Channel sales professionals are facing “unprecedented challenges,” according to John Butel, seasoned sales negotiation strategist and mindset coach for Organised Solutions. He’s sounding the alarm for IT channel sales people: differentiate or risk obsolescence.
Butel is a veteran sales, business and leadership coach who has worked with a wide range of technology companies, from Dicker Data, Ingram Micro, Meridian IT and Computer Merchants to Intel, IBM and Schneider Electric.
He will speak to IT channel partners about ‘Adapting to Change: The Evolution of IT Channel Sales’ at the CRN Pipeline conference on August 14.
"Partners’ salespeople are under siege," Butel said, stressing the need for a revised approach focusing on technology-linked business value and personal confidence that sales professionals can provide clients.
“We've shifted away from heavily relying on relationship-building, as clients often keep their distance during the initial years of engagement,” Butel said.
“The days of relying solely on personal relationships are over; instead, salespeople must become ‘market advisors,’ guiding clients through the maze of technological options and the logistical spaghetti called the Channel.”
This should include sharing the experience of other customers’ who have successful completed similar projects, instilling confidence and offering personal assurances to ensure IT’s reputation within the business, Butel said.
“This approach regularly requires selling to the business on behalf of IT, ensuring its technology decision-making creditability emerges positively,” he said.
Earning a seat at the table
It goes without saying that in business, it’s important to see your customer’s business through their eyes. In addition to doing this and providing solutions that work, the IT channel should provide additional business benefits that improve the IT department’s image, Butel said.
“You need to make sure that the IT department's reputation, often in the preverbal toilet, actually comes out looking like a real asset to the business,” Butel said.
The question is to what extent IT providers are aware of how important this is to customers, or if they realise it at all.
A deeper dive into the customer’s ecosystem and their political landscape is needed, Butel said. Gone are the days when talking to the CTO alone would suffice. Today, salespeople must engage with a broader range of stakeholders – managers of business units, project sponsors, technology experts, other vendor salespeople and even contractors – to piece together a more comprehensive picture of the customer’s needs.
“You have to do your homework and research what’s really happening in the business, which means talking to senior levels becomes a secondary stage. You have to work out who in the business can provide you the information – and sometimes it’s the most unlikely people,” he said.
“They may be internal or external to the business, engaged in activities complementary to the project which gives them additional valuable information.”
“By combining their insights with yours, you can draw conclusions about the client's business status and build a holistic business proposition that’s different to what other suppliers provide.”
The rise of 'market advisors'
With clients increasingly retreating behind voicemail and email, Butel said salespeople must earn the right to have meaningful conversations. They can do this by demonstrating a thorough understanding of the client's business and potential challenges, and offer solutions the client hasn’t discovered.
Butel called for a shift in the sales paradigm.
The traditional “my customer” relationship scenario, where securing deals hinges on personal “mateship”, is becoming obsolete, he argued. In the customer’s mind, these relationships are only possible after multiple co-successful projects, he said. The business partnership comes first, before the personal one.
The salesperson is morphing into an informative market advisor, according to Butel. This involves not only supplying the most competitive product, but offering strategic market insights that enhances the IT department’s standing within a company.
What’s more, Butel said today’s CIOs seek channel salespeople who can help them enhance their IT teams, reshape business operations or even extend into new markets.
“Savvy CIOs’ focus is on reshaping the business operations, revitalising ways to market and using technology to leapfrog the competition,” he said.
“They recognise their limitations in team management and value outside salespeople who show capabilities in co-ordinating all the various people elements to focus on the key objectives.”
“They seek suppliers who can understand their technology vision, facilitate a cohesive team environment and deliver a differentiated technology solution that drives their business objectives.”
In essence, Butel sees it as about more than selling technology; it's about building partnerships that enhance IT's reputation and helps it secure funding through strategic business justification.
This is not without challenges. Butel highlighted a common pitfall: the tendency for sales professionals to offer generic selling value statements instead of understanding the specific business outcomes sought by each client.
"They often miss the mark," he explained, "and offer generic value like 'increased profits' or decreased business costs,' regurgitating what they've read on the customer’s website.”
"If a business finds itself under siege in its marketplace, concerns like increasing profit or boosting share prices become secondary. The primary focus shifts to survival - capturing competitive market share and building better customer experiences by using technology to gain an edge and maintain viability,” Butel argued.
“This is where the expertise of a market advisor comes into play. Market advisors possess a deep understanding of their customer’s market dynamics and can provide valuable insights to navigate such challenges."
"Adaptability and perseverance are key traits"
Butel’s message is that to succeed in this new era, salespeople must evolve from being relationship builders (aka a trusted advisor) to market advisors. This is not just about closing deals but about fostering long-term success for clients.
Looking ahead, Butel sees the rise of market advisors who can navigate the complex technological landscape, anticipate future trends, and articulate the business value of their solutions to savvy CIOs. Those that do this will be successful for many years, in his view.
He reiterated that even experienced sales professionals must keep abreast of industry shifts.
“We seldom pause to assess what's working, what isn't, and what new approaches we could explore. Adaptability and perseverance are key traits of successful salespeople who consistently seek to differentiate, learn and adapt.”
John Butel will speak about “Adapting to Change: The Evolution of IT Channel Sales” at CRN Pipeline 2024 on August 14. See the Pipeline agenda and register your interest in attending.
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