BMA Chicago: Driving Leads through Channel Ecosystems

Driving leads through channel ecosystemsEric Martin, Senior Director of Marketing at SAPBrennen Roberts, Managing Director at Pepper Global

© 2013 SAP AG. All rights reserved. 2

Agenda

• Introductions

• Overview of indirect pathways and key success factors

• SAP case study

Indirect pathways


Large Enterprise

Strategic Industries

DIRECT SALES

INDIRECT SALES

Distributors

VENDOR

SystemIntegrators

Corporate Resellers

Strategic Alliance Partners

OEM Partners

Technology Partners

SME

Pathways aren’t always that simple

A coordinated approach increases the effectiveness of all activities

VARs/ Software Houses

SMB

SOHO

Public Sector


The important role partners play in the buyers journey

Of the Customers surveyed:

Of the 65% with no brand preference, 90% purchase the

brand recommended by the resellerOf the 35% with brand

preference, more than 50% purchase an alternative brand

recommended by the reseller

77% purchase brands recommended by the

reseller

Partners are in the drivers seat

Source: Channel Advisor Report


Holistic approach to channel

Thinking in terms of direct, to & through

1

2

3

Communication to the market

Communication to partners

Communication through partners to the market

VENDOR

CHANNEL PARTNERS

CUSTOMERS

1

2

3


Conflicting goals between manufacturer and retailer

Sales performance dependent on reseller competence and willingness to invest time and resources

Channel frustration about “canned marketing” approach and one-way communication

Money spent on brand & demand gen without knowing who end customers are

Limited control over customer experience and satisfaction

VENDOR

CHANNEL PARTNER

Weak decision basis for allocation of sales and funds

Channel challenges along the direct, to & through paths

Vendor “noise”that makes it difficult to prioritize efforts

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!

END CUSTOMERS

The typical solution provider decision maker gets 81 VENDOR

COMMUNICATIONS every week

Most outbound channel messages are about the VENDOR not the PARTNER and the PRODUCT not the OPPORTUNITY

Market estimates suggest

approximately 50% of potential MDF funds go unused


Channel solutions that inform, engage & train

Develop compelling fund allocation and subsidy model

Offer a comprehensive and up-to-date co-marketing service portfolio

Share customer data

Provide right offers

Co-develop programs/trainings

Provide end-to-end support

VENDOR

CHANNEL PARTNER

END CUSTOMERS

Provide right channel partner incentives via loyalty programs

Ensure partner support is seamless and effective


Buyers journey with channel integration

Security Level: Confidential

Integrate all steps for a seamless journey

AdvocateDiscover Consider Commit Sell

AdvocateDiscover Consider Decide

PARTNER AND BUYER JOURNEY INTEGRATION

Provide a continuous state of channel readiness

Develop and support

Engage Enable Market & SellStrategy


Introduction to SAP

Eric MartinSenior Director, Ecosystem & Channels Marketing, SAP North America

In this role Eric is responsible for driving the marketing agenda to support lead and revenue generation for SAP North America’s high growth channel objectives.

Eric has also held lead roles in other portions of the SAP North America Marketing organization, including regional, service, and solutions marketing roles. Most of his focus has been on the Small and Midsize Business Segment. Eric recently represented the SAP North America Marketing team at the company’s annual Winner’s Circle recognition program after leading a successful summit for North American channel partners.

Eric earned his BA and MBA from Villanova University and teaches a Marketing course within Villanova’s MBA program.


Introduction to SAP

SAP is the world’s largest software solutions provider offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 102,500 business customers in over 120 countries, the company is listed on several stock exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP."

http://www.youtube.com/watch?v=stIU1vuWc3Q&feature=youtu.be

Channel success at SAP


To achieve this goal, SAP needed to provide channel partners with effective and turnkey demand generation programs, helping them turn prospects into qualified leads and ultimately close deals

Situation overview

20% of revenue from channel sales

40% of revenue from channel sales

FY11 FY15

FY11 SITUATION FY15 GOAL

Objective: Double the amount of revenue generated from channel sales in four years

© 2013 SAP AG. All rights reserved. 14Security Level: Confidential

Aligning SAP’s needs with the partners’ needs

SAP NEEDS:

• Effective translation of marketing platforms to target audiences

• Engaged partners who fully utilize what they’re given

SAP

CHANNEL PARTNER

PARTNER NEEDS:

