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5 Benefits Of Having A Channel Partner
Just recently, global management consulting agency, McKinsey, forecasted that partner ecosystems will be driving around $80 trillion in annual revenue by 2030, making up a third of total global returns.
When it comes to owning a business in 2023, channel partners can form the perfect bridge between your company and your customers, allowing you to tap into several unexplored avenues and reach your potential in a way that you cannot do alone.
Whether this is through resellers or distributors, building a system of channel partners is the best way to speed up revenue, form strong foundations, and ensure that your company sees a sustained level of success.
But why is this the case? If you’re just starting out on your business journey, what exactly can channel partners offer you that you cannot achieve on your own? To answer that question, we’ve listed five key benefits to an ecosystem of channel partners, as well as a few tips on how best to utilise them.
Getting Your Products To Market
One of the most significant benefits of channel partners is that they can get your products to market quickly and efficiently, which can boost your revenue growth in a shorter period of time. According to recent statistics, channel partners contribute up to 70% of a vendor’s revenue, which can lead to a 296% return on channel investments over three years on average.
That being said, there are a number of steps that your company will have to take in order to inspire those sales and maintain strong Channel incentives – just as customer and employee engagement is crucial, so too is channel engagement and keeping advocates loyal in your indirect sales channel.
Increased Coverage Of The Market
One of the reasons channel partners can boost revenue is because of their knowledge of the market and the coverage that they can reach. For the most part, indirect sales advocates come equipped with local connections, as well as extensive networks that can help your brand reach new areas and people. Once again, this is about creating an ecosystem of partners, all of which can spread the net and expand your reach into segments you would never have been able to achieve without them.
Increased Awareness Of The Brand
With this coverage in mind, your revenue is not only growing, but your brand is too. By representing your brand in various markets, channel partners are enhancing your visibility and building recognition on your behalf. Brand awareness leads to trust, and trust leads to a foundation of customers who are comfortable with purchasing your products and services.
One-On-One Level With Consumers
Crucially, however, if more consumers are becoming aware of the brand, their experiences will have to be positive in order to maintain positive word-of-mouth.
Thankfully, channel partners are poised to provide strong, individual customer service, thanks to their understanding of the market and their proximity to their – and your – customers. This will not only build brand awareness but customer satisfaction, which is going to be incredibly important when it comes to spreading the word and retaining loyalty in the long run.
Further Data Collection
Lastly, collecting data is one of the most crucial things for business growth and staying ahead of competitors. In short, there is no such thing as too much data, which is why it’s so beneficial that channel partners can bring their own to the table.
Through interacting directly with consumers, channel partners can offer a range of data that provides on-the-floor consumer insights. You can then add these insights into your own business, helping to fine-tune your marketing strategies and future product developments.
