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Cross-Sell and Upsell
Strategies in the
Channel
Laz Gonzalez, SiriusDecisions
Juliann Grant, eCoast Marketing
2
Agenda
• Define Your Targets with Account Based Marketing
• Gain Visibility with a Propensity Model
• The Channel Challe...
3
SiriusDecisions Presenter:
Laz Gonzalez, SiriusDecisions – the leading provider of b-to-b
sales, marketing and product r...
4
Vice President of Marketing for eCoast
eCoast Marketing Presenter:
Juliann Grant, eCoast Marketing – Helping businesses ...
Define Your Targets with Account Based
Marketing
6
Large Account
• Very small number of large existing or
targeted accounts
Named Account
• Moderate or large number of def...
7
Account-Based Marketing Advances Two Types of Goals
Opportunity Relationship
Deliver growth
New, cross-sell or up-sell
C...
8
What Do The Best ABM Programs Have In Common?
• Visionary ABM leadership
• Dedicated, interlocked teams
• Understanding ...
9
Where Can ABM Deliver Quick Wins?
Enablement
• Internal
communication plan
• Skills training
• Template/tool
creation
• ...
Getting Started with an Account Based
Channel Marketing Program
11
Process Steps: What Actions Will Be Taken?
Insights
Selection/Prioritiz
ation
Planning Execution
Pilot
Rollout
Measurem...
12
Step 1: What Do You Need to Know About Accounts?
Must Have
Account Industry
Account Buying Centers*
Wallet Share/Availa...
13
Step 2: Score and Rank Accounts
ABM FACTORS 1 = Very False
5 = Very True
Account 1 Account 2 Account 3 Account 4
OPPORT...
14
Is it worth it?
Can we get it?
Can we work together?
What else to consider?
Use 4 Buckets of Criteria To Zero In on Bes...
15
Examples of Criteria
* Account Size
* # Buying Centers
* Pipeline
* Known Contacts
* Current
Satisfaction
* Competitive...
16
Examples of Account Prioritization Output
• Large-Account Pilot
• 5 to 10 large accounts
• Selected for presence of
opp...
17
Step 3: Set SMART Goals or Get Specific About Goals
“Be the preferred
supplier of company
ABC”
“Expand Sales of
Product...
18
Step 4: Build a Plan
Goal 1:
Week 1 Week 2 Week 3 Week 4
ACTION 1 (Internal Activity) (insert date) (insert date) (inse...
19
Step 5: Define your Success Measures
Account Insights
New Contacts
Successful Planning
Sales Utilization
Account/Contac...
© 2014 SiriusDecisions. All Rights Reserved 20
Revenue
3 SQLs
Blitz Day
Proposal
20 MQLs
Email #1
Event
Inbound Tactic
Acc...
The Channel Challenge
22
The Channel Disconnect
Vendors Have Partners Lack
Content
Expertise
Resources
Skills
Infrastructure
Technology
Process
...
23
Poor Adoption
Registered
Partners
Partner
Portal
Marketing
Automation
MDF/
Co-Op Execution
Channel Marketing Workflow
R...
24
Why It’s Hard to Cross Sell in the Channel
Sharing Customer Data
Lack of Good Account Contacts
Lack of Partner Loyalty
...
25
Criteria-Based
Marketing
Account-Based
Marketing
Cost $100k $60k
Leads Produced 230 86
Cost Per Lead $434.7 $697.7
No. ...
Building Trust and Filling the Gaps
27
How a Neutral Third-Party Can Assist
• Need a trusted party to mitigate partner
campaign concerns
• Sharing customer li...
28
Role of Prescriptive Concierge Services
Assess Strengths &
Weaknesses
Identify Desired
Outcomes
Share Best Practices
Pr...
29
Servicing the Partner Landscape
1st
Tier
2nd
Tier
3rd
Tier
More resources
No resources
Some resources
White Glove Conci...
Planning an Effective Cross-Sell UpSell
Campaign
30
31
Account-Based Marketing Steps
Identify between
20 and 30 target
accounts
Include geography
and desired titles
to acquir...
32
Key Ingredients of a Cross-Sell Upsell Program
Digital
Marketing
Tele-
Marketing
Content
Marketing
• Email
marketing
• ...
