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Closing the Loop Between
 Marketing & Sales in the
         Channel
How the channel works

            VENDORS

                   MARKETING
                   FOCUS & ££
          DISTRIBUTOR
          DISTRIBUTOR
     CHANNEL
     RESELLERS

        End Users/Consumers
                                  Source: GfK

 MACRO & MICRO ECONOMIC FACTORS
Key vendor challenges
The Enterprise market is sown up, the mid-market is diverse and the
SMB market is fragmented.

Key vendor challenges:

•Scale: volume of target organisations (Mid-market-SMB)
•Cost of sale to high for direct model
•Speed to market
•Closed loop                   multi geographic regions
•Repeatability
                               many different product lines

                             high volume of channel
                             partners
Key distributor challenges
DISTRIBUTORS have huge customer bases and can’t manage each
customer personally, so have to rely on marketing to reach out to their
customers and disseminate special offers and promotions.

Key Distributor challenges:

• Very tight margins
• Competitive marketplace – mass-market
• Treated as a commodity service by resellers
                                    multi geographic regions

                                    many different product lines

                                    high volume of channel
                                    partners
Key resellers challenges
Many RESELLERS are overwhelmed by the sheer volume of channel-
driven marketing programmes, which are often not relevant to the
reseller or the clients. They are busy running their own businesses, and
need to focus on what brings sales through the doors.

Key reseller challenges:

• Reseller market is shrinking as market dynamics change
• Competitive marketplace – need to differentiate & be more sticky
• Deliver profitable business growth
                                     single geographic regions

                                    min different product lines

                                    low volume of channel
                                    partners
Our buyer journey has changed
 Changes
 Changes               Recognition
                       Recognition        Problem
                                          Problem                 Evaluate
                                                                  Evaluate           Select best       Negotiate and       Implement
 over time
 over time             of needs
                       of needs           defined
                                          defined                 options
                                                                  options            option            purchase



Compelling             Recognition of    Scoping of              Evaluation of suppliers against      Final              Customer on-
event                  need to           problem – and           specific criteria                    validation         boarding and
                       change to         how best to                                    Select best                      in-life
Competitive Pressure
                       deliver against   address it                                     option        Negotiate –        management
New business plan:     business                                                                       Best and final
Strategic intent       objectives                                                                     offer
                                         Develop specification
Change in customer                       or brief
behaviour
                                         May issue RFI to
Leadership change                        potential suppliers

Contract renewal                         Followed up by
                                         formal RFP process




Marketing led, in-bound/out-bound                                                            Sales led, direct / face-to-face
What does this mean?
Because our audience does its research, thinking, problem definition
and needs recognition largely online, we need to ensure we get in
earlier in the buying cycle.

At any given point, only 10-20% of the market would be in the stage 4
(evaluate options) point – so we need a constant way of being infront of
people…
Why marketing needs change?
Customers want more for less……..more customers, more sales,
more return on their investment and take less risk!
If you have ever spent a single £ on lead generation, you know
how expensive it is and often how risky that investment is.
Many companies do a good job at generating leads – attracting
prospects to a website, an exhibition stand or respond to an email,
but the reality is that most prospects whom respond to your email,
attend your stand or pick up your telephone call are just not ready
to buy and certainly do not qualify as a lead………..yet.

Fact – on average only 20% of well qualified leads generated by
marketing and passed to sales are successfully closed. The
question is, what happened to the rest?
The case for lead nurturing
For complex sales, up to 95% of qualified prospects on your website are there
to research and not yet ready to talk with a sales rep, but 70% of them will
eventually buy a product/service from you or one of your competitors. Brian
Carroll, CEO InTouch
An typical qualified sales prospect, ready to engage with sales has
followed a lead nurturing process, which has delivered up to nine (9) pieces
of content and generated five (5)+ telephone calls, just to reach the point
where the prospect is ready to engage sales. Marketo 2011

On average, nurtured leads produce a 20% increase in sales opportunities
vs. non-nurtured leads. DemandGen

Companies that excel in lead nurturing generate 50% more sales-ready
leads and reduce % of leads ignored by sales from 80% to 25%. B2B
Marketing
The 360 Channel Marketing
community represents all
stakeholder groups within the IT
channel including.

The objective of the community is to
share knowledge and best practice
on how to deliver improved value
from effective channel marketing.

Member Think Tank sessions identify
how to overcome the challenges
around delivering better ROI from
channel marketing

www.360channelmarketing.com
Typical challenges faced in channel
marketing
 • Too many ad-hoc campaigns with limited measurement or follow through by
 channel partners utilising marketing development funds (MDF)

 • Channel partners fail to pick up opportunities and nurture them – looking for
 the quick wins

 • Valuable information is lost through start stop tactics, lack of process or
 experienced people

 • Limited internal bandwidth to manage both marketing and sales / channel
 engagement tactics

 • Lack of dedicated and knowledgeable market & channel intelligence

 • Lack of lead generation resources, with ability to nurture the long term value
The lead nurturing process
Lead nurturing – one size does not fit all
Content Map – Lead Nurturing

• Map content for every stage of
the customer buying process.

