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The Keys to Building a Winning Partner Enablement Strategy

February 11, 2010

William Gilsing, VP Global Strategies
hawkeyes Partner Enablement Series

Winning Partner Enablement Strategy

Our 2010 webinar series with Baptie focuses on partner enablement.
Today Keys to Building a Winning Partner Enablement Strategy
April 22 Enable Your Partners with Proven Solutions
Deal registration
Global payments
June 22 Best Practices in Partner Rewards
Best-in-class approach to partner
Case study in implementing a
reward/incentive solution
October 20 Innovative
Communications and Training to
Enable Partners
Communication solutions to engage
Training and certification 2010 hawkeye, all rights reserved. 2

Solutions for the worlds leading companies.

Why hawkeye?
You can depend on hawkeye to maximize your channel investments

2009 Hawkeye
2007 Hawkeye PartnerConduit and
expands into SaaS offerings
2003 Hawkeye Asia Pacific
expands into
2000 Hawkeye
acquires Cohesion

1998 Hawkeye
Group founded Channel focused. Strategic, experienced minds.
Rare insight into emerging channel trends with a
quest for game-changing opportunities.
1996 Cohesion,
Inc. founded Results driven. Flawless execution in translating
strategic concepts into real channel solutions with
a laser focus on results. 3
Winning Partner Enablement Strategy
Hawkeye Channel Practice
hawkeyes mission is to develop and execute innovative, technology-
enhanced channel marketing strategies and programs that allow our
clients to deliver incremental channel growth in terms of mindshare,
channel solutions, and indirect sales.

Programs new!
Enablement Channel
Channel Strategy Performance Collaboration
Insight Measurement Growth
Best Practices
the Value of
Todays Agenda

Winning Partner Enablement Strategy

Pinpoint and enable partners worldwide to increase revenue and
penetrate new customer segments.

Prioritize partner segments to

optimize channel investments
Conduct channel performance
health checks
Leverage partner input
Qualitative research
Partner Advisory Councils 2010 hawkeye, all rights reserved. 5

PARTNER SEGMENTATION AND ANALYTICS 2010 hawkeye, all rights reserved. 6

Partner Segmentation and Analytics
Understanding Your Partner Base
Optimizing your channel investment starts with understanding two key
points about your partner base:
1. Identify partners currently contributing
significantly to your channel revenue
2. Identify partners with potential to
contribute significantly to your channel
revenue stream 2010 hawkeye, all rights reserved. 7

Partner Segmentation and Analytics
Segmentation and Analytics
Segmentation/Tiering exercises help you not
only understand current top-performing
partners, but segmenting out partners with
the potential to perform well.

Analytics provide you with more

detailed snapshots of partner group
performance and trends. 2010 hawkeye, all rights reserved. 8

Partner Segmentation and Analytics
Partner Segmentation & Tiering

Population Wealth




Wilfredo Pareto

Use for looking backwards and looking forward

Use for understanding and prioritization of accounts independent of or
in conjunction with any other tiering or partner labels 2010 hawkeye, all rights reserved.

Partner Segmentation and Analytics

Accounts % Accounts Performance

Actual %
20% 15% Results
45% XX%
80% 50% XX%

% Results
We use a 4 level Pareto distribution 15%
rather than the usual 20% / 80% rule 5%
to provide better granularity and especially to identify XX%
the lower level 45% of partners who are expected to 80% XX%
provide 45% of revenue.
20% XX%

10 2010 hawkeye, all rights reserved.
Partner Segmentation and Analytics
Facilitating Partner Growth
Encouraging and enabling partners to grow to a higher tier requires:

Coverage and capacity understanding

Who are the value accounts with growth
True potential?
Partner Programs
Value Hard and soft benefits for moving up
Revenue growth support (leads, MDF, etc.)
Competency enhancement
Practical means of supporting partners to sell
and support solutions and customer
Communication and engagement
Effective indirect communications and
information access
Prioritized and efficient direct touch 2010 hawkeye, all rights reserved. 11

