Framework partner ecosystem summary_v sharma_2018
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The document outlines a framework for building a successful partner ecosystem with four pillars: white-label partners, system integrators, technology partners, and value added resellers. It discusses defining clear objectives and strategies, selecting the right partners, providing internal capabilities and systems for partners, implementing an effective go-to-market model to avoid conflicts, conducting partner marketing, ensuring partner success through various enablement activities, and using key performance indicators and analytics to measure the ecosystem. The framework is meant to help companies stimulate revenue growth by creating value for customers through their partner relationships.
Framework partner ecosystem summary_v sharma_2018
- 1. A Framework for Successful Partner Ecosystem Vineet Sharma
- 2. Partner Ecosystem – 4 Pillars White-label (OEM) Partners System Integrators (SIs) Technology Partners Value Added Reseller (VARs) + Managed Service Providers (MSPs) Partner Ecosystem Sell with Sell thru Sell with/thru Sell to Sales Motion Partner Type Partnership is all about creating value for the customers!
- 3. Framework for Building a Successful Partner Program, to Stimulate Revenue Growth Partner Marketing/ Field Marketing Channel & Alliances Sales 7 Keys to Partner Program Success Objectives & Strategy Program & Partner Selection Internal Capabilities & Systems Go-To-Market Model Partner Marketing Partner Success KPIs & Analytics 1 6 5 4 3 27
- 4. Key Questions to Define Your Strategy How do we get from “where we are” to “where we want to be” using the partner ecosystem? Define a value proposition for each partner type based on their needs and drivers Outside-in approach – ❑ How do we enhance our customer value through our partner ecosystem? ❑ Can partners improve our products and services offerings to the customers? ❑ What partner ecosystem mix do we need to meet our strategic goals? Make sure to have executive support and management buy-in Objectives & Strategy
- 5. A Model to Define Your Channel Penetration Variable Level 1 Level 2 Level 3 Company Matureness Start-up Looking for a profitable and scalable business model Stable Growth Profitable and growing faster than the market Leadership Domestic market share >20% and global market penetration initiated Market Matureness Emerging Market There are only few and small providers of this type of solutions Fragmented Market Several providers, but none with >20% market share Mature Market A few clear market leaders with < 20% market share Channel Matureness Low Less then 25% of the market can be reached through channel partners Medium 25-50% of the market can be reached through channel partners High >50% of the market can be reached through channel partners Customer Touch and Sales Cycle Low No field sales required -avg. sales cycles <3 months Medium Field sales required-avg. sales cycles are <12 months High Field sales required-avg. sales cycles are >12 months Value-add Potential Low Auxiliary products and services are <50% of CLV 1 Medium Auxiliary products and services are 50-75% of CLV High Auxiliary products and services are >75% of CLV Channel Importance Low <25% of the revenue is from channel partners Medium 25-50% of the revenue is from channel partners High >50% of the revenue is from channel partners Channel Development Stage Early Mode <25% of the revenue is from current partners Growth Mode 25-75% of the revenue is from current partners Mature Mode 25-75% of the revenue is from current partners Note: CLV=Customer Lifetime Value; Source: “ Building Successful Partner Channel” by Hans Peter Bech Objectives & Strategy
- 6. Define Program Levels & Responsibilities Define your partner program levels Define what responsibilities and benefits that comes with each level Most partner programs have different levels. This type of framework is used to define what partners that are more involved in your partner program. It is also used as a way to motivate partners. For an example by joining the education program and getting certified the partner can achieve a higher partner status and get more benefits. Partner Program & Selection The program should stand out. Your competitors are also fighting for same partners attention
- 7. Business Compatibility 1. Is the partner sales/management receptive? 2. Do they have strategic partnership with our competitor(s)? 3. Do we have any joint business use cases? 4. Is the partner strategic to our success? Market Potential 1. What is the market opportunity $$ of partnership? 2. How much incremental rev. they can bring? 3. Do they have a growing customer base? 4. Can we accelerate our market growth with the partner? Partner Selection Criteria Technical Compatibility 1. Is the solution a good fit for technology? 2. Do we have existing connectors? 3. Do they support the current versions? 4. Are the product roadmap aligned? Current Engagement 1. Have the technical team tested the solution? 2. Are the sales teams currently engaged? 3. Do we have any joint customers? 4. Do we have any joint marketing activities? The focus should be on building deep and strategic partnerships for the benefit of end-customers Business Compatibility Market Potential Current Engagement Technical Compatibility Partner Program & Selection
- 8. Internal Capabilities & Systems ❑ Partner Portal with Social/Mobile UX ❑ Deal Registration ❑ On-Demand Training ❑ MDF ❑ Technical Support Internal Capabilities & Systems Self serving portal with automated processes and measurements