• Own customer relationship

• Marketing, sales and technical support

• Easy-to-use, easy-to-optimize program

• Seamless and effective MDF process

• Branding and awareness support

SAP Marketing Service Bureau

END CUSTOMERS


SAP VIRTUAL AGENCY

Self ServicePartners select campaigns and choose between Self Execution via Virtual Platform or local Certified Agencies

FulfillmentMaster Agency

Manages Agency Recruitment, Enablement, Certification, Payment, Reporting & Performance

SAP Channel Partners

West

MSB program management frameworkOverview

Design

MSB Project TeamLeadership Strategic lead , Program Build, Set KPIs, design packages,

Provide processes, tools, assets, budget, Infrastructure

CoordinationMSB Hub Liaises with SAP, Partners and Agencies to coordinate the process from package request to execution

PromotionMarketing Leads“Position and Sell” the packages to the partners and ensure that expectations are met

Full ServiceSAP mandates selected certified agencies to build turn key programs with fixed cost, fixed scope and fixed ROI

SAP Certified Agencies

West | Central | East | Canada


SAP Virtual Agency

SAP Virtual Agency helps partners: Reduce costs in campaign

execution Leverage SAP solutions

messaging & related marketing templates

Increase lead volume

A destination where partners can create, manage and execute demand generation campaigns and events


SAP Virtual Agency

Demand Gen SELF SERVICE

(Through-Web Platform)At partners’ disposal & initiative

Access SAP developed campaign assets ready to download or self-execute via the SAP Virtual

Agency’s online platform which enables quick development of HTML email campaigns for free

Demand Gen FULL SERVICE

(Through- 3rd Party Agency)

Leverage exclusive turn-key campaign packages developed by SAP Certified Marketing Agencies with fixed-price and scope, integrated execution,

predictable ROI and access 100% MDF promotion!

SAP VIRTUAL AGENCY


Demand generation activities in Virtual Agency

AdvocateDiscover Consider

Advocate

Commit Sell

Discover Consider Decide

OUTBOUND TELEMARKETING

LEAD NURTURING

SOCIAL MEDIA

GUARANTEED LEAD GENERATION

INBOUND MARKETING

All programs in Virtual Agency map to stages in buyers journey, ensuring partners select campaigns that meet their specific sales focus

ONLINE MEDIA

IN-PERSON EVENTS


A closed loop collaboration between SAP, agencies and partners

Push/Pull marketing services Landing page Data capture Lead qualification

Lead conversion

Agency lead inputMSB report

Nurturing

CRM back matching Partner deal/opportunity registration

Partner campaign automation via Virtual Agency


Streamlined reporting for partners and SAP

• An automated reporting summary provides a consistent reporting infrastructure for SAP and agencies

• Leads are qualified based on pre-established BANT criteria, ensuring partners have the information necessary to follow-up and bring leads further into the sales funnel


MSB results

42 active

Since inception of the NA MSB in June 2011:

$8.8M

generated in

USD Pipelinefrom completed campaigns

170%

Lead Goal Attainment

147 campaigns ordered

147

Full service

campaigns ordered

139

Partners who used virtual agency content and/or campaigns


MSB initiatives for 2013

Optimize campaign management and reporting

• Develop closed-loop system to gather feedback from partners on campaigns

• Close the gap on lead-to-MGO conversion:• Improvements to lead reporting• Staff augmentation services

• Improve internal reporting and drive workflow efficiency

Increase MDF Utilization

• Develop MDF incentives

Drive campaign uptake

• Launch agency showcases and Marketing Campaigns & Best Practices enablement

• Simplify and prioritize options

Expand services offered

• Grow list of MSB certified agencies to meet new partner needs:• Staff Augmentation• Online Hiring Advertisement services• SAP Now Digital Network Advertising

Enable agencies • Align with SAP Direct on tele agency training modules and processes


Key learnings/steps for success

Pay for performance set-up ensures leads are generated and qualified for partners

MSB enables partners to sell by providing the marketing programs and structure partners need

Corporate SAP support ensures internal alignment and MSB prioritization

Continual measurement of programs, agencies and leads ensures MSB is continually evolving and meeting partner and SAP needs

Partners like lead guarantees – SAP has skin in the game

Thank youEric Martin

Senior Director, Ecosystem & Channels Marketing, SAP North America

[email protected]

Brennen Roberts

Managing Director, Pepper Global

[email protected]