bchannels structure of indirect channels
TRANSCRIPT
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FOCUS. PEOPLE. COMPETENCY
bChannelsStructures of Channels
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The Market Triangle – few big companies + lots of little companies
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Small/Medium (SME)
Large Business
Corporate
1 employee
500 employees
100 employees
Vendor
Rese
llers &
R
eta
il Push
Pull
Corp
ora
te
Rese
llers
Dem
and C
reat
ion
Optimum ITbusiness split*
* Source Gartner/IDC
Corporate, 20%
Large, 20% SME, 60%
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Distributors
Corporate500+
CorporateResellers
SME10-500
SOHO1-9
Consumer1
Local Resellers(2-Tier)
Catalog/ Mail Order
& eTail
RetailChains
End users by size of company (number of employees)
System’sIntegrators
Many Routes to MarketDifferent end-customers buy in different ways
Vendor
Sales OutSales Out
Sales In
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Vendor Distributor ResellerEnd
CustomerDistributorDistributor
Sales “in” Sales “out”
Stock
[No Stock]
“True” sales
Measuring SalesWhy ‘Sales Out’ is so important
Measuring sales to
distributors just measures
how much you are filling
their warehouse
Measuring ‘sales out’ is a
very good indication of
real customer purchases
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Program TiersWhat’s the best mix of partners?
5% Partners50% Revenue
15% Partners30% Revenue
30% Partners15% Revenue
50% Partners5% Revenue
20% Partners80% Revenue
45% Partners45% Revenue
80% Partners20% Revenue
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The Terrible Tiers or how many vendors think about their channel
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Unmanaged
”
Remote Touch
Managed
You buy a lot.So you must be pushing our products.
We’re not clear about that.We’ll spend a lot of time with you anyway.
Sorry, no humans available.You must interact with us through our
website.
We have no idea who you are.You must not be important.
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The ‘sweet spot’Which bChannels can find and help you exploit
Value ($/€/£)
Reseller SizeBiggest Smallest
Top100
Top500
ManagedAccounts
High valueunmanagedAccounts
Low valueAccounts
Biggest Growth opportunity
Difficult to significantly grow existing managed accounts
Growing low-value accounts yields low revenues
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Partner programs have to be balancedIt’s not all about what the vendor wants
The partner program must balance measurable requirements with measurable benefits.
Reward
The Partner Program must provide a return on investment for both the partner and the vendor.
Financial
Access
Recognition
Invest
Sales
Skills
Service
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Core Partner Program Methodology
Deliverprogrambenefits
Analyse, classify
and targetpartners
Measure+
Reward
Build effective
partner valuepropositions
Delivercommunicationto the channel
Communicate+
Engage Createawarenessand leads
Channel Partners
Identify+
Manage
Establishprogram
requirements
!
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