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August 25, 2023
With end users tightening their purse strings, businesses in the technology channel are reconsidering how to maximise revenue from their existing customer base and how to better understand consumer needs across the entire supply chain. Whilst some companies may consider raising their prices, others will look at durable strategies that limit the risk of leaving customers unfulfilled.
It’s important for direct customers to really know the breadth of the services a channel business can provide, and what makes them valuable, not just for them but for their customer’s customers. By being more inquisitive, asking more questions and having real conversations, businesses can gain a holistic view of the benefits for all customers throughout the supply chain. This collaborative approach, putting the customer at the heart of the decision, ensures that the true value can be identified and problems can be addressed and solved together.
Channel businesses can identify ways to add value by obtaining feedback from their customers, as these suggestions will help uncover what customers value the most and the ways in which offerings can be improved to drive better returns. By taking the time to learn about what benefits end users, businesses in the technology channel can highlight their areas of strength to improve their offerings and find their niche. Understand the customer experience throughout the supply chain — right down to consumer level.
Creating value for customers is vital in increasing brand reputation and long-term profitability in today’s economic climate. Providing valuable services increases customers’ confidence and trust in the company. Those who feel like they have a trustworthy partner are more likely to repeat business.
Digital transformation is enabling companies to change. With global digital transformation spending set to reach $3.4 trillion by 2026, years of economic uncertainty have pushed businesses to be the best versions of themselves. However, it’s interesting to discover that it’s not the companies that are driving this change, it’s the customer.
Today, customers of channel businesses expect a service that can be delivered in the format of their choosing exactly when they need it. Their journey dictates an organisation’s strategy and calls for embracing new ways of working that meet the demands of the always-connected end user and providing an unmatched customer experience.
Fortunately, customer-centricity is already at the heart of many technology channel business strategies. Research shows that 35% of business executives claim that digital transformation helps them to better meet customer expectations, with 38% planning to invest more in technology to make it their competitive advantage.
Providing a personal and valuable service. There is no one-size-fits all approach to outshining the competition, but the benefits of identifying a business niche are invaluable. This can be done by aligning a business’s strengths to the needs of a customer. By reviewing these needs and establishing a niche, channel firms can build a loyal customer base as well as ensuring that specific customers will want to continue buying from your business, which generates a positive customer experience.
Promoting the business’ strengths allows customers and partners to identify its services and brand, as well as knowing that the solutions provided are right for their needs. Additionally, focusing on a more-targeted audience allows decision-makers to concentrate on the quality of the customer service the company delivers and preserving long-lasting relationships.
The more targeted and specialised the service is, the lower the competition. By identifying and investing in a niche, channel companies can differentiate themselves from those that are seeking a wider approach in the mass market. Competing with big names shouldn’t be the main goal, with providing exceptional products and services a much more personalised and valuable approach.
It demonstrates expertise. By implementing a business niche, those in the technology channel can establish themselves as experts and thought leaders in their field rather than focusing on an already well-known service or product in the industry. Being an expert helps businesses stand out, attract relevant customers and establish trust that ensures longevity across the industry.
Maximising revenue by delivering rich margin services. As customers gain control over the way companies deliver experiences, it’s vital to build new experiences that meet these demands to remain successful.
It’s no secret that organisations that are already on the road to digital transformation enjoy tangible benefits, such as increased revenue and growth opportunities, with Deloitte’s 2020 report stating that companies with higher digital transformation maturity reported 45% revenue growth.
One thing’s clear — it’s the customer who is in the driver’s seat, with this study indicating that businesses that have reached a high level of digital maturity are considerably more likely to benefit from revenue of more than $1 billion compared with those who are just starting out. Using these skills to sell a high volume of low-margin products is a challenging way to maximise profits, so identifying products or services that generate the highest profit margins ensures the right data and technology is available to ensure margin KPIs are met.
To deliver a better customer experience, businesses first need to understand who this new kind of customer is and how the industry will continue to evolve in the months and years ahead. By finding and building on a niche, channel businesses can not only boost revenue but use their strengths to align with the customer experience they provide. This ensures a strong foundation for both current and future relationships, allowing companies to change with the times and demands.
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