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3 Steps to Monetize Your Alliances: Step 3 – Choose the Right Business Model to Drive Revenue Impact

Part of a Series: Are Your Alliances Missing the Money?

In the past few weeks, I’ve been talking about how companies can drive revenue from their strategic alliances and answering the question, Are your alliances missing the money? Below are 3 steps that companies can take to drive revenue.  In talking to companies over the years, I’ve found that many (most?) companies are not able to measure revenue impact from most of their alliances. In today’s high tech industry, if you can’t measure it, it does not exist – and the resources to execute will also not exist…

Figure 1 below depicts this challenge visually. As discussed in Step 1: Building the Bridge, you need to have a complete set of programs to get to the customer – AND you need to have a closed loop feedback mechanism to measure your success (in terms of pipeline and revenue).

Figure 1: Measuring Alliance Impact – Across the ATM Bridge

Measuring Alliance Impact (bridge)

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3 Steps to Monetize Your Alliances: Step 2 – Set up your Organization to both “Hunt” and “Farm”

Part of a Series: Are Your Alliances Missing the Money?

In my most recent post I talked about the barriers that companies face as they try to monetize their alliances. I defined 3 Steps to Monetize these alliances and focused on Step 1: Build a Bridge between you and your alliance partners’ customers”. In this week’s post, I will focus on how to execute Step 2: Set up your Alliance and Bus Dev organizations to both “hunt” and “farm”.

“Hunting” and “Farming” are common analogies in the tech industry (particularly in the US) to describe different types of sales roles, and they apply to tech industry alliances roles as well. In the tech industry: (more…)

3 Steps to Monetize Your Alliances: Step 1: Build a Complete ATM Bridge to Your Customers

Part of a Series: Are your Alliances Missing the Money?

In my most recent post I talked about the barriers that companies face as they try to monetize their “strategic” alliances and the Three Steps to Monetize Your Alliances and Channels. You may notice that I put quotes around “strategic”. I added the quotes because in quite a few companies that I have worked with over the years, “strategic” was viewed as a subtle jab at alliances that did not drive measurable revenue. “Why are we investing in XYZ alliance?”, someone would say. “Oh, we’ve got to invest in ABC they are “strategic”, would be the reply. You can bet that someone in the room was thinking to themselves, “that is bull, we should be investing in XYZ instead…”

I’m not saying that many alliances are not “strategic”, but what I am saying is that because it is often hard to measure alliances impact, companies often do not develop complete GTM programs or execute crisply on alliances – partly because they are not able to see the impact (or lack of impact) on revenue. Without this measuring stick, business loses one of its critical success factors – the ability to course-correct based on results. I will talk about the approaches that can be used to measure alliance revenue impact in a future part of this series.

Today I will focus on Step #1, How to Build a Bridge between your products, your alliance partners’ products and your customers.

We’ve all heard the term “go-to-market” (or GTM), but it is usually used to describe the approach of launching a product. What do you call it when you are trying to launch a joint offering with an alliance partner? (It is like a product launch, only different… ) I call a GTM program for an Alliance, an “Alliance-to-Market” (or ATM) Program.

How to “Build an ATM Bridge” (more…)

Are Your Alliances Missing the Money? 3 Steps to Monetize Your Strategic Alliances (Part 1 of Series)

Part of a Series: Are Your Alliances Missing the Money?

The Alliances / Bus Development Perspective

It’s a late night after dinner at a company meeting or an industry conference.  The alliance and business development staff at your company begin to share war stories and grand ambitions for the next big deal or plan to drive revenue from a strategic alliance. Everyone is excited – and frustrated…  Looking back, the vision never quite gets fulfilled.  Something always ends up as missing – either the resources to support the deal, the GTM plan to convert opportunity into revenue, or the team just got distracted by “landing the next big fish”…

The Executive Perspective

I recently asked a friend of mine about his experience with monetizing strategic alliances.  He is a former top executive at a F100 company with thousands of staff in his business, and the author of a (great) book on leadership.  But his views on “Alliances” were jaded by countless bad experiences.  “I just don’t trust that Bus Dev and Alliances are going to drive value.  Something is always missing,” he lamented.  As a result, he rarely found that these groups were priorities for investment, and those grand plans that the Bus Dev and Alliances teams hatched in those late night sessions, never got the resources to give them a chance to succeed. (more…)

The Battle for the Next Generation of Networks: Where Will We End Up?

