Leveraging Deal Registration to Drive Channel Loyalty Programs


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Leveraging Deal Registration to Drive Channel Loyalty Programs

  1. 1. Leveraging Deal Registration to Drive Channel Loyalty Programs Frank Defesche, Salesforce.com Errett Kroeter , Lantronix, Inc. Ernie Megazzini , Network Physics, Inc. Track: Channel Executives
  2. 2. Safe Harbor Statement <ul><li>“ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.  All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. </li></ul><ul><li>The risks and uncertainties referred to above include - but are not limited to - risks associated with the integration of Sendia Corporation’s technology, operations, infrastructure and personnel with ours; unexpected costs or delays incurred in integrating Sendia with salesforce.com, which could adversely affect our operating results and rate of growth; any unknown errors or limitations in the Sendia technology; any third party intellectual property claims arising from the Sendia technology; customer and partner acceptance and deployment of the AppExchange and AppExchange Mobile platforms; interruptions or delays in our service or our Web hosting; our new business model; breach of our security measures; possible fluctuations in our operating results and rate of growth; the emerging market in which we operate; our relatively limited operating history; our ability to hire, retain and motivate our employees and manage our growth; competition; our ability to continue to release and gain customer acceptance of new and improved versions of our CRM service; unanticipated changes in our effective tax rate; fluctuations in the number of shares outstanding; the price of such shares; foreign currency exchange rates and interest rates. </li></ul><ul><li>Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K for the fiscal year ended January 31, 2006. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor . </li></ul><ul><li>Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all.  Customers who purchase our services should make purchase decisions based upon features that are currently available.  Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. </li></ul>
  3. 3. Partner Channels Are a Significant Opportunity Indirect Sales (70%) Direct Sales (30%) Source: U.S. Bureau of Labor Statistics, 2005; The Gartner Group, 2002 5 Million Salespeople in High Tech, Manufacturing and Distribution (U.S.) Revenue Breakdown by Channel For High Tech, Manufacturing, & Consumer Goods Channel Size Comparison
  4. 4. Key Business Issue is Achieving Channel Sales Goal VP Sales and Channel Sales are frustrated with channel program Lack of Visibility <ul><li>Lack Pipeline Visibility </li></ul><ul><li>Poor PRM Adoption </li></ul><ul><li>Missed Forecasts </li></ul>Ineffective Channel Selling <ul><li>Lost Leads </li></ul><ul><li>Low Close Rates </li></ul><ul><li>Ineffective Channel Programs </li></ul><ul><li>Channel Conflict </li></ul>Challenges to Maximizing Channel Sales
  5. 5. “” We work closely with vendors that have tools that are easy to find and use on a day to day business.” Reseller Partner Bottom line Ease of doing business More qualified Leads Cash flow Partners Are Struggling Too What keeps partners up at night?
  6. 6. Partner Adoption <ul><li>What drives your partner relationships? </li></ul>Business Planning Tools Qualified Leads Deal Registration Cash Flow Rebates Special Pricing MDF Claims Incentives Exclusivity and Discounts Benefit: Future revenue streams Lead 1 Lead 2
  7. 7. Funny Money and Loyalty Discretionary Marketing Funds <ul><li>Business building </li></ul><ul><li>Grow my business </li></ul><ul><li>Marketing plans </li></ul><ul><li>Channel empowerment </li></ul><ul><li>Performance based </li></ul>Non-Discretionary <ul><li>Contract based </li></ul><ul><li>Margin not demand generating </li></ul><ul><li>Cost more </li></ul><ul><li>ROI is difficult to measure </li></ul>What drives partners today? Rebates? Coop? MDF? Special Pricing?
