5 Ways VARs Can Drive Revenue In a Competitive Service Ecosystem
Today’s value-added resellers (VARs) are facing the fight of their lives. Shrinking margins. Rising costs. Intensifying competition. They’re also grappling with tough mandates (rigorous installation requirements, extensive training) from their OEM partners, which further compounds their challenges.
To ensure survival, leading VARs are looking for new ways to generate revenue and drive growth in a turbulent and unpredictable service ecosystem. This could require geographic expansion, new customer acquisition or various operational adjustments. There is no silver bullet, but one thing’s for sure: Success in a modern service world will require ingenuity, technology and speed.
Here are five ways VARs can boost their revenue and position themselves for success:
1. Upsell Existing Clients
Consider up-selling your existing accounts with additional capacity. It’s easier (and more cost effective) to sell to current customers than it is to acquire new ones. Take inventory of their networks and see what end-of-life products they’ll need to abandon soon. Develop an intimate understanding of your customers’ business, and you’ll be in a better position to anticipate their needs.
2. Cross-sell to Current Clients
Would you like fries with that? Or, put another way, if you’re selling implementation and integration services, why not offer training opportunities, maintenance services or complementary product sales? When you’re able to fully understand what makes your customer’s business go, you can intelligently recommend services and support that can drive their bottom line.
3. Utilize Referrals, Reward and Incentives
Word of mouth is the strongest form of endorsement, which is why your customers are your best salespeople. If you’re able to consistently delight your customers with exceptional service, they’ll be much more likely to recommend your services and refer new business your way. Consider offering referral rewards to your customers or designing an incentive program that rewards frequent customers with discounted rates.
4. Diversify Your Workforce
In the highly fluid IT service ecosystem, today’s hot technology can quickly become yesterday’s relic. OEMs such as Cisco, HP, Samsung and IBM are constantly innovating and developing new products, which will eventually have to be installed, maintained and serviced. Tapping into emerging freelance marketplaces will allow today’s VARs to directly access on-demand technicians around the country so they can acquire new skill sets, expand their service offerings and generate new revenue streams.
5. Leverage Technology to Work Smarter
Today’s service providers are looking for any way to get an edge on their competition. Some have started to adopt freelance management software (FMS) in an effort to modernize their service delivery model and efficiently scale their workforce. FMS software allows them to consolidate dispatching, management and payment processes into one seamless workflow. Moreover, they’re able to automate a slew of functions and eliminate time-consuming and inefficient processes from their arsenal.
To learn more about how today’s top VARs are adapting to a turbulent service ecosystem, read our new report titled “Navigating The Perfect Storm With An On-Demand Workforce.”
This post was originally published on the Work Market blog.