The Breadth stage is a comfortable place to be for many resellers. So comfortable, in fact, that many don’t take the steps to move to the next stage of Cloud Awesomeness, the Depth stage. By standing still, these resellers risk being left behind by partners who continue to actively grow their cloud businesses.
Depth stage partners are accelerating their cloud growth—and profits—by going deeper with three key moves that were described in a previous blog and by incorporating five critical best practices to their business model. Let’s look at how you can use these best practices to advance your cloud journey:
Best Practice #1: Streamline with automated provisioning
Manual provisioning cloud services requires the help of several people in several roles and involves multiple steps—increasing the cost of every transaction.
As Breadth stage partners become serious about selling cloud services, they also need to get serious about how to deliver them. With automated provisioning, partners will experience quicker deployment and billing, increased accuracy and more time to run their businesses.
Best Practice #2: Incorporate digital marketing
One primary difference between Depth stage partners and Breadth stage partners is an increased commitment to digital marketing and consistently using it to increase awareness of their brand.
To generate leads, Depth stage partners create and integrate digital marketing techniques, including videos, interactive media, pay-per-click advertising and more. In today’s digitally driven commerce where IDC states that 80% of the buyers’ journey is done online, a strong digital marketing presence is mandatory for resellers looking to acquire new customers.
Best Practice #3: Concentrate on cross-selling
While Breadth partners are experimenting with cross-selling, Depth stage partners are mastering it. They actively find creative ways to promote and sell the solutions their customers want and need, either at the point of sale or soon after. As a result, Depth stage resellers have much lower churn rates and higher overall profitability than Breadth resellers.
The highly effective tactic of cross-selling transforms the sale of a single product into one of multiple products, maximizing customer lifetime value (LTV). When you consider how much time and money you’ve invested in winning a customer, you’ll understand why cross-selling is a key best practice to master.
The probability of selling to an existing customer is 60-70%, while the probability of selling to a new customer is just 5-20%. This is why Ingram Micro Cloud developed a Cross-Sell Calculator to help you identify a customized product or service offering to recommend to an existing customer.
Best Practice #4: Increase your cloud offerings—and add IaaS
In addition to amping up the number of cloud solutions they sell, Depth stage partners incorporate infrastructure as a service (IaaS) into their offerings. Why IaaS? According to Gartner, IaaS is growing faster than any other segment of the cloud services market—and it’s forecast to grow 28% this year, and from $31 billion in 2018 to $39.5 billion in 2019.
IaaS represents the greatest untapped revenue potential for cloud resellers today, which is why Depth stage resellers are out to capture a greater share of the IaaS market. And many of these resellers are working with Ingram Micro Cloud to deliver tailored infrastructure offerings for their customers.
Best Practice #5: Incorporate hybrid solution selling
Depth stage partners understand it takes a tremendous amount of time, money and resources to build and maintain direct vendor relationships. Instead of negotiating contracts one by one for every solution they sell, they leverage cloud commerce platforms that allow for access to all vendor services for efficiency.
This lets them continue a direct relationship with a preferred vendor—where it makes sense or is the only option—while using an indirect provider’s catalogue, like Ingram Micro’s Cloud Marketplace, to grow their portfolio while making it faster for their customers to shop, buy and provision cloud services.
Arriving at the Depth stage
Breadth stage resellers are achieving more success by building a recurring revenue stream and expanding their cloud practice. As you continue your Cloud Awesomeness journey, consider how you can use these five best practices to reach the Depth stage and improve profitability, attract new customers, maximize customer retention rates and drive top-line growth along the way.
If you’re ready to move forward in your journey, contact an Ingram Micro Cloud expert today.