The Software Channel and the Customer Value Proposition

TBK Consult has published a whitepaper explaining why so many software companies have a tough time building and growing a reseller channel. The whitepaper concludes that the value proposition of a typical software vendor and the value proposition
The Software Channel and the Customer Value Proposition
The Software Channel and the Customer Value Proposition
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* Channel Development
* Customer Value
* Channel Strategy

* Business
* Software

* Copenhagen - Copenhagen - Denmark

* Reports

COPENHAGEN, Denmark - Jan. 8, 2014 - PRLog -- Software companies have historically had a very strong preference for selling their software indirectly through a channel of resellers. For some software companies the channel has been a major contributor to global success, but for most software companies making it work is a depressing and constant struggle.

"Through our consulting engagements we often experience that software vendors do not realize the fundamental differences between themselves and their potential reseller," says Hans Peter Bech, the author of whitepaper. "The value proposition of any organization has a profound impact on the priorities and skill sets that the management encourage and nurture. We hope this whitepaper will help software companies better understand these fundamental differences and thus motivate them into developing partner programs that are more productive."

The whitepaper discusses why the Customer Value Propositions of software vendors and their resellers by definition must be very different and what the consequences of these differences are.

The whitepaper lists the typical reasons why software vendors choose an indirect channel of resellers to reach the customers and the typical reason why software vendors choose not to go though resellers, but sell their software directly.

The whitepaper explains why the change of channel strategy requires a change in the software company’s Customer Value Proposition and therefore also requires fundamental changes to the way the company operates.

The whitepaper recommends that the software company changing from a direct to an indirect channel approach should consider splitting the company in two separate business units with separate P&L responsibility.

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Emma Crabtree
Source:TBK Consult
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