The document discusses SAP's strategy to drive revenue through channel partnerships. It outlines SAP's goal to double channel revenue in four years by providing partners with effective demand generation programs. SAP launched a Marketing Service Bureau (MSB) program to develop turnkey marketing campaigns and reporting for partners. The MSB program increased qualified leads and pipeline for partners. SAP continues optimizing the MSB to improve lead conversion and expand offered services to better support partners.

1. Driving leads through channel
ecosystems
Eric Martin, Senior Director of Marketing at SAP
Brennen Roberts, Managing Director at Pepper Global

2. Agenda
• Introductions
• Overview of indirect pathways and key success factors
• SAP case study
© 2013 SAP AG. All rights reserved. 2

3. Indirect pathways

4. Pathways aren’t always that simple
SOHO
System
Integrators
DIRECT
SMB
SALES VARs/ Software
Houses
SME
Corporate
VENDOR Resellers Large
Enterprise
Strategic Alliance
Partners
Strategic
Industries
INDIRECT OEM Partners
SALES Public
Distributors Technology Sector
Partners
A coordinated approach increases the effectiveness of all activities
© 2013 SAP AG. All rights reserved. 4

5. The important role partners play in the buyers journey
Of the
Partners are in the Customers
drivers seat surveyed:
Of the 65% with no
brand preference,
90% purchase the
brand recommended
Of the 35% with brand by the reseller
preference, more than
50% purchase an
alternative brand
recommended by the
reseller
77% purchase brands
recommended by the
reseller
Source: Channel Advisor Report
© 2013 SAP AG. All rights reserved. 5

6. Holistic approach to channel
VENDOR
Thinking in terms of direct, to
& through
2
1 1 Communication to the
market
CHANNEL
PARTNERS 2 Communication to partners
3 Communication through
3 partners to the market
CUSTOMERS
© 2013 SAP AG. All rights reserved. 6

7. Channel challenges along the direct, to & through paths
VENDOR Vendor “noise” provider decision
The typical solution
! that makes it difficult to
maker gets 81 VENDOR
prioritize efforts
COMMUNICATIONS every week
! Money spent
Weak decision basis
on brand & demand gen
without knowing who ! for allocation of sales and funds
end customers are
Conflicting goals
CHANNEL ! Most outbound channel messages
between manufacturer and retailer
are about the VENDOR not the
PARTNER
! Limited
control
PARTNER and the PRODUCT not the
Channel frustration
over customer
experience and
! OPPORTUNITY
about “canned marketing” approach
and one-way communication
satisfaction
Market estimates suggest
Sales performance
! approximately 50% of potential MDF
dependent on reseller competence
funds go unused
and willingness to invest time and
resources
END CUSTOMERS
© 2013 SAP AG. All rights reserved. 7

8. Channel solutions that inform, engage & train
VENDOR Offer a comprehensive and up-to-
date co-marketing service portfolio
Share customer
data Provide right channel partner
incentives via loyalty programs
Provide end-to-
end support
CHANNEL Develop compelling fund allocation
and subsidy model
PARTNER
Ensure partner support is seamless
Provide right and effective
offers
Co-develop programs/trainings
END CUSTOMERS
© 2013 SAP AG. All rights reserved. 8

9. Buyers journey with channel integration
Integrate all steps for a seamless journey
PARTNER AND BUYER JOURNEY INTEGRATION
Discover Consider Commit Sell Advocate
Discover Consider Decide Advocate
Provide a continuous state of channel readiness
Develop
Strategy Engage Enable Market & Sell and
support
© 2013 SAP AG. All rights reserved. 9

10. Introduction to SAP
Eric Martin
Senior Director, Ecosystem & Channels Marketing, SAP North America
In this role Eric is responsible for driving the marketing agenda to support lead and
revenue generation for SAP North America’s high growth channel objectives.
Eric has also held lead roles in other portions of the SAP North America Marketing
organization, including regional, service, and solutions marketing roles. Most of his
focus has been on the Small and Midsize Business Segment. Eric recently
represented the SAP North America Marketing team at the company’s annual
Winner’s Circle recognition program after leading a successful summit for North
American channel partners.
Eric earned his BA and MBA from Villanova University and teaches a Marketing
course within Villanova’s MBA program.
© 2013 SAP AG. All rights reserved. 10

11. Introduction to SAP
SAP is the world’s largest software solutions provider offering applications and
services that enable companies of all sizes and in more than 25 industries to
become best-run businesses. With more than 102,500 business customers in over
120 countries, the company is listed on several stock exchanges, including the
Frankfurt stock exchange and NYSE, under the symbol "SAP."
© 2013 SAP AG. All rights reserved. 11

12. Channel success at SAP

13. Situation overview
Objective: Double the amount of revenue generated from channel
sales in four years
FY11 SITUATION FY15 GOAL
20% of revenue from FY11 FY15 40% of revenue from
channel sales channel sales
To achieve this goal, SAP needed to provide channel partners with effective and
turnkey demand generation programs, helping them turn prospects into qualified
leads and ultimately close deals
© 2013 SAP AG. All rights reserved. 13

