- June 27, 2024
- Posted by: Channelnomics
- Category: Ask Channelnomics
Non-transacting partners have influence over customers’ purchasing considerations; engaging with these partners requires open communications and active influencing.
At Channelnomics, we field questions about best practices, partner strategies, and channel programs every day. In this series, called “Ask Channelnomics,” we answer some of the questions we receive most from vendors.
QUESTION: We’ve been hearing a lot about partners and third parties playing a big role in channel sales, especially within the ecosystem. What are some tips for working with these non-transacting partners?
ANSWER: Let’s start by diving into the definitions. Understanding the distinct roles of influencers, non-transacting actors, and non-transacting partners is essential before getting into relationship best practices.
An influencer can be anyone a customer turns to for advice and guidance on technology considerations and decision-making. Influencers can include analysts and their firms, media, and industry personalities. They’re typically not directly involved in individual sales engagements, so we’ll exclude them from this discussion.
A non-transacting actor is someone who is involved in a sales opportunity or customer consideration but doesn’t have a relationship with a vendor in the deal. For instance, a service provider may also support a customer and could influence their product decision-making even though it doesn’t have a relationship with the vendor. Non-transacting actors may also include other customers the buyer uses as references.
A non-transacting partner is any party with which a vendor has a formal relationship and that influences customer consideration but doesn’t conduct sales with or on behalf of the vendor. Think of GSIs that help enterprises design systems and deploy products but don’t transact sales outside of their own services. Another example could be consultants who help customers configure and operate complex applications but don’t sell the software.
Whether you’re engaging with a non-transacting actor or partner, remember that clear communication and access to information are your allies. These are the tools that will help you build strong relationships, inform them of your value proposition and competitive advantage, and, ultimately, win them over.
In cases where you’re dealing with consultants and integrators, you should also define how your technology will help the non-transacting entity do its job better. In many cases, these non-transacting partners are swayed to support your products because the customer adopting them will make their engagements easier.
Incentives help in some cases, but not always. You can offer referral commissions and other forms of compensation, but not all non-transacting companies can take compensation for their influence. Consulting firms and GSIs, for instance, often don’t have mechanisms for accounting for such payments. Many firms position themselves as agnostic, so, to avoid perceptions of paid influence, they don’t take money.
Not all incentives, though, are monetary. You can help influence non-transacting partners with market development funds (MDF) and co-marketing programs, access to free or discounted training, and not-for-resale units. Giving non-transacting partners access to resources — particularly experience with products — is a good way to win over their support and influence.
Another way to influence non-transacting partners is to bring them business. These companies, like everyone else, need references and introductions to customers. If you understand their role and value proposition, you can refer business to them and build a relationship on reciprocal value exchanges.
Forming productive relationships with non-transacting actors and partners isn’t easy. You have to create the right conditions — influencing their thinking and decision-making so they’ll, in turn, influence the customers to which you’re selling. Our advice is to provide information and actively communicate with them so they’ll support your go-to-market opportunities.
Have more questions? Our analysts have answers. Send your inquiries to mfrank@channelnomics.com.