Why You Need To Focus On Building Strategic Alliances In The New Era Of Sales

Traditional sales models are outdated in the current era. 

In recent years, we’ve seen a rapid change in the sales industry brought about by technological advancements and the innovative business landscape. 

According to insights from Bain & Company, here are some of the major developments in the modern sales industry:

Old partnership models are outdated 

The old partnership sales model may have worked in the past. However, you must be able to change your mindset to adapt to the rapidly changing industry. Building a partner business plan will help you adjust to these changes.

Veteran sellers will recall that traditional sales models have relied on linear recruitment, onboarding, co-marketing and management processes—but these old ways will be gone pretty soon. In fact, Forrester reports that Microsoft recruited 7,500 new partners to join their program per month in 2019. What’s more, 80% of these partners specialize in indirect sales. 

Introducing the trifurcated model

To replace the old partnership sales model, channel sales managers have contemplated adopting a trifurcated model. 

What is a trifurcated model? According to Forrester, here are its three main components:

Prepare for new strategic alliances

The trifurcated sales model heavily relies on the formation of strategic alliances. 

According to Lawrence Landeloos from EY VODW, a strategic alliance is a partnership between two different organizations that “gather their assets -knowledge, products, technology, customers- to achieve a common goal or solve a problem.” 

Let’s take a look at some of the most common types of strategic alliances:

At this point, you can probably imagine how a strategic alliance would look like. If you need help with visualization, here are some real-life strategic alliances examples. 

Example 1: A telecom provider and bank teaming up for cross-selling purposes to boost sales for a recently-launched product. 

Example 2: A retailer collaborating with a manufacturer to ensure their new product lines have high-quality. 

Example 3: A traditional manufacturer forming a strategic alliance with a tech company to co-create IoT devices with a new pricing model.

How will you build strategic alliances?

No man is an island and the same is true for the sales industry. We must build strategic alliances and invest in partner relationships to surpass our goals and solve our current problems. 

By forming the right strategic alliances, we have more options in terms of products, sales, and distribution channels. It will also be easier to accomplish business operations when you have the right partner by your side. 

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By Frie Pétré