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Why Understanding the Ecosystem is Crucial for Success in the Channel with Greg Plum
channelWise Team • May 15, 2023
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In the channel industry, the ecosystem approach has become a buzzword for a good reason. Understanding the network of partnerships and relationships between different players in the industry is crucial for success.
In this Ask the Expert Episode, Kathryn Rose, CEO & Founder of channelWise and Greg Plum, Director of
PartnerReady and
a channelWise expert, explored the importance of the ecosystem, how it relates to the customer journey and the key considerations for vendors' or suppliers when starting a partner program or expanding their channel presence.
Highlights
- The ecosystem approach in the channel industry emphasizes collaboration, co-creation, and mutual success among vendors, distributors, resellers, solution providers, agents, and subagents.
- Understanding the ecosystem is crucial because it encompasses all the different players and relationships that impact the customer.
- To be successful in the ecosystem model, vendors, and suppliers should consider their position in the ecosystem, work with partners to offer comprehensive solutions and services, and create new revenue streams.
What is an ecosystem in the context of the channel industry, and why should people care about it?
The concept of an ecosystem is a new buzzword in the channel industry. It refers to the network of partnerships and relationships between different players in the industry, including vendors, distributors, resellers, solution providers, agents, and subagents. The ecosystem approach is gaining popularity because it emphasizes collaboration, co-creation, and mutual success rather than traditional vendor-to-customer relationships. Ecosystems can enable partners to offer customers more comprehensive solutions and services, create new revenue streams, and differentiate themselves in a crowded market. Therefore, understanding and participating in ecosystems can be crucial for the success of businesses in the channel industry.
What is the importance of understanding the ecosystem in the channel industry, and how does it relate to the customer journey?
Understanding the ecosystem in the channel industry is important because it encompasses all the different players and relationships that impact the customer. Recognizing and leveraging these relationships to offer customers more comprehensive solutions and services, create new revenue streams, and differentiate oneself in the market is crucial. The ecosystem approach also extends the concept of the customer journey beyond just the people inside the company to include potential providers of services that surround the customer.
What steps can partners take to leverage the ecosystem approach and strengthen their position with customers?
Partners should identify their ideal customer profile and ask questions to understand who else is influencing them, such as what they are buying, who they are buying from when they are buying, why they are buying, and how they are buying. Once partners have this information, they can build relationships with other influencers in the ecosystem and work directly with them to strengthen their position with the customer. This approach is more strategic and complex than the traditional one-to-one relationship between a partner and a customer. Therefore, partners must understand their value proposition and how it complements and influences other parts of the ecosystem.
What are the key considerations for vendors or suppliers when starting a partner program or expanding their channel presence in the ecosystem?
When starting a partner program or expanding your channel presence, recognize that you are just one piece of the solution in the ecosystem. You must be strategic and patient and ask many questions to understand what you want to achieve and how to do it effectively. Building a partner program can take around 18 months to see any movement of the needle, so you must be prepared for this long-term investment.
To be successful in the ecosystem model, consider your position in the ecosystem and understand the power of relationships and partnerships within it. You should work with partners to offer customers more comprehensive solutions and services and create new revenue streams.
What are the trends in channel and ecosystem management in the next 2-5 years?
The trends in channel and ecosystem management include the growing importance of technology distributors, leveraging systems and data, and the impact of the pandemic on remote communication. The strength of technology distributors, such as the likes of Avant and Intel, is expected to grow. The relationship is still crucial, but data is becoming more critical for business growth. The pandemic has made remote communication more efficient, but face-to-face interaction is essential for building relationships.
For more advice about the channel ecosystem, visit Greg’s profile on
channelwise.
Check out channelWise.com for more experts to help you with your business or career.
Note: Transcript is edited for time and clarity.