33
High Touch vs. Low Touch Integrated Packages
Full Customization Pkg
Could Include:
• Email Marketing
• Telemarketing
• ...
34
Measurements of Success
Opens
Clicks
Conversions
Bounces
Unsubscribes
CTO
Right Party
Contacts
Conversations
Leads
Esti...
Use Case: Upselling in the Channel
Target Audience:
36
Integrated Email and Telemarketing Campaign
• eCoast Created Marketing Assets:
– 6 Varied Email & Land...
37
The Cross-Sell Upsell Campaign Rollout Process
PipelineValue
eCoast validates list
List submitted to eCoast
MarketingTe...
© 2014 SiriusDecisions. All Rights Reserved 38
Make this look interesting
• Estimated Leads Generated: 323
• Estimated Lea...
39
Cross-Sell Upsell Campaign Results
323 Estimated Leads Generated
Estimated Lead Value: $23.7M
Average Estimated Leads P...
40
Cross-Sell Upsell Campaign Results
323 Estimated Leads
Generated
$23.7M Estimated Lead Value
12.4 Average Estimated Lea...
41
Campaign Success Factors
A Systematic
Approach
Full Campaign
Visibility and
Accountability
All
Opportunities
Registered...
SiriusPerspective:
42
Adobe Define & Assign
• Actionable
– Provided sales with clear visibility
– Provided reasons to call...
SiriusPerspective:
43
• Which segments would have the highest propensity to buy?
• Is there specific functionality that wo...
SiriusPerspective:
44
Define & Assign Impact on Partner Marketing
Adobe realized higher revenue, better adoption and great...
SiriusPerspective:
45
• Used historical data to show channel partners exactly what the
opportunity was for each rep, and t...
Use Case: Employing Predictive Analytics in
Cross-sell Campaigns
SiriusPerspective:
47
• Targeted 5,000 accounts with
highest propensity to buy
• Selected a cross-section of 16
partners t...
SiriusPerspective:
48
Impact on Partner Program Engagement and ROI
By aligning partner capability and commitment, and focu...
SiriusPerspective:
49
• Structure and metrics were a big part of program success
• Deal size, cross-sell rate in pipeline ...
50
In Summary (dress up)
• Marketers need to apply different approaches to creating demand when they
are addressing a defi...
51
In Summary
Marketers need to apply different approaches to creating demand when
they are addressing a defined universe ...
52
Questions?
Connect with eCoast:
Email sales@ecoastmarketingcom
Website ecoastmarketing.com
Blog blog.ecoastmarketing.co...
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Cross-Sell and Upsell Strategies in the Channel

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Laz Gonzalez from SiriusDecisions and Juliann Grant from eCoast Marketing discuss the key factors in implementing successful cross selling campaigns in the channel. Suppliers want to expand their footprint within their reseller client bases and capture new market share. Meeting growth targets from indirect channels can be challenging, since many resellers are not exclusive and represent multiple suppliers to best compete in the market.