  8. 8. Deal Registration <ul><li>Enable partners to register leads </li></ul><ul><li>Leverages page layouts, workflow, FLS </li></ul><ul><li>Approved deals are converted to opportunities </li></ul>
  9. 9. Optimized Channel Coverage and Partner Loyalty Deal Registration Reject Deal Registration Review Deal Registration Find Duplicates Approve Create Account, Contact, and Opportunity Workflow Rules are Triggered Leverage Record Types, Layouts, Field-level security Channel Manager Reviews Submitted Deals Convert to Opportunity No Duplicates Exist Assign Sales Team Extended Sales Team Send Notifications Workflow Alert to Sales Team Partner Submits Proof of Performance Claim Send Notification Channel Manager Action Partner Action
  10. 10. Best Practices in Action <ul><li>A day in the life of a channel executive </li></ul><ul><li>A day in the life of a partner </li></ul>
  11. 11. Errett Kroeter Director, Worldwide Channel Marketing [email_address]
  12. 12. Lantronix At A Glance <ul><li>Headquarters: Irvine, CA </li></ul><ul><li>Leader in “Machine-to-Machine” </li></ul><ul><li>Network-enabled over 2,000,000 devices </li></ul><ul><li>20,000+ customers worldwide </li></ul><ul><li>Over 22 million ports shipped </li></ul><ul><li>Worldwide operations </li></ul><ul><li>95% indirect sales </li></ul>INDUSTRY: IT Networking EMPLOYEES: 200 GEOGRAPHY: Global PRODUCT(S) USED: SFA, PRM, 3 AppExchange applications # USERS: 50 “ Every 10 Business Seconds-- Lantronix Network Enables Another Device”
  13. 13. Key Challenges <ul><li>Business Challenge </li></ul><ul><ul><li>Small direct sales force </li></ul></ul><ul><ul><li>500+ partners purchasing </li></ul></ul><ul><ul><li>Strong lead generation </li></ul></ul><ul><ul><li>Minimal partner forecasting </li></ul></ul><ul><li>Technology Challenge </li></ul><ul><ul><li>Manual lead distribution </li></ul></ul><ul><ul><li>Manual deal registration and “design win” process </li></ul></ul><ul><ul><li>No link from campaigns to partners </li></ul></ul><ul><li>No visibility </li></ul><ul><li>Inefficiency </li></ul><ul><li>Difficult forecasting </li></ul>
  14. 14. The Solution <ul><li>How did we address the challenges? </li></ul><ul><ul><li>Pilot partner for PRM system </li></ul></ul><ul><ul><li>Automated deal registration process </li></ul></ul><ul><ul><li>Automated lead distribution </li></ul></ul><ul><ul><li>Partner communications thru salesforce.com </li></ul></ul><ul><ul><li>Evaluating partner incentives </li></ul></ul><ul><li>Salesforce PRM </li></ul><ul><li>15 partners </li></ul><ul><li>40 Users </li></ul><ul><li>Minimal training </li></ul><ul><li>Automated deal reg templates </li></ul>DEPLOYMENT DETAILS
  15. 15. Results <ul><li>What were the results? </li></ul><ul><ul><li>Simplified tracking of deal registrations </li></ul></ul><ul><ul><li>Real-time tracking of opportunities </li></ul></ul><ul><ul><li>Improved partner communications </li></ul></ul><ul><ul><li>Improved partner enablement </li></ul></ul>
  16. 16. Lantronix PRM Implementation <ul><li>Channel Sales & Marketing </li></ul><ul><li># Users: 25 </li></ul><ul><li>Key Requirements </li></ul><ul><ul><li>Lead distribution </li></ul></ul><ul><ul><li>Automate deal reg </li></ul></ul><ul><ul><li>Partner communications </li></ul></ul><ul><li>Key Benefits </li></ul><ul><ul><li>Lead tracking </li></ul></ul><ul><ul><li>Deal reg tracking </li></ul></ul><ul><ul><li>Reduce multiple registrations </li></ul></ul>
  17. 17. Ernie Megazzini Senior Director Channels & Alliances [email_address]
  18. 18. Introduction <ul><li>Leader in real-time application performance insights </li></ul><ul><li>20 sales personnel covering15 countries </li></ul><ul><li>85 Partners on the Portal (320 users) </li></ul><ul><li>http://www.networkworld.com/news/2006/091306networkphysics.html </li></ul><ul><li>http://www.thechannelinsider.com/article/The+Long+Tail+of+the+Channel/187915_1.aspx </li></ul><ul><li>http://www.eweek.com/article2/0,1759,2013936,00.asp </li></ul><ul><li>http://www.networkworld.com/newsletters/accel/2006/0522netop2.html?fsrc=rss-mpls </li></ul><ul><li>http://www.processor.com/editorial/article.asp?article=articles%2Fp2830%2F32p30%2F32p30.asp&guid=&searchtype=&WordList=&bJumpTo=True </li></ul><ul><li>http://www.echannelline.com/canada/story.cfm?item=DLY082006-03 </li></ul>INDUSTRY: Network Management Appliance & Insight EMPLOYEES: 88 GEOGRAPHY: Global PRODUCT(S) USED: SFA, Marketing, License Management, Service & Support, 2 downloaded AppExchange applications # USERS: 452