There has been a lot of press in the last couple of years on the next generation of the networking. The industry seems to have amassed a desire for change – but what form will that change take?

I talked about the evolution of the data center in a series of posts earlier this year called “Where is all this Going” and the second installment focused on the impact of VMware and virtualization and the pent up demand for change in the network.  I was talking to a friend and colleague a few weeks ago who worked at VMware starting in 2000 – long before VMware even had ESX…  He’s now involved in developing products for the next generation of networks and I asked him a simple question,“

“How does the level of customer pain from the network today compare to the pain to customers experienced from server sprawl and the inflexibility from physical servers back in 2003?”

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Channel Not Selling Your Products? 2 Steps to Connect Your Products to How Your Channel Sells (Part 3 of Series)

Part 3 of a Series: Channel Not Selling Your Products?

In the last two weeks, I’ve talked about diagnosing problems in your channel – and how you can address these challenges to grow revenue. You may have read these two posts excited to see your challenges in print, but also with a sense of doom.  You may have thought to yourself, “Darn, that is exactly the situation for my organization. But how can I change this situation?”

This week, I will talk about how technology vendors can make some basic changes to how they market and sell their products that will enable them to connect to how their channel sells.   I will focus on “Two Steps to Connect Your Products to How Your Channel Sells” – and discuss how technology vendors can follow these steps to unleash the revenue potential of their Products and Partnerships:

Step 1

Make sure you are connecting to the way that your channel sells, and not not falling victim to the “The Solution-Branding Box” that I talked about in Part 2 of this series.  The higher end resellers (the ones that you probably want to have selling your product) don’t position vendor products as stand-alone offerings, but instead position THEIR SOLUTION and THEIR BRAND to the customer, and talk about the vendor products as supporting proof points. Figure 1 below shows how a reseller positions their solutions to customers.  Look carefully at the center of the circle – the value proposition, training, sales tools and marketing campaigns all revolve around the overall Solution the reseller is bringing to market– not any of the component vendor products.

 

Figure 1: How Solution Providers Talk to Customers

 

Resellers sell their solution

 

Make sure you are connecting to the way that your channel sells, and not not falling victim to the “The Solution-Branding Box” that I talked about in Part 2 of this series.  The higher end resellers (the ones that you probably want to have selling your product) don’t position vendor products as stand-alone offerings, but instead position THEIR SOLUTION and THEIR BRAND to the customer, and talk about the vendor products as supporting proof points. Figure 1 below shows how a reseller positions their solutions to customers.  Look carefully at the center of the circle – the value proposition, training, sales tools and marketing campaigns all revolve around the overall Solution the reseller is bringing to market– not any of the component vendor products.

If you are operating “inside the box” like many technology companies, you only provide materials centered around YOUR PRODUCT (which is not what your best resellers are selling to customers…) As discussed in more detail in my earlier post about “The Solution Branding Box”, you are doing 2 things that cause big problems for your companies health:

  • #1 – You are not connecting with the way that your channel sells or the way customers buy – and you are missing out on revenue opportunities
  • #2 – You are wasting a lot of time and money creating materials that don’t fit what your channel needs.  You do need product assets, but you should not be creating a lot of assets that start the sales conversation with your product (or worse, one of the sub-products to your platform product.  You are creating materials without an audience – because the audience for your channel training is YOUR CHANNEL. Who is not the audience?  YOUR SALES TEAM! There can be a big different between what is needed to enable your field team and what is needed for your channel, and I will talk about this more in future posts…

Perhaps more subtly, if you bombard your channel with a ton of “product-push” resources (as discussed in my post, Does Your Org Structure Lead to “Push” Marketing (and Missed Revenue)?”, you distract them and increase the likelihood they will give up on selling your product and become passive non-sellers.  You may recognize these companies – they are the channel partners who look like they COULD sell a lot of your products, but don’t…    

Step 2

You can produce GTM programs for your channel that connect with how they do business and help them create a standard process for marketing, selling and delivering your products, as part of the Solutions that they sell.  Figure 2 below shows two key phases of this process.   Let’s start by looking at Phase 2: Execution. This looks pretty similar to what many vendors do to support their products and this is a good start at connecting with your channel.  If you are not organizing your training and tools in a way that is conceptually similar to the Promote, Sell and Deliver, this is an easy win to get started.  Ever heard feedback from your channel that your partner portal is a bunch of stuff and they are not sure how it is all supposed to be used? Changes are good that you have not mapped your materials to a basic process to show how they are supposed to be used.  Is it any wonder that a partner sales rep (who also sells 10+ other lines) doesn’t know how to find the information they need?

