Top 7 Relationship Boosters
"Normally, we talk about what the vendors should be doing to enhance partner relationships, but solution providers can do a lot to influence their vendors' behavior," says Henry Haddad, founder of VARometer, a research publication that focuses on computer resellers and integrators.
For example, when it comes to allocating development funds or bringing a solution provider into a choice account, vendors will spend their resources where they see the potential for return.
"Most of the time, the easy choice for a vendor is to pick a solution provider with whom they have a good, established relationship," Haddad says. It pays to invest even just a small amount of time and effort into building and strengthening relationships with vendors, he adds.
Here are seven ways in which you can help improve your relationship with your vendor.
1. Communicate,Wisely
Ted Fernandez, CEO of Answerthink, a business consulting and systems integration company based in Miami, says using multiple lines of communication worked for his company in the past, but beginning late last summer, Answerthink began collecting its critical mass of information into one central system. That way, Fernandez's employees, selected vendors, VARs and customers could centrally track and coordinate project activity.
"We use our Internet-based portal for this, allowing our employees and partners to upload, download and view information about alliances and joint business activities," Fernandez explains. "You're looking for one point where people can get easily updated, so creating that one view and repository for joint pursuits or
executions helps tremendously."
Joe Jones, director of U.S. sales for Lexmark, agrees with open strategy and says verbal communication alone can result in improper,or lack of,project execution.
"I've had instances where both parties have been at the table and identified synergies, but for some reason, this doesn't move the process forward," he says. "This must be a collaborative effort where both VARs and vendors give the other access to their information. We need to give them access to resources,to our strengths,so VARs can build specific solutions."
In addition, include your vendors in your publicity audience. "Be generous in sending them newsletters, press releases and other image-creating materials," Haddad suggests. "Keep in touch with corporate managers by forwarding an occasional article or white paper."
2. Don't Be Afraid To Offer Criticism
Lexington, Mass.-based Ipswitch, which develops Windows-based software products for the Internet and corporate intranets, encourages its solution providers to voice their concerns. "Tell us what doesn't work," says Brian Landrigan, vice president of sales. "We can't fix it if we don't know it's broken. It sounds obvious, but many VARs are afraid to complain, whether it is about our products, business practices or anything else."
A solution provider shouldn't hesitate to call a vendor executive who's high on the company food chain, adds Natalie Knudson, president and co-CEO of Modern Business Technology, Madison, Wis.
"That's acceptable, and [the vendor should want you to do that," she says. "Now, would I send an e-mail to Dan Vertrees [Compaq's vice president of North American partner sales and marketing? I would if it had to go that far."
Solution providers should also be just as quick to praise and tell the vendor what is working. In addition, Answerthink has found conducting a postmortem on any completed project benefits both vendor and VAR, Fernandez says.
One thing to remember: Chronic complainers are bound to find their calls to vendors unreturned. "Save your comments to vendors for issues that really matter and present them as constructive suggestions," Haddad says.
3. Learn About Your Vendor
Any relationship is a two-way street, but when it involves solution providers and their vendor partners, both parties first need to recognize and support each other's business models.
"Sometimes, when you're a big company, you can forget how small these resellers are and the need to understand their working capital," says Peter Rowley, general manager of IBM's Global Business. IBM, like any company, he says, must hit its quarterly numbers, and partners should understand that,and vice versa. In December, a small New York-based IBM partner tirelessly worked to close a sale so the deal would be counted for the last quarter of 2000.
"I was surprised and impressed with him," Rowley says. "One sale is not going to make a lot of difference, but 100 examples of that might make a difference. We're working very hard to meet our numbers, and so should [solution providers."
As Answerthink's Fernandez points out, everyone needs a proof point with a specific solution. A solution provider or vendor can perform extensive testing in a laboratory, but final approval rests with the end user, who will validate the solution's value.
"A lot of the great partners will say, 'How can we make this happen for the customer?'" Fernandez says. "First, you've got to have a strong understanding of the product and technology, then you look for functional day-to-day applications. It's a matter of bringing talented people to both sides."