14. Aligning SAP’s needs with the partners’ needs
SAP NEEDS:
SAP
• Effective translation of marketing platforms to
target audiences
• Engaged partners who fully utilize what
they’re given
CHANNEL SAP Marketing Service Bureau
PARTNER
PARTNER NEEDS:
• Own customer relationship
• Marketing, sales and technical support
• Easy-to-use, easy-to-optimize program
• Seamless and effective MDF process
• Branding and awareness support
END CUSTOMERS
© 2013 SAP AG. All rights reserved. 14

15. MSB program management framework
Overview
Design
MSB Project Team
Leadership Strategic lead , Program Build, Set KPIs, design packages,
Provide processes, tools, assets, budget, Infrastructure
Coordination Fulfillment Promotion
Master Agency
MSB Hub Manages Agency Marketing Leads
Liaises with SAP, Partners Recruitment, Enablement, Certification, Payment, Reporti “Position and Sell” the
and Agencies to coordinate ng & Performance packages to the partners
the process from package and ensure that
request to execution W expectations are met
e SAP Certified Agencies
s West | Central | East | Canada
t
SAP VIRTUAL AGENCY
Self Service Full Service
Partners select campaigns and choose SAP mandates selected certified agencies to
between Self Execution via Virtual Platform or build turn key programs with fixed cost, fixed
local Certified Agencies scope and fixed ROI
SAP Channel Partners
© 2013 SAP AG. All rights reserved. 15

16. SAP Virtual Agency
A destination where partners can create, manage and execute demand
generation campaigns and events
SAP Virtual Agency helps
partners:
 Reduce costs in campaign
execution
 Leverage SAP solutions
messaging & related marketing
templates
 Increase lead volume
© 2013 SAP AG. All rights reserved. 16

17. SAP Virtual Agency
Demand Gen Demand Gen
SELF SERVICE FULL SERVICE
(Through-Web Platform) (Through- 3rd Party Agency)
At partners’ disposal & initiative
Leverage exclusive turn-key campaign packages
Access SAP developed campaign assets ready to
developed by SAP Certified Marketing Agencies
download or self-execute via the SAP Virtual
with fixed-price and scope, integrated
Agency’s online platform which enables quick
execution, predictable ROI and access 100% MDF
development of HTML email campaigns for free
promotion!
SAP VIRTUAL AGENCY
© 2013 SAP AG. All rights reserved. 17

18. Demand generation activities in Virtual Agency
All programs in Virtual Agency map to stages in buyers journey, ensuring
partners select campaigns that meet their specific sales focus
Discover Consider Commit
Sell Advocate
Discover Consider Decide Advocate
ONLINE MEDIA
SOCIAL MEDIA
INBOUND MARKETING
LEAD NURTURING
OUTBOUND TELEMARKETING
GUARANTEED LEAD GENERATION
IN-PERSON EVENTS
© 2013 SAP AG. All rights reserved. 18

19. A closed loop collaboration between
SAP, agencies and partners
Partner campaign automation via Virtual Agency
Push/Pull marketing services Landing page Data capture Lead qualification
Nurturing Lead conversion
MSB report Agency lead input
CRM back matching Partner deal/opportunity registration
© 2013 SAP AG. All rights reserved. 19

20. Streamlined reporting for partners and SAP
• An automated reporting
summary provides a
consistent reporting
infrastructure for SAP and
agencies
• Leads are qualified based on
pre-established BANT
criteria, ensuring partners
have the information
necessary to follow-up and
bring leads further into the
sales funnel
© 2013 SAP AG. All rights reserved. 20

21. MSB results
Since inception of the NA MSB in June 2011:
147
$8.8M 170% 147
campaigns
ordered
139
generated in 42 active
Lead Goal Full service
Partners who
USD Attainment campaigns used virtual
Pipeline ordered agency content
and/or campaigns
from completed
campaigns
© 2013 SAP AG. All rights reserved. 21

22. MSB initiatives for 2013
Optimize • Develop closed-loop system to gather feedback from partners on
campaign campaigns
management and • Close the gap on lead-to-MGO conversion:
• Improvements to lead reporting
reporting • Staff augmentation services
• Improve internal reporting and drive workflow efficiency
Increase MDF
• Develop MDF incentives
Utilization
Drive campaign • Launch agency showcases and Marketing Campaigns & Best Practices
uptake enablement
• Simplify and prioritize options
Expand services • Grow list of MSB certified agencies to meet new partner needs:
offered • Staff Augmentation
• Online Hiring Advertisement services
• SAP Now Digital Network Advertising
Enable agencies • Align with SAP Direct on tele agency training modules and processes
© 2013 SAP AG. All rights reserved. 22

23. Key learnings/steps for success
Pay for performance set-up ensures leads are generated and
qualified for partners
MSB enables partners to sell by providing the marketing
programs and structure partners need
Corporate SAP support ensures internal alignment and MSB
prioritization
Continual measurement of programs, agencies and leads
ensures MSB is continually evolving and meeting partner and
SAP needs
Partners like lead guarantees – SAP has skin in the game
© 2013 SAP AG. All rights reserved. 23

24. Thank you
Eric Martin Brennen Roberts
Senior Managing
Director, Ecosystem & Director, Pepper
Channels Global
Marketing, SAP North
Brennen.Roberts@
America
PepperGlobal.com
Eric.Martin@SAP.com