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Startup or New Product? Building a “Route-to-Market (RTM) Bridge” as the Foundation for Revenue

In a number of my posts in the past year, I’ve talked about the importance and best practices for “Building a GTM Bridge” to create a repeatable approach to marketing and selling your products – and drive more revenue. This process is shown in Figure 1 below.

 

Figure 1: Building a “GTM Bridge”

Building an GTM Bridge

 

Building a GTM Bridge – to Make Your GTM Approach More Effective

What I have seen is that within a vendor, many organizations are involved in supporting the marketing, selling and delivering of products and solutions through sales channels – but often this alignment does not occur. The dynamics of why this process breaks down is covered in more detail in my series, Why do Companies Struggle to Build the GTM Bridge?”

Here are some examples of what happens without a repeatable “GTM Bridge”: (more…)

2 Common Mistakes in Defining the “GTM Wheel” that Limit Product and Channel Revenue

Last week I talked about an approach to driving revenue for products and channels in terms of “Three Layers of the GTM Onion” and defined the base layer of the GTM in terms of a GTM Wheel. A wheel is a good analogy for developing a GTM program because there is a center, or hub of the wheel that is the center of rotation for the “spokes “that define the critical elements of the GTM Program.

In today’s post I will talk about this base layer of the “Onion”, the GTM Program Wheel (shown below in Figure 1), and two common mistakes companies make in in defining and executing the “Hub” and the “GTM Wheel” that can lead to missed revenue. (more…)

What Causes Products and Alliances to Miss Revenue Targets?: Two Common Gaps in the “GTM Bridge”

In a number of my posts this year I’ve talked about the key elements of a GTM program for a product or an alliance in terms of “Building a Bridge” between your products and your customers. The “Bridge” analogy is an apt description because for a product or an alliance to drive revenue, companies need to complete all of the key pieces of the bridge (who wants to go halfway across the bridge and then fall in the abyss below).  The Four Key Elements of the GTM Bridge are shown below in Figure 1.

  • Solution
  • GTM Program
  • Field Readiness
  • Sales Channel Execution

The question we are looking at in today’s post is where in this process do technology vendors generally have problems?  In my experience there are two parts of the GTM Bridge that consistently cause problems and lost revenue in technology vendor GTM programs. These challenges are highlighted by the Red in Figure 1 below.

  1. Solutions are not clearly defined and messaging does not connect with customer challenges (often “product push”)
  2. GTM programs are not adopted by field marketing, sales and channels teams (and programs are perceived to be “thrown over the wall”)

 

Figure 1: The GTM Bridge and Common Gaps in Execution

2 Major Gaps - Building a Bridge (not alliance focus)

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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…)

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…)

Do Your Product Business Units Lead to “Push” Marketing (and Missed Revenue)? (Part 2 of a Series)

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

We’ve all heard the term “Pull” marketing – and it’s something we know is beneficial and accelerates revenue. The option of “Pushing” doesn’t sound attractive – we associate a “pusher” with selling drugs or being a pushy used car salesman, But it can also apply to selling technology.  “Pushing” is exactly what technology marketers and sellers do when they push their product message out to a (sometimes) targeted audience, looking for interest.  And that message often does not include much information on “WHY” a prospect should be interested, but is chock full of what the “WHAT” the product does (and plenty of acronyms).

Figure 1 illustrates Push vs. Pull, according to Wikipedia1:

  • In “Push” marketing and selling, a product features are broadcast to customers in an effort to find interested customers.   My experience is that in “Push” marketing, the conversation is about the vendor.  The vendors’ product is the most scalable, flash-enabled, automated, eco-friendly, industry-standard, virtualized, cloud-ready, scale-up, windows-compatible, asynchronous, octo-core, THING on the earth. A lot of features and adjectives, but it may not be clear exactly why you need this THING…
  • In “Pull” marketing and selling, the conversation is focused on an expressed customer need.  My experience is that in “Pull” marketing, the conversation is about the customer, and marketing and sales frame products in terms of how they address customer problems.

Figure 1: Technology Push vs. Market Pull 

Technology-Push_Market-Pull

1-Source: Wikipedia Push-Pull Strategy, Feb 25, 2014

In previous posts such as “Building a Bridge to Drive Revenue From Your Alliances and Channels (Part 2 of 2)”, I’ve talked about what it takes to market and sell technology products in terms of” Building a Bridge” between a vendor’s products, and their target customers.  Figure 2 depicts this dynamic in terms of “Push vs. “Pull” Marketing in terms of the GTM Bridge.  In “Pull” marketing, customer needs connect back to a vendor’s product and there is a pathway for successful sales.   But in “Push” marketing, a vendor pushes their product message without connecting to customer needs, and that does not build a pathway for revenue.

Figure 2: Building a Bridge and “Push” vs. “Pull” Marketing

Pull vs Push Mktg (Bridge)

One reason is the “Product Box” – Companies want to sell their products, but customers want to buy a solution to their problem, and that “solution” often includes multiple products, and services (such as architecture, implementation and support) to make it work.   That is just not the way companies usually talk about their products.)  Another cause is the “Solution-Branding Box” – You build sales tools, training and campaigns around your products.  But your channel needs materials on the solution (which includes other products, plus services, that they can insert into their sales process…)

But the third major reason this occurs is the way large technology companies are organized – in particular, “Push” marketing often results from dynamics created by Product Business Units!  Product BUs make a ton of sense at some level – they align resources to opportunities, they give leaders the control of allocating resources and make them accountable for results.  So what’s not to like?  The issue is that over time, Product BUs tend to drive an internally-focused corporate culture (particularly if there is a shared sales force that sells across different markets and BUs).  To get sales to spend time selling their product, they have to convince sales (i.e. “sell them”) that the product meets their needs (profitable and easy to sell). Over time, a culture develops where for many in the organization – “Sales is the Customer”.   The sales team is clearly a very critical input on what customers need, but their perspective and incentives are not necessarily aligned with what customers want.  When organizations develop a “Push” culture, it can miss customer feedback and take a long time before the it recognizes the need to change in response to customer changing needs – putting revenue and even survival at risk.

From my experience and talking to colleagues in the technology industry, I think it is fair to say that the dynamics created by Product BUs has contributed to stagnation of large tech companies like Sun, Cisco, HP, Symantec, and many others.  In all of these cases, at least some parts of the organization lost touch with what the customer wanted and began to believe that customers would buy whatever the company wanted to sell (often their proprietary technology stack).  That strategy may have worked for a while, but ultimately customers need solutions to their problems, more than they need any single vendor.

So how can companies address this problem?  A key element of success in creating a “Pull” marketing and sales approach across the organization that focuses on SOLUTIONS that address customer problems.  As we’ve discussed before – solutions meet a customer business need and often include products from multiple vendors, as well as professional services. To accomplish this culture shift, organizations need to “Climb Out of the Box”, and pursue A New Approach For Driving Revenue with their Alliances and Channel.

A list of some of these changes was included in my post, “Are You Executing Out of the Box – A Checklist” – we will talk more about this topic in future posts.  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.

 

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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Do the “Ownership” and “Task Boxes” Cause Your Company to Miss Out on Revenue? (Part 4 of 5)

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Is Your Organization Missing Revenue by Marketing and Selling Inside the “Product Box” (Part 3 of 5)

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Are You Executing “Outside of the Box” with Your Alliances and Channels – The Checklist (Part 2 of 5)

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