• Create content for every job
function involved in the buying
process (CEO, CFO & CTO etc)

• Use content to help drive
prospects through the lead
nurturing pipeline

• Localise content for each “geo”
Nurturing in line with buying stage
  Not aware of risk/impact
Nurturing in line with buying stage
  Not aware of risk/impact
Aligning marketing with sales
Not aware of risk/impact
Suspects to Prospects
statistics
Jon Clarke:
       m: 07590 992009
  e: jon.clarke@cyance.com
 w: www.cyance.com/channel
www.360channelmarketing.com

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Closing the loop between marketing and sales

  • 1. Closing the Loop Between Marketing & Sales in the Channel
  • 2. How the channel works VENDORS MARKETING FOCUS & ££ DISTRIBUTOR DISTRIBUTOR CHANNEL RESELLERS End Users/Consumers Source: GfK MACRO & MICRO ECONOMIC FACTORS
  • 3. Key vendor challenges The Enterprise market is sown up, the mid-market is diverse and the SMB market is fragmented. Key vendor challenges: •Scale: volume of target organisations (Mid-market-SMB) •Cost of sale to high for direct model •Speed to market •Closed loop multi geographic regions •Repeatability many different product lines high volume of channel partners
  • 4. Key distributor challenges DISTRIBUTORS have huge customer bases and can’t manage each customer personally, so have to rely on marketing to reach out to their customers and disseminate special offers and promotions. Key Distributor challenges: • Very tight margins • Competitive marketplace – mass-market • Treated as a commodity service by resellers multi geographic regions many different product lines high volume of channel partners
  • 5. Key resellers challenges Many RESELLERS are overwhelmed by the sheer volume of channel- driven marketing programmes, which are often not relevant to the reseller or the clients. They are busy running their own businesses, and need to focus on what brings sales through the doors. Key reseller challenges: • Reseller market is shrinking as market dynamics change • Competitive marketplace – need to differentiate & be more sticky • Deliver profitable business growth single geographic regions min different product lines low volume of channel partners
  • 6. Our buyer journey has changed Changes Changes Recognition Recognition Problem Problem Evaluate Evaluate Select best Negotiate and Implement over time over time of needs of needs defined defined options options option purchase Compelling Recognition of Scoping of Evaluation of suppliers against Final Customer on- event need to problem – and specific criteria validation boarding and change to how best to Select best in-life Competitive Pressure deliver against address it option Negotiate – management New business plan: business Best and final Strategic intent objectives offer Develop specification Change in customer or brief behaviour May issue RFI to Leadership change potential suppliers Contract renewal Followed up by formal RFP process Marketing led, in-bound/out-bound Sales led, direct / face-to-face
  • 7. What does this mean? Because our audience does its research, thinking, problem definition and needs recognition largely online, we need to ensure we get in earlier in the buying cycle. At any given point, only 10-20% of the market would be in the stage 4 (evaluate options) point – so we need a constant way of being infront of people…
  • 8. Why marketing needs change? Customers want more for less……..more customers, more sales, more return on their investment and take less risk! If you have ever spent a single £ on lead generation, you know how expensive it is and often how risky that investment is. Many companies do a good job at generating leads – attracting prospects to a website, an exhibition stand or respond to an email, but the reality is that most prospects whom respond to your email, attend your stand or pick up your telephone call are just not ready to buy and certainly do not qualify as a lead………..yet. Fact – on average only 20% of well qualified leads generated by marketing and passed to sales are successfully closed. The question is, what happened to the rest?
  • 9. The case for lead nurturing For complex sales, up to 95% of qualified prospects on your website are there to research and not yet ready to talk with a sales rep, but 70% of them will eventually buy a product/service from you or one of your competitors. Brian Carroll, CEO InTouch An typical qualified sales prospect, ready to engage with sales has followed a lead nurturing process, which has delivered up to nine (9) pieces of content and generated five (5)+ telephone calls, just to reach the point where the prospect is ready to engage sales. Marketo 2011 On average, nurtured leads produce a 20% increase in sales opportunities vs. non-nurtured leads. DemandGen Companies that excel in lead nurturing generate 50% more sales-ready leads and reduce % of leads ignored by sales from 80% to 25%. B2B Marketing
  • 10. The 360 Channel Marketing community represents all stakeholder groups within the IT channel including. The objective of the community is to share knowledge and best practice on how to deliver improved value from effective channel marketing. Member Think Tank sessions identify how to overcome the challenges around delivering better ROI from channel marketing www.360channelmarketing.com
  • 11. Typical challenges faced in channel marketing • Too many ad-hoc campaigns with limited measurement or follow through by channel partners utilising marketing development funds (MDF) • Channel partners fail to pick up opportunities and nurture them – looking for the quick wins • Valuable information is lost through start stop tactics, lack of process or experienced people • Limited internal bandwidth to manage both marketing and sales / channel engagement tactics • Lack of dedicated and knowledgeable market & channel intelligence • Lack of lead generation resources, with ability to nurture the long term value
  • 13. Lead nurturing – one size does not fit all
  • 14. Content Map – Lead Nurturing • Map content for every stage of the customer buying process. • Create content for every job function involved in the buying process (CEO, CFO & CTO etc) • Use content to help drive prospects through the lead nurturing pipeline • Localise content for each “geo”
  • 15. Nurturing in line with buying stage Not aware of risk/impact
  • 16. Nurturing in line with buying stage Not aware of risk/impact
  • 17. Aligning marketing with sales Not aware of risk/impact
  • 19. Jon Clarke: m: 07590 992009 e: jon.clarke@cyance.com w: www.cyance.com/channel www.360channelmarketing.com