CRM - January 2008 - (Page 32)

PARTNER RELATIONSHIP MANAGEMENT the phrase exists for a reason. It’s not enough to be a middleman, especially in the technology arena. “In the past, customers fell in love with the technology itself,” Dickie says. In the good old days, he adds, “ACT! sold like hotcakes. Not because of the partners—often in spite of them.” Today, that disconnect simply won’t fly: If a customer looking for insight and influence into a product doubts the partner’s connection to the manufacturer, that customer is going to look elsewhere. So how can a partner who isn’t intimately familiar and in regular communication with the vendor possibly be able to provide any extra utility? Having partners deal is making sure “Partners aren’t 100 percent just to build a long the arrangement is dedicated to you. If you don’t list is pointless; havsensible.“The success make it easy, they’ll sell ing them overlap of any channel stratsomething else.” your own core comegy is predicated on petencies can be displanning—the main goal of which is to reduce conflict,” astrous. Dickie suggests companies slice Dickie says.“What’s a win-win-win? Win their channels in clearly defined ways, for me, for customers, and for partners.” such as geography. Skill sets are another Channel conflict is a major barrier to good way—if a partner is good at selling success, because a partner who feels com- tablet PCs into medical venues, for exampetitive with the vendor has no motiva- ple, that’s what you should rely on that tion to communicate up the chain. It’d be partner for, and you shouldn’t chase that like siding with the enemy.You don’t want particular portion of business yourself. Another part of the challenge is motiyour partners thinking your sales force is going to steal their deals. “Smith Barney vating and supporting partners to excel. has a sales force, but also works with advi- Lead generation is one of the ways in sors. The sales force may see them as com- which you’re most valuable to your partpetition, but Smith Barney corporate sees ners, pointing them to new business. Configuring solutions for them to further them as partners,” Dickie says. WHAT ARE THE CHALLENGES? One of the first things companies must deal with when constructing a partner inthe network WE POSED SEVERAL QUESTIONS TO MEMBERS OF LINKEDIN, A SOCIAL NETWORK OF PROFESSIONALS. HERE ARE SOME RESPONSES: “For a growth company, a third-party sales channel can “Because it is a great way be a lower-cost approach to to reach a huge number of expanding your sales force, new prospects from a source and if the channel partners they already know and trust. are well known and respected Channel partners are a great in the target markets it can way to extend your marketing provide your company a efforts. Also, because you legitimate profile within—and have a relationship in place, reduce barriers of entry into— they know how to support new markets. It also reduces your product and can be an the cost of setting up a new advocate.” —Misty Khan, channel partner, making your President and CEO, Advena channel a scalable ecosystem Artemis of partners. However, a company needs to have a “Quick market entry— proven and easily repeatable building a network of sales process, as channel partners assumes the local partners usually are not market contacts are interested in helping you established or easy to develop define that process.” —Troy and the business can take off Wing, CTO, Forcelogix Why should a company employ channel partners, and what companies are best positioned to take advantage of a third-party sales channel? with minimum cost and maximum results. Flexible companies, with good communication programs in place, structured operational processes, and strategic planning…are always going to derive the best results [from] partner programs.” —Ruxandra Dariescu, Managing Director, avanTARGET What makes a good partner program? And what do you have to consider when building one? “We are still working on our VAR program, but I think what has helped me most is to have a good working relationship. I get referred into a lot of clients by IT support vendors—they know that I will support them and we can speak each other’s language during installation and support phases.” —Misty Khan “[The] first element to consider is the criteria of selecting partners. Make sure there are individual partner targets and the support tools are in place. Good programs involve long-term management, regular communication, regular reviews, and a lot of new customers signed up.” —Ruxandra Dariescu “The key is low cost of sales. First you need to identify, within your own sales group, the bottlenecks to revenue growth. This could be new verticals, or geographical issues. Then, when qualifying prospective partners, you need to assess whether what they bring to the table (resources, reputation, prospects) will solve these bottlenecks. Any noncompete terms must have expirations and ‘out’ clauses for missed targets, to apply pressure on nonperforming partners and to give you the option on selling into the same markets. From the partner’s perspective, equitable margins, achievable but [sizable] targets, long enough noncompete periods, repeatable and trainable sales processes, and low cost of sales will make the program attractive. Regular communications, training, and a good and informative partner portal all help. Another key—and probably obvious—point for a successful partnership is that the service or product you are selling is complementary to the core competencies the partner offers.” —Troy Wing 32 CUSTOMER RELATIONSHIP MANAGEMENT | JANUARY 2008 www.destinationCRM.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - January 2008

CRM - January 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point Facebook's About-Face On the Scene: Oracle OpenWorld 2007 CRM Market Set to Double Customers, Meet your Makers Required Reading Oh, Behave! Fine-Tuning the Channel Listen Up! The Master Piece Flying High on Customer Service Let's Get Digital The Big Rigs Get Revved Up Putting Asia in Your Pocket Secret of My Success Connect Re:Tooling Pint of View

CRM - January 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.