While your retail clients are busy selling products, a silent, far more valuable transaction is taking place in the background: the collection and monetization of their customer data, often without a clear path for the VARs and MSPs who made it all possible.
Every transaction, every customer interaction, every inventory movement generates a wealth of information that, when properly analyzed, holds immense value. Software providers and payment processing companies, by the very nature of their services, sit on a goldmine of this customer purchase history. They are perfectly positioned to monetize this data, but for the VARs and MSPs who cultivated those merchant relationships, brought the deals to the table, and often manage the day-to-day IT operations, a critical question looms: will you be cut out of the opportunity?
For years, retail IT VARs and MSPs have been the indispensable backbone of their merchant clients. You’ve been the trusted advisors, the implementers of crucial systems, and the first call when something goes wrong. You understand your clients’ businesses intimately, often better than the software vendors themselves. Your relationship with the merchant is paramount, built on trust and reliable service. Yet, as the value of data skyrockets, a disconnect threatens to emerge.
Consider the reality: a software provider’s point-of-sale system or an integrated payment solution collects an enormous amount of granular purchase data. This data, anonymized and aggregated, can yield powerful insights into consumer behavior, product trends, and operational efficiencies. These insights are highly valuable to CPG brands, market researchers, and even other retailers. It’s a lucrative new revenue stream that is already being tapped.
The concern is not that data is being monetized – it’s a natural progression of its inherent value. The concern is that the VARs and MSPs, who are integral to the very existence of this data collection by deploying and supporting the systems, may find themselves on the sidelines. Without a clear path to participate in this data economy, you risk becoming mere conduits for data collection, rather than active participants in its value creation.
This isn’t just about fairness; it’s about the future viability and growth of the retail IT channel. VARs and MSPs are uniquely positioned to leverage these data insights to provide even deeper value to their merchant clients. Imagine being able to offer your clients actionable intelligence derived from aggregated, anonymized purchase data across their sector – insights that help them optimize inventory, personalize marketing, or even identify new revenue streams. This is the kind of strategic partnership that truly elevates your role beyond traditional IT services.
A Call to Action for VARs and MSPs
It’s time to have frank conversations with your software and payment vendor partners. Don’t assume you’ll be included; proactively seek opportunities. Here are some questions you should be asking:
- What is your strategy for monetizing the data collected through your solutions?
- Are there programs or pathways for VARs/MSPs to participate in these data monetization efforts?
- Can we access aggregated, anonymized data insights that would be valuable to our merchant clients?
- What are the potential revenue-sharing models for partners who help facilitate this data flow?
- How can we collaboratively leverage this data to provide enhanced services or insights to our shared customers?
A Message to Software and Payment Vendors
Your retail IT channel partners are more than just resellers; they are your frontline. They are the ones building and maintaining the relationships, the ones ensuring your solutions are implemented correctly, and the ones providing ongoing support. To overlook their role in the data economy would be a significant misstep. As you strategize your data monetization efforts, consider these questions:
- How can we proactively include our VAR and MSP partners in the data monetization value chain?
- What frameworks can we establish to share data insights and potential revenue with our channel?
- Are we providing our partners with the tools and training to understand and articulate the value of data-driven insights to merchants?
- How can we ensure that our data monetization strategies strengthen, rather than strain, our vital channel relationships?
- What innovative partnerships can we forge with VARs and MSPs to create new, data-driven offerings for the retail market?
The data gold rush is here, and it will only intensify. For retail IT VARs and MSPs, now is the time to stake your claim. For software and payment companies, now is the time to recognize the invaluable role of your channel partners and ensure they are part of this prosperous future. By working together, we can unlock the full potential of retail data, creating more value for merchants and a more robust ecosystem for all.
