The 2023 RSPA Retail IT Channel KPI Study is out. Here are your highlights.
From the report, quote This marks the sixth year out of seven we have recorded a decrease in the percent of reseller-only businesses (65.1% in the 2022 study, 59.7% in 2023) and an increase in the percent of ISV/VAR hybrids (17.0% 2022, 18.1% 2023) taking our survey. The makeup of the companies comprising the “retail IT solution provider community” has changed over the past half-decade, and these numbers support our thesis of a permanent shift to many VARs feeling that to grow, they need to own intellectual property through software.
And
The number of solution providers 100% completely transitioned to as-a-Service hit a record-high 28.6% in 2022, and survey respondents expect that figure to increase to 35.1% in 2023.
A data point I noted on marketing is that the largest percentage, at 41.3%, spend between 1 and 4 percent.
I’ll start with that data point. Web Strategies reports that average marketing spending in 2018 was 7.9%of revenues, with B2B product companies spending 6.3% and B2B services companies spending 6.9%. So this industry segment spends half that, then wonders why it’s not very good at marketing. I can tell you why; you’re not investing in it.
Let’s assume that 35% conversion to as a service for 2023 happens – that’s still just a third. It is not exactly blowing the doors off. It’s either an opportunity for those doing as a service to accelerate or for disruptors to chart other courses. Or maybe both.