Designing A Successful Channel Strategy Siia V2


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This presentation was given in 2006 as part of an SIIA webinar on channels. This presentation is applicable to any business that uses independent distribution channels

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Designing A Successful Channel Strategy Siia V2

  1. 1. Designing a Successful Channel Strategy for Enterprise Software SIIA Webinar Series July 20, 2006
  2. 2. Paul Rickett – VARKETING! [email_address] <ul><li>Owned and operated a VAR </li></ul><ul><li>Written and published software </li></ul><ul><li>7 years in national distribution </li></ul><ul><li>7 years consulting on channel strategy </li></ul><ul><ul><li>Including major US and Canadian companies in hardware and both packaged and enterprise software </li></ul></ul><ul><li>7 years working with international and domestic value added partners </li></ul><ul><ul><li>Mission-critical enterprise business application </li></ul></ul>© . VARKETING!, 2006
  3. 3. Value Added Channels <ul><li>Most adaptable species of the IT ecosphere </li></ul><ul><ul><li>They’ve thrived adapting to new technology and business models – they’ll adapt to the next wave too </li></ul></ul><ul><li>A huge proportion have been in business longer than 90% of vendors </li></ul><ul><li>Incredibly loyal </li></ul><ul><li>Its time we found some better generic labels </li></ul>
  4. 4. 21 st Century Partnering <ul><li>New technologies and new business models create partners and relationships </li></ul><ul><li>New technologies bring evangelists </li></ul><ul><li>New pricing/delivery models </li></ul><ul><ul><ul><li>Open doors to partnering with companies that are not even considered VARs by classic definitions </li></ul></ul></ul><ul><ul><ul><li>Force existing channel to adapt and absorb </li></ul></ul></ul><ul><li>Internet continues to be the fundamental agent of change </li></ul><ul><ul><li>Shifts in roles and responsibilities </li></ul></ul><ul><ul><li>Increases commoditization throughout the spectrum </li></ul></ul>© . VARKETING!, 2006
  5. 5. The Success Troika Channel Success Understanding the VAR Perspective Vendor Commitment Vendor Execution <ul><li>Cross-enterprise engagement </li></ul><ul><li>Great product and support </li></ul><ul><li>Clear positioning and demonstrated market need </li></ul><ul><li>Patience </li></ul><ul><li>Listen, Adopt, Adapt </li></ul><ul><li>Respect </li></ul><ul><li>EODB </li></ul><ul><li>Consistency </li></ul><ul><li>Fit to Business </li></ul><ul><li>Vendor Risk </li></ul><ul><li>ROI </li></ul>
  6. 6. Put Yourself in Their Shoes <ul><li>What’s the fit? </li></ul><ul><ul><li>What does this do for me and my market? </li></ul></ul><ul><li>Show me the money </li></ul><ul><ul><li>What’s the ROI on the investment you want me to make? </li></ul></ul><ul><ul><li>How are you going to help me achieve this? </li></ul></ul><ul><li>How are you going to mitigate risk? </li></ul><ul><ul><li>If I commit to you – what commitments are you making to me – and do I think you’ll keep them? </li></ul></ul><ul><ul><li>Is investing in this relationship an acceptable risk to my business and customers? </li></ul></ul>
  7. 7. Value Prop. Must Support Your Objectives <ul><li>Credibility </li></ul><ul><ul><li>New kid on the block syndrome – VARs are key influencers </li></ul></ul><ul><li>Broadening your current market accessibility </li></ul><ul><ul><li>More customers in same segment that you sell to now – putting more feet on the street </li></ul></ul><ul><li>Tackling new market segments </li></ul><ul><ul><li>Up/down market from your current positioning </li></ul></ul><ul><li>Reduction in your costs of doing business </li></ul>You may want to do it all, but each impacts what type of partner you need and the value proposition you need to create © . VARKETING!, 2006
  8. 8. A Few Simple Rules <ul><li>Match channel(s) to market strategy </li></ul><ul><ul><li>Partner segmentation, fit and corporate </li></ul></ul><ul><li>Keep programs simple and flexible </li></ul><ul><ul><li>Partner segments have different needs and demands </li></ul></ul><ul><ul><li>Set and review key performance indicators </li></ul></ul><ul><li>Make the channel a corporate commitment </li></ul><ul><ul><li>It impacts every aspect of your business, not just sales and marketing </li></ul></ul><ul><li>Listen, adopt, adapt </li></ul><ul><ul><li>Channel is a continuum not an event </li></ul></ul><ul><ul><li>Loyalty is earned over time – repeat business is how you make a profit </li></ul></ul>© . VARKETING!, 2006