When Federal Reserve Bank of Kansas City President Thomas Hoenig recently said that the economic outlook for the first half of 2009 looked “bleak,” his stomach may have turned. Most likely we won’t feel any economic relief until the third quarter. At the end of 2008, factory orders, home sales, and service industries were still experiencing sharp declines. Is there even a dim light at the end of the tunnel?
How do you plan to survive the recession? How will you ensure that your customers continue to look to you for products and resources that retain significant value, even in these challenging times? If we look back through history and study successful businesses, those that stayed the course or, better yet, did well during bad economic times survived and sometimes thrived on word-of-mouth referrals. The concept, of course, is nothing new. We use it every day. Your best friend recommends a great new Indian restaurant. Your mom just had a great experience with a new dry cleaner in town that now you’re sure to try. Your running buddy ran 10 miles in new, state-of-the-art shoes that made those miles feel like five. You get the picture. People are more likely to try new things or make informed purchases if someone else has made a recommendation. What does this mean for VAR in 2009?
Your resellers are an integral part of your sales team
Did you know that in PC retail, 67% of all people who walk into the store ask the sales rep for a recommendation and 97% follow it? That means that 65% of the product that leaves that store is determined by the name of the product that comes out of the mouth of a sales representative. I hope you see where I’m going here. Your products must be those recommended by your resellers.
So how do you do this? How do you build a partnership with your customers to encourage them to recommend your products and services before all others available to them? Let’s take a look at some easy ways to promote your dealer brand.
– Resellers must use their product personally. Your resellers should always have their own personal copy of your latest software or specialty product that you want them to sell. You give them this. It’s free for them and free for them to maintain (marked “Not for Resale”). Everyone likes to receive something for free. Giving them a copy of your product will only benefit you, because if a rep is using your product and they like it, they will more actively recommend it.
– Become a teacher. Chances are, your resellers have used your product in conjunction with one (or more) of your competitors, so they’re familiar with the general concept of why anyone would want this latest piece of software. Now it’s your job to show the sales rep why an end user should choose yours. Spend some time with your resellers and give them a hands-on tutorial on the product. Guide them through the special features. Show them the points of difference that distinguish your product from others. Reinforce your sales pitch for them and answer their questions. Fully educate and engage them, and welcome them into the fold! Encourage your resellers to use it personally in their daily lives. The more they use it, the more familiar it becomes to them.
– spring training. Take the time and invest in regular reseller training (or updating) with your product. Give them a playbook and offer seminars on how resellers can easily sell his product to your customers. Is your software easier to use than any other? Do you have a proprietary backup feature? Do you have an unlimited number of users per copy? During these short training sessions (30 minutes is usually ideal), teach your resellers how to in turn educate end users on how to use your product. Give them the value-added phrases that will help them close the sale. By making your sales job easier, they will naturally want to recommend your product to the competition.
– Communicate changes and updates. Bookmarking the reseller isn’t a one-time deal where you walk in, hand the reseller a free product, and walk away, hoping they’ll use and recommend it. What happens when you create the 6.02 update? Or does the technology needed to use the product change? Encouraging personal use of your product is an ongoing effort. You want your resellers to have the latest version or new product available as soon as possible and then be able to wholeheartedly recommend it as if they’ve been using it for years. So when you have an update to offer or new services or features, start the training process all over again. It is your responsibility to give your resellers the tools to want to sell your product.
– Use the Internet for virtual training and communication. Everything we discussed so far in this article can be done online. While I’m a fan of face-to-face meetings, if you have a group of resellers who don’t have the ability to travel easily or it’s hard to find a good time, consider using your website as a portal for training and communication. You can post white papers about your products or host online webinars, training sessions, and podcasts.
– Set Elite “Members Only”. Remind your resellers that they are part of an elite group of carefully selected companies who are valued and respected members of your team. Create a password protected place on your site for information and offers available only to them. Reward your loyalty with valuable information here, and the occasional incentive like a spiff. Maintain regular communication, reminding them of your support for their sales efforts. Check in at least once a month to see if you can answer questions or provide additional help. At the very least, it reinforces their commitment and keeps that high level of awareness top of mind!
The bottom line is that in this troubled economy, you want your resellers to sell to you and their products. The easiest and easiest way to do this is to encourage them to learn about your services inside and out, answer any questions they have, and give them the ammunition they need to close the sale. Presenting the opportunity to have a reseller recommend something you know and feel confident about is very powerful, both for you and the reseller. The reseller presents himself to his customer as an expert and service-oriented. And you reap the benefits of the sale.