Aligning Channel Marketing Sales - A Practical 5-Step Approach

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Transcript of Aligning Channel Marketing Sales - A Practical 5-Step Approach

  • Aligning Channel Marketing & SalesA Practical 5-Step Approach

  • 2

    PRESENTERS

    John Ericksen

    Partner / Co-Owner

    Channel Impact

    Steven Kellam

    President

    CCI | Global Channel Management

  • 3

    Step #1: Start with the Customer

    Step #2: Define Your Strategic Options

    Step #3: Take a Systems Approach to Sales Capacity

    Step #4: Build Your Partner Success Formula

    Step #5: Focus on Execution & Adoption

    Key Lessons Learned

    AGENDAA Practical 5-Step Approach

  • 4

  • 5

    PARTNER TREND: DEALING WITH NEW BUYER JOURNEYhttp://bit.ly/WinningZMOT_CCI

    http://bit.ly/WinningZMOT_CCI

  • 6

    Image

    What does the customer want

    to buy?

    What complementary items do they

    buy at the same time?

    Do they want product and

    service from the same company?

    Who do they expect to buy from, looking

    forward?

    How many of your product categories do they expect to

    buy in the future?

    What are the customer

    segments? How big are they?

    STEP #1: START WITH THE CUSTOMER

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    CUSTOMER FEEDBACK FINDINGS EXAMPLE

    Enterprise Mid-Market/SMB

    Market Size> $10B55% TAM

    > $10B45% TAM

    # Possible Customers ~10,000> 5M of which 200k are best targets

    Expected Purchases4-5 product categories in next 2-3 years

    3-4 product categories in next 2.3 years

    Typical # Partners Used1-4 / company 50% use only 1 partner

    1-3 / company70% use only 1 partner

    Expectations on Product & Service75% both together25% use internal for service

    Partner to deliver both together

    Complimentary Products Not expected Not expected

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    STEP #2: DEFINE YOUR STRATEGIC OPTIONSCustomer Implications to Go-to-Market

    1. Mid-market is significant & will require different sales model

    2. Customers need multi-product capable partners

    3. Partners require high service skillseven more in mid-market

    4. Economic drivers are portfolio sell & new customer acquisition

    5. Less important: technology alliances & specialist partners

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    STEP #3: TAKE A SYSTEMS APPROACH TO SALES CAPACITYSales Cycle by Target Customer Segment

    Enterprise Sale Cycle

    Mid-Market / Small Sale Cycle

    Lead Gen Qualify Pre-Sales Close Post Sales Renew

    Lead Gen Qualify Pre-Sales Close Post Sales Renew

    Key: PARTNER

    VENDOR

    Resource Importance Enterprise Mid-Market / Small

    Marketing: Demand Gen $ Low High

    Field Partner Mktg HC Medium High

    Partner Programs $ Medium High

    Partner Enablement $ High High

    Outside Sales* HC High Medium

    Inside Sales** HC Low Medium

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    COST OF SALES MODELS: MID-MARKET AND BELOW

    Sales Element Mini-Enterprise ModeratePartner Leverage

    Best-in-ClassPartner Leverage

    Marketing: Demand Gen 1% 2% 2%

    Partner Programs 2% 5% 5%

    Partner Enablement 1% 1% 1%

    Outside Sales* 25% 10% 6%

    Inside Sales** 15% 10% 8%

    Total Sales Cost*** 44% 28% 22%

    *Outside sales loaded cost = $250k/ rep; Mini-Enterprise quota = $1.0M; Moderate quota=$2.5M

    Best-in class = $6M

    **Inside sales loaded cost = $150k/rep; Mini-Enterprise quota = $1.0M; Moderate quota = $1.5M; Best-in-class- $4M

    ***Total Sales Cost expressed as % of associated revenue

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    STEP 4: BUILD YOUR PARTNER SUCCESS FORMULASelect right partners (pre) & do the right things (post)

    Maximizing Vendor Sales

    =Select Right

    Partners

    1. Consistent in Segment

    2. Willing to

    Invest

    +Do the Right

    Things

    1. Sell |

    Market | Enable

    2. Ongoing

    Investment by Partner

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    IDEAL PARTNER PROFILING AND TARGETING

    Consistent MM

    Partners

    Random MM

    Partners

    Scored & Ranked List

    IdealPartnerProfile

    Vendor Partner

    Base

    Historical Data Segment Partners Deliverables

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    FIELD ENGAGEMENT ACTIVITY MODELWith Partner & Partner Sales Reps (PSRs)

    MARKETING SALES INSIDE SALES PAM

    Annual: Partner-Vendor MM Plan

    Quarterly: QBR Partner-Vendor Review

    Quarterly: Marketing execution follow up

    Quarterly: PSR enablement day

    Monthly: PSR coaching session

    Every 3 Weeks: Inside Sales-PSR proactive call out

    Bi-Weekly: Forecast review and follow up

    Day-to-Day Reactive: Inside Sales, Marketing

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    STEP 5: FOCUS ON EXECUTION AND ADOPTIONChannels Coverage Model

    Mid-tier Partners

    Volume/Low Invest Partners

    Strategic &

    Key Partners

    Direct Partner Manager (Field)

    Joint business plan (overall biz)

    Practice development

    Enablement plan

    Partner-vendor relationship

    Virtual Partner Manager (Inside)

    Lighter touch versions of above

    Covers more partners

    Plans focused on scalable GTM

    Distribution Managed

    Self service enablement, marketing and GTM

    Segment to develop a handful to move up

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    PARTNER SALES REPRESENTATIVE (PSR)Segmentation by Productivity*

    PSR CategoryAnnual Sales Range ($K)

    Average Sales ($K)

    % of PSR Population

    X Extraordinary > $1,000 $1,589 3%

    A Productive $500-$1,000 $762 6%

    B Good $250-$499 $367 10%

    C Average $100-$249 $142 15%

    D Poor

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    REAL-WORLD SUCCESSDEAL REGISTRATION IMPROVEMENTVendor improved $ closed via deal reg by 120% in 1st year

    # partners using program tripled to 90% of intended segment

    | 1 | Challenge

    Most partners rarely used the

    program

    Vendor had low adoption of deal

    registration

    Revamped rules to drive more

    value-add

    | 2 | Approach

    Benchmarked program usage and structure

    Performed pricing analysis

    vs. street

    Analyzed historical

    partner usage & adoption

    | 3 | Advice & Changes

    Implemented adoption plan

    vs. key partners

    When used, special pricing

    often still required

    Structured pricing to cover

    80% of deals

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    KEY LESSONS LEARNED

    1. Segment customers to drive accountability

    2. Align marketing, sales and key partners (hardest part)

    3. Build 1) Territory Sales and 2) Partner Plans

    4. Focus on the few, critical partners & partner sales reps that matter

    5. Establish partner sales targets & incentives specifically for what you need to drive

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    Q & A

    John Ericksen

    john@channel-impact.com

    408.973.7847

    www.channel-impact.com

    Steven Kellam

    steven.kellam@channelmanagement.com

    415.526.3215

    www.channelmanagement.com