Channel partners are companies that work with other companies to market and sell their products and services. These typically include resellers, specialised dealers or sales representatives. Read this article to find out why working with channel partners has so many advantages and what these are in concrete terms.
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Importance of channel partners for companies with indirect sales models
If you as a company have decided in favour of indirect sales, you cannot avoid channel partners. And that's a good thing! Because working with sales partners has a lot of advantages, which we want to look at in more detail in this article. Indirect sales are much more scalable than direct sales, especially when it comes to products that require a lot of explanation, such as garage doors, solar systems or prefabricated houses. This is because your sales partners are local, know the market and the target group and can position themselves as local experts. If you try to cover the whole of Germany with an internal sales team, you will see success more slowly in any case.
The advantages of working with Channel Partners
So what makes indirect sales with the help of local channel partners so successful? Let's take a look at this together:
Advantage No. 1: Expanded market presence
Let's move on to the first advantage: by working with channel partners, companies are able to penetrate new geographical areas or sectors in which they may not have had a presence before, or only a limited presence. This gives the company access to a broader market, including potential new customers and business opportunities.
The local sales partners can draw on local knowledge and networks and thus help the company to tap into markets that they may not be able to reach on their own, or only with difficulty.
Advantage No. 2: Access to new customers
Der nächste Vorteil der Zusammenarbeit mit Vertriebspartnern schließt sich dem ersten Vorteil etwas an. Mithilfe von Channel Partnern kann das Unternehmen Zugang zu neuen Kunden und Kundinnen gewinnen. So können lokale Partner vor Ort vielfältige Marketingkanäle nutzen, um Neukundschaft anzusprechen, darunter direkte Vertriebsaktivitäten, Marketingkampagnen und Veranstaltungen.
Advantage No. 3: Scalability and flexibility
Companies can scale more easily with the help of channel partners. You do not need a subsidiary in every region and do not have to constantly send your employees to regions you are not familiar with. Instead, sales activities can be expanded with the help of sales partners without having to make large investments. This also allows companies to adapt to different market conditions and respond quickly to new opportunities. By using the existing network of channel partners, companies can open up new sales channels or optimise their existing channels in order to strengthen their market position and increase their turnover.
Advantage No. 4: Strengthening customer relationships
Channel partners act as local contacts for customers and play an important role in building trust, meeting customer expectations and providing a first-class service.
With the help of sales partners, companies can strengthen their customer relationships and respond individually to the needs and concerns of their customers. Partners act as a link between the company and its customers. This opens up opportunities to offer customers direct support, advice and services on site - sometimes even customised if necessary.
Advantage No. 5: Risk reduction and diversification
By expanding its distribution network through channel partners, a company can diversify its risks and protect itself from the potential negative effects of certain market developments or trends.
For example, a company that relies solely on direct distribution through its own branches may be exposed to greater risk if market conditions change or if a particular market segment weakens. Through indirect distribution with channel partners in different sectors or regions, the company can spread its risks.
The specialised expertise and experience of sales partners can help to avoid risks from the outset. For example, partners who have in-depth knowledge of the local market can provide valuable insight and advice to identify potential risks and take appropriate measures to minimise them.
Summary
Channel partners are a good way to distribute explanation-intensive, highly specialised and expensive products and services. If you as a company have the right partners on board, you can grow faster, generate more sales and also offer your customers a better service. In this article, we have looked at how you can organise this collaboration efficiently and sustainably.