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The decision to leverage B2B channel partnerships often underpins the first stage of company growth. It provides a vital shortcut to market access, credibility, and sales infrastructure.
Previously, we explored core considerations when choosing between a direct sales model and channel partnerships. But, what happens when the go-to-market (GTM) model that launched your success begins to constrain it? When market forces, evolving product capabilities, or unmet expectations need a fundamental pivot? Shifting from a channel-centric approach to a direct or hybrid sales model is a complex transition. One that requires synchronized efforts across commercial strategy, sales, and product marketing.
In this blog, we’ll explore the key strategic reasons impacting this pivot. We also delve into the changes required. And, the opportunities gained when product marketing takes the lead in defining your brand narrative.
Commercial Strategy: The Dynamics of Distribution
For many young healthcare IT companies, channel partnerships offer an essential lifeline. Leveraging a partner’s established market presence speeds market access and commercialization experience. And, it facilitates market understanding.
Yet, as your company matures, limitations might cause you to rethink this approach. For instance:
- Market opportunity mismatch. You identify lucrative market segments or clinical use cases that your channel partners are not pursuing. Their strategic direction, focused on their core offerings, may not align with your product’s greatest potential.
- External distribution shift. The distribution channel itself shifts dramatically because of market maturation. Consider the radiology AI space, where the initial platform model has come under question, forcing many algorithm companies to pivot to a direct model focused on embedding solutions in modalities or integrating directly into PACS.
- Unmet and shifting sales priorities. Your channel partners are failing to meet sales quotas. They incentivize sales to push their own solutions over your “peripheral” product. Or, your larger partners fill a product gap with their own development, atrophying the partnership. Taking control over the sales funnel becomes imperative.
The shift doesn’t have to be black and white. Many companies adopt a hybrid model. They use direct sales to target specific, high-potential segments while maintaining existing partnerships in other market segments. This requires a nimble approach. Leaders must recognize that needs and goals inevitably shift. The initial “best approach” may not remain so. A successful strategy is one that is dynamic. This allows movement between channel partners, hybrid, and pure direct, as market response and internal capabilities evolve.
Sales: Augmenting for Autonomy
The shift from relying on channel partners to establishing a direct sales force begins with a clear articulation of the strategic drivers. What specific segments are you targeting? What shortcomings of the channel model are you seeking to remedy?
Execution requires precise planning for sales coverage and expertise. Sales professionals need more than general sales acumen. They need specific domain expertise and existing relationships within the target market to be successful. It is critical that new hires augment your existing capabilities, rather than relocate the efforts of your former channel partners.
If you maintain a hybrid model, or keep channel relationships in the interim, it is critical to ensure the new direct sales team’s coverage strategy does not create conflict. Clear delineation (e.g. by geography, account size, or clinical use case) is essential. You are building a team that is dedicated and incentivized solely to sell your solution. You must position them to succeed without stepping on partners’ toes.
Most importantly, the shift signals an internal change. Your marketing function must now move from a support role to a leadership role in guiding the sales process.
Marketing: Leading the Narrative
Perhaps the most dramatic shift when adding a direct sales force occurs in product marketing.
In a channel partnership, product marketing strategy is more constrained. You are often beholden to a partner’s positioning and messaging. This is particularly true if the product is completely white-labeled. While you may contribute content, control over how your solution is positioned and how it’s sold to the end user may be relinquished. Of course, depending upon how embedded it is in your partner’s solution.
The direct model flips this dynamic. Your product marketing team takes a leadership role. They define the core positioning, messaging, and overall GTM narrative. This is your chance to generate awareness and interest in your brand specifically. You gain ultimate control, allowing tailored strategy, content, and distribution to support business objectives. Your product becomes the primary focus. It’s no longer a peripheral external solution.
A successful pivot from channel to direct requires a clear, compelling, and unified narrative. One that can only be established when product marketing has full command of the message. This shift in GTM strategy and execution, especially for mid-sized firms with limited internal bandwidth, calls for expert product marketing guidance. Leaders need to define the strategy, equip the sales team, and execute a cohesive brand campaign. Taking the reins of your GTM strategy is a journey best taken with a clear, professionally mapped-out plan.
Path Forward
Pivoting your healthcare IT GTM strategy from channel reliance to a direct or hybrid model is a significant undertaking; one that reflects growth and maturity. Success hinges on clear strategic rationale, augmenting your team with domain expertise, and defining a marketing roadmap that takes control of your brand narrative and positions your solution as the indispensable primary product.
Are you considering a pivot to direct sales? Our product marketing experts can help you assess your market readiness. We can help you define your new product positioning, develop targeted sales enablement materials, and launch a cohesive brand awareness campaign. Contact us to learn more.
