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10 Rules for Channel Success

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Information about 10 Rules for Channel Success
Business & Mgmt

Published on January 14, 2009

Author: paulri

Source: slideshare.net

Description

A presentation given to the Vancouver Technology Indistry Association in 1998. These rules are still valid even now. Some of the technology to enable them has changed since then but the spirit lives on
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10 Rules & 1 Step to Channel Success There is no silver bullet to guarantee success. You must customize product, marketing, and support to meet the needs of a diverse set of customers. Make no mistake, the channel is a strategic approach to business, not a quick fix for something you cannot sell Paul Rickett, VARKETING! 1998

Channel Experts “ Paul knows what he is talking about - listen to him ” Bryan Nieder, VP Channels, Electronic Arts 18 Years channel experience; VAR, ISV, Distribution Clients include: IBM, Dell, Great Plains, Siemens Nixdorf, Digital Equipment, EDS Over 100 articles in VARBusiness, Software Marketing Journal, SCO World, SI Business Seminar Series: Product Launch, 3Rs of Selling Through VARs, 10 Rules of Channel Success

18 Years channel experience; VAR, ISV, Distribution

Clients include: IBM, Dell, Great Plains, Siemens Nixdorf, Digital Equipment, EDS

Over 100 articles in VARBusiness, Software Marketing Journal, SCO World, SI Business

Seminar Series: Product Launch, 3Rs of Selling Through VARs, 10 Rules of Channel Success

The Channelsphere Expansion is driven by technology change Attrition does not balance out expansion

Segmentation

VAR Qualities PLUS Brand Loyal Creates whole product Technically capable Strongly influences buyer MINUS Conservative Profit driven Not amenable to control Weak in marketing … .AND does not like to be called a VAR!

PLUS

Brand Loyal

Creates whole product

Technically capable

Strongly influences buyer

MINUS

Conservative

Profit driven

Not amenable to control

Weak in marketing

… .AND does not like to be called a VAR!

Channel Calculus Quantifying the business proposition pp=v((pf*(rp*eos))+(lsp+lpp)) VARS are profit rather than revenue driven

RULE 1: Deliver a Quality Product Bugs kill…. Differentiate VAC product from other channels Product includes Packaging Support Downstream revenue Sales materials

Bugs kill….

Differentiate VAC product from other channels

Product includes

Packaging

Support

Downstream revenue

Sales materials

RULE 2: Keep Selling Direct Know how to sell your own product Demonstrates need Channel leverages your activity Provides better market intelligence Channel should expand market not just reduce cost of sales

Know how to sell your own product

Demonstrates need

Channel leverages your activity

Provides better market intelligence

RULE 3: Channel is a Strategic Commitment Management must commit to channel Invest in people to manage it Set goals Channel friction indicates positive coverage Allow time for channels to ramp

Management must commit to channel

Invest in people to manage it

Set goals

Channel friction indicates positive coverage

Allow time for channels to ramp

RULE 4: Allow for Multiple Strategies These may run concurrently with different VAC segments

Relationships Change over Product Life Adapted from Geoffrey Moore, “Inside the Tornado”

RULE 5: Execute Well More Important Actual Profit NFR Training Tech Support Delivery Less Important Discounts Collateral SPIFFs/Rebates Sales Support

More Important

Actual Profit

NFR

Training

Tech Support

Delivery

Less Important

Discounts

Collateral

SPIFFs/Rebates

Sales Support

RULE 6: Minimize Pain Factor Terms of business Fulfillment Responsiveness Support Good exception handling is a great loyalty builder

Terms of business

Fulfillment

Responsiveness

Support

RULE 7: Use VARCOM Communicate directly to channel Customize to segments Cover entire spectrum Co-market like crazy Clearly state value proposition Reach the influencers in the VAC selection process

Communicate directly to channel

Customize to segments

Cover entire spectrum

Co-market like crazy

Clearly state value proposition

RULE 8: Get Commitment Qualify & Certify Money commitments mean action Train them Have mindshare Product buy-in favours sell-through efforts Use commitments to raise entry barriers

Qualify & Certify

Money commitments mean action

Train them

Have mindshare

Product buy-in favours sell-through efforts

RULE 9: Profits come from Repeat Business 80/20 Rule rules Tier programs for recognition and reward Know your cost and payback metrics Mindshare is everything

80/20 Rule rules

Tier programs for recognition and reward

Know your cost and payback metrics

Mindshare is everything

RULE 10: Constantly Evaluate Listen Adopt Adapt A sales is not a sale until you know who the customer is

Listen

Adopt

Adapt

Rule Recap 1. Deliver a quality product 2. Keep selling direct 3. Channel is a strategic commitment 4. Allow for multiple strategies 5. Execute programs well 6. Minimize pain factor 7. Use VARCOM 8. Get commitment 9. Profit from repeat business 10. Constantly re-evaluate

1. Deliver a quality product

2. Keep selling direct

3. Channel is a strategic commitment

4. Allow for multiple strategies

5. Execute programs well

6. Minimize pain factor

7. Use VARCOM

8. Get commitment

9. Profit from repeat business

10. Constantly re-evaluate

VAC Success is not Magic Bend the rules when appropriate Multiple channel strategies will co-exist simultaneously Pay attention to segmentation Have sufficient stamina to stay the course Execution is everything

Bend the rules when appropriate

Multiple channel strategies will co-exist simultaneously

Pay attention to segmentation

Have sufficient stamina to stay the course

Execution is everything

STEP 1: Put VARKETING! on your Team Channel strategies don’t come from a book Experience and diversity count Take the Audit

Channel strategies don’t come from a book

Experience and diversity count

Take the Audit

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