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Ahead of the Curve: Customers Purchasing Behaviors

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Hello!

In this month's Ahead of the Curve, we look to three channel selling models as underpinnings to sorting through the complexity of your customers' purchasing behaviors.


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Jacqueline Franklin
Chief Partnering Officer




www.Routes2Market.com

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Rubik's Cube Envy, Anyone?

I read recently that 2010 marks the 30th anniversary of the Rubik's Cube. Slow news day, perhaps, but this took me right back to my brief intrigue with the brainteaser when it was launched. I reflected on the marvel of the multi-dimensional, colorful puzzle that precocious children pick up in no time and then insist on annoying impressing adults with their mental dexterity. Of course, any of us could figure it out if we had the time, or wanted to give our maturing neurons a little spin. But time is in short supply, so we grit our teeth smile at our gifted youth and go about our days.

And of course, those days are filled with plenty of challenging puzzles in and of themselves. They are masked often as customers and partners: customers in how they buy, and partners in how they sell - neither of which is getting any simpler or more straightforward. Then, at the core is the solution, awaiting discovery. It can all be a bit daunting.

Daunting yes, but like the Rubik's Cube, not impossible to conquer - once an understanding of the underlying puzzle architecture and patterns helps to distill the complexity to a few basic principles. So, at the risk of over-simplifying (and keeping in mind that more than one type may be at play at any one time), the following channel selling models will ground you in working effectively with your partners -- from program design, to compensation, to your overall value proposition:

  • Referral (think "here you go!")
    Referral channels are like an outsourced sales organization. They uncover and qualify leads up to the transaction, which occurs ultimately between you and the customer. Everything after the sale - from deployment through post-sales support - remains your job, keeping you directly accountable for the customer relationship and satisfaction.

    Referral channels are used to help generate demand for your brand, and often to minimize the cost of sales. Because referral channels engage only at the front-end of the sales cycle, they are relatively easy to disengage, if your direction changes or proves unproductive.

  • Resale (think "one hand to the next")
    Resale channels are those that reach the customer on your behalf (with or without your brand) and, generally, enhance the value of your part of the solution with a competency that you do not consider core to your business. In general, resale channels bring unique market access, knowledge and services, and, frequently, are essential for scaling your business.

    Resale channels offer the potential for broader customer reach with more complete, integrated solutions than you might provide cost effectively on your own. As a result, it's essential that your resale channels are equipped to sell, support, and service your offering as effectively as your own sales and services organizations.

  • Co-sell (think "arm-in-arm")
    Co-sell channels come into play when the customer solution requires discrete knowledge or capabilities, and sometimes brand assurance, from the providers of the different components of the solution. Co-selling brings you and your channel partner together to sell, deliver, and support your respective and complementary parts of the solution.

    Co-selling can reduce the cost of sale for both parties, as you and your partner focus on pre-and post-sales for your particular solution components. In addition, co-selling opportunities require close collaboration, with each party driving for a mutually beneficial close.

There are 43,252,003,274,489,856,000 different combinations for those multi-colored Rubik's Cube puzzle pieces (really!) - enough to confound even the most cunning and patient person. Sometimes, it feels like there are as many potential combinations for our go-to-market channels. And while customer purchasing behavior will never be predictable and simple, reflecting upon the three core channel selling models can bring a semblance of order to the chaos, and help you to stay ahead of the cube curve.





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If you are seeking an opportunity or a candidate with such skills, please contact us for more information.

Routes2Market helps business leaders identify, find and keep customers,
grow revenue and successfully partner to scale their organizations.


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