2112 Finds Ease of Doing Business Pays Dividends in Channel Performance
Data shows partners spend three times more with easy-to-work-with vendors
PORT WASHINGTON, N.Y., April 10, 2019 – New research from The 2112 Group, a business strategy and research firm, finds that ease of doing business in the channel has a profound impact on the amount and quality of business vendors can capture through indirect sales. Reducing channel program complexity and optimizing engagement and enablement processes and policies can help vendors increase partner wallet share by up to 30%, reduce cost to serve, and incentivize channel partners.
“Technology vendors often speak about ease of doing business with partners as a priority, and the industry generally recognizes its importance when dealing with indirect routes to market,” said Lawrence M. Walsh, CEO of The 2112 Group. “Vendors, however, often look past issues and processes that make ease of doing business a reality, which costs them tremendously in terms of partner productivity and alignment.”
2112’s debut Ease of Doing Business research explores the variety of ways vendors help – or hinder –channel partners, measuring partner experience from onboarding to enablement, from incentives to conflict resolution, and beyond. The 2019 Ease of Doing Business Report research and analysis demonstrates the importance of ease of doing business to channel partner success and highlights partner program pain points that need immediate attention.
The research highlights two critical points: First, easy-to-work-with vendors get three times more wallet share from partners than difficult ones; and second, difficult vendors must spend more – in recruitment and financial incentives – to compensate and drive business through the channel.
The report also provides a prescriptive road map that partners can use to evaluate vendors and vendors can use to improve the way they work with partners to the benefit of the channel at large.
2112’s analysis makes clear that, on its own, the traditional concept of channel friendliness – a general expression of commitment to indirect sales – isn’t enough to completely win over partners. Today’s vendors need to be fully “channel-centric” – willing to build and optimize key portions of their business to cater to partners’ business models and strategies.
“A successful channel relationship involves more than simply finding the right technology solution,” said Chris Gonsalves, senior vice president of research at The 2112 Group. “Channel partners need vendors that can relate to and interact with them on their terms – in a way that meshes with their strategy and business models. Vendors need to make their partner ecosystems as frictionless as possible to help solution providers reach their maximum potential for sales, profits, and growth.”
The full report is available in The 2112 Group Library.
About The 2112 Group
THE 2112 GROUP is a business strategy and research firm focused on improving the performance of technology companies’ direct and indirect channels through a portfolio of market-leading products and services. The 2112 Group leverages proprietary intelligence with qualitative research, market analysis, tools, and enablement programs. Industry experts approach each engagement by applying innovative solutions customized to meet the needs of clients. By looking at the technology market from the viewpoint of vendors, partners, and end users, The 2112 Group is uniquely positioned to develop go-to-market strategies that are beneficial to all parties from both a channel and enterprise perspective.