Collaborative Selling in the Channel

October 31, 2011 by Robert Lesser | Comments Off

The imperative for technology companies is to grow fast.

Many technology vendors leverage the channel to power their growth and use one model or a combination of selling models for demand generation:

Vendor Led Selling

A small number of technology companies initiate all outbound calling internally.  Once qualified, the tech vendor will pass the leads to partners for engagement.   For example, one fast-growing $1 billion tech vendor avoids funding partner outbound calling but rather centralizes all outbound prospecting within their call center.   Another $1.5 billion tech organization calls against lists shared by partners and only passes leads to partners once qualified.

Vendor led demand generation can move very quickly to focus on high potential segments, leverage high quality and well targeted lists, and deliver on-target messaging by well-trained sales reps.

However, very few tech vendors use this model singularly due to the costs, resources and talent required.

Partner Led Selling

Tech vendors offer partners a menu of marketing programs and tactics that enable partner to generate leads without the tech vendor participating in the calling.    Like many tech organizations, Microsoft and Cisco enable thousands of their partners to create lead generation programs through self-service marketing portals.

By leveraging partner sales teams, tech vendors can lower their cost of sale, expand coverage and leverage partner customer lists.

Collaborative Selling

Tech vendors often team with their partners on selling.

Co-selling takes many forms: telesales, face-to-face sales meetings or at events, where both vendor and partner participate.

For example, one large software company runs a call blitz day that includes over 1,500 sales people at 300 partners.

Call blitzes provide tech vendors and their partners with a singular and compelling event to collaboratively generate demand.    This urgency and purpose drives sales activity and results.

An effective approach to align tech vendors and partners is in co-selling through a call blitz.    The collaboration is accelerated when training, coaching and incentives are included.

This model includes many of the advantages associated with vendor and partner led demand generation but does require mutual planning.

Photo Credit

Posted in channel, demand generation, inside sales, lead generation, telesales

Segmentation for the Nation

July 29, 2011 by Robert Lesser | 2 Comments

In earlier post entitled the Top Five Reasons to use Segmentation, I wrote about the importance of segmentation in B2B marketing.

Segmentation requires an in-depth understanding of customers generated through analysis and research.   Many large organizations either buy research from consultants and analysts or commission their own research.

A relatively new source of research is the tracking of B2B buyers in their online searches (SEM).   For example, the analysis of keyword searches can provide insight on pain points.

Unfortunately research on buyer behavior is neither affordable nor feasible for many businesses.

For those interested in segmentation, yet resource or budget challenged, I would like to share an alternative approach to segmentation that focuses on analysis:

Customer List – create a list of all of your customers, both active and dormant.

Win / Loss Report – compile a list of all lost customers.

Attributes & Metrics – list the metrics that define high value customers such as revenue, volume, profitability, frequency and recency of purchase.  For example, lifetime value may be more appropriate for your business than yearly revenue.   Create a list of the attributes that best describe your customers: size of organization, industry, geography, decision-maker’s department and seniority, structured buying process (e.g. RFP), displaced competitor, organizational needs etc.

Append Firmographic Information – Many demographic criteria are widely available on rental lists such as size, industry, contact title / department.   For a modest fee, you can take your customer file and ask a list broker to append your chosen list criteria.   Typically the broker will also cleanse and correct the customer list.

Add-in Key Metrics – for each customer, attach key metrics pertaining to revenue and profitability.

Ranking & Prioritization – then rank your customers based on key metrics and group the customers into five or ten segments.

Analysis – at this point your customers – won, dormant and lost – are grouped into segments, ranked from highest to lowest in terms of attractiveness and profiled according to important criteria.    Do you see any patterns?   Do your colleagues in sales and marketing validate the ranking and the segmentation criteria?    Are these segments unique and actionable for your marketing programs?

 

The above process is simple and straightforward.    By starting with analysis of your company data, you are pragmatically moving forward with your in-house data first.

As time and resources allow, your goal should be to start mixing in other sources of data.   The risk of using only your data is that your company’s experience may be very different from general marketing conditions and your analysis may be skewed.

Posted in B2B marketing, buyer behavior, database marketing, demand generation, market research, market segmentation Tagged , |

Juniper Networks: Reaching for the Sky, Feet Firmly on the Ground

April 17, 2011 by Robert Lesser | Comments Off

The mood was buoyant at the Juniper Networks Americas Partner Conference, held April 11 – 13 in Phoenix.

Juniper Networks is on a roll after coming off a strong 2010.   Revenue and operating margin in calendar/fiscal year 2011 is expected to grow by 20% and 23% respectively.

Wall Street sees Juniper growing faster than competitors such as Alcatel-Lucent (+13%), Cisco (+8%), Brocade (+8%) and HP (+4%).

Channel partners will benefit from a 20% increase in MDF funding and expanded support in the field in sales and service with a new general business group of 100 staff.

73% of revenue is generated through partners.  The service provider market is sold direct by Juniper.     Partners can sell $2 to $2.60 of services for every $1 of Juniper product sold.

You might expect some chest-thumping from the talented channel and marketing team that Juniper has put together.

However, these executives have their feet firmly on the ground.   All of the channel and market executives were welcoming and engaging.  The vibe was hugely positive reflecting the excitement of exponentially growing a $4 billion organization.

Emilio Umeoka, SVP WW Partner, joined my lunch table during the Conference.   He was unassuming as he conversed with a Brazilian VAR and Juniper partner account manager in his native Brazilian.

In a casual discussion, Luanne Tierney, VP Global Partner Marketing, spoke about the affable team that attracted her to Juniper from Cisco.     Luanne created a lot of positive buzz at the Conference with her Women in Technology lunch and her women’s initiative at Juniper.

Peter Finter, VP Americas Marketing, is a quick witted, dynamo who entertained a group of us after a dinner with humorous stories of life with his teenage sons.

Cisco has awakened to the threat from Juniper and other competitors such as HP.   This last week Cisco shut down the Flip video camera that was acquired less than two years ago from Pure Digital. As Cisco focuses on core business markets, the Juniper will be tested by its rival who is ten times its size.

My organization, Direct Impact Marketing, is the number one provider of third-party channel programs to Juniper Partners for the past two years.  We applaud Juniper’s success and are appreciative of the opportunity to work with this fast growing organization with such a stellar management team.

Video: Juniper outlines channel marketing plan for Canada  – Luanne Tierney & Peter Finter

Photo Credits: Before the Conference, I embarked on a hike in a regional park near Scottsdale and the photos above are from that scenic hike.

Posted in channel, events, sales Tagged , , , |