One thing everyone can agree on is that the “new buyer’s journey” is changing how customers buy everything from cars to firewalls. The traditional roles of sales and marketing are changing like never before. Add the complexity of selling through an indirect channel and things can start to feel pretty complicated. The good news is that there are practical approaches that help align channel marketing and sales to help smooth these seemingly troubled waters.

1. Aligning Channel Marketing & Sales
A 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
AGENDA
A Practical 5-Step Approach

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PARTNER TREND: DEALING WITH NEW BUYER JOURNEY
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
> $10B
55% TAM
> $10B
45% TAM
# Possible Customers ~10,000
> 5M of which 200k are best
targets
Expected Purchases
4-5 product categories in
next 2-3 years
3-4 product categories in
next 2.3 years
Typical # Partners Used
1-4 / company
50% use only 1 partner
1-3 / company
70% use only 1 partner
Expectations on Product & Service
75% both together
25% use internal for service
Partner to deliver both
together
Complimentary Products Not expected Not expected

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STEP #2: DEFINE YOUR STRATEGIC OPTIONS
Customer 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 CAPACITY
Sales 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 Moderate
Partner Leverage
Best-in-Class
Partner 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 FORMULA
Select 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
Ideal
Partner
Profile
Vendor
Partner
Base
Historical Data Segment Partners Deliverables

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FIELD ENGAGEMENT ACTIVITY MODEL
With 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 ADOPTION
Channels 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 Category
Annual 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 IMPROVEMENT
Vendor 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