3 Keys to Creating an Outcomes-Based Channel Sales Strategy
A report from The 2112 Group reveals that “recurring revenues … are the primary catalyst for market relativity, business viability, and growth.”
Increased revenue. Heightened security. Reduced operating costs. Optimized efficiency and productivity. Improved customer satisfaction. What do each of these things have in common? They are all examples of the types of business outcomes today’s B2B buyers expect from their technology investments.
In the past, IT purchasing decisions relied more heavily on device features, function, performance and cost, but with the rise of digitalization, data analytics and everything “as a Service,” customers have increasingly come to expect highly customized technology solutions designed to meet their specific business needs. In fact, 88 percent of executives expect their technology suppliers to provide process optimizations and outcome-based services, according to the Technology Services Industry Association.
For channel partners, that means the days of simply selling devices to end-user customers are over. In order to create an outcomes-based channel sales strategy to match this growing customer expectation, partners must shift from a product-centric transactional approach to a contractual, services-based model, from selling technology to selling outcomes.
For partners who are used to roughly 70 to 80 percent of their revenue coming at the time of a transaction, moving to a contractual model where revenue is instead realized throughout the life of a service or subscription, is not an easy proposition to contemplate, but it is imperative. A report from The 2112 Group reveals that “recurring revenues … are the primary catalyst for market relativity, business viability, and growth.” And it can be done: Adobe famously did it—smashing predictions along the way and adding a substantial bulk of net-new subscribers.
Read the entire article, 3 Keys to Creating an Outcomes-Based Channel Sales Strategy, at dealerscope.com