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The Partner Multiplier Effect

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When customer success organizations look to scale beyond direct, high-touch engagement, they often include their partner community to maximize customer reach. Find out what’s important in TSIA's latest survey on delivering customer success via partners and the practices and metrics critical to your success.

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The Partner Multiplier Effect

  1. 1. The Partner Multiplier Effect Today’s host Nichole Lemieux Senior Digital Experience Manager Customer Experience, Connected Digital Interactions Cisco
  2. 2. © 2018 Cisco and/or its affiliates. All rights reserved. Customer success methodology People Process Platforms Content Analytics
  3. 3. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Cisco SuccessHub On demand webinars, videos, infographics, blogs, whitepapers and much more! Visit SuccessHub
  4. 4. The Partner Multiplier Effect Today’s presenter Phil Nanus VP Research, Customer Success, TSIA phil.nanus@tsia.com @philnanus
  5. 5. Median customer success manager ratio increase from 2016 to 2018 54% Source: TSIA Benchmark data
  6. 6. © 2018 Cisco and/or its affiliates. All rights reserved. Scaling customer success Product/service Partners Prescriptive playbooks Low-touch customer success Analytics Technology Source: TSIA, Phil Nanus
  7. 7. © 2018 Cisco and/or its affiliates. All rights reserved. Small but interesting counter narrative on enabling partners. Tracking partner metrics and avoiding channel conflict are critical to original equipment manufacturers growth. Partners and original equipment manufacturers lack alignment on customer objectives. Summary observations from partner study Source: 2017 TSIA Customer Success delivered via Partner Study 1 2 3
  8. 8. © 2018 Cisco and/or its affiliates. All rights reserved. Meeting expectations Source: TSIA, Phil Nanus
  9. 9. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Who owns the partner relationship? Observation Each of the ‘other’ responses has some dedicated partner capability, which may also be part of the sales function Partner relationship 75% 17% 8% Sales Other Marketing Source: TSIA Customer Success delivered via Partner Survey
  10. 10. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation • 37% of sales execs have responsibility for renewal. • Each company should analyze if that creates a cost effective account expansion methodology. Renewal responsibility Source: TSIA Customer Success delivered via Partner Survey 37% 27% 15% 21% Sales/account exec Renewal Specialist Customer success manager Channel Partner
  11. 11. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Do partners and OEMs have the same Customer Success charter? Observation Although common practice is to align on charter there is a lack of metric alignment between partners and original equipment manufacturer which can present a number of potential challenges. Charter Source: TSIA Customer Success delivered via Partner Survey 45% 55% Different Same
  12. 12. © 2018 Cisco and/or its affiliates. All rights reserved. Meeting expectations Source: TSIA, Phil Nanus
  13. 13. © 2018 Cisco and/or its affiliates. All rights reserved. Do you share adoption information with your OEMs? A. Yes B. No Ask the audience
  14. 14. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation • Difficult to achieve customer’s business objective if majority of partners and original equipment manufacturers (OEM) do not share adoption information. • Conflict with who ‘owns’ the customer. Sharing adoption information Source: TSIA Customer Success delivered via Partner Survey 14% 24% 86% 76% 0% 50% 100% Partner shares with OEM OEM shares with Partner Yes No
  15. 15. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation Original equipment manufacturers are less willing to share intimate details of customers when compared to the product itself. Sharing adoption information Source: TSIA Customer Success delivered via Partner Survey 67% 50% 33% 33% 0% 50% 100% Product Telemetry Support History Customer Telemetry Customer Health Scores
  16. 16. © 2018 Cisco and/or its affiliates. All rights reserved. Adoption responsibility if sold by partner 62% 38% Partner Company Source: TSIA Customer Success delivered via Partner Survey
  17. 17. © 2018 Cisco and/or its affiliates. All rights reserved. Do OEMs share playbooks? Source: TSIA Customer Success delivered via Partner Survey 38% 62% Yes No
  18. 18. © 2018 Cisco and/or its affiliates. All rights reserved. Meeting expectations Source: TSIA, Phil Nanus
  19. 19. Percentage of OEM customer success organization focused on partners Source: TSIA Customer Success delivered via Partner Survey 36%
  20. 20. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation Original equipment manufacturers are not directly investing in partner customer success capability Percentage of OEMs that fund customer success managers inside of partners Source: TSIA Customer Success delivered via Partner Survey 14% 86% Yes No
  21. 21. © 2018 Cisco and/or its affiliates. All rights reserved. Meeting expectations Source: TSIA, Phil Nanus
  22. 22. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved.Cisco: Enabling partner success
