Customer Retention in a Rapidly Changing Market
Article submitted by Brandon Lieberthal, VP, PC Systems Europe at TD SYNNEX
Customer retention has always been a challenge for partners working in the IT channel but since the pandemic it has become more important than ever to adapt to the rapidly changing market landscape in order to keep long-term relationships. For channel partners, keeping a customer-focused approach including an updated portfolio of products and services is key to maintaining a competitive edge and improving customer retention.
The small and medium-sized business (SMB) space promises much potential and profit. According to Analysys Mason, the 145 million SMBs worldwide are expected to spend USD1.45 trillion on IT in 2023, of which 40% will be from the Americas, 30% from Europe, the Middle East and Africa and 30% from Asia–Pacific, driven by the post-pandemic trend towards digital transformation. The necessity for innovation and flexibility will be a major trend as more consumers and workers look to get the most out of their technology.
Accessorise to enhance the user experience
The pandemic has reset IT needs. Resellers have been tasked with the role of equipping businesses with the latest technology such as keyboards, headsets, and cable convertors to meet their hybrid work needs.
TD SYNNEX and Canalys’ recent research revealed that 48 percent of businesses surveyed view endpoint devices as a top revenue driver and 14 percent also see them as one of the most profitable parts of their business. End users expect an enhanced experience whether working remotely or in the office, which means the hardware, software, solutions, and accessories adopted must be able to solve their challenges and pain points.
Adding value through adaptability
Economic pressures are prompting organisations to re-evaluate expectations and IT spend. During the cost-of-living crisis, businesses are concerned about the real value provided by the technology they invest in. It is therefore fundamental that the channel focuses on how it helps customers to grow and become profitable in 2023 and beyond.
As budgets tighten, workers and businesses are also looking into ways to make the most of the technology they already have. TD SYNNEX’s Technology-as-a-Service (TaaS) provides transparent and predictable fees as well as increased convenience, helping end users and channel partners to overcome financial challenges. The as-a-service concept lowers the cost of acquiring new technology and encourages a circular economy with products being returned or recycled at the end of the programme. This model will be particularly attractive to SMBs as it does not require heavy infrastructure or storage since technology is replaced on a needs basis.
This year, we expect the channel to invest more in sustainable consumption models like this. According to the same aforementioned research, services (managed/professional/packaged) accounts for 45% of partner revenue today. In our digital age, it is critical that channel partners help customers to adapt to market changes and trends by guiding and supporting them to ensure they understand how to use their new tools and offerings, what to use them for, and how to make the most of them.
