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Driving leads through channel ecosystemsEric Martin, Senior Director of Marketing at SAPBrennen Roberts, Managing Director at Pepper Global
© 2013 SAP AG. All rights reserved. 2
Agenda
• Introductions
• Overview of indirect pathways and key success factors
• SAP case study
Indirect pathways
© 2013 SAP AG. All rights reserved. 4
Large Enterprise
Strategic Industries
DIRECT SALES
INDIRECT SALES
Distributors
VENDOR
SystemIntegrators
Corporate Resellers
Strategic Alliance Partners
OEM Partners
Technology Partners
SME
Pathways aren’t always that simple
A coordinated approach increases the effectiveness of all activities
VARs/ Software Houses
SMB
SOHO
Public Sector
© 2013 SAP AG. All rights reserved. 5
The important role partners play in the buyers journey
Of the Customers surveyed:
Of the 65% with no brand preference, 90% purchase the
brand recommended by the resellerOf the 35% with brand
preference, more than 50% purchase an alternative brand
recommended by the reseller
77% purchase brands recommended by the
reseller
Partners are in the drivers seat
Source: Channel Advisor Report
© 2013 SAP AG. All rights reserved. 6
Holistic approach to channel
Thinking in terms of direct, to & through
1
2
3
Communication to the market
Communication to partners
Communication through partners to the market
VENDOR
CHANNEL PARTNERS
CUSTOMERS
1
2
3
© 2013 SAP AG. All rights reserved. 7
Conflicting goals between manufacturer and retailer
Sales performance dependent on reseller competence and willingness to invest time and resources
Channel frustration about “canned marketing” approach and one-way communication
Money spent on brand & demand gen without knowing who end customers are
Limited control over customer experience and satisfaction
VENDOR
CHANNEL PARTNER
Weak decision basis for allocation of sales and funds
Channel challenges along the direct, to & through paths
Vendor “noise”that makes it difficult to prioritize efforts
!
!
!
!
!
!
!
END CUSTOMERS
The typical solution provider decision maker gets 81 VENDOR
COMMUNICATIONS every week
Most outbound channel messages are about the VENDOR not the PARTNER and the PRODUCT not the OPPORTUNITY
Market estimates suggest
approximately 50% of potential MDF funds go unused
© 2013 SAP AG. All rights reserved. 8
Channel solutions that inform, engage & train
Develop compelling fund allocation and subsidy model
Offer a comprehensive and up-to-date co-marketing service portfolio
Share customer data
Provide right offers
Co-develop programs/trainings
Provide end-to-end support
VENDOR
CHANNEL PARTNER
END CUSTOMERS
Provide right channel partner incentives via loyalty programs
Ensure partner support is seamless and effective
© 2013 SAP AG. All rights reserved. 9
Buyers journey with channel integration
Security Level: Confidential
Integrate all steps for a seamless journey
AdvocateDiscover Consider Commit Sell
AdvocateDiscover Consider Decide
PARTNER AND BUYER JOURNEY INTEGRATION
Provide a continuous state of channel readiness
Develop and support
Engage Enable Market & SellStrategy
© 2013 SAP AG. All rights reserved. 10
Introduction to SAP
Eric MartinSenior Director, Ecosystem & Channels Marketing, SAP North America
In this role Eric is responsible for driving the marketing agenda to support lead and revenue generation for SAP North America’s high growth channel objectives.
Eric has also held lead roles in other portions of the SAP North America Marketing organization, including regional, service, and solutions marketing roles. Most of his focus has been on the Small and Midsize Business Segment. Eric recently represented the SAP North America Marketing team at the company’s annual Winner’s Circle recognition program after leading a successful summit for North American channel partners.
Eric earned his BA and MBA from Villanova University and teaches a Marketing course within Villanova’s MBA program.
© 2013 SAP AG. All rights reserved. 11
Introduction to SAP
SAP is the world’s largest software solutions provider offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 102,500 business customers in over 120 countries, the company is listed on several stock exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP."