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Cross-Sell and Upsell Strategies in the Channel

  1. 1. Cross-Sell and Upsell Strategies in the Channel Laz Gonzalez, SiriusDecisions Juliann Grant, eCoast Marketing
  2. 2. 2 Agenda • Define Your Targets with Account Based Marketing • Gain Visibility with a Propensity Model • The Channel Challenge • Building Trust and Filling the Gaps • Planning A Campaign • Use Cases: Stories of Success
  3. 3. 3 SiriusDecisions Presenter: Laz Gonzalez, SiriusDecisions – the leading provider of b-to-b sales, marketing and product research advisory services Served in key leadership and channel roles at Lotus/IBM, Baan and Viewpoint Extensive international experience implementing channel-driven sales and marketing programs Group Service Director for Channel Sales and Marketing Strategies at SiriusDecisions
  4. 4. 4 Vice President of Marketing for eCoast eCoast Marketing Presenter: Juliann Grant, eCoast Marketing – Helping businesses tackle their marketing challenges Recent client work includes Siemens, Rogers Corp, Cognos, Progress Software, Sustainable Minds and NaviNet 25+ years of experience developing marketing strategies for high tech and industrial that build consumer demand, revenue streams, and customer communities
  5. 5. Define Your Targets with Account Based Marketing
  6. 6. 6 Large Account • Very small number of large existing or targeted accounts Named Account • Moderate or large number of defined existing or targeted accounts Customer Lifecycle • Moderate or large number of existing customers that receive differentiated outreach Industry/Segment • Any number of new or existing accounts in the same vertical or other specific segment Cross-selling and Upselling Required an Account Based Approach Account-Based Models At the Core Lies an Account-Based Marketing (ABM) Framework
  7. 7. 7 Account-Based Marketing Advances Two Types of Goals Opportunity Relationship Deliver growth New, cross-sell or up-sell Create positive environment Retention, loyalty, advocacy
  8. 8. 8 What Do The Best ABM Programs Have In Common? • Visionary ABM leadership • Dedicated, interlocked teams • Understanding of expanded marketing role Commitment Execution • Structured approach • Excellent communication • Clear understanding of what success looks like • Systems in place to measure and share results Results
  9. 9. 9 Where Can ABM Deliver Quick Wins? Enablement • Internal communication plan • Skills training • Template/tool creation • Best practice sharing • Feedback collection (sales, marketing views) Insights • Actionable account profiles • Contact discovery • Account analytics • New market persona/messages Planning • Link marketing help to existing sales account plans or goals • Cross-functional working session to define options faster Execution • Content assets • Interactions/events • Pipeline acceleration: Focus on mid- to late- stage deals • Small-net fishing for new opportunity in defined area • Pilot with small number (2-3) of large accounts
  10. 10. Getting Started with an Account Based Channel Marketing Program
  11. 11. 11 Process Steps: What Actions Will Be Taken? Insights Selection/Prioritiz ation Planning Execution Pilot Rollout Measurement Short-term Medium-term Long-term Goals (Cross- Sell/Upsell/Relationship )Messaging Resources Tactic Selection SegmentationInternal Account Data External Data Assessment/S coring Process Steps for Large, Named and Industry Account-Based Marketing Communication
  12. 12. 12 Step 1: What Do You Need to Know About Accounts? Must Have Account Industry Account Buying Centers* Wallet Share/Available Opportunity* Sales Goals by Buying Center Stage of Active Deals* Contacts Known/Needed Really Great to Have Key Initiatives/Needs by Buying Center Relationship Status Relationship Map by Buying Center Extra Credit Growth Trend Competitive Environment Contact Engagement History Account-Level Attributes Buying Signals *Must-have for longer list of named accounts initial scoring
  13. 13. 13 Step 2: Score and Rank Accounts ABM FACTORS 1 = Very False 5 = Very True Account 1 Account 2 Account 3 Account 4 OPPORTUNITYINDEX This is a large, global account. Score 1-5 1 5 1 5 Distinct buying centers exist for this account. Score 1-5 1 5 2 5 Unified approach would drive value. May currently be disjointed. Score 1-5 1 5 3 2 This account spends a lot of money in your category (but not necessarily with you). Score 1-5 1 5 3 2 This account spends a lot in the category and spends it with you. Score 1-5 1 5 4 2 Factors exist that could drive relatively quicker purchase/priority (e.g. economic conditions, regulations). Score 1-5 1 5 5 1 We are aware of active pipeline opportunities within the account Score 1-5 1 5 5 1 Total Opportunity Index Score Sum 7 35 23 18
