Alexander Group - Are You Getting the Most From Your Partners?
 

Alexander Group - Are You Getting the Most From Your Partners?

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This eBook is an excerpt from a comprehensive Channel Incentives Briefing prepared by the Alexander Group for Sales Executives.

This eBook is an excerpt from a comprehensive Channel Incentives Briefing prepared by the Alexander Group for Sales Executives.

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Alexander Group - Are You Getting the Most From Your Partners? Alexander Group - Are You Getting the Most From Your Partners? Presentation Transcript

  • Are You Getting the Most From Your Partners? Optimizing Channel Partner Incentive Programs This eBook is an excerpt from a comprehensive Channel Incentives Briefing prepared by the Alexander Group for Sales Executives If you would like more details, we invite you to schedule a full briefing. Learn more. Atlanta | Chicago | San Francisco | Scottsdale | Stamford An Alexander Group eBook
  • Significant Investments Made in the Channel 12% Channel Partner Incentives are… Average Channel Spend as a Percent of Channel Revenue1 $500M Total Annual Incentive Spend2 for Large Tech Cos 75% Percent of Total Channel Investment Spent on Programs1 • Primary means to drive partner behavior and results • Often underestimated because of the effect of contra-revenue 1 Source: IPED Channel research: IT Vendor Benchmark, March, 2013 Deloitte Whitepaper, “When Channel Incentives Backfire,” 2011. Participants: 38 leading technology companies, ~50% with revenues greater than $25B. One-third surveyed reported > $500M in annual incentives; 50% reported > $100M. 2 Source: © 2013 The Alexander Group, Inc.® 2
  • However, Few Are Satisfied With Their Partners Are your channel partners driving growth and providing the expected level of customer service? 27% Percent of Marketing & Sales Leaders Satisfied with Their Channel Partner Relationships1 “We’re spending all this money but our channel partners aren’t providing the value that we expect. They simply feed off their existing base instead of driving new business.” --Senior Channel Sales Executive 1Source: CEB’s Marketing Leadership Council; Annual Sales, Marketing & Communications Summit, 600 attendees (at least ½ with channel sales 20%+ of total revenue) © 2013 The Alexander Group, Inc.® 3
  • What’s Wrong With This Picture? Lack of “Pay for Performance” in Channel Incentive program The Root Cause: Channel program investments misaligned with objectives Common Symptoms: Unable to recruit, enable and retain the right partners Lack of a compelling Partner Value Proposition Partner’s rewarded for behaviors the company does not value Aligning incentives is the MAJOR issue for all companies with a significant partner driven revenue © 2013 The Alexander Group, Inc.® 4
  • AGI Identified Root Causes AGI findings: Primary drivers of vendor / partner misalignment – It all starts with strategy! Leadership Centricity Channel needs/requirements not considered until after internal strategy set. Channel Ignorance Leadership unaware of channels capabilities or has misaligned expectations Strategy Timing Misalignment Timing of direct vs. indirect is misaligned Incorrect Level of Channel Accountability Not at the right level; too high / low in the org Strategic Disconnect Direct and channel strategies executed in a silo or at odds Leadership alignment will prevent disconnects in program design © 2013 The Alexander Group, Inc.® 5
  • Accelerated Change is Increasing Misalignment Market Conditions Sales / Service Objectives • Shift to services-led selling • Evolving product / service offerings • Increasing importance of the cloud • Growth of SMB and emerging markets • Prevalence of mobile Requires continual adjustment of channel programs • Increased regulations • Changing Go-To-Market coverage • Changing partner roles • Expansion into new markets Partners Evolution • Shifting from reseller to service • Customer insight driven • Shifting from service to managed service © 2013 The Alexander Group, Inc.® • Value-added distribution 6
  • The Imperative for Program Change is Here! Purpose Capability CEO imperative to ensure value and return from Partner program Market opportunity to new technology & data to drive improved Partner program Changing Environment Now is the time to optimize your channel program! © 2013 The Alexander Group, Inc.® 7
  • AGI Recommends a Holistic Approach Typical Partner Program Elements: Incentives and Rewards • Finder’s fees • Deal registration • Discounts and rebates • Special incentives and awards Sales, Marketing and other Resources • Marketing materials • Joint Marketing Funds • Joint Development Funds Information and Tools Training and Certification • Newsletters • Product Training • Product promotions • Technical Training • Dealer portal • Authorization • Product or solution certification • Lead generation © 2013 The Alexander Group, Inc.® 8
  • Improving Channel Program ROI 1 2 3 4 5 Leadership alignment will prevent disconnects in program design Companies often lose sight of the reasons for their partnerships; segmentation ensures using partners where they are most needed A successful partner program will clearly express the intended partner contribution Minimize conflict with clearly defined roles, responsibilities and rules of engagement Maximize return on investment by rewarding sales and/or partners for the results they deliver © 2013 The Alexander Group, Inc.® 9
  • AGI Driving World Class Partner Programs AGI has moved customers to Value Driven Partner Incentives • Focus on growing business • Differentiated rewards for different sales objectives • Differentiate programs by partner type • Enhance Partner Capability ► Skills ► Marketing ► Offering © 2013 The Alexander Group, Inc.® 10
  • AGI’s Value in Designing Partner Incentives AGI is unique in our ability to leverage end-to-end sales coverage competencies and sales compensation expertise AGI Sales Strategy and Coverage Design • AGI Sales Management Framework AGI Competency in Channel Strategy and Management • End-to-end Partner framework AGI Sales Incentives Expertise • Strongest brand-name for incentive expertise and experience • Effectively distilling sales objectives down to specific job roles or partner types is an AGI core competency • One of the only major consultancies that provides strong indirect channel incentive expertise Strong foundation working with many large and medium size firms to define their Partner Channel © 2013 The Alexander Group, Inc.® 11
  • Indirect Channel Pillar Overview AGI has developed a specific set of pillars and methodology to support the evaluation, design and implementation of best in class Indirect Channels I Define Strategy II Target and Select III Enable and Support IV Monitor & Measure © 2013 The Alexander Group, Inc.® 12
  • Want to Know More? Schedule a full briefing on this topic today to learn more details about Alexander Group’s Channel Program ViewPoint Briefing Ted Grossman is a Principal in the San Francisco office with extensive experience in the areas of business strategy and business process re-engineering and a functional specialty in sales force and channel effectiveness. Ted also has significant industry background within the software, telecommunications and high tech manufacturing industries. His areas of focus are sales and channel management solutions. Joe Sandler is a Manager in the San Francisco office. Joe managed the 2010 High Tech Productivity Benchmarking Campaign and has become a thought leader in the High Tech arena. Joe has project managed client engagements, completed deep analytics/modeling, managed project teams, facilitated sales leadership meetings, and driven sustainable business recommendations. © 2013 The Alexander Group, Inc.® 13