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Inside New to the Challenger™ Model? Here It Is, in a Nutshell • 1 What a Channel Marketing Manager Under the Challenger Model Looks Like • 2 What Should I Do Differently? • 3 Key Takeaway • 19 More Resources • 20 In 10 minutes or less—time’s a-tickin’ “I’m a Channel Marketing Manager in a Challenger™ Organization. What Do I Do Differently?” Share This with Your Network: On Twitter On LinkedIn Available Challenger Role Guides • 23

Challenger™ Channel Marketer Role Guide

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InsideNew to the Challenger™ Model? Here It Is, in a Nutshell • 1What a Channel Marketing Manager Under the Challenger Model Looks Like • 2What Should I Do Differently? • 3Key Takeaway • 19More Resources • 20

In 10 minutes or less—time’s a-tickin’

“I’m a Channel Marketing Manager in a Challenger™ Organization. What Do I Do Differently?”

Share This with Your Network:

On Twitter

On LinkedIn

Available Challenger Role Guides • 23

The business enterprise has two—and only two—basic functions: marketing and

innovation. Marketing and innovation produce results; all the rest are costs.

Marketing is the distinguishing, unique function of the business.”

Peter Drucker

1© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

When crafted well, Commercial Insights lead customers to value— and pay for the incremental performance you provide.

57%of the way through the purchase decision before they meaningfully engage supplier sales reps.

That means you get commoditized.

Customers know about the incremental performance your solutions provide, but they aren’t willing to pay you for that performance.

What are they doing in that 57%?

They are learning—about their problem, potential solutions, and your offering.

Customers are1

2

4 3

1

42

3

Winning suppliers (Challenger™ commercial teams) teach customers something new that reframes how customers think about their own business—and leads uniquely back to you. We call these reframing ideas Commercial Insights.

New to the Challenger™ Model? Here It Is, in a Nutshell

managedevelop closelytoolspartner

channel marketer workwork

marketer customers stakesholders

management driveresults

offeringreframesupplierschange

innovation communicateexecute enterprise

plananalysiscross-functional

performcorporateactivitiesgoalpositioning support

aligning

metricseventincluding tools

key

result

programs

marketing

What a Channel Marketing Manager Under the Challenger™ Model Looks Like

P2Preframe

value propositions

Commercial Insightdisruption consumption

lead to, not lead with

Commercial Insightlead to, not with works

expert

mobilizerchannelstrategypartners

developmentsolution

planbreak down the “A”mind of customer

© 2015 CEB. All rights reserved. 2Key Takeaway The Nitty GrittyHome What Should I Do Differently?

What Should I Do Differently?

3. Enable Channel

Partners to Break Down the “A”

Before They Build Up the “B”

1. Not Lead

“With”, but “To”

2. Not Voice

of Customer, but Mind of Customer

4© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #1

Consider the core of their job to be creating and

equipping channel partners with crisp value propositions

for their products and services.

The Intent: Educate channel partners so they understand

and can, with high fidelity, show end customers the

incremental performance your solution provides.

Today, most channel marketing managers...

As a result, channel partners will “lead with” your value proposition.

Not Lead “With”, but Lead “To”

4Key Takeaway The Nitty GrittyHome What Should I Do Differently?

© 2015 CEB. All rights reserved. 5Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #1

Empowered end customers seek “good enough” solutions, they won’t pay your channel partner (and

ultimately, you) for your superior value proposition, even

when they can see it provides incremental performance

in some areas.

But because...

Not Lead “With”, but Lead “To”

6© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Without Commercial Insight, crisper value propositions don’t matter.

Do Differently #1

Consider the core of their job as reframing the way

end customers think about their own business, so that

customers are led uniquely through your key channel

partners to your solution. We call these reframing ideas

Commercial Insights.

The core of your job is to co-create Commercial Insights

with your key channel partners.

Channel marketing managers should instead...

Not Lead “With”, but Lead “To”

7© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Insight-Led Interaction

Xerox Solutions

ȕ Hardware Options ȕ Software Options ȕ Service Options

BeforeLeading with Unique Benefits

AfterLeading to Unique Benefits

Feature-Centric Interaction

“I’d like to talk to you about impact

of color on student performance.”

“Our leading-edge, cartridge-free

technology produces 90% less waste than

laser and creates vibrant, smooth images quickly.”

Commercial Insight sparks a new kind of conversation with customers—one that doesn’t start with you or your latest solution.

It lets you start by teaching the customer something new about themselves. Below, one Xerox business unit that provides

solutions to the K–12 education marketplace flipped the script from feature-centric customer interactions to Commercial

Insight–led customer interactions.

Real Life Example: Lead “With,” Not “To”

Do Differently #1

Student Performance

In 77% of children, color

improves focus and interest.

