Whether steering a SaaS company, dealing in IT solutions, or consulting with front office clients, staying abreast of the latest Value-Added Reseller (VAR) trends is imperative for optimizing strategies and maximizing organizational potential.
Understanding the VAR Business Model
The Value-Added Reseller (VAR) business model serves as a pivotal channel for organizations, acting as intermediaries to deliver products to end-users. In this model, the Original Equipment Manufacturer (OEM) sells products to VARs, who enhance them with add-ons or services for resale. The added value varies, ranging from unique software offerings to consulting services, ensuring VARs always bring more to the customer than the original product.
Adapting to the ever-changing business landscape, the VAR business model undergoes constant evolution. Organizations leveraging this model stand to benefit significantly from staying attuned to the dynamic trends within the VAR sector. This compilation highlights the ten most crucial sales and marketing trends for organizations utilizing VARs.
10 Sales and Marketing Trends for VARs
Challenges in Controlling VAR Workflows
CRM adoption among VARs poses a perennial challenge. To circumvent this, organizations can bypass CRM requirements by employing lead assignment technology, facilitating direct lead delivery to VARs via text, eliminating software usage hurdles.
Enhanced Visibility through Automation
Automation tools, such as Lead Assign, empower sales teams by automatically collecting updates from reps through SMS or email, offering superior visibility into deals compared to systems reliant on portals and logins.
Augmented Significance of Attribution
Marketing automation and lead management systems that incentivize VARs to provide feedback on leads and update deal status contribute to a comprehensive understanding of VARs’ roles in the sales process.
Incentivizing High-Performing Reps for Increased Sales Velocity
Automation can aid organizations in directing leads to the most effective VARs, optimizing sales velocity. By incentivizing teams and automating lead distribution, organizations can expedite deals and gather valuable feedback.
AI for Qualifying VARs
Leveraging AI assists in matching leads with the most qualified VARs, ensuring optimal lead-to-revenue ratios and minimizing resources spent on poorly matched leads.
Imperative of Pricing Transparency
In the digital age, pricing transparency has become indispensable. VARs looking to stay competitive must reveal their prices early in the buyer’s journey, aligning with the expectations set by online platforms and comparison tools.
Increased Competition from OEMs
The growing prevalence of direct sales and reduced reliance on VARs by Original Equipment Manufacturers (OEMs) intensifies competition. VARs form only a portion of the larger sales force, leading to a more competitive landscape.
User-Friendly Software Mitigates Technical Expertise
The shift towards user-friendly software has diminished the appeal of VARs offering complex systems requiring extensive training. Accessibility has become a priority, rendering VARs to rethink their value proposition.
Emphasis on Point Solutions for Growth
Small and Medium-sized Businesses (SMBs) prioritize growth, blurring the lines between marketing, customer experiences, and sales processes. VARs can capitalize on offering point solutions as add-on enablement strategies to align with the growth-centric mindset of SMBs.
Evolution of Cloud Computing
The advent of public cloud computing has altered the dynamics of data storage opportunities for VARs. VARs now need to explore alternative ways to capture attention and secure business in a landscape where cloud storage has become simpler and more affordable.
Supporting and enabling a value-added reseller network demands strategic acumen. Implementing partner lead management systems can be instrumental in navigating these evolving trends successfully.
From embracing digital transformations to leveraging data-driven insights, you can integrate the key strategies empowering VARs to thrive in an ever-changing market and stay ahead of the curve to unlock new dimensions of success.
