Launching a new product or expanding into new markets requires more than just a great idea—it requires strategy, partnerships, and a clear understanding of customer needs. Two key components that can drive success are value added resellers (VARs) and market requirements documents (MRDs).
VARs bring expertise, customization, and distribution power to help you reach new customers, while MRDs ensure your product is designed with market needs and opportunities in mind. Together, they form a powerful combination for scaling your sales and improving customer satisfaction.
In this article, we’ll explore what VARs and MRDs are, their respective benefits, and how they can work together to give your business a competitive edge.
What is a value added reseller (VAR)?
A value added reseller is a company or individual that resells your product while enhancing it with added services, customizations, or expertise. Rather than simply passing along your product as-is, VARs tailor it to meet the specific needs of their customer base, creating a more valuable solution.
How VARs add value
- Customization: VARs enhance products by bundling them with services such as training, support, or configuration.
- Expertise: They bring specialized knowledge about a particular industry or customer segment, allowing them to position your product effectively.
- New market access: VARs often have established networks in niche or geographic markets, helping you expand your reach without building new in-house capabilities.
- Improved customer experience: By tailoring your product and offering ongoing support, VARs create a more personalized experience for end users.
Example of a VAR in action
Imagine you’re a software company offering an inventory management solution. A VAR specializing in retail might bundle your product with hardware like barcode scanners, along with custom configurations tailored to retail workflows. This added value makes the solution more appealing to retailers, while saving your team the effort of managing those customizations internally.
When to work with a VAR
- If you’re looking to expand into specific verticals or geographic markets.
- If your product benefits from custom configurations or additional services.
- If you want to scale your sales operations without increasing the size of your internal team.
What is a market requirements document (MRD)?
A market requirements document is a detailed guide that outlines your target market, customer pain points, competitive landscape, and the features or capabilities your product must deliver to succeed. It’s an essential tool for aligning your product development, marketing, and sales teams around a shared understanding of what the market needs.
Key components of an MRD
- Market analysis: An overview of market trends, opportunities, and challenges.
- Customer needs: Insights into the pain points, goals, and priorities of your target audience.
- Competitive research: An assessment of your competitors’ offerings and how your product will stand out.
- Feature requirements: A clear list of features or functionalities that your product must include to meet market demands.
- Business objectives: Goals for revenue, market share, or customer satisfaction that your product is expected to achieve.
Why an MRD is essential
An MRD acts as a roadmap for your product team, ensuring that development efforts are aligned with customer needs and market realities. By clearly defining requirements upfront, you reduce the risk of building a product that misses the mark or fails to resonate with customers.
How an MRD helps your business
- Customer alignment: Ensures your product solves real problems for your target audience.
- Improved efficiency: Prevents wasted effort on features or capabilities that aren’t market priorities.
- Team alignment: Keeps product, marketing, and sales teams working toward shared goals.
- Stronger competitive positioning: Helps you identify gaps in the market and differentiate your offering.
How VARs and MRDs work together
While VARs and MRDs serve different purposes, they complement each other in powerful ways. An MRD ensures your product is built with market needs in mind, while a VAR enhances and distributes that product to customers who will benefit most.
Here are some ways these two elements can work together:
1. MRDs inform your VAR strategy
When you create an MRD, you’re gathering valuable insights into your target market, including customer pain points, competitive gaps, and market opportunities. These insights can guide your VAR strategy by helping you identify which resellers to partner with and what value they can add.
For example, if your MRD identifies a specific industry (e.g., healthcare) as a key growth area, you can seek out VARs with expertise in that industry.
2. VAR feedback improves your MRD
VARs are on the front lines, interacting with customers and gaining firsthand insights into their needs. By collaborating with VARs, you can gather feedback that informs and updates your MRD, ensuring that your product evolves to stay aligned with market demands.
For instance, if VARs report that customers frequently request a specific feature or integration, you can incorporate those requirements into your next MRD.
3. Customized solutions align with market needs
Your MRD provides a roadmap for building a product that addresses broad market needs, while VARs customize that product for specific use cases or customer segments. This combination ensures that both your product and its delivery are perfectly aligned with customer expectations.
4. VARs expand your product’s reach
An MRD helps you identify the best markets for your product, but it’s the VARs who help you reach those markets. With their networks, expertise, and added services, VARs enable you to scale faster and reach customers you might not be able to access on your own.
5. Shared knowledge drives innovation
The collaboration between VARs and product teams can spark new ideas for innovation. Insights from the field, combined with the strategic direction outlined in your MRD, can help you develop products and services that stay ahead of the competition.
Best practices for leveraging VARs and MRDs
- Choose the right VARs: Look for partners with expertise in your target markets and a proven ability to add value to your product.
- Involve VARs early: Engage VARs during the development process to gather feedback and align on market needs.
- Keep your MRD updated: Regularly revisit your MRD to ensure it reflects the latest market trends and customer insights, including feedback from VARs.
- Align incentives: Set clear goals and incentives for VARs to ensure they are motivated to sell and support your product effectively.
Final thoughts
Value added resellers and market requirements documents are powerful tools that, when used together, can drive significant business growth. While an MRD ensures that your product meets market demands, VARs enhance and distribute it to maximize its impact.
By combining the strategic guidance of an MRD with the hands-on expertise of VARs, you can create a customer-focused approach that delivers tailored solutions, expands your reach, and strengthens your competitive position. Whether you’re entering new markets or launching innovative products, leveraging both VARs and MRDs can help you achieve your business goals and set your company up for long-term success.