Partner Segmentation and Analytics
What You Do Depends on What You Want

Solution Goal

Expand Current Strategies and tactics to

Customer Types encourage and enable your
value partners to grow from
Target New
Existing Customer Size one tier to the next will be
Segment somewhat or considerably
Target New
different depending on:
Customer Vertical
Revenue Segment
Target Is it an existing or new
Sell to Current
product, solution, or service?
Customer Types Are you targeting the current
New types of customers you have,
Sell to New or new customer types size
Types segment / vertical segment?
Partner Segmentation and Analytics
Road Map to Success
Partner Data Collection and Analysis

Identify and populate the partner data base with key attributes required for success with the product or solution

Coverage and Capacity Understanding

How many of what kinds of partners Which of your current partners have What is the priority for recruiting and
do you have that could sell the the characteristics required to sell engaging individual partners for the
service? the solution? existing solution?

Program Design Recruiting

Hard and Partner Skills Indirect
and / or and
Soft Benefits Enhancement Communications
Enhancement Activation

How do requirements of What different or What are best, easiest, What are best, easiest, What indirect
current partner program additional rewards need affordable methods for affordable methods for communications and
need to be modified or to be offered to insure partners to develop inbound and outbound direct sales touch
enhanced for this specific the desired behaviors? knowledge and skills to communications for the resources can be applied
solution / partner set? sell the solution? solution? to reaching the target

Demand Generation

How can we generate, or better yet enable the partner to drive, demand for the solution?

Results Analysis, Action Plan Refinement, Expansion
Partner Segmentation and Analytics
The Role of Analytics
Analytics are key to helping you understand issues and
opportunities related to channel revenues and program
performance and prognosis for the future (based on trend
Maximize revenue and ROI of
channel investment
Identify opportunistic groups of
partners for revenue growth
Reduce / refine wasted program
Identify effective programs /
actions for expansion
Improved forecasting
Partner Segmentation and Analytics
The Role of Analytics
Basic data most everyone has
Sales out data
Program performance data (participation activity and costs)
Core partner attribute data (typically partner accreditation or tier
Sales engagement (managed versus unmanaged)

Data that permits even more

robust drill down and insights Depth and breath of analytics and
Account attributes like: actionable insights are limited only
by data availability
Partner business models
Customer size segments
Solutions offered Two key challenges:
Services offered 1. Buy-in & sponsorship of key
Certifications held
2. Data accuracy & consistency
Competitors carried
Partner Segmentation and Analytics
The Role of Analytics
Pareto level assignment Continuing vs. new account
Our breakout of the traditional 80% / 20% performance (same store)
rule in to four levels for better partner Are new accounts doing better or
opportunity understanding and prioritization worse than continuing accounts, and
what are the implications?
Total performance
Especially important when partner
Total accounts base is being expanded
Revenue, program participation, expense,
etc. Program specific measures
Program participation, utilization, cost
Account activity frequency
Attach rates / cross sell
How many partners are actually buying or
participating in a program in any given Return on investment against
period or over time? incremental revenue

Average performance per account Comparatives

How do accounts in different levels or
(APA) with different attributes, who do or do
How much revenue and / or other not participate in different programs
performance measure does each partner or perform vs. other accounts, or those
groups of partners produce / incur in any who do not participate?
given period or over time?
Account Base Churn Top level and drill down to
How many partners have been added, specific products and partner
how many have dropped out, and what attributes
has been the impact on revenue?
Partner Segmentation and Analytics
Analytics: Overall and by Partner Attributes
Total and By Product / Solution
Period to Period
Trends / Trend Forecast
Core Performance Measures
Partners Participating / Not Participating
Buying / Activity Frequency P2P % Change - All
Average Performance per Account (APA) APA

Additional Measures


Account Base Churn

Account Performance Churn By Classification -30% -20% -10% 0% 10%
50,000,000 Pareto Level 4 (Bottom 50%) New vs. Continuing
100% % Change from Previous Quarter
40,000,000 Pareto
90%Level 3 (Next 30%) New vs. Continuing
Count Adds, Drops, Net Change 30,000,000
100% 70%
Pareto Level
60% 2 (Next 15%) New vs. Continuing
Core Performance Measures / Results Add, 20,000,000
100% 70% 50%
60% 40%
1 (Top 5%) New vs. Continuing
100%70% 50%
Drop, Net Change 0
90%60% 40%
80%50% 30%
20% 0%
70%40% 10%

