The State of the Channel for the 2020s

#AskTheCEO Podcast

Jay McBain leads Forrester's research and advisory for global channels, alliances, and partnerships. Contact Jay: LinkedIn: https://www.linkedin.com/in/jaymcbain/ Twitter: @jmcbain Contact Avrohom: Web: https://asktheceo.biz Facebook: AvrohomGottheil Twitter: @avrohomg Instagram: @avrohomg INTERVIEW HIGHLIGHTS: [00:58] 2020 has triggered many dramatic changes for businesses. We’ve seen many businesses rapidly shift to a work from home paradigm. We’ve also seen a paradigm shift to online or virtual events, among many other dramatic changes that took place this year. One significant change, that you mentioned in your article titled “What I see coming for the Channel In 2020”, is that Indirect sales will shrink every year for the next decade.” This is hard to take in because everything that I’ve learned over the years, is that you need a strong indirect sales team to scale and grow your business. Does this spell the end of the channel? [01:45] There is actually a lot of opportunity for the channel; however, like any other mature industry, what’s happening on the transactional side of the channel is that it’s a race to the bottom. [02:20] Professional services is where the margins are in the channel. [04:00] Learn how Salesforce is structuring its channel partner organization to double its revenue from $20b to $40b within the next 4 years. [05:58] In your article, you mentioned that the channel model is evolving what is known as a “trifurcated channel”, or in plain English, a model which is divided into three branches. When I think of a channel partner, I’m thinking of sales and service. Can you elaborate on this new model? [06:34] 75% of global trade is done indirectly. [07:24] It’s critically important that you build the 3rd part of the channel, the one that influences your buyers early and often. [09:23] 76% of CEOs think that their current business model will be unrecognizable in 5 years. That means every single business! You’re going to become a subscription-based business. There is a high likelihood that you’re going to become a tech business. [10:56] We’re all familiar with the term “Customer Experience”. You talked about a growing trend in the B2B channel, called “Partner Experience”. What does that mean, and why is it important? [13:05] What does the future of marketing look like for B2B Emerging Technology companies? [15:42] For our listeners who are channel professionals, or for those that might be considering working in the channel, what kind of future can they expect for their careers? [17:08] How can people connect with you? Jay: People can connect with me via Twitter at @jmcbain, or on LinkedIn at https://www.linkedin.com/in/jaymcbain/. [17:41] Do you have any parting words of wisdom that you’d like to share with the audience?