ȕ Comprehension Issues ȕ Lack of Engagement

Leads with value of features and options

Focuses conversation on known customer needs

Leads with issues affecting customers’ top

priorities and economic concerns

Tells customers something they don’t know

about themselves

8© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #1

That’s the only way to change how a customer thinks

about you (and your channel partner)...

In other words, your primary task is to enable your channel partners to change the way customers view themselves.

...which will make them value the incremental

performance your solution provides.

Not Lead “With”, but Lead “To”

8Key Takeaway The Nitty GrittyHome What Should I Do Differently?

9© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Co-create the Commercial Insight with your channel partner; don’t just deliver it.

Do Differently #1

To get started, choose one up-and-coming channel

partner who has a unique strength. Redirect market

development funds (from other channel partners, if

need be) to invest in co-creating a Commercial Insight

that applies to that channel partner’s end customers and

leads them back to your solution, as delivered through

the channel partner’s unique strength.

Here’s what you should do:

Not Lead “With”, but Lead “To”

Co-creation is paramount for two reasons: ȕ You have to be sure the Commercial Insight is created

in a way that favors your products and services. ȕ If your channel partner doesn’t feel like a true partner

in creating the Commercial Insight, he or she won’t

use it.

What Should I Do Differently?

1. Not Lead

“With”, but “To”

2. Not Voice

of Customer, but Mind of Customer

3. Enable Channel

Partners to Break Down the “A”

Before They Build Up the “B”

© 2015 CEB. All rights reserved. 11Key Takeaway The Nitty GrittyHome What Should I Do Differently?

You gather customer and channel partner voice and synthesize it into needs that drive product creation and evolution, as well as communications and messaging.

Do Differently #2

Are charged with understanding customer and market

trends that affect their solutions and their channel

partners.

Not Voice of Customer, but Mind of Customer

11

Today, most channel marketing managers...

© 2015 CEB. All rights reserved. 12Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #2

Commercial Insight depends on reframing the way

end customers think about their own business, you must deeply understand not voice of customer (VOC), but mind of customer (MOC).

Understanding VOC will lead you to needs and

problems that customers know they have and can

articulate, whereas...

But because...

...understanding MOC will uncover problems

and pain points customers don’t even realize they have. And

that’s the seed of Commercial Insight,

where reframing customers starts.

12

Not Voice of Customer, but Mind of Customer

Key Takeaway The Nitty GrittyHome What Should I Do Differently?

© 2015 CEB. All rights reserved. 13Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #2

Map the mental models of end customers, and

aggressively seek to understand where those mental

models are incorrect.

Incorrect customer mental models are where Commercial Insight begins.

Channel marketing managers should instead...

The core of the Challenger™ model lies in teaching customers

where their mental models are wrong

and showing how that causes them more pain than they ever realized.

13

Not Voice of Customer, but Mind of Customer

Key Takeaway The Nitty GrittyHome What Should I Do Differently?

© 2015 CEB. All rights reserved. 14Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #2

Collaborate with channel partners to map your end

customers’ mental models.

Ask customers questions that reveal how they think

about their business’s drivers and how those drivers

influence one another. We call this approach mental-

model mapping.

Partner with up-and-coming channel partners to

create, test, and validate end customer mental models.

14

Here’s what you should do:

“What do you think about

us?”“How was your experience with our product?”

“What drives loyalty for your

customers?”

“How do you think about your

business?”

Establishing a shared understanding of those mental models with your key channel partners will open up new opportunities for fruitful partnership.

Not Voice of Customer, but Mind of Customer

What Should I Do Differently?

1. Not Lead

“With”, but “To”

2. Not Voice

of Customer, but Mind of Customer

3. Enable Channel

Partners to Break Down the “A”

Before They Build Up the “B”

© 2015 CEB. All rights reserved. 16Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #3

Structure their go-to-market channel plans and

programs to focus on enabling the channel partner

to build up the “B” state, or…

Today, most channel marketing managers...

Enable Channel Partners to Break Down the “A” Before They Build Up the “B”

…how great life looks for end customers if they adopt

your solution or product.

16Key Takeaway The Nitty GrittyHome What Should I Do Differently?

© 2015 CEB. All rights reserved. 17Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #3

You and your channel partners are ultimately selling

change—which is the one thing customers don’t want

to do—you both have to spend much more energy

breaking down the customer’s status quo (the “A” state).

Without doing that, customers will engage with your

content, talk to your channel partners’ reps, and nod

along—but ultimately, they won’t take action. They stop

short of the hard steps required to drive change in their

organization.

But because...

Enable Channel Partners to Break Down the “A” Before They Build Up the “B”

And they won’t forge consensus on your channel partner—and you—as the suppliers who can best provide that solution.

17Key Takeaway The Nitty GrittyHome What Should I Do Differently?