New vs. Continuing Accounts (Same Store)

(10,000,000) 60%30% 0% Continuing Accounts New Accounts
(20,000,000) % A c c o unt Accounts
Continuing s in Le v e l New%Accounts
Le v e l P e rf o rm a nc e
Platinum Gold 40%10%
Business Distributor Unknow n
30% 0% % A c c o unt s in Le v e l % Le v e l P e rf o rm a nc e
% Accounts / % Revenue by Partner
New Count, Continuing Count 100% Drops
Adds 0%
Continuing Accounts
% A c c oNet
unt s Change
in Le v e l
New Accounts
% Le v e l P e rf o rm a nc e

New Performance versus Continuing Core 80%

Continuing Accounts
% A c c o unt s in Le v e l
New Accounts
% Le v e l P e rf o rm a nc e
Performance Measures 40%

Segment Data Associations 0%

P latinum Go ld B usiness
P artner
Unkno wn Other

Above by Partner Classification and / or % Accounts % All Revenue

other partner attributes categories)

Above By Partner Classification within
Pareto levels and / or Revenue Bands
Partner Segmentation and Analytics
Analytics Key Points

Complexity Executive Buy-in Consensus Practical Tool

Dont confuse Obtain buy-in The successful Analytics are

analytics with from Finance, use of analytics more than an
descriptive Channel requires analytic
statistics. A Operations, consensus exercise; they
skilled business Channel within your are a practical
analyst with Marketing, and organization on tool that uses
business Channel Sales. the data sets to solid
industry use (sales, information to
knowledge can marketing, etc.) guide your
perform the and what you channel
required and want to report investments
crunching. 2010 hawkeye, all rights reserved. 18

HEALTH CHECKS 2010 hawkeye, all rights reserved. 19

Health Checks
What are Health Checks?
Hawkeye recommends partner program audits health checks to
better help you understand your program offerings, processes and
business rules and to identify opportunities for improvement. The
results of a program health check are prioritized, actionable

Health Checks by Program Offering

Partner Forecasting & Prioritization Partner Communication
Channel Coverage & Capacity Incentive Management:
Planning Promotions, SPIFs, Rebates
Opportunity Management MDF & Co-marketing Programs
Partner Marketing & Sales Tools 2010 hawkeye, all rights reserved. 20

Health Checks
General Health Check Approach
A health check review should be able to answer these kinds of general
questions about your program offering:
Analysis of the program business rules and
Does the program motivate the desired
partner behavior?
Is the program well integrated with other
programs and offerings?
Does the program include metrics to measure
Is the program implemented globally with
appropriate regional localization?
Does the program enable partners and align
with best practices for that type of program? 2010 hawkeye, all rights reserved. 21

Health Checks
Key Issues - Checklist
Top Level RTM Partner Programs
How do I determine if I should or could go What do I need to enable my partners
after a particular segment? and how do I accomplish it?
What are the right RTM approaches and What are the most critical things and in
mix of direct and indirect sales? what priority do I need to offer different
How do I organize and present my partner types?
channel ecosystem so that my entire How do my hard and soft program
organization can understand and buy-in to benefits stack up against BIC and my
it? competition?
Channel Coverage & Capacity How do I test and validate my program
value proposition?
How target customers want and need to
How do I optimize my channel program
acquire my products and solutions?
How many of what kinds of accounts do I
How do I best measure the performance
have and how are they performing?
of my partner programs?
How many of what kinds of partners to I
need to achieve revenue / segment goals? Partner Communications
What are the practical methods of valuing What are the best practices for partner
and forecasting that I can realistically communications and sales engagement?
apply in my organization? How do I efficiently and effectively
What is the gap between what I have and manage the flow of the right messages to
what I need? the right partners through the right
How do I build a target list of partners to media?
recruit? 2010 hawkeye, all rights reserved. 22

