Creating strategic alliances with other companies is probably one of the most meaningful things you can do to grow as a business and boost your bottom line. As the famous saying goes: “Two heads are better than one.” Leveraging the strengths and abilities of others from aligned corners of your network is a tactical way for companies to scale their offerings and solve problems. And while there are many advantages to associating with the giants in your industry, you shouldn’t overlook the small guys. This goes for channel partners as well. In particular, partnering with smaller channel partners that have the potential to grow and extend reach drives collaborative innovation and progress that delivers on what your business needs today – and in the future.
The Importance of Partnerships
Strategic partnerships benefit everyone when resources are combined, and expertise is shared in order to build new business. Your company can broaden its relevance and increase its direct market, and organizations can expand their development opportunities by being exposed to new perspectives and know-how. Plus, strengthening ties between harmonizing businesses cultivates teamwork and longevity, and allows companies to offer services and solutions that help their customers and other businesses become more successful.
There are a lot of positives to partnering. And by aligning with smaller channel partners, you can achieve even more like cutting costs, increasing margins, and developing more innovation. There are a host of benefits to these types of relationships with smaller channel partners, and it makes sense to explore the options.
The Benefits of Smaller Channel Partners: Reduce Expenses
The goal for most business leadersis not only to grow revenue, but to also find ways to reduce costs where it makes business sense. Collaborating with smaller channel partners can be helpful in this regard. Acquiring reach and scale in distribution calls for weighty amounts of time and capital. Partnering with a smaller distributor can potentially save costs in marketing. A smart and strategic way to gain market share is to also identify and align with a partner who has the potential for growth and already has your target customers. Having more of these partners collectively can move the needle for you. They have spent a great deal of time and effort cultivating relationships and their recommendations on new products or services can be highly valued.
It also gives you the chance to try out other products or services at lower costs through these partnerships. As the business landscape becomes increasingly competitive, you cannot just ignore the longtail. That’s where partnering with several smaller channel partners comes in by powering up distribution to reach the customers who can be expensive to attain through conventional sales and marketing models.
The Benefits of Smaller Channel Partners: Boost Revenue
Developing your company’s sales team takes a lot of time, capital and effort. This is even more arduous if you’re selling to a niche, where you need to focus more attention on marketing to certain demographics and analyzing metrics in order to do so effectively.Your in-house sales team can cover only part of the market.
A well-established partnership with smaller channel partners can help you capture untapped revenue. By collaborating with the right channel partners, you can access new revenue sources and new customers that you may never have known existed.
Consequently, you’re able to reach a larger customer base without time wasted on unqualified leads that may not convert to sales. You can identify target channel partners and empower them through channel enablement efforts to create a win-win relationship. It is important to nurture and cultivate these partners upfront in order for them to succeed, as well as to achieve a relationship that is rewarding for both sides.
The Benefits of Smaller Channel Partners: Foster creativity
It’s easy to get caught up in the day-to-day of your company, falling into the same routines and having the same strategy meetings every quarter. Uniting with smaller channel partners is a great way to get fresh ideas along with the courage you need to take a risk that can help both businesses reach the next level.
The beauty of this is the collaboration that takes place. All businesses involved, including yours, can benefit from brainstorming sessions with mastermind groups from each company for feedback, innovation and idea sharing. It can even include leveraging data from the big guns of the industry to add to the dialogue. This moves everyone up the ladder, and it also nurtures deeper relationships and loyalty among businesses.
In the end, you want to help your partners’ business grow so your company grows as well.
Remember that channel partnership is a collaboration, so you want to exchange information to define the best strategies so everyone involved can remain independent and successful. Develop an understanding of their sales process and review the sales tools they will need to be effective. Determine what they need for data and analytics, ROI tools, training, use cases, and collateral. Educate and empower your channel partners.
By understanding that effective channel strategies are formed with teamwork in mind, you can gain better learnings and enable your small channel partners to support your business with alignment and collaboration. And the stronger your working partnership, the simpler it will be to sell your solutions, and the more solutions you will sell.
Creating robust, positive working relationships with multiple smaller channel partners opens up new possibilities, and overall, is the ultimate in developing better business environments on a global scale.