Channel Tune - Where To Cut Where To Invest

Marketing BudgetWhere to cut / where to invest….

Facts and Leads….November 2009

Jack Mandard - compuBase

Who are we ?

• Created in 1989• European HQ Paris, France

• 25 persons from 10 different countries

• 10 outsourced call centres

• EMEA coverage:25 countries

• 12 languages used• 120.000 profiles• Services oriented

compuBaseOne universe: ICT industry / One expertise: Channel Partners

Vendors

Manufacturers

ISV

Assemblers

Distributors

Broadliners

VAD

Services

Integrators

Hosting

Training

Software House

Managed services

Resale

Chain

Group

Resellers

Vars

Managed ServicesResellers

Retail

Shops

Mass Market

e-tailer

We cover the 4 Worlds of ICT industry…

And all partner population

compuBaseHow we transform information into value

Data collection Organisation Marketing & BITools

compuBase Activity index

Technical skill index vertical speciality

Knowledge of offer Services, product

Contacts Profiling

Company Profiling

Database management matching, merging…

• ChannelData

• OnlineAccess

• Business Intelligence

Services

• Market Capacity

• Go to Market• Mapping & Benchamarkin

g• Value

Proposition

OutsourceServices

Austria 1308

Belgium 2963

Switzerland 2187

Germany 21393

Spain 7714

Portugal 1218

France 23364

UK 15891

Ireland 1062

Luxembourg 89

Netherlands 5055

Italy 9542

Denmark 2436

Finland 2926

Norway 1805

Sweden 4271

Poland 4410

Russia 4300

Czech Republic 1511

Hungary 1200

MEA

North Africa 2000

South Africa 2500

Arabic Peninsula 3000

compuBase120 000 profile of IT & Telecoms

PartnerManufacturer 7197

Software publisher 5417

Publisher of software for a specific activity 5983

Publisher of software for a specific process of companies 4193

Software solutions integrator (developed by third parties) 2215

IT services, Software development (hosting, maintenance, training, bespoke software development....) 35733

Telecom services (Telecom operator, ISP...) 3675

Telecom & network infrastructure integrator 2590

IT infrastructure integrator 2089

Consulting 4588

Reselling to individuals 14016

Reselling to enterprises (hardware, software & services & assemblers) 19822

Wholesaler (resale of IT products to resellers) 4956

Large Assembling company 155

Other ICT connected activities 3456

Total 120033

Route to success

© compuBase

2009

Goal #2

• Identify top partners

• Who exactly to recruit & why?

CHANNEL BENCHMARKING CHANNEL RANKING SALES OUT MANAGEMENT

SHARE OF WALLET

CHANNEL SCORING

CHANNEL AUDIT

RE-ALLOCATION

ANIMATION/ EXECUTION

CLIENT STRATEGY INPUTMARKET PRIORITIES INPUT

Goal #3• Prioritise partners• Good ressource

allocation

• What revenue to gain ?

In cooperation with other consulting companies compuBase services

RECRUITMENT

CHANNEL MIRORRING

Goal # 1

• Identify and indicate strengths and weaknesses

• What target group to recruit ?

Marketing priorities….

TOP priorities• Demand generation (83%)

• Client Loyalty programs (80%)• Company branding (80%)

• Launching new offers (64%)

DOWN prioritiesMore coop marketing (46%)

New Innovative Marketing process (45%)Outsourcing Marketing (3%)

Source IDC

2009 Marketing Budget….- 15 %

Source IDC

But what impact for the Channel Marketing Budget ?

Channel Marketing priorities….

Source Aressy/ IT partners

Resellers• Free Demo Product• Direct Contact• Ok for leads,

but only the qualified ones!

• No time for training• No time for

certification

Vendors• More proactivness for

new product launch.• Better usage of provided

leads.• More skilled partners.• More dedicated

partners.• Tracking ROI on MDF.

Be my sales force Easier, Faster sales & Margin.

?

How vendors deal with their channel marketing with

present resources….- N°1 Keeping my good partner active:

feeding them.- N°2 Analysis the market capacity:

understanding the territory gap, vertical gap, channel gap.

- N°3 Setting up systems to monitor and understand: measuring the ROI.

- N°4 Seeking for new market: emerging territory, emerging market, new channel.

Media priorities….

Declining Media: not ROI mesurable

All traditional Media >>>> Pure Branding

Uprising Media: ROI mesurable

Web, Directory, Events, white paper >>>>> Client Contacts, One to one

Marketing, eco-systems…Source Aressy / IT partners

Action Action Action! (but measurable)

Top preferred actions :Market sizing / capacity

- How many partners?How many distributors?

- How many indirect sales rep I must put?Recruitment

- Top Partner (no time for the other), ok but how to find them…?Outsource marketing

- What to internalize / what to externalize?- What to localize? / what to EMEAize? / what WWize?

Setting up SaaS platform- What platform?- Sales out management?- Lead distribution?- Lead management monitoring?- MDF management…?

What are your new priorities?

Business Intelligence Eco-Systems

Managing the Transactional FlowReaching new channel

Mastering Lead Generation ROIPartner Education & TrainingPartner concentration, M&A

One To One Marketing

Is this the end...?

Next time we will discuss about how to optimize budget....

Or...

BUDGET OPTIMIZATION

Can you tell the difference today between these two roads?

Speed?Time?