Health Checks
Design & Implement Programs Based on Partner Lifecycle

Plan & Create

Recruit Enable Sell Service Retain

Partner Strategy/Tactics
Provide value Tools, systems Marketing Clear Partner-specific Partner
proposition to and training/ program and engagement technical development and
target and certification to resources to policies and resources and collaboration
recruit partners enable partners access new pricing assistance
and to fill to identify/ markets and Partner
geographic and close acquire new Profitable, communications.
market opportunities, customers. easy-to-execute
coverage needs sell and deploy transactions
solutions and fulfillment
Partner Programs/Treatments
Profiling, Leads/Oppty Pre and post Rewards and
Registration, Training and Co-op/MDF Mgmt sales support. incentives
Qualification Certification Advertising Joint sales calls RMA policy and Advisory boards,
Self-service, Demo/Eval Matchmaking procedures product briefings
collaborative Roadmap Channel
PRM Co-op/MDF customer sat

Performance Analytics
Health Checks
Health Check Example: Opportunity Registration
Audit checklist:
Reduce administrative burden
Review program participation are the right Enter Review
Opportunity Opportunity
partners registering the right opportunities?
Review program uptake/usage
Consider ability to support different partners,
Approve Win
different kinds of deals/flexibility Opportunity Business
Reduce program complexity Review
Make Claim
Audit reward levels Competitive? Effective? Do Claim
they reward the right behavior?
Analyze processes Review opportunities to
streamline, automate Approve Payment
Claim Processing
Trustworthy to partner?
Integration with other applications, databases
Payment process Timely? Able to support multiple Reporting
currencies? Compliant with regulations? 24
Health Checks
Health Check Example: Partner Communication

Extranets & Intranets

Newsletters & RSS
Partner Locator Tools Map messaging and
Targeted Collateral methods to goals &
Sales & Marketing Tools objectives
Blogs & Forums

To Field
Measure, evaluate & Push the right To Partner
modify messaging and information to the right Thru Partner
communications users at the right time To Customer

Measure page views, page Centralize all

hits, and click-throughs communications on
Use surveys, interviews easy-to-use self-
and/or focus groups service portals 25
Health Checks
Health Check Example: Incentive Management
Audit Checklist
Map rewards to behaviors
Reward desired behaviors
Review program flexibility
For partner types
For localization
Provide end user tools & training
Review program communication
Evaluate ease of use
Reduce administrative burden
For partners
For program administrators
User guides, documentation
Opportunities to automate, streamline
Analyze program ROI
Provide differentiation between tiers
Effective reporting?
Integration with other tools, databases
Analyze payment process, regulatory compliance 2010 hawkeye, all rights reserved. 26

Health Checks
Health Check Example: Incentive Management

Channel Programs
Channel Strategy
Channel spend Analysis
Program Economics
Program Effectiveness Partners, Individuals,
Managers Teams

Sales In Spend
Sales Out (POS)
Business Incentives
Leads Referrals
Customer Sat
Business Process
Training, etc.

Analyze: Improve Program Spend Effectiveness 2010 hawkeye, all rights reserved. 27

RESEARCH & PARTNER ADVISORY COUNCILS 2010 hawkeye, all rights reserved. 28

Research & Partner Advisory Councils
Beyond the Numbers
Enabling your partners involves more than looking at the data about
program offering usage you also want insight into why partners adopt
some behaviors. Partners also have insights into your end customers
needs as well as unique perspectives on trends and anticipated needs
to sell your solution.

Qualitative research and Partner

Advisory Councils help you understand
partner perceptions of your program. 2010 hawkeye, all rights reserved. 29

Research & Partner Advisory Councils
Why Use Research
Research provides insights into programs and partners that helps you
understand partner behavior beyond program metrics and data
Assess partner satisfaction with
current programs and identify and
prioritize enhancements
Develop and enhance indirect sales
strategies and partner programs
using information specific to the
individual program
Understand how programs and
strategies stack up in the
marketplace and against the
Know what partners need to
enhance their business and
facilitate sales of solutions and
products 2008 hawkeye, all rights reserved. 30

Qualitative Research Dos

Research & Partner Advisory Councils

Do engage in research that leads to change
no research for researchs sake
Do communicate back to your partner
community dont raise expectations about
a program by conducting research and then
ignore what your partners tell you
Do update your partners on changes made
to your program as a result of research
Do value your partners time keep research
efforts tightly focused.
Do coordinate research efforts across
business units so that you dont research
your partners to death
Do make research a regular part of your
partner enablement strategy as you continue
to make program adjustments and
enhancements 2010 hawkeye, all rights reserved. 31

Research & Partner Advisory Councils
Talk With Your Partners
Qualitative research techniques rely on relatively small groups of
participants and are not analyzed statistically. Examples include focus
groups and interview studies.

