Benefits for Channel Partners working with Distribution on Professional Services

By Mr. Ravi Krishnamoorthi

The benefit for channel partners being supported by a distributor with Professional Services is that they can leverage the distributor’s expertise, resources, and network to deliver better value to their customers and increase their sales. Professional Services are specialized services that help customers implement, optimize, or maintain a product or solution. Some examples of Professional Services are consulting, training, technical support, installation, configuration, customization, integration, migration, and troubleshooting.

Some of the advantages of working with a distributor with Professional Services are:

• Channel partners can access the distributor’s technical knowledge and skills, which can help them solve complex customer problems and provide tailored solutions.
• Channel partners can reduce their operational costs and risks by outsourcing some of the service delivery tasks to the distributor, such as installation, configuration, integration, or migration.
• Channel partners can expand their market reach and customer base by leveraging the distributor’s network and relationships with other partners, vendors, and end-users.
• Channel partners can improve their customer satisfaction and loyalty by offering high-quality service and support, which can enhance the customer’s experience and retention.
• Channel partners can differentiate themselves from the competition by offering value-added services that complement the product or solution, such as training, consulting, or customization.

Advantages for vendors, channel partners and end customers to work with distributors on Professional Services

1. Expertise: Distributors with Professional Services can offer their technical knowledge and skills to channel partners and end customers, which can help them solve complex problems and provide tailored solutions.
2. Cost savings: Channel partners can reduce their operational costs and risks by outsourcing some of the service delivery tasks to the distributor, such as installation, configuration, integration, or migration.
3. Market reach: Channel partners can expand their market reach and customer base by leveraging the distributor’s network and relationships with other partners, vendors, and end-users.
4. Customer satisfaction: Channel partners can improve their customer satisfaction and loyalty by offering high-quality service and support, which can enhance the customer’s experience and retention.
5. Value-added services: Channel partners can differentiate themselves from the competition by offering value-added services that complement the product or solution, such as training, consulting, or customization.

These benefits are not only advantageous for channel partners and end customers but also for vendors. By providing Professional Services, vendors can ensure that their products or solutions are implemented, optimized, and maintained to the highest standards, which can increase customer satisfaction, retention, and loyalty. Moreover, vendors can leverage the distributor’s expertise, resources, and network to deliver better value to their customers and increase their sales.

 

How can Channel Partners grow their Service Business by using the Professional Services from Ingram Micro

Ingram Micro offers a range of professional services that can help channel partners grow their service business. These services include:

1. Data Fabric and Business Application Services: These services help channel partners simplify the complexity of architecting, adopting, scaling, or optimizing a cloud-first strategy for midmarket and enterprise customers. They are powered by Ingram Micro’s acquisition of IT professional services innovator CloudLogic and include discovery, placement, migration, transformation, multi-cloud enablement, and portfolio optimization^.
2. Marketplace-as-a-Service Model: This offering enables Ingram Micro Cloud channel reseller partners to launch their very own cloud marketplace and grow with streamlined cloud subscription management and billing, helping provide an accelerated path to commercialize and sell their products and services.
3. Expert Data Center Tech Force Team: Ingram Micro’s expert data center tech force team provides channel partners with the technical expertise they need to deliver high-quality services to their customers.
4. Configuration Services: Ingram Micro’s configuration services help channel partners streamline the deployment of technology solutions and reduce the time and cost associated with configuring hardware and software.
5. IT Disposition and Lifecycle Services: These services help channel partners manage the disposition and lifecycle of IT assets in an environmentally responsible manner.

 

From the point of view of vendors, distributors, resellers, system integrators and enterprise customers, what would be the strategic value of a channel model in professional services.

Vendors:

• Vendors can leverage channel partners to extend their reach and penetration into various markets without the need for a large direct sales force.
• They can focus on their core competencies, such as product development and innovation, while relying on partners for customer acquisition and service delivery.
• Vendors can also benefit from the local knowledge and relationships that partners have, which can be particularly valuable in international markets.

Distributors:

• Distributors can add value by offering a broad portfolio of products and services from various vendors, thereby becoming a one-stop-shop for resellers.
• They can leverage their logistics capabilities to efficiently manage inventory and deliver products to resellers.
• Distributors can also provide value-added services such as training, technical support, and financing options to resellers.

Resellers:

• Resellers can benefit from the support and resources provided by vendors and distributors, such as training, marketing materials, and technical support.
• They can offer a comprehensive solution to their customers by combining products and services from various vendors.
• Resellers can also differentiate themselves and add value by providing customized solutions and superior customer service.