  14. 14. 14 Is it worth it? Can we get it? Can we work together? What else to consider? Use 4 Buckets of Criteria To Zero In on Best Chance of Success ABM Account Selection Opportunity Index Achievability index Cooperation Index Other Factors
  15. 15. 15 Examples of Criteria * Account Size * # Buying Centers * Pipeline * Known Contacts * Current Satisfaction * Competitive Traction * Amenable Account * Account Leadership * Sales Endorsement * Strategic Play *New Geography * Sales Rep Experience Level Opportunity Achievability Cooperation Other Selecting the right accounts considers criteria in these key areas
  16. 16. 16 Examples of Account Prioritization Output • Large-Account Pilot • 5 to 10 large accounts • Selected for presence of opportunity and cooperative sales team • Focus on customized execution for big deals • Combines relationship goals and opportunity goals • Named Account Pilot • 20 to 50 larger accounts • Selected for type of opportunity • Focus on one-to-a few execution that supports sales growth objective • Main focus is opportunity goals 1
  17. 17. 17 Step 3: Set SMART Goals or Get Specific About Goals “Be the preferred supplier of company ABC” “Expand Sales of Product XYZ” Not SMART “Retain Strategic Account X by engaging senior leadership team during next 18 months, showcasing value delivered, resulting in five-year renewal” “Upsell 50 more licenses of Product XYZ to Joe Smith’s group by Q4, resulting in $500,000 revenue” SMART OpportunityGoalRelationshipGoal
  18. 18. 18 Step 4: Build a Plan Goal 1: Week 1 Week 2 Week 3 Week 4 ACTION 1 (Internal Activity) (insert date) (insert date) (insert date) (insert date) Internal Lead Activity Needed Measurement Week 1 Week 2 Week 3 Week 4 ACTION 2 (External Facing Activity) (insert date) (insert date) (insert date) (insert date) Persona 1 Key Message Offer Delivery Mechanism Measurement Which Accounts Sample: Portion of Execution Timeline:
  19. 19. 19 Step 5: Define your Success Measures Account Insights New Contacts Successful Planning Sales Utilization Account/Contact Activity Early Progress New Pipeline Existing Opportunity Progress Relationship Development Initial Outcomes Revenue Growth and Retention Increased Loyalty and Advocacy Long-Term Value
  20. 20. © 2014 SiriusDecisions. All Rights Reserved 20 Revenue 3 SQLs Blitz Day Proposal 20 MQLs Email #1 Event Inbound Tactic Account Plans Account Prioritization SiriusPerspective: Impact is created by effectively executing the right combinations of actions across product, marketing and sales functions. From Activity to Output to Impact SalesMarketingABM Impact Output Activity Readiness Account Insights
  21. 21. The Channel Challenge
  22. 22. 22 The Channel Disconnect Vendors Have Partners Lack Content Expertise Resources Skills Infrastructure Technology Process Incentive
  23. 23. 23 Poor Adoption Registered Partners Partner Portal Marketing Automation MDF/ Co-Op Execution Channel Marketing Workflow ROI? Channel marketers report less than 20% of their partners regularly participate in training, access portals or take demand generation offers.” - SiriusDecisions
  24. 24. 24 Why It’s Hard to Cross Sell in the Channel Sharing Customer Data Lack of Good Account Contacts Lack of Partner Loyalty No Visibility No accountability Poor ROI
  25. 25. 25 Criteria-Based Marketing Account-Based Marketing Cost $100k $60k Leads Produced 230 86 Cost Per Lead $434.7 $697.7 No. of Deals Registered 77 51 Leads to Registered Deal Conversion Rate 33.5% 59.3% Pipeline Produced $2.982M $3.215M Average Opportunity Value $38,739 $63,041 ROI (Pipe:Cost) 29.8:1 53.6:1 Improved Conversions 1-3% 6-12% Network Infrastructure Enterprise Case Study Does Account-based Marketing Really Work?
  26. 26. Building Trust and Filling the Gaps
  27. 27. 27 How a Neutral Third-Party Can Assist • Need a trusted party to mitigate partner campaign concerns • Sharing customer lists • Not overstepping boundaries • Ensure campaign execution • More accountability • Improved reporting on all activities • Hands-on partner support
  28. 28. 28 Role of Prescriptive Concierge Services Assess Strengths & Weaknesses Identify Desired Outcomes Share Best Practices Prescribe Solutions Define Campaign Goals Establish Benchmarks Monitor Progress Flag and Address Potential Issues Regular Review Calls Review Metrics Make Adjustments Exceed goals 5+ Years Average eCoast Tenure Engaged with Thousands of Channel Partners Collaborate Measure Review Expertise
  29. 29. 29 Servicing the Partner Landscape 1st Tier 2nd Tier 3rd Tier More resources No resources Some resources White Glove Concierge Low Touch Concierge Medium Touch Concierge
  30. 30. Planning an Effective Cross-Sell UpSell Campaign 30
  31. 31. 31 Account-Based Marketing Steps Identify between 20 and 30 target accounts Include geography and desired titles to acquire Prepare Survey Tool Determine what information do you want to know? Define what is a “qualified” lead Train the Call Agents Identify Prepare Define Train GO!
