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Spss 2012 track 2 geoff wright_development of channel sales to increase revenue

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Spss 2012 track 2 geoff wright_development of channel sales to increase revenue

  1. 1. “The Sales Performance & Productivity Summit 2012”Track 215:30 – 16:15 Development of channel sales to increase revenue. Geoff Wright, Sales Vice President Channel Enablers Tweet #SPPS2012
  2. 2. Minds & More Sales Performance and Productivity Summit 2012Leveraging Indirect Sales To Maximise Sales Performanceand Productivity Geoff Wright Senior Vice President - International Operations
  3. 3. CHANNEL ENABLERS – A DIVISION OF MILLER HEIMAN Recognized global authority on channel sales professional development Comprehensive curriculum, multiple training modalities Global delivery capabilities & languages More than 2,000 successful customer projects across more than 60 countries More than 80,000+ vendor partnering professionals trained “Channel Enablers is the leader in channel selling education. If you are serious about selling through channels, then you should definitely consider the unique and extensive approach to channel selling education offered by Channel Enablers.” Dave Stein - Founder, CEO, ES Research Group, Inc. © 2012 Copyright, Miller Heiman Inc. Page 3
  4. 4. INDIRECT CHANNELS ARE NOW THE NEW COMPETITIVE BATTLEGROUNDSIN MANY INDUSTRIES Direct Sales ≈70+% 50% Partner 15% Sales 1990 2002 TODAY• IDC predicts worldwide growth of indirect channels’ share of technology sales to be 9% CAGR from 2010-2015• Accenture indicates that 65% of revenue for the Global 2000 companies is driven or influenced by indirect channel partners © 2012 Copyright, Miller Heiman Inc. Page 4
  5. 5. MILLER HEIMAN CLIENT INDIRECT CHANNEL TRENDS “We only sell direct” 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2008 2009 2010 2011 2012 Source: Miller Heiman Sales Best Practices Study Accenture indicates that 65% of revenue for the Global 2000 companies is driven or influenced by indirect channels © 2012 Copyright, Miller Heiman Inc. Page 5
  6. 6. PERFORMANCE AND PRODUCTIVITY IS BEING LOST• Too few partners ae contributing the majority of revenue % of revenue % of partners• The 80/20 rule holds true – On average less than 20% of partners contribute more than 80% of indirect 80% revenue 70%• Partners who underachieve on 60% revenue also don’t invest to: 50% – Understand your product and 40% satisfy customers 30% – Find new customers 20% – Add value to your product 10% 0% Source: Channel Enablers Client Research 2011 © 2012 Copyright, Miller Heiman Inc. Page 6
  7. 7. WORLD CLASS CHANNEL SALES ORGANISATIONS• If your channel partners were ‘world class’ sales organisations they would: – Find and win new business – Keep more existing customers – Be highly productive• How do you get more partners like this? Why aren’t more of your partners as good as your best performers• Can you afford the cost of having the wrong partners? – Productivity loss – Lost market share – Competitive disadvantage – Lost revenue © 2012 Copyright, Miller Heiman Inc. Page 7
  8. 8. IT IS NOT THE PARTNER’S FAULT• Having the wrong partners is the vendor’s error – Often recruiting (or retaining) partners that will never succeed – Asking existing productive partners to do things they are not well suited to• Have the right questions been asked? – Is there a clear vision of channel success? – Does the vendor know what the ‘right’ partner looks like? – Have the target market, and customer buying needs been considered?• Have the right investments been made? – Do the channel sales team know how to identify, recruit, enable, manage and transition partners – Do they have the tools and process to make this more than just heroic effort• So are you ‘good’ enough to attract and retain the best partners? © 2012 Copyright, Miller Heiman Inc. Page 8
  9. 9. CHANNELS MUST ADAPT TO CHANGE AND SO MUST A VENDOR’SCHANNEL GTM• Adapting to change is the key to be considered ‘channel centric’ Change Response • Partners • RTM • Products • Business model • Technology • Channel Programs • Market maturity • Customer focus • Competitors • R and D What makes you successful in one part of the product life-cycle will doom you to failure in the next phase © 2012 Copyright, Miller Heiman Inc. Page 9
  10. 10. WHERE SHOULD YOU INVEST FOR SUCESS? • CAM Competency research undertaken Sample participants included: 28% 42% 30% APJ Americas EMEA Partner Channel Partner Planning & Leading & Lifecycle Business Influence Review ManagingManagement Acumen © 2012 Copyright, Miller Heiman Inc. Page 10
  11. 11. PARTNER LIFECYCLE MANAGEMENT Partner Lifecycle Scalable and repeatable step-by-step processesManagement • What Channel Managers need to do, Transition Identification how to do it, and what tools and resources they need to get the job done in their territories • Territory / market coverage mapping Management Recruitment • Partner recruitment • On-boarding and enablement • Pipeline management Enablement TOOLS SYSTEMS TRAINING MEASUREMENT © 2012 Copyright, Miller Heiman Inc. Page 11