System Integrators:

• System integrators can provide end-to-end solutions by integrating products and services from various vendors.
• They can leverage their technical expertise to create complex solutions that meet the specific needs of their customers.
• System integrators can also add value by offering consulting services and helping customers navigate the complexities of IT implementation.

Enterprise Customers:

• Enterprise customers can benefit from the expertise and support provided by channel partners, which can help them maximize the value of their IT investments.
• They can leverage the relationships and buying power of channel partners to get competitive pricing and terms.
• Enterprise customers can also benefit from the convenience and efficiency of dealing with a single point of contact for a wide range of products and services.

What are some challenges of a channel model

 

Some challenges that can arise with a channel model in professional services :

1. Customer Acquisition and Retention: With increasing competition and changing market trends, organizations find it challenging to acquire new clients and retain existing ones.
2. Issues can arise from:
   • Increased competition
   • Lack of customer loyalty and trust
   • Difficulty capturing customers’ attention
   • New business models and changing market trends
   • Markets crowded with advertising messaging
3. New Technology Adoption and Onboarding: Adapting to new technology and keeping up with trends is a key challenge. Complex and time-consuming technology adoption processes followed by staff training can be exhausting for organizations and their employees.
4. Cybersecurity: As information continues to go digital and operating models adjust accordingly, there are more opportunities for hackers to exploit weaknesses in companies.
5. Strategic Positioning: During economic slowdowns, firms often start offering services and taking on clients they really shouldn’t, just to keep the lights on. This can weaken the firm’s market profile and lead to internal conflicts.

These challenges require sophisticated and flexible management strategies to ensure the success of the channel model.

 

How can organizations overcome these challenges

 

Some strategies that organizations can adopt to overcome these challenges:

1. Customer Acquisition and Retention:
   • Develop a clear understanding of the target market and customer needs.
   • Build strong relationships with customers through excellent service and regular communication.
   • Differentiate from competitors by offering unique value propositions.
   • Leverage digital marketing strategies to reach a wider audience.
2. New Technology Adoption and Onboarding:
   • Keep an eye on industry trends, including new technologies that may influence services and employees.
   • Evaluate the team’s capabilities, skills, and priorities.
   • Provide training and support to staff to help them adapt to new technologies.
3. Cybersecurity:
   • Implement robust security measures and regularly update them.
   • Educate employees about potential threats and how to avoid them.
   • Regularly backup data and have a disaster recovery plan in place.
4. Strategic Positioning:
   • Stay true to the firm’s core competencies and target market, even during economic downturns.
   • Regularly review and update the firm’s strategic plan.
   • Be flexible and ready to adapt to changing market conditions.
5. Channel Management:
   • Understand that channel partners are companies with their own priorities, which may not always align with those of the vendor.
   • Develop strong relationships with channel partners based on mutual trust and respect.
   • Provide support and resources to channel partners to help them succeed.
6. Omnichannel Challenges:
   • Integrate information from digital and non-digital channels.
   • Put a standard operating procedure in place to handle crises and escalations.
   • Ensure agents are clear on who to contact for specific types of issues and when it’s necessary to escalate an issue.

These strategies can help organizations navigate the complexities of a channel model and achieve their business objectives.

 

How can organizations measure the success of their channel program

 

Organizations can measure the success of their channel program using various Key Performance Indicators (KPIs). Here are some of the most important ones:

1. Number of Partners Newly Enrolled (and Total): This measures the effectiveness of your recruitment technique and the competitiveness of your initial offering.
2. The Quantifiable Quality of Program Applicants: Score prospective partners based on well-defined criteria. This KPI is particularly helpful if you can tie results to specific marketing efforts.
3. Partner Onboarding Completion and Activation Rates: This performance metric can help pinpoint problems within your channel program.
4. Client Churn Rate: This measures the number of clients who stop doing business with a company over a given period.
5. Customer Service Satisfaction Score: This measures how satisfied customers are with the company’s customer service.
6. End-client Consumption Rate: This measures how much of a product or service the end client is actually using.
7. Net Promoter Score (NPS): This measures customer loyalty and satisfaction.
8. Portfolio Adoption (Upsell and Cross-sell): This measures the success of efforts to sell more products or services to existing customers.
9. Speed of Service and Usage Metrics: This measures how quickly services are delivered and how much they are used.
10. Benchmarking: Comparing how your program is doing against best practice, or industry standards is a great way to measure program performance.

These KPIs, when analyzed together, can start to give you a full picture of whether or not a channel is on the right path to recurring revenue

 

About the Author, Ravi Krishnamoorthi

An effective Transformational specialist with 30 + years of experience in Global delivery models, setting up of Centres of Excellence enabling customers through the journey of digitalisation, and the views expressed in this article are his own