Download - Aligning Channel Marketing Sales - A Practical 5-Step Approach

Aligning Channel Marketing & SalesA Practical 5-Step Approach

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PRESENTERS

John Ericksen

Partner / Co-Owner

Channel Impact

Steven Kellam

President

CCI | Global Channel Management

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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

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

http://bit.ly/WinningZMOT_CCI

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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 skills—even 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 <$100 $26 66%

Top PSRs (= Xs & As) sell 5-10X average PSRs and 30-50X poor PSRs

* Example based on studies across multiple vendors

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REAL-WORLD SUCCESS—DEAL 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

[email protected]

408.973.7847

www.channel-impact.com

Steven Kellam

[email protected]

415.526.3215

www.channelmanagement.com