More ethical behaviour required in the channel

Transparency is good for customers and for the channel business, says Mat Deevey

With many businesses still recovering from the economic downturn, trust in VARs and channel services providers is at an all-time low.

Although today's technology offers efficiencies that reduce costs and encourage growth, companies fear being locked into a product that will quickly become obsolete – or worse, doesn't fit their needs.

Restoring customer faith and embracing transparency is vital for long-term success in the channel.

Prospects increasingly expect the companies from which they purchase to be open, engaging and responsive. The driving force behind this shift is a realisation that greater transparency is good for business.

Customers burned by slick salespeople, ineffective services and complex contracts will be less likely to risk investment in future innovation.

Additionally, they will be sure to tell their negative experiences to others in their industry, breeding doubt and suspicion that hurts channel providers as a whole.

Honesty isn't just the best policy – it's the most effective strategy for encouraging the adoption of new technology and establishing customer loyalty. The more that IT providers shine a light on their pricing structures and engage in ethical business practices, the more we all benefit from the prosperity generated by increased consumer confidence.

In a market where high-quality technology offerings have become the norm, service becomes the differentiating factor for channel businesses.

Whether you're an IT services provider, VAR, or specialise in cloud computing, offerings are becoming more similar. For example, office hardware such as computers and printers from recognised brands may have similar price points, features and reliability.

However, it is the level of support and transparency that will establish trust and define the brand in consumers' minds.

People prefer authenticity in the brands they are loyal to – a fact that some companies have realised, but far too many have not.

It's easy to promise exceptional service, but maintaining a long-term relationship with customers requires open communication and a genuine interest in the factors that contribute to the growth of their businesses.

Channel providers that are open about the potential and limitations of their solutions – as well as their contract and pricing policies – are more likely to side-step customer service issues and achieve lasting success.

Surviving and thriving in this new see-through world will require the channel to ensure that they are offering tools that are a good fit and reduce the complexity that increases confusion and scepticism among decision makers.

This is particularly important for providers targeting SMBs, which can be more affected when they are let down by a product or become locked into a contract for services that don't address their business needs.

Successful businesses cannot be built on omissions, deceptions and half-truths. Unfortunately, hiding behind excessive legal jargon, saddling customers with hidden costs or intentionally making it difficult to terminate a service agreement have become commonplace.

Additionally, a lack of knowledge puts companies at risk of purchasing technology with features they may not comprehend.

By adopting more ethical business practices, companies can help customers make better decisions and fully understand their options.

In an increasingly competitive environment, providers who deliver on the promises made at the selling stage will also find that they've created powerful customer loyalty and ultimately strengthen the perception of the industry overall.

The ultimate aim is to encourage growth across the board and help businesses make the most of the technological offerings available to them.

Mat Deevey is managing director of CloudSmart