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How to Work with Channel Partners

Channel partners play a pivotal role in helping businesses navigate complex markets, improve efficiency, and capitalize on opportunities for growth. A well-managed channel partner ecosystem can be a strategic asset for companies across various industries.

What is a Channel Partner?

A channel partner is a third-party organization or individual that collaborates with a manufacturer or service provider to market, sell, and distribute products or services to end customers.

This type of partnership is common in various industries, including the technology industry. The partnership leverages the strengths and resources of both parties to expand market reach and improve efficiency.

Why Are They Important?

Channel partners are crucial in helping businesses expand their market reach, increase sales, and enhance overall efficiency. Here are the key benefits of having a strong channel partner strategy:

Market Expansion

They enable companies to reach new geographic regions or target different customer segments without the need to establish a physical presence in those areas. This facilitates market expansion without significant upfront investments.

Channel partners often also have specialized knowledge about specific industries, regions, or customer segments. By leveraging their expertise, companies can effectively navigate and penetrate markets that may be challenging to enter independently.

Distribution and Logistics

Channel partners handle the logistics of warehousing, inventory management, and product distribution. This allows manufacturers to focus on core competencies such as product development and innovation.

Cost Efficiency

Partnering with established channel entities can be more cost-effective than building and maintaining an in-house sales and distribution network. Companies can leverage the partner’s existing infrastructure and capabilities.

Speed to Market

Channel partners, especially those with an established presence in the market, can expedite the time it takes for a product or service to reach end customers. This speed to market is crucial in competitive industries, such as technology and electronics, where rapid innovation in the industry requires quick development and the release of new products and software updates to stay ahead in a dynamic market.

Customer Relationships

Channel leaders also often have longstanding relationships with their customers. By partnering with these entities, businesses can tap into existing trust and credibility, making it easier to introduce new products or services to the market.

How Local Vertiv Offices Can Nurture Relationships

Nurturing relationships with channel partners is critical for the success and growth of business. The first step is establishing open and transparent communication channels. Regularly sharing updates on products, services, and market trends helps cultivate a collaborative environment. At Vertiv, our Vertiv Partner Program is the foundation of one of the company’s focus areas. Vertiv says that a “channel partner program that touches all corners of the earth requires a team of diverse individuals who bring a wide variety of perspectives and forward-thinking ideas that can help our business and the business of the partners grow and thrive.”

In 2023, four of Vertiv’s channel leaders were recognized by CRN in its annual “Women of the Channel Awards”, which honors more than 1,500 women for their channel expertise, guidance, leadership, and vision.

It also is important to provide comprehensive training programs that equip channel partners with the knowledge and skills necessary to effectively sell and support Vertiv products. Consider offering technical training, product knowledge sessions, and sales enablement programs. This can streamline planning procedures and ensure that both parties are working toward common objectives.

Offering marketing support, including co-branded materials, campaigns, and lead generation initiatives enables partners to market Vertiv products effectively in their local markets. To motivate partners to actively promote Vertiv products, implement incentive programs that reward channel partners for meeting or exceeding sales targets. These programs can include discounts, bonuses, or other financial incentives.

Partner with Common Framework

Channel partnerships provide a strategic way for companies to extend their market reach without having to build an entirely new sales and distribution infrastructure.

As your Local Vertiv Office, we take pride in building strong connections with channel partners for mutual growth and success. At Common Framework, our in-depth expertise, full range of products and services, and unparalleled vendor partners guarantee that you are supported with the best data center solutions in the industry.

Contact us today to learn more.

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