  23. 23. © 2018 Cisco and/or its affiliates. All rights reserved. Do the majority of your OEMs provide training or certification as it relates to Adoption and Customer Success for you as the partner? A. Yes B. No Ask the audience
  24. 24. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation Original equipment manufacturers are not directly investing in partner customer success training and certification, but correlation data provides insights that this practice is important to overall company growth. Customer success training and certification Source: TSIA Customer Success delivered via Partner Survey 29% 71% Yes No
  25. 25. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation • Providing customer success training or certification was positively correlated with growth rates. • Training and certification ensures partners are using best practices and are more knowledgeable on products and services. OEM growth rates and partner certification Source: TSIA Customer Success delivered via Partner Survey 24.6% 13.0% Other Yes Does the OEM offer customer success training or certification to its partner community? Portfoliogrowthrate What is the OEMs annual growth rates (or decline rates) of the product, subscription, support and maintenance, and services portfolio?
  26. 26. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation • Traditional types of partner training are common practice including support, product and sales training. • Opportunity to focus on adoption and industry. Types of training offered by OEM to partners Source: TSIA Customer Success delivered via Partner Survey 100% 83% 83% 33% 17% 0% 50% 100% Sales Product Support Adoption Industry
  27. 27. © 2018 Cisco and/or its affiliates. All rights reserved. Meeting your expectations Source: TSIA, Phil Nanus
  28. 28. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Does the OEM avoid channel conflict? Observation Communication and staying in your swim lanes allow better fiscal results for the original equipment manufacturer. Channel conflict Source: TSIA Customer Success delivered via Partner Survey 39% 61% No we have conflict Yes we avoid conflict
  29. 29. © 2018 Cisco and/or its affiliates. All rights reserved.© 2018 Cisco and/or its affiliates. All rights reserved. Observation • Having channel conflict negatively impacts growth rates. • There was a 10% difference in growth rates for those that avoid channel conflict versus those who didn’t. Channel conflict and growth rates Source: TSIA Customer Success delivered via Partner Survey 20.73% 10.26% No, we have channel conflict a majority of the time. Yes, we avoid channel conflict a majority of the time.. Do you provide segmentation guidance to the partner community to avoid channel conflict? Annualgrowthrate What is the OEMs annual growth rate?
  30. 30. © 2018 Cisco and/or its affiliates. All rights reserved. Model your profitable XaaS partner economic engine Source: Technology as a Service Playbook • Identify mix and margin expectations to the partner Benefits • Identifies target financial model for partner • Identifies investment required • Sets expectations on target margins for each revenue stream
  31. 31. © 2018 Cisco and/or its affiliates. All rights reserved. Economic engines of technology providers Product Technology subscription Annuity services Project services Paid to deliver a project Paid for a service capability that is renewed on annual or multi-year basis Paid for access to technology (XaaS) Paid for a technology asset Source: Technology as a Service Playbook *Each of these revenue streams has unique margin and profit profiles.
  32. 32. © 2018 Cisco and/or its affiliates. All rights reserved. 20 Economic engines of technology providers Technology subscription Annuity services Project services Source: Technology as a Service Playbook 10 90 10 70 Future value aggregators 0% operating income Mid-term wedge Current profit maximizers -10% operating income 30 10 60 15% operating income
  33. 33. © 2018 Cisco and/or its affiliates. All rights reserved. Model your profitable XaaS partner economic engine Source: Technology as a Service Playbook • How will partners access, add value, and monetize your XaaS platform. Benefits • Identifies core requirements of the platform for the channel business. • Identifies investment required
  34. 34. @CiscoPartners Let us know what you think! customersuccesstalk@external.cisco.com © 2018 Cisco and/or affiliates. All rights reserved. Cisco public.
  35. 35. © 2018 Cisco and/or its affiliates. All rights reserved.© 2017 Cisco and/or its affiliates. All rights reserved. Upcoming sessions Customer Experience: Role of the Partner February 12, 2019 Learn how Cisco CX, a new company-wide approach, can help you engage with your customers, and how to partner with Cisco and navigate the journey to build the best, connected customer experience. Get Social: Connecting in a Digital World February 26, 2019 Discover ways to optimize your organization’s social strategies, which platforms give the most bang for the buck, and how to improve your company's online presence. Sign up for a webinar© 2018 Cisco and/or affiliates. All rights reserved. Cisco public.

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