- 9. GTM Model – Avoiding Channel Conflicts Defining a clear Go-To-Market model is important to avoid the channel conflict A channel conflict arise when a channel partner’s perception of roles, responsibilities, and accomplishments are not consistent with the perceptions of vendor. The power struggle between the “Direct Sales” and channel partners can be avoid by having clear rules of engagement Minimizing channel conflict: ➢ Define clear “Rules of Engagement” for direct sales and channel partners ➢ Divert fulfillment of orders to partners ➢ A robust deal registration system with clearly defined processes and online tool ➢ The direct sales should be encouraged to work with the channel partners with a win-win approach ➢ The direct sales team should be able to earn same level of compensation when selling through channel Go-To- Market Model Channel should be seen as an extension of the sales team
- 10. Three Levers of Partner Marketing Create Value Enable Engage Bi-directional intelligent communication • Partner Community approach, Mobile enabled and App ready • Feedback mechanism inbuilt; Gamification Right material at right time • Sales, Marketing and technical enablement • Aligned to Sales Stages, Usage statistics Metrics Driven Demand Generation • Partner Marketing campaigns, webinars, events • Real-time Dashboards, Partner Value Score Partner Marketing
- 11. Online Partner Enablement Kit – An Example Objective: To enable the Account Managers, Sales Engineers and Technical Teams of the partners Format: Short Videos and voice over slides Pre-requisites Sales & Marketing Module Product Module Topic Duration Message from the CEO 3:51 min Market Perspective 3:33 min Partner Program Highlights 2:51 min Topic Duration How to start the conversation 3:34 min Differentiators 2:08 min Value Proposition 4:51 min Use cases overview 3:40 min Use case 1 2:35 min Use case 2 2:01 min Use case 3 2:56 min Customer wins examples 4:05 min Knowledge check – 15 questions Topic Duration Product Overview 2:20 min Main Feature 1 2:12 min Main Feature 2 3:24 min Main Feature 3 2:12 min How to use demo 3:47 min How to handle Support? 3:48 min Vision and Roadmap 6:20 min Knowledge check – 15 questions Partner Marketing
- 12. Partner Success – What it means Partner Success is about understanding Partner’s business model, motivators and pain-points and taking initiatives to empower them to become successful. Managing the technical and business relationships with partner ecosystem to maximize customer value There are four areas: ➢ Technical Enablement ➢ On-Going Support ➢ Knowledge Enablement ➢ Business / Sales Relations Partner Success Management is more than just Partner Support It is important to incorporate the access to support resources and services knowledge into your program offering The role of PAM should shift to ensure partner’s success rather than just pipeline management and forecast. An improved partner experience will enhance customer experience Partner Success
- 13. Implementing a KPI-Driven Partner Ecosystem Key Performance Indicator Definition Suggested Weightage Partner Sourced Revenue Revenue* from any deals sourced and executed by partner 20% Influenced Revenue Revenue* from any deals passed by the vendor and fulfilled by partner OR the partner helped in closing the deal 10% Revenue Growth A rolling 12-month comparison between current and previous year’s revenue 5% Pipeline ($M) Pipeline for next two quarters 5% Online Enablement completed Number of professionals with completed Sales, Marketing and technical module 10% Technical certification Number of professional with technical certification to implement the solution 15% Customer Renewal The customers % who renew the subscriptions every month 10% Customer Satisfaction Customer satisfaction score 15% Marketing Contribution Customer success stories, quotes or other support to vendor’s marketing 10% * Note: All data over 12 months rolling period KPIs & Analytics
- 14. Motivation Drivers and Elements Engagement with the partners in critical. Gamification can be an important element of the program to engage partners Easy to understand benefits of your partner program Partners can’t sell if they are not enabled. Motivate the partners to certify their solutions. Deliver excellent support Lead generation platform. Most partners have limited resources for demand generation activities A well laid out partner program guide
- 15. Other Important Factors for Partner Program 1. Customer First: Every investment you do should in the end benefit the customer. 2. Match your solution to the proper channel: This includes all your marketing material and information. 3. Just in Time Content: Make sure that partners have all the information they need to become successful. 4. Measure & Analytics: There are always room for improvements. 5. Consistency: It takes at least 90 days after signed contract before you can expect to see any sales at all. Don’t change your program to often. Instead focus on your program elements and how to deliver them even better. 6. Partner’s Roles & Responsibility: Make sure that you expectations are clear and that they are aligned to the partners business model. 7. Pre & Post Sales Support: with technical and sales assistance to help them grow their business. 8. Competitive Intelligence: Your partner will meet your competitors so make sure you keep them educated and informed. 9. Partner council, representing a cross section of partners to help you to keep a finger on the pulse of your channel's satisfaction. 15
- 16. Potential Pitfalls for Partner Program 1. Lack of Communication: A successful partner program demands constant engagement and improvements. 2. One Size Fits All: Beyond the obvious differences between mature and emerging markets, there lie governmental, financial and cultural differences. Consider these when designing a first-time channel program. 3. Investment in systems and resources. Without the appropriate allocation of resources, even the best program can't come to life. While you can outsource some areas to deliver various pieces, internal resources are still required. 4. Diverse channel ecosystem. Each partner type has unique requirements, expectations and perspectives. Be flexible with systems, programs and sales initiatives to maximize investments across a greater partner base. 5. Partner Selection – The partner you have signed up fails because there is a mismatch between expectations and the partners business model. 16