Appdirect Inc.
05/02/2024 | News release | Distributed by Public on 05/02/2024 13:18
3 Ways a Procurement Marketplace Propels Advisor Growth
Industry Insights
3 Ways a Procurement Marketplace Propels Advisor Growth
By Rebecca Muhlenkort / May 2, 2024
In today's 'everything-as-a-service' (XaaS) era, businesses grapple with streamlining supply chains and navigating complex B2B technology procurement. Managing decentralized SaaS and digital subscriptions adds further complexity, especially in larger organizations where the average employee juggles over 200 apps. The AppDirect IT Business Leader's Report underscores these challenges.
Online B2B marketplaces are pivotal in overcoming these obstacles. They harness the user-friendly attributes of B2C technologies to dismantle procurement barriers.
A better buying experience, plus an advisor opportunity
In the same way, internal procurement marketplaces streamline transactions, cut through red tape, and elevate the purchasing experience for business buyers. For advisors, they represent a unique opportunity to optimize procurement processes, maximize customer lifetime value, and drive long-term success in the market.
Here we'll dive into an example of one technology advisor-Charlie Field, CEO of Win Win Advisors-successfully sold an internal procurement marketplace to his customer.
Win Win Advisors identifies procurement pain points
Charlie recognized a significant procurement challenge facing one of his long-standing clients, a large healthcare organization. His customer struggled to efficiently source and manage technology across multiple business units, compounded by difficulties in managing software subscriptions.
Looking for a solution, Charlie consulted with specialists from the AppDirect Sales Support team. In this case, the team worked with Charlie to build a customized procurement marketplace to meet the unique needs of his client, empowering the organization to establish its own internal white-label marketplace. With it the company's team can discover available applications, pre-approved and vetted by the IT department, and request access to tools and applications as needed.
Read more about AppDirect external and internal marketplaces
Elliott Baretz, AppDirect's Senior Director of Cloud Services, highlights the collaborative effort between technology advisors and AppDirect teams, emphasizing the potential to create a tailored procurement marketplace.
> Read the full Win Win Advisors case study
"Most advisors are used to the AppDirect Marketplace where advisors help customers with their SaaS and IaaS solutions... But there are some circumstances to offer customers their own procurement marketplace."-Elliott Baretz, Senior Director, Cloud Services, AppDirect
Jump to minute 43:00 to hear Elliott Baretz and Charlie Field talk about internal marketplaces
Results: Streamlined technology procurement, management, and cost governance
Today, Charlie's customer has a streamlined technology procurement process. IT leaders across various business units can access the company's tailored catalog of technology, ensuring more efficient workflows and comprehensive oversight. For the healthcare company, this means minimized technology sprawl, heightened security, and increased management efficiency. Automated workflows together with additional controls help the organization to reduce its overall IT spending.
Self service features drive subscription management efficiency
The marketplace also empowers the healthcare company's IT teams to more effectively manage software subscriptions. Managers can simply log in and initiate changes using the platform's self-service features. This includes subscription upgrades, downgrades, cancellations, and renewals for their business. It also includes security and identity management, including password management, SSO, and user lifecycle management. The platform automates employee access, onboarding and offboarding flows for more inefficient lifecycle management.
Consolidated billing and invoice management
The company is also benefiting from an streamlined invoicing process. They now have a consolidated overview of all technology-related purchases across the organization. The healthcare company can enhance cost governance and gain transparency into technology allocation across teams. This reduces the likelihood of unauthorized spending.
Securing a $1,000,000 deal & future IT spending
In addition to customer benefits, Field believes that with an internal procurement marketplace, he also has the opportunity to earn an even greater share of his customer's technology budget.
Since having the solution in place, Field has secured not only an original $1,000,000 AWS deal he'd discussed with the client, but also additional Adobe licenses.
One of the biggest benefits is that Win Win Advisors will earn additional commissions on all future technology purchases made through the procurement marketplace.Top advisor benefits
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Increased customer retention and stickiness-Procurement marketplaces deliver simplified buying experiences. They also encourage customers to return and make future purchases by reducing friction in the buying process
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Streamlined management-Empowering customers with a self-service, curated procurement marketplace reduces operational overhead for IT managers and end users, particularly in deploying, managing, and using technology services and subscriptions. With customers able to manage their own subscriptions with ease, this reduces a lot of the manual, administrative burden on advisors
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Greater Customer Lifetime Value (CLV)-Advisors boost Customer Lifetime Value (CLV) by offering complementary products and services via the procurement marketplace. They also earn commissions on all tech purchases, regardless of their involvement
Jay McBain, Chief Analyst at Canalys, talks about the growing role of marketplaces and the partner ecosystem model.
"The ecosystem model reduces the value placed on the transaction itself and instead puts value on moments where partners help get customers to the dance, get them on the dance floor and keep them dancing all night long."Hear directly from Jay McBain in this AppDirect State of the Union webinar
What's next?
Are you already an advisor and want to start selling procurement marketplaces? Talk to your channel manager. Or sign up now to become an AppDirect technology advisor and get access to the most robust technology catalog in the industry-including internal procurement marketplaces.