Study: Customers Put Stock In VARs' Brand Recommendations

Need more evidence that you are a trusted technology adviser to your customers?

Look no further than the VARBusiness Market Insight Report, in which an overwhelming percentage of midmarket and enterprise end users said solution providers exert influence when it comes to choosing a technology brand.

In particular, that influence comes to bear when recommending products that are new, unfamiliar or alternative to the current market-leading wares. And customers love market leaders; according to the survey, 81 percent of midsize companies and 79 percent of enterprise firms said they select the No. 1 vendor when purchasing technology. Think Cisco, Microsoft and IBM.

But while customers might have that "nobody-ever-got-fired-for-buying-IBM" attitude, it is not ironclad. In fact, more than 90 percent of midsize firms and approximately 90 percent of enterprise outfits reported in the survey that they would consider an unfamiliar brand if their solution-provider recommended it. That doesn't necessarily mean they'll buy it, but the willingness to consider puts solution providers in a strong position to advocate for what might be a superior technology from a smaller vendor. It's a way to demonstrate just how well you understand a customer's business needs by finding an alternative product that is for the job.

Last, taking alternative products to the market is a great way to differentiate your business from other solution providers. In a VARBusiness survey taken last year that polled solution providers specifically on their recommendations and sales of alternative brands, many cited gaining that competitive edge on their rivals. Others said that vendors down the market food chain might offer better margins and are more likely to work hand-in-hand with partners to land business and grow.

"The thing is that a company that wants to be a market leader but isn't yet is so much more flexible in accommodating us. They are hungry," says James Kernan, president and CEO of Networks Plus Technology Group, a $10 million San Diego-based solution provider.