The Criticality of Finding the Right Partners

The right partners are more than just those who generate revenue; the Channelnomics ROCKER methodology guides vendors through finding partners with the right value proposition.

By Larry Walsh

Vendors repeatedly say they only want to work with “the right partners.” Some say this with such incredulity that it seems the good, productive partners are hidden from their sight.

Having the right partners isn’t a misnomer or misguided idea. Not every partner is a good fit for every vendor. Channelnomics routinely reminds vendors that their best partner is someone else’s worst partner. The partner ecosystem is not uniform in capabilities, capacities, or performance. A PC reseller won’t be as effective as a security specialist. A regional managed service provider may have great capabilities and expertise but won’t drive the same revenue as a national service provider.

Vendors and channel leaders need focus when crafting their ideal partner profile or defining the partners they want to work with based on their capabilities, market coverage, customer types, and other attributes. The foundation of their profiles must start with the mission that partners perform on behalf of vendors and customers.

Channelnomics advocates for “mission-based partnerships,” which establish a purpose for the relationship beyond just driving sales and revenue. By clearly defining a mission – specifically, the partner’s role in serving the end customer – a vendor outlines the necessary attributes (characteristics) and responsibilities (expectations) required from the partner in their go-to-market strategy.

Channelnomics developed the “ROCKER” methodology for defining partner missions. This methodology is appropriate and applicable to every market and partner type route. Through ROCKER, vendors can determine which partners to work with and the value proposition they can offer to the vendor and end customers.

The Channelnomics ROCKER methodology defines the “channel imperative,” or why a vendor should work with partners. The ROCKER filter identifies the true vendor need for working with and through partners, and the roles partners play in customer experience and value recognition. Through this process, Channelnomics identifies the routes to market that align best with partner missions and vendor expectations and excludes those with little to no value to the vendor, partner, or customer.

• R = Relegate: A vendor’s value proposition and capabilities depend on where it wants to invest and focus on value. Vendors may defer go-to-market and customer engagement (support) functions to partners to leverage their capabilities instead of investing in developing and maintaining in-house resources.
• O = Offset: No vendor can do everything to satisfy the customer’s needs. Vendors need partners to fill gaps in their capabilities and capacities to ensure customers receive value through their product and service investments.
• C = Coverage: Vendors cannot cover the totality of the total addressable market (TAM) or all segments within a market. Partners can reach niche segments and specializations that vendors cannot cover effectively. Likewise, partners may be instrumental in covering foreign and low-yield (unattended) markets.
• K = Knowledge: Some technologies and market segments require specific knowledge and skills for servicing customers. Vendors can work with partners with specialized capabilities and experience in serving and supporting advanced technologies and highly specialized vertical segments.
• E = Expertise: Some vendor products require specific expertise and skills to take to market and deliver value to the customer. Vendors may need partners with established technology practices that provide consistent, repeatable results for the customer.
• R = Relationships: Vendors may not have intimate relationships with their customers, while partners often maintain business relationships that span seven to ten years. Partners have tremendous influence over their customers’ buying considerations, and some customers prefer to buy through specific partners. Relationships matter.

A vendor defining its go-to-market needs through the ROCKER methodology can filter through the vast number of partners in the channel ecosystem, identify those that best align with their requirements and expectations, and provide a clear mission that forms the foundation of the partnership’s total economic impact.

The ROCKER methodology looks beyond the simple revenue-generating aspects of a partnership. It focuses on what partners do and how they generate value for the vendor and customer. By looking beyond revenue, ROCKER forms the foundation of the total economic impact partners have on vendors’ go-to-market activities and how partners can create opportunities beyond conventional channel program incentives.

Wanting the right partners means more than finding productive partners contributing revenue to a vendor’s coffers. The right partners have the right attributes, alignment to go-to-market models, and clearly defined value propositions. The Channelnomics ROCKER methodology helps guide vendors through that identification process.

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