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


•    Introductions
•    Overview of indirect pathways and key success factors
•    SAP case study




    © 2013 SAP AG. All rights reserved.                      2
Indirect pathways
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
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
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
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
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
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
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
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
Channel success at SAP
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
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
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 Recruitment, Enablement, Certification,           Marketing Leads
Liaises with SAP, Partners                              Payment, Reporting & Performance                        “Position and Sell” the
and Agencies to coordinate                                                                                      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
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
SAP Virtual Agency




                     Demand Gen                                 Demand Gen
                    SELF SERVICE                               FULL SERVICE
            (Through-Web Platform)                     (Through- 3rd Party Agency)
       At partners’ disposal & initiative

  Access SAP developed campaign assets ready to     Leverage exclusive turn-key campaign packages
    download or self-execute via the SAP Virtual    developed by SAP Certified Marketing Agencies
   Agency’s online platform which enables quick     with fixed-price and scope, integrated execution,
   development of HTML email campaigns for free    predictable ROI and access 100% MDF promotion!


                                      SAP VIRTUAL AGENCY


© 2013 SAP AG. All rights reserved.                                                                     17
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
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
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
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
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
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
Thank you
      Eric Martin             Brennen Roberts
      Senior                  Managing Director,
      Director, Ecosystem &   Pepper Global
      Channels
                              Brennen.Roberts@
      Marketing, SAP North
                              PepperGlobal.com
      America
      Eric.Martin@SAP.com

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Breakfast Seminar: Driving Leads Through Channel Ecosystem

  • 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
  • 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
  • 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 Recruitment, Enablement, Certification, Marketing Leads Liaises with SAP, Partners Payment, Reporting & Performance “Position and Sell” the and Agencies to coordinate 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 Access SAP developed campaign assets ready to Leverage exclusive turn-key campaign packages download or self-execute via the SAP Virtual developed by SAP Certified Marketing Agencies Agency’s online platform which enables quick with fixed-price and scope, integrated execution, development of HTML email campaigns for free predictable ROI and access 100% MDF 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, Director, Ecosystem & Pepper Global Channels Brennen.Roberts@ Marketing, SAP North PepperGlobal.com America Eric.Martin@SAP.com

Editor's Notes

  1. Technology example
  2. Channel meets needs to provide greater coverage at a lower price. The % of technology sales through indirect channels increased from 53% to 67% from 1997-2007 According to a study by Developing Indirect Channels: A Structured Approach to Reaching New Customers and Growing Revenues, Accenture 2011, Direct Sales had a cost of 63% of total sales vs a 1-Tier indirect model (Value Add Reseller) which was 61%, 2 tier indirect at 56% and web at 50%
  3. Deliver communication that’s relevant and personal to partners – one size does not fit all – in a recent survey with 100+ HP partners over 50% responded they would like to receive program updates weekly Provide MDF processes that are clear and have easy-to-understand rules with flexible activities – show partners you trust them
  4. Channel partners are now handling 33 percent of SAP (NYSE:SAP)'s sales, putting the giant software vendor within range of its goal of making 40 percent of its sales through the channel by 2015. That number is likely to continue growing given that small and mid-size enterprises (SMEs) make up 88 percent of SAP's net-new customers -- many of which are serviced by SAP's growing channel partner ranks.
  5. SAP’s Marketing Service Bureau provides a demand generation platform for SAP partners to access key enablement, campaign and best practice resources, then execute through a network of certified SAP Marketing Agencies. Goal: Support partners throughout the buyers journey to generate qualified leads and evolve the leads into closed deals.
  6. BenefitsLead reporting portal for agenciesLess error due to manual data entry/managementLess overall management of various data sourcesIncreased data integrity Data management roles allow necessary limited accessIntegrates campaign task timing efforts and auto-updates campaign status