  19. 19. A Brief Intro on our Products….. Ending the Network versus Application Blame Game
  20. 20. Partners and Customers Financial Health Care Manufacturing Retail Technology Media & Internet Partners
  21. 21. Key Challenges <ul><li>Business Challenge </li></ul><ul><ul><li>Convert from Direct Sales Force to 100% Channel Focused organization </li></ul></ul><ul><ul><li>Lack of process and automation </li></ul></ul><ul><ul><li>Weak lead generation </li></ul></ul><ul><ul><li>No Products or Price Books implemented therefore no central forecasting </li></ul></ul><ul><ul><li>Sub Standard Asset Tracking and Licensing Administration </li></ul></ul><ul><li>Technology Challenges </li></ul><ul><ul><li>Integration between systems </li></ul></ul><ul><ul><li>Legacy architecture </li></ul></ul><ul><ul><li>Data cleansing tools non existent </li></ul></ul><ul><ul><li>Licensing Key Integration </li></ul></ul><ul><li>High Costs </li></ul><ul><li>Reduced revenue </li></ul><ul><li>Inefficiency </li></ul><ul><li>Low customer service </li></ul>
  22. 22. The Solution <ul><li>How did we address the challenges? </li></ul><ul><ul><li>Automated lead generation process </li></ul></ul><ul><ul><li>Implement Products and Price Book which drove Central Forecasting </li></ul></ul><ul><ul><li>Implemented GOT email campaigns </li></ul></ul><ul><ul><li>Integrated with Harte Hanks </li></ul></ul><ul><ul><li>Integrated with SPOKE </li></ul></ul><ul><ul><li>Created custom objects and controls for license management </li></ul></ul><ul><ul><li>Implemented the Partner Portal </li></ul></ul><ul><ul><ul><li>Deal Registration </li></ul></ul></ul><ul><ul><ul><li>Registration cycle 60 days </li></ul></ul></ul><ul><ul><ul><li>Rating System for classifying requests </li></ul></ul></ul><ul><ul><ul><li>Lock Outs and Contesting Deal Registration </li></ul></ul></ul><ul><ul><ul><li>Buyers are Liars (Discovery of misleading info to the partner from the end user prospect) </li></ul></ul></ul><ul><ul><ul><li>No Dumping of lead lists </li></ul></ul></ul><ul><ul><ul><li>Don’t bend the rules </li></ul></ul></ul><ul><ul><ul><li>Managing Channel Managers and Resellers </li></ul></ul></ul><ul><ul><ul><li>DRP in Local, State and Federal Government Deals </li></ul></ul></ul><ul><li>Everything (Unlimited Edition) </li></ul><ul><li>408 Users </li></ul><ul><li>Integration with Quick Books enterprise edition, Spoke, Harte Hanks, GOT, RingLead and our Licensing application </li></ul><ul><li>4 Training tracks, Sales, Marketing, Service and Partner Portal </li></ul><ul><li>All Business units have one admin and all use the system </li></ul><ul><li>Better integration with Trackonit (System used by telemarketing firm </li></ul>DEPLOYMENT DETAILS
  23. 23. Results <ul><li>What were the results? </li></ul><ul><ul><li>214 % increase in revenue 2 nd quarter 2006 over 2005 </li></ul></ul><ul><ul><li>Order-to-cash cycle time improvements </li></ul></ul><ul><ul><li>Improved visibility to partners thru the portal </li></ul></ul><ul><ul><li>Improved accuracy of data </li></ul></ul><ul><ul><li>Higher customer satisfaction due to Support Object being exposed through the partner portal </li></ul></ul><ul><ul><li>Signed 85 partners in first 6 months of 2006 </li></ul></ul><ul><ul><li>Zero channel conflict due to deal registration </li></ul></ul>
  24. 24. Demo <ul><li>User Dynamics: Sales, Marketing, Support, Partners & Finance </li></ul><ul><li># Users: 405 </li></ul><ul><li>Key Requirements </li></ul><ul><ul><li>Support Channel sales teams with a Partner Portal / Deal Registration / Campaigns etc.. </li></ul></ul><ul><ul><li>Integrate with Harte Hanks, SPOKE, Quickbooks EE, Got & Ringlead </li></ul></ul><ul><ul><li>Executive visibility into Opportunity Products, quotas and forecasting (Including Partners) </li></ul></ul><ul><li>Key Benefits </li></ul><ul><ul><li>Eliminated manual order processing </li></ul></ul><ul><ul><li>Centralize forecasting </li></ul></ul><ul><ul><li>On-demand pipeline visibility </li></ul></ul>
  25. 25. ERRETT KROETER Director, Worldwide Channel Marketing ERNIE MEGAZZINI Senior Director Channels & Alliances QUESTION & ANSWER SESSION
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