© 2015 CEB. All rights reserved. 18Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Do Differently #3

Show customers, in their terms, that the “pain of same” is greater than the pain of change.

Reiterate that they are missing something in how

they think of their business that costs them way more

money, introduces far more risk, or leads them to miss

more opportunity than they ever thought possible.

You show that with Commercial Insight.

Channel marketers should instead...

Equip your channel partners to bring Commercial Insight to life for your customers—in their terms—through your channel marketing programs and sales materials.

Pain of Change

Pain of Same

Enable Channel Partners to Break Down the “A” Before They Build Up the “B”

19© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

If you only take one thing away from this presentation, let it be this.

When you spark channel partners to co-create Commercial

Insight with you, you are empowering them to change how

customers think of themselves.

That’s the best way to get them to think of your channel

partners—and you—differently. But without Commercial Insight,

you risk the very foundation of the Challenger™ model. Your

channel partners can’t challenge customers.

Key Takeaway

As a channel marketing manager, you are the catalyst of Commercial Insight creation with your channel partners.

And that means commoditization for you.

19© 2015 CEB. All rights reserved. Key TakeawayHome What Should I Do Differently? The Nitty Gritty

More Resources

1. Top Resources for Channel Marketing Managers Learning

the Challenger™ Model

2. Learn More

About Challenger Marketing

21© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Get Started: Top Resources for Channel Marketing Managers Learning the Challenger™ Model

1. Watch the Challenger™ marketing video on the next page.

2. Listen to the “Introducing Challenger Marketing” webinar.1

3. Attend an “Introduction to Challenger Messaging” workshop.1

4. Tap into the resources available in the “Develop Commercial Insight” portion

of our online resource center for Challenger marketing. 1

5. Partner with us to develop Commercial Insights for your business and certify staff

to apply the Challenger messaging methodology.

1 Resources and registration are available to CEB Marketing Leadership Council™ member organizations via the member website for large enterprises or middle-market organizations.

22© 2015 CEB. All rights reserved. Key Takeaway The Nitty GrittyHome What Should I Do Differently?

Learn More About Challenger™ Marketing

Click here to play video.

Click on an image above to get the short version of the role guide on SlideShare. CEB Marketing

Leadership Council™ members can get the full role guide through the member website for large

enterprises or middle-market companies.

Available Challenger™ Role Guides

InsideNew to the Challenger™ Model? Here It Is, in a Nutshell • 1What a Product Marketer Under the Challenger Model Looks Like • 2What Should I Do Differently? • 3Key Takeaway • 19The Nitty Gritty • 20More Resources • 25

In 10 minutes or less—no pressure

“I’m a Product Marketer in a Challenger™ Organization. What Do I Do Differently?”

Share This with Your Network:

On Twitter

On LinkedIn

Available Challenger Role Guides • 28

InsideNew to the Challenger™ Model? Here It Is, in a Nutshell • 1

What a Field Marketer Under the Challenger Model Looks Like • 2

What Should I Do Differently? • 3

Key Takeaway • 16

The Nitty Gritty • 17

More Resources • 23

Available Challenger Role Guides • 26

In 10 minutes or less—time’s a-tickin’

“I’m a Field Marketer in a Challenger™ Organization. What Do I Do Differently?”

Share This with Your Network:

On Twitter

On LinkedIn

InsideNew to the Challenger™ Model? Here It Is, in a Nutshell • 1What a Demand Generation Manager Under the Challenger Model Looks Like • 2What Should I Do Differently? • 3Key Takeaway • 16The Nitty Gritty • 17More Resources • 22

In 10 minutes or less—time’s a-tickin’

“I’m a Demand Generation Manager in a Challenger™ Organization. What Do I Do Differently?”

Share This with Your Network:

On Twitter

On LinkedIn

Available Challenger Role Guides • 25

InsideNew to the Challenger™ Model? Here It Is, in a Nutshell • 1What a Channel Marketing Manager Under the Challenger Model Looks Like • 2What Should I Do Differently? • 3Key Takeaway • 19The Nitty Gritty • 20More Resources • 27

In 10 minutes or less—time’s a-tickin’

“I’m a Channel Marketing Manager in a Challenger™ Organization. What Do I Do Differently?”

Share This with Your Network:

On Twitter

On LinkedIn

Available Challenger Role Guides • 30

CEB is a best practice insight and technology company. In partnership with leading organizations around the globe, we develop innovative solutions to drive corporate performance. CEB equips leaders at more than 10,000 companies with the intelligence to effectively manage talent, customers, and operations. CEB is a trusted partner to 90% of the Fortune 500, nearly 75% of the Dow Jones Asian Titans, and more than 85% of the FTSE 100. More at cebglobal.com.

© 2015 CEB. All rights reserved. CEB154586GD

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