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Designing A Successful Channel Strategy Siia V2

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