Channel success at SAP
© 2013 SAP AG. All rights reserved. 13
To achieve this goal, SAP needed to provide channel partners with effective and turnkey demand generation programs, helping them turn prospects into qualified leads and ultimately close deals
Situation overview
20% of revenue from channel sales
40% of revenue from channel sales
FY11 FY15
FY11 SITUATION FY15 GOAL
Objective: Double the amount of revenue generated from channel sales in four years
© 2013 SAP AG. All rights reserved. 14Security Level: Confidential
Aligning SAP’s needs with the partners’ needs
SAP NEEDS:
• Effective translation of marketing platforms to target audiences
• Engaged partners who fully utilize what they’re given
SAP
CHANNEL PARTNER
PARTNER NEEDS:
• Own customer relationship
• Marketing, sales and technical support
• Easy-to-use, easy-to-optimize program
• Seamless and effective MDF process
• Branding and awareness support
SAP Marketing Service Bureau
END CUSTOMERS
© 2013 SAP AG. All rights reserved. 15
SAP VIRTUAL AGENCY
Self ServicePartners select campaigns and choose between Self Execution via Virtual Platform or local Certified Agencies
FulfillmentMaster Agency
Manages Agency Recruitment, Enablement, Certification, Payment, Reporting & Performance
SAP Channel Partners
West
MSB program management frameworkOverview
Design
MSB Project TeamLeadership Strategic lead , Program Build, Set KPIs, design packages,
Provide processes, tools, assets, budget, Infrastructure
CoordinationMSB Hub Liaises with SAP, Partners and Agencies to coordinate the process from package request to execution
PromotionMarketing Leads“Position and Sell” the packages to the partners and ensure that expectations are met
Full ServiceSAP mandates selected certified agencies to build turn key programs with fixed cost, fixed scope and fixed ROI
SAP Certified Agencies
West | Central | East | Canada
© 2013 SAP AG. All rights reserved. 16
SAP Virtual Agency
SAP Virtual Agency helps partners: Reduce costs in campaign
execution Leverage SAP solutions
messaging & related marketing templates
Increase lead volume
A destination where partners can create, manage and execute demand generation campaigns and events
© 2013 SAP AG. All rights reserved. 17
SAP Virtual Agency
Demand Gen SELF SERVICE
(Through-Web Platform)At partners’ disposal & initiative
Access SAP developed campaign assets ready to download or self-execute via the SAP Virtual
Agency’s online platform which enables quick development of HTML email campaigns for free
Demand Gen FULL SERVICE
(Through- 3rd Party Agency)
Leverage exclusive turn-key campaign packages developed by SAP Certified Marketing Agencies with fixed-price and scope, integrated execution,
predictable ROI and access 100% MDF promotion!
SAP VIRTUAL AGENCY
© 2013 SAP AG. All rights reserved. 18
Demand generation activities in Virtual Agency
AdvocateDiscover Consider
Advocate
Commit Sell
Discover Consider Decide
OUTBOUND TELEMARKETING
LEAD NURTURING
SOCIAL MEDIA
GUARANTEED LEAD GENERATION
INBOUND MARKETING
All programs in Virtual Agency map to stages in buyers journey, ensuring partners select campaigns that meet their specific sales focus
ONLINE MEDIA
IN-PERSON EVENTS
© 2013 SAP AG. All rights reserved. 19
A closed loop collaboration between SAP, agencies and partners
Push/Pull marketing services Landing page Data capture Lead qualification
Lead conversion
Agency lead inputMSB report
Nurturing
CRM back matching Partner deal/opportunity registration
Partner campaign automation via Virtual Agency
© 2013 SAP AG. All rights reserved. 20
Streamlined reporting for partners and SAP
• An automated reporting summary provides a consistent reporting infrastructure for SAP and agencies
• Leads are qualified based on pre-established BANT criteria, ensuring partners have the information necessary to follow-up and bring leads further into the sales funnel
© 2013 SAP AG. All rights reserved. 21
MSB results
42 active
Since inception of the NA MSB in June 2011:
$8.8M
generated in
USD Pipelinefrom completed campaigns
170%
Lead Goal Attainment
147 campaigns ordered
147
Full service
campaigns ordered
139
Partners who used virtual agency content and/or campaigns
© 2013 SAP AG. All rights reserved. 22
MSB initiatives for 2013
Optimize campaign management and reporting
• Develop closed-loop system to gather feedback from partners on campaigns
• Close the gap on lead-to-MGO conversion:• Improvements to lead reporting• Staff augmentation services
• Improve internal reporting and drive workflow efficiency
Increase MDF Utilization
• Develop MDF incentives
Drive campaign uptake
• Launch agency showcases and Marketing Campaigns & Best Practices enablement
• Simplify and prioritize options
Expand services offered
• Grow list of MSB certified agencies to meet new partner needs:• Staff Augmentation• Online Hiring Advertisement services• SAP Now Digital Network Advertising
Enable agencies • Align with SAP Direct on tele agency training modules and processes
© 2013 SAP AG. All rights reserved. 23
Key learnings/steps for success
Pay for performance set-up ensures leads are generated and qualified for partners
MSB enables partners to sell by providing the marketing programs and structure partners need
Corporate SAP support ensures internal alignment and MSB prioritization
Continual measurement of programs, agencies and leads ensures MSB is continually evolving and meeting partner and SAP needs
Partners like lead guarantees – SAP has skin in the game
Thank youEric Martin
Senior Director, Ecosystem & Channels Marketing, SAP North America
Brennen Roberts
Managing Director, Pepper Global