Unlocking the Reseller Revenue Vault: How Salesforce AEs Can Tap into a Billion-Dollar Market
Surpass Your Targets: Harnessing the Multi-Billion-Dollar Potential of Resellers for Salesforce AEs
Exceeding Quotas with Ease: Navigating the Billion-Dollar Reseller Market as a Salesforce AE
In the evolving landscape of Information and Communication Technology (ICT), Value Added Resellers (VARs) have emerged as key players. For Salesforce Account Executives (AEs), understanding and tapping into this market segment can unlock immense potential. This blog aims to demystify the ICT VARs segment and outline compelling reasons for AEs to focus on Revenue Cloud deals, while addressing their unique integrations, scalability and processing needs with the combined solution of Salesforce CPQ + StrataVAR iCPQ.
What are ICT VARs?
ICT VARs, or Information and Communication Technology Value Added Resellers, are pivotal players in the tech ecosystem. These companies specialize in reselling ICT equipment, ranging from networking hardware, servers, and storage solutions to sophisticated software applications. They deal with products from a variety of vendors, such as Cisco, Dell, and HP, and work closely with distributors to procure these technologies. The size of these VARs can vary significantly – from small-to-medium businesses (SMBs) with fewer than 10 employees to large-scale enterprises with thousands of staff like CDW or SHI International.
The scope of ICT VARs is not limited to just reselling; many also offer additional services, aligning them with the High-tech or Professional Services industries in Salesforce terms. These services can range from installation and customization to ongoing support and consulting, adding value beyond the mere sale of products. Furthermore, VARs are not exclusively independent entities. Some exist as business divisions within larger organizations, such as telecommunications companies, fitting under the Media and Comms industry category in Salesforce. This diverse nature of ICT VARs presents a dynamic market segment for Salesforce AEs, offering varied opportunities and challenges in catering to their specific needs.
ICT VARs Needs
#1: Addressing Inefficiencies in Manual Processes
VARs often grapple with manual, non-reportable processes, especially in quotation management. The majority of their activities occur outside established CRM systems, in legacy CPQ systems or spreadsheets making it difficult for managers to accurately track sales funnels and quote changes. Salesforce Revenue cloud together with iCPQ can streamline these operations, offering VARs a more efficient, transparent way to manage sales activities, enhancing their overall productivity.
The manual nature of processes within VARs leads to extended sales cycles. Salesforce automation can significantly speed up quoting and other sales-related activities, shortening the deal cycle. This acceleration not only benefits the VARs in terms of efficiency but also enhances customer satisfaction by providing quicker responses and solutions.
#2: Enhancing Customer and Employee Satisfaction
For VARs, Salesforce CPQ can significantly improve both employee and customer satisfaction. For customers, faster and more accurate quoting leads to a much better buying experience. In such a competitive marketplace, it is clear that winning on the customer experience front is essential. Quick, reliable quoting or service not only satisfies immediate needs but also builds long-term loyalty, setting VARs apart from their competitors.
On the employee side, VARs possess specialized knowledge in their respective fields, making their salesforce a valuable asset. Therefore, VARs are keen on retaining their salespeople, and a key part of this involves helping them win more deals and reduce labor-intensive tasks.
Salespeople in the VAR space often find themselves bogged down with non-sales activities, such as administrative tasks and updating proposals. By introducing Salesforce automation, we can assist VARs in reallocating their sales force’s time towards more productive, sales-focused activities. This shift not only increases overall sales effectiveness but also boosts employee morale and job satisfaction. When sales teams can focus on what they do best—selling—they are more likely to feel fulfilled and motivated, resulting in better performance and lower turnover rates.
#3 Improving Financial Reporting and Accuracy
In the VAR sector, financial reporting is often hindered by the disconnection between quoted prices and actual sales figures. Salesforce’s integrated systems ensure that financial reporting is accurate and reflective of the actual sales pipeline, thus providing more reliability in financial forecasting and planning.
