Only a third of vendors are hitting or exceeding their channel sales targets.
Beancounters at Investec have been asking around and found that just over half of vendors are frustrated with missing sales targets.
They think they will have to significantly overhaul their partner programmes soon.
Investec associate director, Junya Iwamoto said that too many tech companies only view the channel as a means of distribution, and this is seriously damaging opportunities for revenue growth.
“There needs to be a cultural shift of listening and taking action on the advice that channel partners provide”, he said.
Poor channel performance was a major factor interfering with an outfit’s ability to scale.
“We know from working with technology leaders that they spend time and energy building a vision, developing intellectual property and getting viable products to market. Once they have that laser-like focus on strategy, it can be hard to shift their mindset and accept feedback from third parties”, Iwamoto said.
Too many tech companies only view the channel as a means and that doesn’t just hamper scale-up opportunities – it can hurt existing business.
“Having a dedicated research and development team hardwired into the channel programme is essential.”
Investec said that switching partners won’t solve the frustration caused by missing targets, recommending that transparency, strategic alignment and mutual support are needed between both parties.
Businesses that consider their channel programme to be ‘highly successful’ rake in £50 million per year from their top five partners, compared with the £16 million hauled in by those who consider their programmes ‘unsuccessful.’