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I see this problem all the time: You’re overworked, can’t keep up with tickets, the phone is ringing, and there is no time for anything other than fighting to keep your head above water. However, if you don’t change anything, you will never break free. Even hiring an office manager won’t help because if you haven’t taken the steps to create a business machine, they’ll end up increasing your workload rather than reducing it. So, how do you create a machine? Here are some recommendations. Focus Your Operations Start by streamlining workflows through repeatable processes, then document them as you work. The most common source of inefficiency is solving many problems for many kinds of customers. You will be spread very thin and will never catch up if you work with accountants who have issues with Thomson Reuters, QuickBooks, and Liscio; doctors who struggle with Epic; and architects who need to make Papercut and AutoCAD work. The key to mechanization is focus. Get spectacular at solving a few critical problems for very specific markets. Focus cuts work out of your process and reduces work throughout the business. Make Time to Document A lack of time is a problem for many businesses, but you don’t have time to not document. Undocumented processes take two to three times longer to complete – sometimes much more – because you figure it out each time. A lack of documentation is why hiring an office manager won’t help. One of my clients passionately resisted documentation. They were drowning in tickets, unsatisfied customers, and unfinished projects. They also suffered from a lack of sleep. Documenting the first process was hard, but now, they have 5,000 processes documented. Trailing tickets were reduced by 93%, revenue tripled, they hired a team that delivers impressive results, and they take vacations without their phones. Use Automation Tools The third piece is automation. But you cannot automate a process you haven’t defined. That creates a mess and endless work. Once you have something defined, automate it. PSAs and RMMs have self-healing scripts and scripts for common problems that can save oodles of time. Ensure you set proper thresholds so you can detect issues before they escalate. This takes out randomness. Automate ticket assignments and responses, and create canned answers for the top 50 things your techs respond to. Plus, with open APIs, compatible tools, and tools like Zapier, you can automate an almost endless list of routine office tasks: Proposal creation and delivery Follow-up processes QBR (SBR) scheduling Sending birthday cards By incorporating these strategies, even time-strapped small companies can reduce burdensome workloads.
When you’re trying to determine if it’s time to upgrade your company’s website, it’s important to first understand if your website works for you. Is it driving leads? More importantly, are those leads turning into clients? If so, then you are probably good. But if you’re like most of the 400-plus MSPs’ websites I reviewed over the last two years, then you probably are not getting the results you should be getting. But before you go near a keyboard or mouse – or worse, hire someone to redo your site – the fundamental questions around proposition, direction, and target market need to be answered. Making the decision to rebuild a site is so much more than a design exercise. It’s an exercise in figuring out what your business is all about and where it’s headed. Think of your site as a storefront window. It’s where potential clients first encounter your brand, learn about your services, and, most importantly, decide whether they want to engage with your business. An outdated or ineffective website can have a significant impact on your ability to start those new conversations. So, when do you know it’s time for a new website? Here are some overall thoughts: Outdated Design The visual appeal of your site plays a crucial role in attracting and retaining visitors. An outdated design can turn potential clients away. You only have one chance to make a first impression. If your site looks like it hasn’t seen an update in years, it’s probably time for a refresh. I’ve seen too many sites that look like they were designed when we were still sending faxes or are a barely customized template. It’s almost 2024. Don’t let that be yours. Ineffective Content, No SEO Your site’s content should be informative, engaging, and relevant to your target audience. It should be personal, too. It should tell stories about your business and how you’ve helped your clients. In addition, is your site getting traffic for local geographic search terms? Are you missing out on organic visitors? If SEO is non-existent. It’s time for a refresh. Low Conversion Rates If you’re getting visitors, but those contact forms are not coming through, then your calls to action aren’t doing their job. Make them clear and always sell your credibility on relevant landing pages. Talk to me if you’re not sure how to make that happen. Domain or Business Name You are what you are online. If your business can’t be found easily, change it. It’s that simple. Be unique. Be found. If you’ve noticed any of the signs flagged above, it likely is time to consider investing in a refresh.