In addition to the challenges posed by financial reporting, there is a notable lack of precision in invoicing processes within many organizations. This inaccuracy in invoicing can lead to a myriad of issues, such as delayed payments, strained customer relationships, and even loss of revenue. For Salesforce AEs, understanding and addressing these invoicing challenges is crucial. By offering solutions that enhance the accuracy and efficiency of invoicing, they can help their clients avoid these pitfalls, thereby fostering stronger, more reliable business relationships. This not only aids in immediate customer satisfaction but also paves the way for long-term business success and recurring revenue streams.
4 Good Reasons For Salesforce AEs to Win More VAR Deals
1. Potentially High Sense of Urgency = Shorter Sales Cycle
The pain points faced by VARs are not just challenges; they are costly impediments to efficiency and growth. When a Salesforce AE partners with an industry domain expert that can directly address these pain points and speak the language of the VAR, the sales cycle can be dramatically shortened.
For instance, consider the case of StrataVAR’s deal with GDT (a Salesforce OEM Solution). This deal, valued at $468K ARR with an expansion potential of over $1m ARR, was closed in less than three months. This demonstrates the high sense of urgency VARs feel in solving their issues and the rapidity with which they are willing to move when presented with an effective solution.
2. Huge Market Potential and Sales Budget Optimization
VARs often allocate a significant portion of their budget to manual processes that could be automated. By implementing Salesforce’s solutions, VARs can redirect these resources towards more strategic initiatives. This shift not only reduces costs but also opens doors to new growth and innovation opportunities. Salesforce AEs have the chance to tap into this huge market potential, showing VARs how automation and digital transformation can lead to more effective use of their sales budgets.
Under the umbrella of the immense market potential, a critical aspect to acknowledge is the Total Addressable Market (TAM) for Salesforce solutions within the reseller ecosystem. The landscape is marked by significant figures: 42,000 Cisco resellers, 32,500 HP resellers, and 11,000 IBM resellers. Collectively, these resellers represent an estimated tens of thousands of users, presenting a substantial opportunity for market penetration. This cumulative network points to a serviceable market that is both vast and lucrative, potentially exceeding $1 billion. The magnitude of this potential underscores the immense revenue opportunity for Salesforce Account Executives. By adeptly catering to the distinct needs of these resellers, there lies a clear path to achieving remarkable growth and significant revenue gains.
3. Opening Doors to New Revenue Streams
Introducing Salesforce solutions to VARs does more than just streamline their current operations; it opens up the possibility for adopting additional Salesforce products, such as Service Cloud. This expansion into new product areas not only benefits VARs in terms of efficiency and capabilities but also represents new revenue opportunities for Salesforce AEs. By demonstrating the seamless integration and additional functionalities of these products, AEs can help VARs see the value in a broader adoption of Salesforce solutions.
4. Clear Competitive Advantage
VARs have specific needs regarding integrations, scalability, customization, flexibility, and advanced calculations. Competing solutions often fall short in meeting these requirements, leading to partial adoption or, in some cases, complete abandonment. Currently, the combined Salesforce + StrataVAR solution (CPQ + iCPQ) is uniquely positioned to address these needs comprehensively. By offering this solution, Salesforce AEs can effectively block competitors, enhance the stickiness of existing accounts, and replace other vendors. This not only establishes Salesforce as a leader in this space but also provides VARs with a distinct competitive advantage.
For Salesforce AEs, the ICT VARs segment presents a multitude of opportunities. By addressing inefficiencies, speeding up sales cycles, enhancing satisfaction levels, and opening new revenue streams, AEs can not only expand their client base but also contribute significantly to the growth and success of VARs. It’s a win-win scenario that’s too good to ignore.
The synergy between Salesforce CPQ and StrataVAR CPQ creates an unparalleled solution for ICT VARs, standing out as a unique offering in the market. This integrated solution caters precisely to the complex requirements of VAR quoting, including seamless integrations, exceptional scalability, efficient data processing, multi-currency support, and robust data export capabilities. By leveraging the combined strengths of Salesforce CPQ and StrataVAR CPQ, ICT VARs are equipped to navigate the challenges of today’s dynamic market with confidence, ensuring they remain at the forefront of efficiency and profitability.