  12. 12. FIELD GUIDE IMPLEMENTATION – CASE STUDY • 101 - Partner influence • 102 – Partner planning and review • 201 - Channel business acumen • 202 – Partner coaching skills Professional • 301 – Leading and managing partners development Regional curriculum application Field guide e- workshops learning Channel Field Guide • Embedded in on- • Documented channel methodologyChannelfundamentals • Localize the guide the tools compensat boarding, evaluation, in each Launch and apply • Why channels / playbook regionion and how to use processes •• Demonstrate promotion • Channel best practices tools and tools the Assemble a set ofmulti-year career Multi-level, ₋ • Partner coverage assessment • Current execution gaps – recruiting and revenue processes curriculum for channel ₋ path Set targets ₋ sales Refine partner selection criteria ₋ Etc.. © 2012 Copyright, Miller Heiman Inc. Page 12
  13. 13. CHANNEL BUSINESS ACCUMEN Channel Business Speak the language of Partner CEO / Executive Acumen investorsHave a high proportion of your channel sales people previously been owners orsenior executives of a partner organization similar to the partners you engage?• High Performing Channel Sales People – Understand how partners make money – Jointly evaluate competing investments – Establish peer to peer relationships – Focus on business – Sell profits not products and programs © 2012 Copyright, Miller Heiman Inc. Page 13
  14. 14. HIGH PERFORMING SALES PEOPLE CAN ARTICULATE THEPARTNER’S KEY BUSINESS ISSUESThe top five channelsales competencies mostin need of improvement © 2012 Copyright, Miller Heiman Inc. Page 14
  15. 15. PARTNER INFLUENCE SKILLS Partner Channel sale people sell change and Influence investment not products• Questioning and listening• Dealing effectively with different kinds of people• Understanding how decisions are made• Gaining commitments and resolving concerns• Identifying and pursuing change objectives © 2012 Copyright, Miller Heiman Inc. Page 15
  16. 16. PLANNING IS A KEY NEED AND IT’S NOT ABOUT COMPLIANCEThe top five channelsales competencies mostin need of improvement © 2012 Copyright, Miller Heiman Inc. Page 16
  17. 17. THE PARTNER PLAN IS THE HEART OF THE ENAGEMENT Planning & Planning is a critical need, and it’s not about Review compliancePlanning with partners is a science TOP THREE COMPETENCYnot an art IMPROVEMENT NEEDS1. Evaluate partner competency, fit Can identify key elements of effective partner plans relationship and potential including marketing and enablement/on-boarding sub plans2. Draft joint revenue, relationship and Drives effective joint planning with partners enablement objectives including: • Growth strategies3. Document a SMART 90-day action plan • Partner enablement and „fit‟4. Identify critical resources (internal & • Joint growth objectives external) Create partnership rules of engagement5. Establish key metrics – both leading indicator and outcome metrics6. Organize for success7. Conduct joint planning and review sessions with a Partner © 2012 Copyright, Miller Heiman Inc. Page 17
  18. 18. COACH AND MENTOR PARTNES TO RECOGNISE AND RESOLVETHEIR OWN PROBLEMS AND OPPORTUNITIES Leading & Channel Managers who lead, win more than their Managing competitors who facilitate• The battleground for ALL Vendors is capturing TOP THREE COMPETENCY a disproportionate share of partner attention IMPROVEMENT NEEDS• Establishing mutual understanding and trust requires Coach partners through critical advanced skills in partner influence, management and stages in the sales and planning process leadership Can facilitate a joint planning• Following a structured process to thoroughly ‘diagnose’ session with a partner partner needs and capability Describe and apply the skills of• Assess motivation and power and plan an influence CAM Coach, Mentor, Facilitator and Leader-Manager to develop a strategy partnering relationship• Raise partner awareness of the need to change and invest• Identify ‘partner change’ objectives to pursue• Coach and mentor partners through the sales pipeline and planning process © 2012 Copyright, Miller Heiman Inc. Page 18
  19. 19. CHANNEL CENTRIC VENDORS KNOW………. Channels are an economic strategy •Only investment in partners that will give a return •Investment is required to get a return •Review and change is required to maintain the return Channel professional development has strong ROI •Greater differentiation •Faster time to revenue •Higher contribution rates and revenue growth •Partners needs moe development than just product training •Professional development of CAMs is an ongoing process balancing theory and practical skills and knowledge Channel success is based on process not heroic effort •Create „once‟ and roll out „many‟ •Partner Lifecycle system and tools are needed •The chanel team must be proficeint in them © 2012 Copyright, Miller Heiman Inc. Page 19
  20. 20. CALL TO ACTION Review Current Investments Define & Measure CAM • Internal alignment ad attitudes Competencies • Channel processes and systems • Define your competencies for every • Do you have the right partners channel facing role • Define the ideal partner and • Hiring practices measure gaps • Performance evaluation • How do you plan? • Hire or develop • Compensation and organizational banding Partner Lifecycle Professional Development Management Roadmap • Playbook • On-boarding and Career path • Leverage current best practices • Leverage off-the-shelf curriculum • Identify workflow • Partner influence • CRM/PRM • Partner planning and review • Training • Channel business acumen • Leading and managing partners © 2012 Copyright, Miller Heiman Inc. Page 20

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