Technology companies today are looking for inventive ways to cultivate new customer and revenue growth. One useful, yet often overlooked, option is strategic partnering. Go‐to‐market partners can provide technology companies with many benefits. Technology companies can increase market share rapidly by locating partners with expertise in desired areas. Partnering can also help technology companies offer more complete solutions and new ways of adding value. Partnerships allow you to access resources, while also joining you together with a company that can offer you something your company may not have the time, capital, or the capabilities for today.
Other Benefits Include:
- Entering new markets
- Gaining access to previously unreachable accounts
- Expanding market presence
- Rounding out and diversifying service and solution offerings
- Gaining credibility in a new field
- Improving sales performance metrics
- Hitting revenue targets in a difficult external selling environment
- Penetrating new customers and markets without cannibalizing revenues
- Avoiding “commoditization” of their solution
As you consider working with strategic go‐to‐market partners, many factors need to be addressed in order to ensure that you are successful:
- Think Strategically – Determine what you want to do before you look for a partner to help you do it. Strategically considering your partnership options will enhance the value you bring to and gain from a partnership.
- Determine the Value You Bring to the Table – Any partner is going to ask the question “what’s in it for me?” You need to be able to articulate the value you bring to the partnership.
- Be clear about goals – Articulate what you are trying to achieve with the partnerships.
- Specify criteria that you are looking for in a partner – Key criteria such as brand strength, market share in specific target markets, and robust channel relationships are examples of important partner selection criteria.
- Systematically identify potential partners ‐ Once criteria are established, you need to investigate companies in depth to uncover the universe of potential partners.
- Execute rigorous potential partner assessments – Due diligence on a short list of potential partners is critical in evaluating and comparing potential partners.
- Complement power players – If you are a small technology company, engaging and leveraging partnerships with leading players offers tremendous upside.
Companies that choose the go-to-marketing route have an advantage over individual technology companies because they have access to relationships and resources that individual technology companies cannot possess on their own. Strategic partnering also helps to deliver superior value to customers because it enables technology companies to address all customer issues by delivering differentiated and comprehensive solutions.
While strategic partnering can provide a company with many benefits, this does not mean that there won’t be any challenges. Stay tuned for our next post to learn about these challenges and how to avoid some partnership pitfalls.