Tech Data Plans Changes To Grow SMB Channel Sales

By many accounts, IT sales to small and midsize businesses are expected to grow by the mid-single-digits in the next year. That's not good enough for Tech Data.

The Clearwater, Fla.-based distributor wants to grow its SMB/VAR sales by 30 percent in the next year, Murray Wright, senior vice president of U.S. sales, told solution providers attending Tech Data's TechSelect Partner Conference in Salt Lake City on Friday.

Wright later qualified that the 30 percent number is more abstract than absolute, but the goal is to get his sales team -- and solution providers -- thinking differently.

"If you want to shock an organization at what a stretch goal looks like, you have to do things differently. Otherwise, you'd plod along at mid-single-digits," Wright said. "One of the things we've been talking about is to start to cultivate an attitude of playing to win. [Tech Data CEO] Bob Dutkowsky talked about that [at TechSelect]. Instead of playing to move with the market, that means taking bold steps."

To get there, the company plans significant IT and resources changes to build more mind share among solution provider customers.

"If we want to grow this business at 30 percent, there are some new things we have to bring to the party. New initiatives, some that are too secret, and to look at new ways to do business with our customers," Wright said.

One example is a new tool called OneDesk, which consolidates multiple data points in a sales organization into one view for VARs and Tech Data's sales force, according to Wright. For example, Tech Data's sales force currently has separate views for inventory, pricing, product availability and historical purchases.

"In a large company like Tech Data, questions could come from anywhere, and the sales organization has to go to different parts of the company to retrieve the information. All of that will be pulled into one tool," he said, adding that the tool should also improve cross-selling and upselling opportunities.

Plans call for OneDesk to soon enter a pilot program and become available to solution providers starting in July.

Another example of TechSelect's growth strategy is a multimillion-dollar investment in the restructuring of its sales organization. Previously, a team of five or six reps called on up to hundreds of customers. Now teams of two reps, supported by associates, are responsible for 20 to 30 accounts, Wright said.

"The objective is to know your customers and develop a deeper relationship," he said. "Rather than a call center environment, customers will call and ask for you. We want to deliver the message to the marketplace on the capabilities we have today."

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