Lack of direction and strategy between vendor and VAR can lead to a loss in momentum and, ultimately, the project's failure. "Or, one company puts its interests ahead of the other's for whatever reason, which ends up in an unfair relationship where one party didn't participate in a deal," Fernandez says. "We see it happening on all sides,the vendors, the solution providers and us. You stray from your intended pursuit strategy when you should be executing along the agreed-on strategy."
Also, share your growth plans with relevant vendors, even if you don't implement a joint business plan with them, Haddad suggests. Most vendors, he says, will invest development dollars with partners with growth potential. "If you are investing in new workers, expanded facilities or an improved demo facility, make sure your vendors know of such growth investments," he says. Doing so will encourage vendors to learn about your business.
"We don't know the VARs' territories or customers as well as they do," Ipswitch's Landrigan says. "For some, direct marketing works, while for others, trade shows work."
One of Ipswitch's largest resellers conducted a direct-mail
campaign and received an impressive 50 responses to 200 mailer pieces, according to Landrigan."We thought they would get about two," he says. "When we saw the spike in our product sales, they said, 'Oh, this works all the time in our sales territory.'"
4. Bring Leads To Your Vendor
Your vendor will remember you for having done so, and when opportunities arise in which you can add value, your vendor will be more likely to return the favor. "If you're a Cisco account manager, you have every VAR in your region asking, "Hey, got any leads for me?'" says Gia McNutt, president and CEO of Special Order Systems, a Rocklin, Calif.-based integrator. "First, you need to show value to the account manager and to the customer."
Don't neglect to follow up on those leads and let your vendor partner know the results. "Turning leads over to VARs can be the proverbial black hole," Landrigan says. "We shouldn't be in the dark about what's going on."
5. Obtain the Latest Certifications
Getting certified isn't always easy considering the engineers' lack of time. "It's real difficult to get engineers trained if I've got them billed at 10 and 12 hours a day," says Sean McTaggart, director of sales for Chips Solutions, a solution provider in Mount Kisco, N.Y. "We get them trained through the Internet and on the engineer's own time, which is often what they have to do when they get home around 7 at night."
Still, engineers understand they need additional certification if they want to become more valuable employees. That translates to a payoff for the vendor as well.
"[Engineers know they need more training to get a higher salary," McTaggart says. "If Novell or Extreme Networks says, 'We want you to have a certified engineer because it would sell more of our product,' we'll do our best to have them certified."
Being honest about your engineer's certification is another mandate. "When asked, 'Do you have a CCIE [Cisco Certified Internet Working Engineer?' you're saying yes. Meanwhile, your CCIE left a week ago and you're scrambling to find someone to get on the project," says Tiffani Bova, director of sales and channel programs for Affinity. "That shouldn't happen."
Early on, McNutt established a trusting relationship with a Cisco account manager in a specific territory. Next, she focused on delivering specialized technologies,ones that Cisco prefers in its latest certification program. "Because of that, this account manager has told another account manager about us, and he brought us into two other counties," she says.
6. Participate In Vendors' Events
Travel budgets may have been cut, but the need for face-time with vendor executives and their contacts hasn't changed. "The more the vendor knows about what you're doing, the more
likely you'll be drawn into opportunities," says Diane Krakora, principal analyst at Amazon Consulting, Mountain View, Calif.
It's worth asking if your vendor has any special deals for participating in trade shows and other events. Ipswitch, for example, has been open to the idea of splitting costs with its partners who would like to become involved in local trade shows that Ipswitch also participates in, Landrigan says.
7. Welcome Cooperative Selling
As competitive as the marketplace has become when selling IT solutions, a little cooperation with your vendor will pay off handsomely. "My salespeople want to help VARs close business," Landrigan says. "Get to know my salespeople and their territories. Just like your customers, they will respond more positively if they know you personally."
IBM helps its partners with generating demand through its co-marketing campaign. The campaign demand tool is on IBM's Web site, where the partner can log on, add its logo and create a mailing list, which will become a part of the partners' marketing campaign, Rowley explains.
"We need them to do more than they're doing today," he says. "They understand the market better than we do, and they need to take us to new markets."
Rowley emphasizes the most important task for a solution provider is to be able to deliver a total solution. "You may not have application skills or CRM skills, so rather than ask you to be a CRM specialist, team with a company like Siebel," he says.