How is Your Firm Getting Into the Solution?

Sheryne Glicksman
Jan 12, 2018

In Q4 of 2017, we surveyed 179 IT decision-makers within the indirect channels for office equipment deployed across the United States. Respondents included office equipment dealers (OED) and IT resellers. For this survey, we used revenue ranges to define the size of establishment. Those with annual revenue of less than $10 million were grouped as small OED and IT Resellers while large OED and IT resellers have revenues of at least $10 million.

It’s Time to Get Inside the Solution
Software is on average only 11% of total revenues. As you can see from the chart below, software is a higher percentage of sales among the large IT resellers (17% of total revenue). What can you do to increase your software revenues? Based on our last two dealer surveys, we know that solutions selling has been a growth priority for dealers in our channel for the past two years. So why is this number not increasing faster, and what are you doing differently this year to change your strategy? What’s working well for you, and what can you improve on? The software solutions that you market to your customers are the tools needed to effect change within an organization. It’s not about the name of the software solution. It’s all about how the software solution tool can help improve something that is challenging to your customer. What stories have you told to help your customers realize you understand their pain? How educated are your sales reps on how these tools help customers in specific ways?

Figure 1. What is the percentage of revenue for the following areas of your business?

Revenue Growth Areas

Workflow & business process solutions, managed IT services, security service and mobility were noted as the top four areas for revenue growth. Workflow and business process solutions are intended to help companies be more efficient and eliminate manual processes. Are you speaking to your customers about their frustrations around manual processes? The software tools available to eliminate these frustrations are the catalyst for change. Are you developing your own managed IT division or partnering with an expert in managed IT? When it comes to security, are you having discussions around security infrastructure, ransomware, and security around print behaviors? These discussions will certainly lead you down the path of making recommendations to alleviate your customers security challenges. Our forecasts show that mobile print is expected to grow to a $118 million-dollar business by 2020. How are you planning to capture some of this revenue?

Figure 2. What areas do you see the greatest opportunity for revenue growth in next 3 years?

Leverage Your Partners

How do you message your expertise to potential customers? What vertical markets have brought you success? If these are areas of growth for your establishment, how will you align sales and marketing efforts to reflect these new focus areas? What areas are part of your strategic initiatives this year? Technical sales support, more education and training, sales enablement and data analytic tools all ranked at some level of importance for our survey respondents. When it comes to sales enablement tools and data analytics, this got me thinking about all the tools each of you have access to in our channel ecosystem. Are you leveraging all the information in these tools? Bringing data to life is real. I believe we all want immediate insights into data that help drive business decisions. We want the data up to the minute, in real time, in motion. We also want it simple to understand so we can act on it. We can help you improve your software revenues. Contact me today for a complimentary executive briefing to discuss how #icanhelpbringyourdatatolife

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