Easiness?Cleverness

?Efficiency?

Today it’s only

MONEY

What does not work….• Spend more money to get more revenue….• Spend more money to get more margin….

What works…..• Spend less money to get more or less the same

and dream for some more!

OPEX OPEX OPEX religion…

Which are the methods?

The magic onesThe realistic ones

How to spend less….The magic Method I

100

30

30

30

How to spend less….The magic Method II

80

30

30

30

How to spend less….

« A man with your abilities should go far..

Which is good because we’re outsourcing your job to Thailand »

The magic Method III – The Faraway outsourcing

How to spend less….The magic Method IV: Take out people keeping

the same tasks

How to spend less….For the Marketing most of these methods do not work…

Why?

• Most of the time because Marketing people are always short of budget and have already optimize theirs….

• Good news: we have clever people. • Bad news: is if we cannot change the result, we have

to change of paradigm…

What means “Changing the paradigm…”?

4 dots in a

square…How to

jointhese 4

dotswith a

max of 2 continuous lines?

Remember DELL in the 90sNo room in the channel for a new vendor

No time to build a channelToo expensive to build a channel

Change the paradigm

Let’s remove the CHANNEL… Let’s go directPrices go down fast … Let’s go faster being direct

Change again the paradigm

Let’s grow again, … Let’s go indirect

Remember ACER Top Distributors are blocked by HP

Top Distributors are spoiled by MDF vendorsCorporate Dealer snob new brands

Change the paradigm

Remove the TOP Distributors from the scope, let’s invest in local distributors

Let’s work with local VARs addressing SMB and forget the coorporate dealers.

Changing the paradigm…

•Optimize•Unionize•Cleanse

Change of paradigm…Optimize the scope of the business

• Number of products / range• Number of channels• Number of partners

Method 1: OPTIMIZE YOUR SCOPE OF BUSINESS

Method 1 – Channel Optimization

Channel

Size

A first Distributor

Many Distributors

A new channel

1st Channel Optimization

Acquisition – Channel Merge

Many Key Partners

Some Key partners

2nd Channel

Optimization

Time

250

500

1000

5000

50

5

OPTIMIZELess resellers

But good coverage

- By Channel- By industry

- By Geo

Method 1 – Channel OptimizationBenefits :

- Less partners to manage- Better coverage- More money per partner- Optimize your channel capacity, share of

wallet…- Reallocate resources

- Managed partners- Tele managed partners- Distributor Managed partners- Web managed Partner

Change of paradigm…Reduce the cost of your business

• Share Products catalogs• Share Channel Data collection• Share Channel Data Analytics

METHOD 2: UNIONIZENo money… Learn to Share!

Unionize = cloudShare with your competitors the costs of non

strategic tasks

What to share?TO SHARE or NOT TO SHARE?

CHANNEL BASIC INFORMATION YES

CHANNEL ADVANCED INFORMATION YES

CHANNE BRAND PERCEPTION NO

YOUR RELATION WITH CHANNEL NO

POS / SELL OUT REPORT DATA NO

POS / SEL DATA SYSTEMS PROCESSING YES

DIRECTORY / ICT REPISOTORY YES

DATA COLLECTION / UPDATE YES

MARKETING TECHNICS YES / NO

MARKETING STRATEGY NO

What to share

Key PartnersTelemanaged

PartnersUndefined / Not

ManagedPartners

Address

Basic info

Contacts

Contact names / emails

Permission

marketing

Economics

Activity

Turn over

Revenu origin

Market

Client target

Product sold

Etc…

My relatio

n

Sells out data

CRM

SharePrivate

Method 2 – UNIONIZE DATABASEBenefits of a unionized database:- Access to a larger scope of business in an

instant.- Avoid matching and duplicates removal cost.- Change target effortlessly.- Add new information instantly.- Manage usage.- Pay on usage possibilities.- Manage nixies easily.- Multiply by two the strength of your channel SI.

Change of paradigm…Reduce the volume of Marketing

METHOD 3: DATABASE CLEANSING

Method 3 – DATABASE CLEANSINGTYPICAL CLIENT CASE

• Original client database : 3,500 records• 2,400 found in the channel database• 600 errors from client’s database (deletion,

duplicates, mergers, etc.)• 500 profiling and integration in the compuBase

process• Online based system, permanent update• No data property....

Method 3 - CLEANSINGResults of a cleansing:- Reduce the mass of companies to address (average

minus 30%)- Increase Sales department’s efficiency and

confidence into the internal system, less wrong numbers, out of scope companies…

- Increase good telephone numbers (+20%)- Gain new emails (up to +50%)- Gain new contacts (up to 40%)- Gain new key fields for matching (Dun’s, VAT number,

National ID number…) for MI

Optimize your budget with thebenefits of a good database

Gain new business

opportunities with

Gain Sales team efficiencyreducing

Reduce the Marketing

expenditure removing

• Unknown clients• Unknown

contacts

• Lack of confidence

• Time lost• Wrong mail add.• Wrong email• Wrong tel.

number€

€€ Reduce the

Marketing expenditure

removing

• Wrong mail add.

• Wrong email• Wrong tel.

number

€

Gain Sales team efficiencyreducing

Reduce the Marketing

expenditure removing

• Lack of confidence

• Time lost

• Wrong mail add.

• Wrong email• Wrong tel.

number

€

€

Be enthusiastic & Keep the spirit