  32. 32. 32 Key Ingredients of a Cross-Sell Upsell Program Digital Marketing Tele- Marketing Content Marketing • Email marketing • Social Media promotion • Banner Ads • Appointment Setting • Lead Generation • Call To Actions provided or customized • Special offers Lists & Data • Customer Data provided • Account based marketing Integrated Multi-Touch Approach
  33. 33. 33 High Touch vs. Low Touch Integrated Packages Full Customization Pkg Could Include: • Email Marketing • Telemarketing • Natural Web Page Optimization • Social Media Postings • 2 Blog Postings • Social Ads Light Customization (Low Touch) Pkg Could Include: • Email Marketing • Telemarketing • Social Media Postings
  34. 34. 34 Measurements of Success Opens Clicks Conversions Bounces Unsubscribes CTO Right Party Contacts Conversations Leads Estimated Lead Value Popular Postings Clicks Traffic Source Growth Conversions # of Partners Participated Partner-specific Results Leads Generated Estimated Lead Value Email Tele- Prospecting Social Supplier Level
  35. 35. Use Case: Upselling in the Channel
  36. 36. Target Audience: 36 Integrated Email and Telemarketing Campaign • eCoast Created Marketing Assets: – 6 Varied Email & Landing Page Templates – CTAs – Telemarketing Script • 26 Partners participated A Successful Cross-Sell Upsell Campaign Reseller Clients who were not currently customers of the Supplier 3 6
  37. 37. 37 The Cross-Sell Upsell Campaign Rollout Process PipelineValue eCoast validates list List submitted to eCoast MarketingTelemraketingList Partner Identifies Customers Email #1 Telemarketing Within 48 hrs Email #214 days 14 days Email #3 Email open and click data provided to Call Agents after each send Average Duration 8-12 weeks
  38. 38. © 2014 SiriusDecisions. All Rights Reserved 38 Make this look interesting • Estimated Leads Generated: 323 • Estimated Lead Value: $23.7M • Average Estimated Leads per partner: 12.4 leads • Average Estimated Lead Value per partner: $914,226 Campaign Results
  39. 39. 39 Cross-Sell Upsell Campaign Results 323 Estimated Leads Generated Estimated Lead Value: $23.7M Average Estimated Leads Per Partner: 12.4 Leads Average Estimated Lead Value Per Partner: $914,226
  40. 40. 40 Cross-Sell Upsell Campaign Results 323 Estimated Leads Generated $23.7M Estimated Lead Value 12.4 Average Estimated Leads Per Partner $914,226 Average Estimated Lead Value Per Partner
  41. 41. 41 Campaign Success Factors A Systematic Approach Full Campaign Visibility and Accountability All Opportunities Registered In System Fully MDF-Funded Campaign Consistent Branding Assets And Messaging
  42. 42. SiriusPerspective: 42 Adobe Define & Assign • Actionable – Provided sales with clear visibility – Provided reasons to call • Profitable – Pay-for-performance rebate and MDF • Measurable – Real-time updates Enabling Partner-Led Activities: Adobe By understanding a customer’s propensity to buy, Adobe launched a best-in-class program that drives channel demand. 4 2
  43. 43. SiriusPerspective: 43 • Which segments would have the highest propensity to buy? • Is there specific functionality that would convince customers to upgrade? • Focused on the customer and choose natural segments that have a higher propensity to buy based on new functionality for that customer type Adobe’s Approach to Estimating Buyer Propensity Created messaging that communicated the value this new functionality offered the reseller’s target segment. 4 3 Feature Set A Feature Set B Feature Set C Entertainment Med N/R Low Education High Med High AEC N/R Low Low For Each Direct Marketing Reseller (DMR)
  44. 44. SiriusPerspective: 44 Define & Assign Impact on Partner Marketing Adobe realized higher revenue, better adoption and greater marketing efficiencies. 4 4 Impact Areas Results Strategic Supported Adobe’s launch of the latest Creative Suite through high-impact channels Channel Program ROI Top 20 percent of DMR sales reps drove 85 percent penetrations (3X normal average) Impact on Business $32M incremental revenue in 24-month cycle for N.A. Partner Type: Direct Marketing Resellers Size/Rev $200M-$9B Avg Deal $14K Coverage U.S. Target/Goal 125 percent of upgrade goal
  45. 45. SiriusPerspective: 45 • Used historical data to show channel partners exactly what the opportunity was for each rep, and tracked performance • Developed talk tracks that sales reps could use with existing customers • Realized early that one size doesn’t fit all; created campaigns that leveraged the strength of each partner Critical Success Factors Key to Adobe’s success was tailoring demand creation programs for specific partner types using the data it collected. 4 5 DEFINE & ASSIGN
