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Formalizing and Globalizing Channel Partner Programs
Chris Doggett, Director of Global Channel Sales
September 30, 2009
Presentation Focus
Review the creation of a formal partner program designed to:Leverage current capabilities and strengths
Provide predictable results, offer future scalability
Can be applied globally, accommodating regional differences
Differentiates the program from your competitors
Maximizes productivity and achieves ROI objectives
Offers partners benefits that make investing attractive
Approach is to use Sophos as a Case Study
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Agenda
BeforeNegative ConsequencesAfterPositive Business OutcomesHow We Did It
DesignPlanCreateLaunch
What’s Next?Best Practices & Recommendations
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BeforeRegional channel programs operate independently
Best practice sharing all but non-existent
Many groups lack resources to pursue goals and objectives
Marketing reflects product features and benefits only
Systems generally lack capabilities to track and manage contacts
Performance measurement lacking, most management anecdotal
No formal rules of engagement established in most regions
Approach to managing partners is specific to individual CAMs
Partners not able to access education, tools and information easily
Deal registration, lead and opportunity management lacking
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Negative ConsequencesProductivity of channel sales teams well below average
Partners reliant on Sophos for all sales support and activities
Ease of doing business is sub-par, labor intensive for Sophos
Unable to market to and through partners effectively
Smaller regional teams are largely reactive, unable to meet needs
Lack of metrics results in sub-optimal investment and management
Partner trust is low due to variability of interactions with Sophos
Program benefits and differentiators unclear, partnership not valued
Partner training very low, limiting knowledge to a few key partners
Competition for internal resources results in missed opportunities
Approaches and results vary greatly between regions5
STOP
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Overall Program Vision
LEVERAGE CURRENT STRENGTHSLEVERAGE CURRENT STRENGTHS
Many different programs ww(some are successful)
A few best partners, many underperformers (fulfilment only)
Proposition varies in geo's
Sales coverage models vary per region
Scalable performance and values based program structure
Partners as an extension of the Sophos sales force (beyond fulfilment)
Clear, diversified value propositions based on partner type
TODAY VISION
Limited value metrics in program
Limited incentive to utilize online training
High-touch not prioritized against performance and skill
High level of responsiveness
Leverage Sophos strengths into programs
Enforcement of certification
Programs to incentivize growth
Global automated deal reg/lead gen
Inconsistent partner planning
No dashboard view of partner’s performance
Automated business planning andstandardized scorecard
Incorporate customer sat metrics
Engage
Enable
Measure
Partner LifecyclePartner Lifecycle
AfterPartners able to access information & education easily
Quoting, deal registration and ordering available online
Rules of engagement are understood and valued by partners
Partner performance and contributions are measured & compared
Marketing activities markedly increase in volume and efficacy
All regional teams are able to leverage program materials & tools
Program benefits and differentiators understood and valued
Internal resources are able to be prioritized in terms of greatest need
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Positive Business Outcomes
Education volume skyrockets, partners skills and incremental contributions increase
Partners able to perform sales tasks autonomously, volume increases
Partners share leads and engage Sophos more often and earlier
Incremental new business increases substantially
Regional teams able to execute more programs with better results
Leading performers are recognized, partnerships strengthened
Productivity and scalability increases enable profitable growth
Partner trust of Sophos improves substantially, co-selling increases
Program and system development efforts yield highest ROI
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How We Did It – DesignConcept: clear differentiation, superior value, scalability for growth
Approach:Worldwide surveys
Stakeholder Interviews
Partner Interviews
Benchmarking
Industry experts
Sophos best practices
Resulting Information:What’s working, what’s not
How we compared to industry and competitors
SWOT Analysis, differentiators & core competencies 9
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How We Did It – Design: Guiding Principles
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• 1:1 Stakeholder Interviews• Partner Surveys
What Partners Value Most
• Industry Research• Subject Matter Experts
Sophos Key Differentiators
Industry Best Practices
• Partner Survey• 1:1 Partner Interviews
What Stakeholders Need
• 1:1 Stakeholder Interviews• Sophos Best Practices
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Differentiate SophosPartner ProgramAutomated Tier 3 Partner ProgramAutomated Deal Registration and Lead Distribution ProgramPartner-to-Partner Collaboration ProgramMentor ProgramStar ProgramSales Support SLAsIncorporate Customer Satisfaction Results
How We Did It – Design: Focus On Key Capabilities
Achieve Competitive Program Parity
Certification ProgramServices specializationServices Partner ProgramIncorporate Partner SatisfactionPost Sales Technical TrainingPerformance Rebates (LAR & VAR)Field SE Coverage
How We Did It – Plan: Program Elements
Partner EngagementProfiling and segmentation
Business value proposition
Recruitment plan and process
Partnership Value Proposition
On-boarding process and resources
Rules of engagement
Ongoing communications
Partner portal/automation
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How We Did It – Plan: Program Elements (cont.)
Partner EnablementSales training
Technical training
Sales support and teaming
Technical support and tools
Marketing support and tools
Pricing and margin model
Performance incentives
Partner collaboration
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How We Did It – Plan: Program Elements (cont.)
