7 Traits of a Highly Successful Channel Partner
Over the past few years, we have gained some fascinating insights into shifts in channel dynamics using our Unified Channel Partner Management Software and Concierge Services to run a number of partner profiling programs for our technology clients. And as we compare this data with the information we\u2019ve gleaned from the dozens of worldwide studies that we have done, we have uncovered an amazing set of characteristics that distinguish the partners who tend to sell the most (and most profitably) and why they do so.\nThese statistics are referenced from a different perspective in our previous articles, including\xa03 Macro Trends That May Put Your IT Channel Partner Out of Business\xa0and\xa07 Risks Your IT Channel Partner Must Manage To Stay In Business, but in today\u2019s article we want to focus on the successful channel partner. In every case, what we see is a true commitment to:\n1. Relentless focus on customer value\xa0- In the technology solutions space, we consistently see that the most predominant success characteristic for channel partners, whether they are system integrators or management service providers or with deep vertical expertise, is their clarity of insight regarding their target customer segments, how they can meet customer needs, and the imperative to stay ahead of the competition by providing better solutions.\nThe technology space is always in flux, but even within the space the pace of evolution varies profoundly. Traditionally, enterprise has been the early adopter of cutting edge technologies, but the fundamental shifts in the technology channel business environment (as discussed in\xa03 Macro Trends That May Put Your IT Channel Partner Out of Business) today mean that partners who do not constantly evaluate their competitive position and customer value proposition are most likely to be the first to lose their momentum and edge.\n2. Deep domain expertise - In the technology channel, success is derived from not just deciding what to do, but rather what not to do. As technology becomes more and more complex, and cloud services drive a tectonic shift in the channel service delivery model, partners who do not focus on a manageable set of areas in favor of pursuing horizontal opportunities across many verticals tend to risk losing the potential to build on core capabilities that are essential to maintaining relevance with their customers. In 1930 there were 1800 car companies in the US.\xa0Today we have five\xa0US car companies and about 30 international companies. The technology space is following this pattern very closely.\nFollowing that analogy, if you are setting up service shops to service cars, you have to pick which automotive companies you will support, as each car is built differently and cars today are more like computers on wheels than mechanical constructs. In the same way, building strategic domain expertise is far from a frivolous choice for a partner makes. The strategic selection of the right technology vendor can make or break a solution provider\u2019s future survivability. This is a really hard choice for a partner, and mistakes are easily made despite the best intentions, but without a thoughtful approach to vendor selection the partner\u2019s risk is massive.\n3. Complex service capabilities\xa0- Having settle on the right ecosystem of technology vendors, partners\u2019 next success factor hangs on developing deeper technology competencies. One of the most telling examples would be that of partners who formerly managed and maybe also sold servers and storage components to their end customers, but who have transitioned to delivering cloud-based products and services and gradually built up competencies in those areas. Their revenue mixes have shifted, dropping dramatically for transactional components like hardware, software or warranties, but substantially increasing for higher margin service businesses.\nIf something is harder to do, yet you have mastered it and all the underlying service and support elements,