Channel Marketing for SaaS, Cloud, Hosting Companies

TOTAL PRODUCT MARKETING OCS CHANNEL DEVELOPMENT MODEL CHANNEL MARKETING FOR CLOUD, HOSTING AND TECHNOLOGY COMPANIES $109.6 B According to IDC, indirect spending via channels on software (including applications, application tools, and system infrastructure) accounted for $78.7 billion in 2012 and is predicted to reach $109.6 billion in 2017. 2012 2017 OPPORTUNITY CAPABILITY SUPPORT Define Market Opportunity Identify Capable Partners Provide Active Support CHANNEL GROWTH For most technology companies, the indirect channel has been and remains a vital part of their business. Companies drive about one-third to upwards of 80% OR MORE OF THEIR REVENUE THROUGH CHANNEL PARTNERS Technology sales through indirect channels increased 26% over the past decade and a half: DIRECT 33% 30% 47% 53% 67% 70% INDIRECT 1997 2007 2014 CHANNEL MARKETING APPROX. % OF TOTAL VARS APPROX. REVENUES MARKETING STAFF Small 80% O $1M - $15M 0-1 VARS Pİİ 1-3 Medlum D 15% $15M - $100M VARS Large VARS O $100M+ 5% 2-7+ Current marketing challenges reported by VARS: Traffic: List: Lead Pipeline: Blog / Publishing: SEO: Development: No nurture Minimal thought, focus or effort Struggle to do Minimal or no Minimal sales pipeline management one email management Minimal to no campaign per web publishing quarter TOP SALES EFFECTIVENESS INITIATIVES In a study by Accenture and CSO Insights2, 43% of sales executives surveyed cited revising their channel strategy as one of their top sales initiatives for the year: Improving Sales Rep Access to Information 57.1% Revising Our Channel Strategy 42.9% Revising / Enhancing Our Lead Generation Programs 42.9% New / Additional CRM Tools 35.7% Revising Our Sales Team Structure 28.6% Enforcing Sales Team Communications 28.6% Revising Our Sales Process 28.6% Revising Our Compensation Program 28.6% More Closely Aligning Sales and Marketing 14.3% Analyzing Our Customer's Buying Process 14.3% 0% 20% 30% 40% 50% 60% Figure 1. Revising their channel strategies is among the top sales initiatives for technology companies. Source CSO Insights'2013 Sales Performance Optimization Study TRENDS Lower up front costs means SMES can consume technology faster and cheaper Growth in Cloud Services - new More LOB Buyers A Much More subscription based models Consultative Approach Is Required THREE WHY SELL THROUGH OPPORTUNITIES AN INDIRECT CHANNEL? Re-examine incentives to reflect a Saas world Extended Reduce Augment Capability & Add Value Reach to Local Costs Markets PARETO'S PRINCIPLE: THE 80-20 RULE Recruit Cloud-savvy partners 80% of your sales from 20% of your partners. In reality, it will be more like 80% from 5% of your partners... But which 5%? Create program specialization by tiers/ products IDEAL PARTNER PROFILE Access to Target • Customer Base: • Territory Coverage: What type of sales force is needed and This is probably the most feature to look for in a how many? new channel partner. Technical Experience: • LI! How many years of experience do they have in the channel? Know-how: Depending on your product, technical-savvy may be a necessary requirement. Synergistic • 2 Product Line: What product lines compliment yours? Will you allow them sell competitive products or should they work exclusively with your product? • Complementary Services: Do they offer any specific services that complement and add-value to your product? • Financial Stability: A credit rating and Strategic Alignment: • What type of business do they target, how does this compare with your strategy? references should be required before formalising any agreement. Professional Interpersonal Rapport: • Is this a person/team that you can work with? Do you believe they will be a flexible partner? Impression: 11 Do they present themselves in a professional way? Information Provided By: Total Product Marketing www.totalproductmarketing.com | [email protected] YOUR SALES YOUR PARTNERS