The relationships you have with your business partners is what makes our ecosystem work. But relationships change. In fact, the CompTIA State of the Channel 2024 report shows quite a bit of change is happening with regard to the number of partner programs solution providers and MSPs are participating in. But, if you’re a vendor, don’t fret. Carolyn April, vice president of industry research, CompTIA told a ChannelCon 2024 audience that fewer programs mean happier programs.
“It means you are getting more out of these relationships,” April said. “You don’t need to have a million friends, you just need a few very good friends.” To discuss these changes April led a panel representative of the vendor, distributor and MSP community in a session called, Power Panel: The Evolving Channel Relationships.
Why the Shift to Fewer Vendor Programs?
The shift we’re seeing is quality over quantity, and the data backs that up. According to the State of the Channel report, more firms are participating in just one to four programs than ever before (a 9% increase doing so year over year) and across the board CompTIA saw a decline in participation in five or more programs.
But less seems to be more. The percentage of channel firms that report being “very satisfied” with their vendor partnerships increased from 18% to 33% year over year, while net satisfaction increased from 66% to 84%.
Dr. Georgette Fraser-Moore, president, CEO, Transformation Lead LLC, said that customers want you to be really good at something. “What we’re seeing is that people used to want to be a jack of all trades and an expert of none. It’s better to spread a wider, but focused, net to make a difference in this market.”
In addition, the goal posts are moving in terms of how success is defined.
“We’re seeing mass collaboration happening. That is creating a massive shift in the way customers are viewing success,” said Cassie Jeppson, director North America programs, operations and strategy, Lenovo. “That collective relationship drives customer experience and transforms how we do business together. It’s less about what the technology does and more about how we are acting as a true partner. It’s about reaction and support and how we work together when there are inevitable challenges. It’s a true partnership that’s being mandated by the customer.”
How Can Vendors Prove They Are a True Partner?
Just over half of the partners surveyed in the State of the Channel report say they would drop a profitable vendor if the vendor was consistently difficult to do business with. “They will leave money on the table and walk away,” April said. “How do you prove that you offer a good partner experience?”
“You can’t just talk the talk, you have to walk the walk,” Jeppson said. “There isn’t a one size fits all solution. When times are good and the experience is good, everybody’s excited. When there is a challenge it’s all about how you react.”
“Partner experience is everything,” said Eric Pinto, senior director, channel and product strategy, SOCSoter, Inc. “Customers need different things and the vendor needs to understand that the MSP has a massive job in front of them. They need to ask what the challenges on the front lines are.”
Jeppson said the reputation the vendor has established in the market is key because the channel is a very small community, and Fraser-Moore agrees.
“When the customers aren’t happy they are going to write a bad review, but they will be loyal when they have good experiences. That very first impression, even just a phone call or an email, is important,” she said. “There are so many options out there. You have to be on top of your game.”
“At the end of the day we have to remember that people like to do business with people they like, period,” said Rob Rae, corporate vice president of community and ecosystems, Pax8. “You have to be likable. Not every decision made is based on price or technology. The relationships we have with our partners feeds into profitability. We need to make it easy to do business, not more difficult. We need to provide value.”
All of the panelists agreed that perception is reality.
“It’s the perception of the experience and we have to be mindful of that,” Jepsson added. “It’s about looking through multiple lenses, continuing to take feedback, being agile and listening to needs. That’s how we’re looking at the partner landscape.”
What Makes a Good Partnership?
The foundation of a solid partnership is investing the time to make it work. Pinto said taking time to understand the vendors’ products and the value they bring to the end customer is essential. “If the partner isn’t willing to invest the time it rarely works out,” he said.
Jeppson said it is the partner’s communication and candidness that is most valuable to her. “If we are going to invest the time with you, we’re asking you to invest the time with us so that it’s beneficial for both of us,” she said.
Rae reminded the group that the vendor responsibility is remembering they are 1/25th of an MSP’s business. “We like to think we’re the most important vendor they work with, but we’re not the only vendor they work with. My ask from the partner community is communication and as vendors we have to be receptive,” he said.
Fraser-Moore added that while the relationship can get a vendor to the table, they still need to deliver. “When you need to get something done you have to show up just as hard,” she said. “If a vendor or distributor is investing time, energy and support, the goal is to be able to show them you’re going to do something tangible with it.”
Jeppson agreed. “Time is one of our biggest currencies. If we are spending the time and the execution isn’t there, it wasn’t valuable for any of us.”
The dynamics are changing, but change isn’t always a negative thing. In this case, spending more time on fewer relationships can yield more successful outcomes. And while profit is always a clear measure of success, it’s not the only one.
“Business used to only be about the numbers on the page,” Jeppson said “As our society has evolved, there are things that are just as important to us that drive that number. The value of revenue diminishes if it’s not an enjoyable experience. It goes way beyond ‘how can I be profitable’ to ‘what is the trust, integrity and level of experience.”
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