 

Figure 2: Connecting Your GTM Program to How Your Sales Channels Sell

Productization model - phase1and2

 

 

Phase 1: “Planning to Succeed” is really the “Out of the Box” ingredient in this process and there are two different and very powerful elements in this Phase.

  • The first element is the Planning Process, which should occur in the partner BEFORE marketing and selling.  Partners are like the rest of us in high tech – they see the world as full of opportunities (from many vendors) and they want to pursue many of the shiny objects that they see. So they market Solution A, train their sales team on Solution B, spend their time in front of customers reacting to what the customers ask about (and often not proactively driving any long term goal at the account).  Most partners do planning, but not for all of their product lines, or as well as they would like. To facilitate this planning, vendors should build their GTM programs with an explicit planning step and resources to support business planning.  Your CAMs need to have the tools and training to help drive a plan with resources inside your top partners – and by making your CAM a business consultant, you will stand out to your channel as a vendor that is focused on their success.
  • The second element is “Productization”, which is similar to what some call “packaging”.  When you “Productize”, partners create a set of predefined high-level GTM Solutions that include products from multiple vendors, and their professional services, to make it easy to market, sell and deliver the Solution as if it were one product.  We’ve all got the same problem – we have a few stars who can whiteboard and design a a custom solution on the fly and the rest of our sales team who are more “product-centric”.  How do you enable a product-focused salesperson to sell a complex solution?  By defining the solution like a product…

This post leaves me with two follow questions that I will cover in the upcoming weeks:

  • Question 1: How should tech vendors build their programs, tools and trainings to enable partners to “productize” Solutions (that drive revenue for your products)?
  • Question 2: How do vendors need to support these Solutions with an overall GTM program that includes training, sales tools, and marketing programs and a systematic way to measure success?

I welcome any comments below — And make sure you “Follow” our blog (look for the “Follow” link on the upper left) and have your say.  I’m also available as a public speaker, to support local and global events in Silicon Valley, or the rest of the flattening world… For more details, contact me via the form below.

 

Channel Not Selling Your Products? How Do You Fit Into the Way They Sell? (Part 2 of Series)

Part 2 of a Series: Channel Not Selling Your Products?

 

In last week’s post, I talked about the 3 Questions you can ask to diagnose problems in your channel

  1. What is the Value Proposition for partners to invest their time in selling your product?
  2. Is your product and go-to-market program “Channel-Ready”
  3. What is the Sales Process for your product and how does it fit into how your channel partners sell?

In this week’s post, I will explore Question #3 regarding the Sales Process in more detail. This question has some important (more…)

The Solution Blueprint: A Visual Tool for Connecting With Your Customers (and accelerating product revenue…) Part 4 of Series

Part of a Series: Helping Your Channel Sell Solutions (So They Can Sell More of Your Products…)

Last week I talked about the importance of using solution messaging to connect to your customers and build a strong foundation for your GTM program, in my post, “The Three Types of “Solutions”: Which One Do You Use to Market and Sell?

But how do you create a strong solution message?  A method that I have often used successfully is “The Solution Blueprint”.  Before I dive into describing the tool and how to use it, let’s back up and talk about some of the challenges that we typically encounter when we develop joint solution messaging with our alliance partners: (more…)

The Three Types of “Solutions”: Which One Do You Use to Market and Sell? (Part 3 of Series)

Part of a Series: Helping Your Channel Sell Solutions (So They Can Sell More of Your Products…)

SOLUTION is a word that can make any IT marketer cringe.  Everyone knows the industry should sell “solutions”, but what does that really mean?  It has become something of a cliché. If you add the word “solution” to any product name, it magically transforms from a “product-push” message to a customer friendly “solution message” – yeah, right.

In today’s post I will talk about the types of solutions (yes, there are several types) and when each type of message should be used in the marketing and sales process.  In next week’s post, I will talk about how to define solutions messaging in a way that connects with customers and is easy for your sales team and channels to use – and that drives revenue for your products!

Why is it Critical to Get Solutions Definition “Right”?

There are two major reasons why it is critical for IT vendors to have strong solution definition and messaging:

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Is the “Solution-Branding Box” Causing You to Miss Revenue (and Wasting 50% of Your “Enablement” Resources?) (Part 5 of 5)

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