As a leadership and coaching expert, my primary focus is on supporting individuals who experience burnout. Burnout is especially common in high-stress roles like engineering. However, there are several steps I recommend to make things better for your lead engineer . Foster Open Communication It’s crucial to create a safe, nonjudgmental space where your lead engineer feels comfortable discussing their burnout and its underlying causes. By actively listening and showing empathy, you can help them feel heard and understood. Manage Expectations It’s important to review their workload and expectations. Burnout often stems from an overwhelming amount of work. Take the time to assess their responsibilities and workload, and identify areas where improvements can be made. This might involve redistributing tasks, delegating when possible, or even considering hiring additional resources to lighten the load. Work/Life Balance Encouraging work/life balance is another vital aspect. Help your lead engineer establish healthy boundaries by promoting regular breaks, time off, and the ability to disconnect from work during non-working hours. Demonstrating the importance of personal time and well-being through your own actions is key. Tools and Support Providing resources and support also is crucial. Ensure your lead engineer has the necessary tools and resources to perform their job effectively. Consider offering additional training, mentoring, or coaching to enhance their skills and boost their confidence. Employee assistance programs, counseling services, or wellness initiatives can also provide valuable support. The Culture Criteria Cultivating a positive work culture is essential in preventing burnout. Encourage collaboration, recognition, and appreciation among team members. Celebrate successes, share achievements, and foster an environment where everyone supports one another. Recognizing your lead engineer’s contributions and offering regular constructive feedback will contribute to a positive work environment. Empowerment Through Autonomy Promoting autonomy and flexibility can help combat burnout. Grant your lead engineer more control over their work whenever possible. Empowering them with decision-making authority and exploring flexible work arrangements, such as remote work or flexible hours, can improve their well-being and job satisfaction. Check In Often Regularly monitoring goals and revisiting them is crucial. Check in with your lead engineer frequently to assess their progress and adjust goals as needed. Collaboratively setting realistic and achievable targets, considering their workload and well-being, will help reduce overwhelm and increase motivation. Truly Listen to Feedback Seek feedback and be open to iteration. Ask your lead engineer for their insights, challenges, and suggestions for improvement. Involve them in finding solutions and implementing changes. Continuously assessing the effectiveness of the strategies you’ve implemented and adapting as needed is key to addressing burnout successfully. By implementing these strategies and demonstrating genuine care and support, you can create a healthier work environment that fosters well-being, productivity, and job satisfaction for your lead engineer and the entire team.
There are two reasons why MSPs fail to attract prospects: Potential prospects don’t know you exist. Those who do know don’t understand that you solve a problem they have. Spending time, money, or resources on Point 1 is a waste without Point 2, so start there. The problem is that most MSPs sell something nobody wants to buy: IT services. Potential prospects have IT issues but are unaware that they are IT issues, aren’t interested in IT, and/or don’t speak tech. They don’t know how your IT services solve their problems. This leads to confusion and not buying. Overcoming Confusion So, how do you get uninterested potential customers attracted to your offerings? Answering these three questions can help you: Who is your target market? This can be a vertical, but a vertical often is too broad. So, it more likely will be a sub-part of a vertical. What problem do you solve for your target market using technology? This is an objective your target market has and a reason they can’t achieve it. They have business problems, not IT problems. How will you talk about it in their language? Use prescriptive sales: Start with the problem in their language, then accentuate the pain of the problem, present a solution, discuss the transformation, and make an offer. Without clear, tested, and optimized answers to these questions, you shouldn’t spend any money on advertising. It doesn’t work. So, answer the questions first. The good news is the answers make connecting with prospects easier. Instead of talking to everybody about something no one cares about, you speak to a specific audience about a problem vital to them. Right Place, Right Time The next step is to find prospective customers by going to where they are: Attend conferences and shows. If you solve a problem for dentists, go to dentistry conferences, not MSP conferences. Use social media. Identify 100 attractive prospects on LinkedIn, and target them with customized outreach through social media, mail, email, phone calls, and office visits. Add to the list as you close clients or eliminate someone as a prospect. If you spend money on awareness, spend money here. Network. Identify your top 250 contacts, make them aware of your target market and the problems you solve for them. Since what you do is no longer confusing, they can make introductions. Create content: Write for publications, newsletters, blogs, and whatever else you can find that your target market reads. Evolve into Marketing If you’ve answered the first three questions above and followed the next steps, you will attract customers. Once you’ve perfected your sales process, you can consider marketing. There are no silver bullets; there isn’t one thing you can do that magically works. I’ve tried it all; this is the strategy that works.
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