CV_Jan_22

Keys to Growth Consider what participating channel partners included in the study say will be key to growth in 2022. In 2021, respondents said growth was predicated on picking up business from existing clients, which made sense during the pandemic as finding new customers was a challenge and budgets were kept tight. However, during the 2022 study, channel pros said responding to new clients’ needs is the leading factor to drive growth. One of the major needs of businesses, large and small, is security. Therefore, successful channel partners will find ways to consult confidently on the disastrous impacts of high-profile security breaches and be able to provide ways to help mitigate cyberattacks, while not impeding on the customer experience. One third of the CompTIA respondents pointed to the ability to sell new business lines and/or products and services as key to growth. This could mean expansion into security, some of the emerging technology disciplines, specializing in a new vertical or doubling down on a services-based business heavy on consulting. Channel partners know that landing new customers is great, but it’s a short-lived win if they end up disappointing the customers on delivery timing and logistics. A poor customer experience kills relationships. So, in viewing the return to strategy concept, channel partners that focus on providing an “A-plus customer experience” will be winners this year. Viral Concerns Of course, if the Omicron variant continues to spread, channel partners remain somewhat cautious. A year ago, it was COVID-19, the economy and then the Delta variant that took hold during summer months. All that resulted in sluggish customer demand and postponed purchasing. This year is no different. While the economy seems to be humming along, worries of rising inflation haunt the recovery. And just when we thought COVID-19 was controllable, the Omicron variant spread rapidly worldwide to quash hopes of a healthy 2022. The effect COVID-19 has had on businesses in the channel cannot be understated. One third of companies reported some downside impact in the past year. But even with that, it’s a bit of an improvement compared to 2020, when half of respondents said COVID affected them negatively. For companies that reported some positive impact of COVID-19, there was an increase year-over-year. In 2020, 25 percent of channel firms said their business benefitted during the pandemic; that percentage bumped up to 31 percent in 2021. Some of this upside came from opportunities to assist customers with the move to and management of remote work, which included device sales and implementation to cybersecurity consulting and oversight. Additionally, a segment of customers accelerated their digital transformation efforts during the pandemic, using outside firms from the channel to assist them in the journey. Pushing Past the Pandemic Looking toward 2022, one third of companies expect a net-positive effect of the lingering pandemic, while 27 percent remain “cautiously concerned” about a net-negative impact. Another 31 percent are pushing forward regardless of the pandemic. CompTIA’s study finds that as customers move forward, they will be building back better with rising technology budgets, reigniting stalled projects and looking for ways to mitigate future disasters. The majority (58 percent) of responding channel partners expect they will either grow revenue in 2022 or will recoup losses from 2020 and 2021 to return to 2019 revenue levels. Another 36 percent expect to remain stable with 2021, though that could be a revenue level that was less than 2019. BUYERS SIDE Contributing Factors to Ensure Positive Growth in 2022 Source: CompTIA In 2021, picking up business from existing customers topped the list of growth factors needed for the coming year 42% 34% 34% 32% 32% 31% 24% 17% 17% Reaching new customer segments Selling new business lines/products Return to normal commerce patterns Pickup in business with existing customers Higher COVID vaccination rates Improved sales/marketing Positive government action (i.e. deregulation) Entering new vertical markets Launching business consulting services 52 CHANNELV ISION | JANUARY - FEBRUARY 2022

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