Independent research and advisory firm Forrester
Blogger
Share this content

What I see coming for the channel in 2020: Part 1

29th Jan 2020
Independent research and advisory firm Forrester
Blogger
Share this content

Preparing for this year’s list of future channel trends has been an immersive experience, to say the least. 

To sum 2020 up in simple terms, we are seeing a monumental shift in how buyers acquire products and services and how companies are reacting with their go-to-market and routes-to-market strategies.  

2020 Trends  

Indirect Sales Will Shrink Every Year For The Next Decade 

We are watching several buyer trends in this area. First and foremost, 73% of B2B buyers report that buying through eCommerce, web direct, or marketplaces is very convenient. Consumer trends, such as direct to consumer, are starting to shift into business. Brands are developing the capability to sell and fulfill directly to consumers, and this will extend to their B2B buyers, as well. 

The cloud and emerging technologies such as AI, automation, and the internet of things (IoT) are growing quickly and carry lower indirect percentages than some of the legacy technologies they are replacing.  

The $2.26 trillion of indirect technology spend will continue to grow but grow more slowly than direct sales causing the 64% split to drop each year for the next decade. 

Marketplaces Make Their Mark 

Forrester is predicting that 17% of the $13 trillion in B2B spend will flow to marketplaces by 2023. While some of these marketplaces are indirect (e.g., Amazon or Alibaba), most of them will be run by big tech vendors (e.g., Microsoft, AWS, Google, Dell, Salesforce, or IBM). 

I foresee 20 “super” marketplaces taking a sizable share of this marketplace revenue and creating a whole new set of tech jobs (such as marketplace SEO, community managers, and ecosystem strategists). 

Channel Leaders Contemplate A Trifurcated Channel Model  

For 38 years, the channel has been synonymous with resellers and transacting partners. Programs have been anchored on precious metal (gold/silver/bronze) pyramid schemes, and the partner journey has been predictably linear from recruitment to onboarding, incentives, co-marketing, and management. In 2019, we saw Microsoft announce that 7,500 new partners were joining the program each month. What it didn’t announce is that 80% of those partners are nontransacting. 

What is a trifurcated channel? 

–> With buyers spending 68% of their journey digitally before speaking with a salesperson (direct or partner) and an astounding 71% of them reaching vendor selection after a digital-only journey, brands are wising up to the importance of getting in front of customers early and often. Creating an “influencer channel” made up of affinity partners, referral agents, affiliates, advocates, ambassadors, and alliances is critical to success in 2020. 

–> The traditional “transactional channel” doesn’t go away. In fact, those partners that have spent years on the “long-tail” list may find a home somewhere else in the program that has, up till now, only pushed them to resell. –> Because almost every company in every industry is thinking about or actively converting to a recurring, subscription-based model, a new “retention channel” is starting to take hold. Knowing that the customer journey never ends in a subscription scenario and that brands will need to re-earn a customer’s business every 30 days, partners that can drive adoption, ongoing customer experience, and the ability to upsell and cross-sell become critically important.  

This post was written by Principal Analyst, Channel Partnerships & Alliances Jay McBain, and originally appeared here. 

You might also be interested in

Replies (2)

Please login or register to join the discussion.

 Roku  error code 014
By rokuerrorcode014
06th Feb 2020 11:26

Hello, would you say you are confronting any roku error code 014.50 to arrange Roku On your TV? On the off chance that truly, do you know Roku is a progression of online media players fabricated by Roku, Inc.? On the off chance that indeed, This Roku spilling gadget gets information by means of a wired or Wi-Fi association from an Internet switch. The information that you use is yield by means of a sound link, video link, or a HDMI connector straightforwardly on a portion of the gadget models. Here's presently you have to do what to do to get your Roku association with the Internet. Switch is denying Roku Connection.
https://www.rokuerrorcode014.com/
https://www.rokuerrorcode014.com/?amp
https://www.rokuerrorcode014.com/how-to-activate-nfl-game-pass-on-roku/?amp

Thanks (0)
 Roku  error code 014
By rokuerrorcode014
06th Feb 2020 11:26

Hello, would you say you are confronting any roku error code 014.50 to arrange Roku On your TV? On the off chance that truly, do you know Roku is a progression of online media players fabricated by Roku, Inc.? On the off chance that indeed, This Roku spilling gadget gets information by means of a wired or Wi-Fi association from an Internet switch. The information that you use is yield by means of a sound link, video link, or a HDMI connector straightforwardly on a portion of the gadget models. Here's presently you have to do what to do to get your Roku association with the Internet. Switch is denying Roku Connection.
https://www.rokuerrorcode014.com/
https://www.rokuerrorcode014.com/?amp
https://www.rokuerrorcode014.com/how-to-activate-nfl-game-pass-on-roku/?amp

Thanks (0)