- On November 6, 2019
5 Reasons Why Channel Partners Are the Key to the Mid-Market
Has your company recently considered making a move into the mid-market? There are a ton of sales strategies to help you break into the mid-market, but the key piece that often goes unnoticed is channel partners. Today, we’re diving in to look at 5 reasons why channel partners are essential to the mid-market.
Reason number 1: suppliers can’t be an expert in every industry, but partners can. Mid-market customers expect their vendor to be an expert in their industry. When customers hire vendors, they tend to be hired on as either a generalist – across many industries, or a specialist – specializing in just one industry. The mid-market customer strives for the confidence of knowing that the vendor will know and understand the industry lingo, requirements, and regulations of the industry.
But how can a vendor effectively sell into multiple industries? There is no way for a single individual to be an expert in multiple industries. You could hire multiple vendors with expertise in each different industry – but what an expense that is!
Reason number 2: Suppliers can’t afford to sell to the mid-market directly, but partners can. Most suppliers serve the enterprise market with their direct sales team and allocate additional resources to support the market. It’s literally a bus of people for one customer. But a mid-market customer has fewer employees and doesn’t have the same buying volume that a larger customer does. This has implications beyond the initial sale – this means fewer systems to update, fewer add-on services, and fewer hardware and software dollars. In turn, this simply means a sales model a vendor uses to sell to large customers won’t be sufficient in the mid-market.
Reason number 3: Suppliers can’t afford to be flexible in the mid-market, but partners can. When offering complete solutions, you might include flexible financing, trade deals, flexibility in legal agreements, and more. But vendors can’t offer this for smaller opportunities or customers. They may not be willing to take the credit risk, or policies may only allow them to be flexible for deals of a certain value. Channel partners are experts at organizing deals for their target mid-market customers. No matter the industry, channel partners can develop creative solutions to meet customers needs.
Reason number 4: Suppliers can’t put together an entire solution, but partners can. Direct reps normally sell their own company’s products. In many cases a customer needs to purchase additional items for those products such as hardware, software, and services to create a solution. Channel partners have the ability to put all of the components together in one solution to meet the mid-market customers needs.
Reason number 5: Suppliers can’t afford to service the mid-market, but partners can. After a sale, customers expect support whenever they require it. They want the satisfaction and ease of knowing that their solution is implemented at full capacity and questions are resolved quickly. Suppliers can gather a team to handle issues for their large customers, but the cost to service the enterprise customer will not scale down into the mid-market. Channel partners have the ability to lower margins on hardware and software and rely on services and support to generate profit.
These are only 5 of the reasons why channel partners are the key to the mid-market – there are plenty more! Channel partners set clear expectations up front to avoid disappointment and frustration down the road. That’s the promise and ease that Gorilla provides every customer in every market. Contact us today to get started!