Partner Performance MeasurementPartnership planning & account management processes
Partner scorecards and assessment tools
Partner and end-user satisfaction
Effectiveness and ROI of program
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How We Did It – Plan: Budget & Financial Modeling
Guiding Principles:Overall Sales & Marketing spend in line with industry standards, so no net increase
Adjustments to partner rewards must be revenue neutral and balanced across tiers
Reallocation of marketing resources offset by increased productivity
Program BudgetingSignificant one-time investments to create new program were approved
Significant internal resource allocation (staff) to build and launch program
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How We Did It – Create
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Provide platform for developing expertise
All new partners enter as Silver Partners Limited investment to joinAutomated for ease of business Opportunity to FastTrack to success
Metrics recognize partner’s “total value”Capabilities – sales, technical expertisePerformance – revenue attainment, new business contribution
Benefits increase with partner’s commitmentAcross sales, marketing, technical and training support
Three levels to support partner goalsSilver, Gold and Platinum
Four possible margin scenarios:1. Partner originates new lead for Sophos2. Incumbent partner renews existing license3. Sophos supplied, partner is actively engaged4. Partner provides pricing and fulfillment only
This structure offers some unique benefits:Partners who invest time and effort into the sales process earn an explicit margin advantage over all other partnersPartner originated opportunities cannot be “poached” by any other partners based on price, regardless of their partner levelProfitability is more predictable, less gross margin erosion due to competition, registered opportunities are guaranteed commission
How We Did It – CreateCreate reward structure with protection
How We Did It – CreateCreate clearly defined benefits and requirements
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How We Did It – Create
Sales Developer
Identify business opportunities
Trusted Sales Advisor
Satisfy customer needs and close deals
Trusted Sales Engineer
Offer technical pre-sale support
Trusted Professional Services Consultant
Offer pre-sale proof of concept and technical consultancy
Provide platform for developing expertise
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Substantially improved user experience –easy, useful & personalized
Self-maintained company & user profile information
Local control of content & programs
Intuitive, streamlined training process
Enhanced marketing campaign tools
Complete information on our program
New partner locator on Sophos.com
How We Did It – CreateProvide platform for communications,training and partner management
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Comprehensive resource for managing all opportunities
Live pricing, quoting, ordering, deal registration, promotions
Many new features including:
Credit card ordering
Deal registration
Marketing promotions
Discretionary discounts
Smart filters & views
How We Did It – CreateProvide platform for efficient business
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Customized marketing programs &
Online lead generation programs
Co-branded email campaigns
Call blitz campaigns
Whitepapers, product evaluations, tools for web download
Trade show sponsorship
Seminar- or webinar-in-a-box
Print and/or online advertising
How We Did It – CreateProvide platform for better marketing
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How We Did It – LaunchPreparation
Program materials
Internal training
Communications templates
Presentation templates
Portal content
Launch ActivitiesWebcasts
Regional Events
Announcements
Portal login changes
CAM : Partner briefings23
Today’s Business Climate
• Selling IT solutions is more competitive than ever
• Many lines of IT solutions are suffering declines in demand
• Some vendors are turning away from the channel
• Customers are demanding more for less
• Cost of sales have increased
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How We Did It – Launch: Context
Our Value Proposition to PartnersThe new SPP is designed to recognize and reward partners’ efforts, with a business model that is more reliable and profitable than the alternatives
Our new program offers:– Higher growth rates with greater
retained margins– Better sales support, tools and
systems to make selling easier– Higher quality solutions that yield
satisfied customers who buy more– A recurring revenue model that
grows over time– Best customer support + a more
efficient program = higher profitability for you
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How We Did It – Launch: Messaging
Strategic Partners: The Sophos Outlook
High touch, proactive management
Significant investments
Best-in-class co-selling approach
Highest growth rates
More new customers ©Fo
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How We Did It – Launch: Messaging
We offer direct rewards for effort
We combat margin erosion
We reduce channel conflict
We protect partner investments
We offer the best quality products
We offer the best support
We offer predictable profitability
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Highlights of New ProgramHow We Did It – Launch: Messaging
What’s Next?
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Introduce new lead distribution and management processes & systems
Enhance capabilities and programs for regions with two-tier distribution
Introduce CAM Training Program
Implement advanced virtual technical training capabilities
Optimize systems for partners (workflow, usability, features)
Enhance partner performance measurement capabilities
Expand pilot programs showing best results and most potential
Introduce additional professional services opportunties for partners
Formally pursue larger partnerships (service providers, internationals)
Engage external expertise as needed
Leadership based on expertise and current role
Diverse team representing all stakeholders in the business
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Best Practices and Recommendations
Define business requirements, ensure systems can support them
Regional communications & collaboration throughout process
Extensive planning, preparation and internal training
Document all systems, policies and procedures
Engage key partners ahead of public announcements
Extensive testing (internal and external)
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Going Global – Program Design & Ownership
What to CentralizeValue proposition Profiling requirements and utilization Partner types and tiers (including Global level partner)Overall incentive structuresOverall marketing fund entitlement & utilization rulesContent management/entitlementTraining/certification requirementsPartner Portal structure (messaging, materials, tools)Global Partner Relationships
What to RegionalizeDiscounting levels and available incentives payoutsMarketing fund levels Partner Portal content (e.g., local events & marketing activities)Partner collaboration tools
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