Not another
survey! 2010 hawkeye, all rights reserved. 32

Research & Partner Advisory Councils
Planning a Research Engagement
Research design is unique for each study and is developed through
scoping. Some of the items discussed:

Ultimate goal of the research Will the study be blind or

what is the desired outcome? sponsored? Who at the
What is the desired time frame? company will provide specific
What is the geographic reach sponsorship if participants
for the study? Affects not only need to verify authenticity?
language/translation, but timing Recruitment, contact lists
given holidays in various Anonymity assumed for all,
regions, identification of unless internal stakeholders
appropriate methodology since are to be identified
some techniques are not Participants stake in the
successful in some regions. research, incentives
Participants who, how many (honoraria, sharing results,
What other research has been etc.)
conducted similar to this or with Budget
the projected participants? 2008 hawkeye, all rights reserved. 33

Partner Advisory Councils
Why establish a Partner Advisory Council?

Partner Advisory Councils

help you stay in tune with
partner needs as well as
market trends and even
end-customer needs.

PACs can give you a

significant competitive
advantage, helping you
to establish a clear
differentiation from your
competitors. 2010 hawkeye, all rights reserved. 34

Partner Advisory Councils
Advantages of a Partner Advisory Council (PAC)
A thoughtfully designed and implemented PAC can become the
cornerstone for establishing strong manufacturer-to-partner
relationships. PACs can help you continually fine-tune your partner
enablement by through effective dialogue with key, knowledgeable
Provide a formal, highly visible feedback vehicle
Build trust
Provide prestige to the partners selected
Give you valuable insight into market trends and the knowledge to maximize
your channels value 2010 hawkeye, all rights reserved. 35

Partner Advisory Councils
Planning a Meeting
A successful PAC meeting begins with the planning:
Partners recognized as leaders, with significant information and expertise
Select partners to represent your partner base
Select a good working group size about 15
Ensure that partners can commit to at least one year of participation (no more than
5 years)

Plan on meeting formally twice per year
Duration about 1.5 days of discussion
Structured roundtable discussions
Provide access to executives

Time commitment
Access to senior executives
Results 2010 hawkeye, all rights reserved. 36

Partner Advisory Councils
During the Meetings

Make it Senior Minimize

meaningful Management evangelizing
Partners are Participation Focus on listening!
businesspeople Builds credibility
ensure their time on Partners feel valued
the PAC is a if key decision
worthwhile makers are present
investment of their to act on PAC
time recommendations 2010 hawkeye, all rights reserved. 37

Partner Advisory Councils

It is essential to follow-up after PAC

Translate PAC learnings into action
Program changes
Product/solution enhancements
Provide periodic updates to the
PAC 2010 hawkeye, all rights reserved. 38

CONCLUSION 2010 hawkeye, all rights reserved. 39

Keys to Your Partner Enablement Strategy
Realign your partner segmentation strategy
Use partner segmentation analysis to guide your channel investments
Identify not only top performers but partners showing strong growth potential
Perform regular channel health checks
Use these audits to measure whether programs and tools achieve your goals
Obtain partner feedback before shifting priorities
Research gives you insight into partner needs
Be selective in your research efforts
Ensure that partners know you have listened and acted on their feedback circle
Strengthen ties with key partners with a PAC
Use them as a sounding board for channel program strategies and tactics
Share technology road maps
Obtain buy-in for your enablement strategy

Free White Paper from hawkeye:

Partner Segmentation: Best Practices in Ranking and
Prioritizing Your Partners 2010 hawkeye, all rights reserved. 40

William Gilsing
VP, Global Channel Strategies 425.656.5891 2010 hawkeye, all rights reserved.