  46. 46. Use Case: Employing Predictive Analytics in Cross-sell Campaigns
  47. 47. SiriusPerspective: 47 • Targeted 5,000 accounts with highest propensity to buy • Selected a cross-section of 16 partners to participate (based on capability, capacity, compatibility) • Increased the cross-sell and upsell of new products VMware Recommended Highest-Propensity Accounts The predictive recommendations focused partners on opportunity sweet spots and highest-propensity accounts to grow VMware partner bookings. 2.6X 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 2,000 4,000 6,000PurchaseProbability Accounts Predicted 20% 40% 60% 80% 100%0%  Heavily invested in vSphere Over 100 vSphere licenses Source: VMware  Security focused industry Source: VMware  Last Purchased View over 6 months ago Source: VMware  Aging desktops Company has desktops that will likely be refreshed in the near-term Source: Data Collaboration Agreement  High-Growth Company has grown 15%+ in 1 year Source: Lattice Business Events Source: Lattice-Engines
  48. 48. SiriusPerspective: 48 Impact on Partner Program Engagement and ROI By aligning partner capability and commitment, and focusing on partner engagement, VMware was able to help partners sell more and make more money. Supplier Impact Areas Results Strategic Global rollout determined halfway through pilot Channel program ROI #2 overall GTM initiative Impact on business Increased product adoption essential for VMware’s continued growth Partner Impact Areas Results Strategic Economic upside on renewal opportunities Program ROI Retooling and aligning renewals and sales functions Impact on business Three times more effective than organic cross-sell/upsell
  49. 49. SiriusPerspective: 49 • Structure and metrics were a big part of program success • Deal size, cross-sell rate in pipeline and bookings were defined up front, with control groups to evaluate incremental lift in pilot • Weekly pipeline management calls were established to confirm partner engagement and measure progress against opportunities Critical Success Factors Early program success, evidenced by partner bookings and breadth of products sold, was used to fuel momentum for accelerating global rollout.
  50. 50. 50 In Summary (dress up) • Marketers need to apply different approaches to creating demand when they are addressing a defined universe of direct and partner named accounts. A systematic approach is required. • Analysis and account and buyer insights, along with clear goals, form the foundation for an effective defined-universe plan. Partner sales and channel marketing cooperation is an important factor. • Upselling and Cross-selling success starts with applying ABM principles when gathering account information, prioritizing channel accounts, and planning to build effective tactics partners can use.
  51. 51. 51 In Summary Marketers need to apply different approaches to creating demand when they are addressing a defined universe of direct and partner named accounts. A systematic approach is required. Analysis and account and buyer insights, along with clear goals, form the foundation for an effective defined-universe plan. Partner sales and channel marketing cooperation is an important factor. Cross-selling and upselling success starts with applying ABM principles when gathering account information, prioritizing channel accounts, and planning to build effective tactics partners can use.
  52. 52. 52 Questions? Connect with eCoast: Email sales@ecoastmarketingcom Website ecoastmarketing.com Blog blog.ecoastmarketing.com LinkedIn linkedin.com/companies/ecoast Twitter twitter.com/ecoast Facebook facebook.com/ecoast
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Laz Gonzalez from SiriusDecisions and Juliann Grant from eCoast Marketing discuss the key factors in implementing successful cross selling campaigns in the channel. Suppliers want to expand their footprint within their reseller client bases and capture new market share. Meeting growth targets from indirect channels can be challenging, since many resellers are not exclusive and represent multiple suppliers to best compete in the market.

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