Expanding Reach and Expertise
Each partner can only cover some solutions their customer wants. Ps: if you think your firm can, you are wrong (sorry, my channel partner friends!) Even if you have a comprehensive IT portfolio, you still won’t be able to handle managed print needs or website design. So, find the partners where you have gaps and craft an agreement to work with them as joint customers. Why? Here are a few reasons:
Broader Market Access: Partnerships allow for leveraging each other’s customer bases, offering a cost-effective way to expand market reach. They can also save you money on those marketing campaigns in your geo-area. Consider splitting sponsorships, events, and even marketing outbound campaigns together.
Complementary Strengths: Each partner brings unique strengths and expertise, creating a more comprehensive solution for customers. They also carry a unique perspective about the business that you may need to see in your role with the customer. Two minds talking about how to help a customer are frequently better than one.
Real-World Scenario: Imagine a scenario where a cybersecurity partner (MSSP) with a security analytics company, providing an enriched service offering that addresses a broader spectrum of customer security concerns, partners with an MSP managing the client’s IT. This is a partnership made in heaven and helps all parties involved.
3. Co-Selling with Competitors: The Unlikely Alliance
Don’t be afraid to think differently about your competitors, too – as the old saying goes, keep your friends close and your enemies even closer. Partnering with a competitor can help you with?
Tapping into New Markets: Sometimes, competitors can open doors to markets that would otherwise be challenging to penetrate.
Pooling Resources for Innovation: Collaborating on R&D can lead to breakthrough innovations, benefiting both parties and the industry at large.
Illustrative Example: Think of two competing cloud service providers coming together to develop a new hybrid cloud solution, setting a new industry standard.
Conclusion
In today’s technology channel, co-selling is not just about combining strengths; it’s about creating an ecosystem where innovation, reach, and customer satisfaction are amplified. As we navigate this dynamic landscape, the adage ‘together we stand, divided we fall’ has never been more pertinent.
Whether it’s with vendors, partners, or competitors, co-selling is the new cornerstone of thriving in the tech world. Embrace the power of collaboration. Look around, identify potential co-selling opportunities, and take a step towards a more integrated and successful future in the technology channel.
Need help figuring out how to get started? Book a free 45-minute call with a JSG advisor by emailing info@jsgnow.com or DMing Vlad Krause today.