ChannelVision Magazine

invest resources and develop funds to help the partner execute the plan and close the business. Is the prospect’s market coverage and customer reach sufficient to reach the business goals the company is trying to achieve? No matter how dedicated partners are to driving GTM strategy, they need the tools and means to do it. By asking smart, comprehensive questions about a prospective partner’s sales, network and internal organization, companies can confirm if they have the reach and coverage needed to expand business. When it comes to assessing a potential partner’s cov- erage, companies should look at its sales and marketing capacity, asking questions such as: • How many sales representa- tives does it have? Are they field or inside representatives? In the enterprise software field, it’s im- portant to have a field sales team that can meet with clients in per- son to represent the solution and its related business outcomes. • Where are they located? Cus- tomers often prefer buying from people they have relationships with. Channel partners selling enter- prise software often reside within a four-hour drive of most of their clients. • Does it have a dedicated marketing team? If so, how big is it? Marketing reach can provide a significant value add for companies. If a partner has an in-house marketing database with thou- sands of active contacts, a company may only need one partner to reach a target market segment. • How many customers does it have? Does it have the network to help reach new buyers? Companies can more accurately estimate ROI by measur- ing a potential partner’s market reach. Companies can first determine the size of the market and then how many customers the prospect engages on a frequent and meaningful basis. While coverage may be one of the key indicators of a quality channel partner, companies must also ensure that the prospect can demonstrate the technical expertise needed to understand the company’s solution and position the value proposition to targeted customers. Is the partner willing to make investments to achieve growth and sustain it? To ensure prospects can follow through on their commitment, busi- nesses should have a complete un- derstanding of their partner’s capital- ization and current financial position. And, in addition to having the required capital, companies must determine that a partner is willing to invest to achieve and sustain growth. Addressing these questions and finding the right partners can take time, patience and resources — especially since the success of the channel can depend on each answer. Once a pool of partners is selected and trained on the product, it’s crucial that companies define success, set objectives supported by clear metrics and align business goals and values up front. That way, partners will understand how their performance will be evaluated from the get-go, and the best ones will rise to the challenge. Building out a channel can be demanding, but finding and teaming up with high-quality channel part- ners can bring a company to places it’s never been, both in the markets it’s reaching and the revenue it’s raking in. o Wayne Monk is senior vice presi- dent of global alliance and channel sales at ASG Technologies. Revenue Generated by Top 20% of Channel Parners Source: CSO Insights; Miller Heiman Group <50% 14.7% 50%-55% 6.4% 56%-60% 4.6% 61%-65% 11.0% 66% - 70% 9.2% 71% - 75% 11.0% >75% 24.8% Do not know 18.3% Do not know 18.3% How comfortable are consumers with Artificial Intelligence? Source: Radial Channel Sales’ Core Fundamentals Source: CSO Insights; Miller Heiman Group Which of the following self-service channels have you used in the past 12 months? Source: CSO Insights; Miller Heiman Group 40% 35% 30% 25% 20% 15% 10% 5% 0% 2.5% 6.3% 3.8% 2.5% 7.5% 1.3% 7.5% 11.3% 13.8% 11.3% 22.5% 18.8% 25.0% 26.3% 33.8% 36.3% 18.8% 20.0% 15.0% 7.5% 8.8% Strongly disagree Somewhat disagree Our channel sales professionals are able to calculate and justify number of partners required to cover a market segment Our channel sales professionals are able to calculate how partners rank and assess programs Our channel sales professionals are able to clearly articulate the rationale for their organization’s channel and route to market Disagree Neutral Somewhat agree Agree Strongly agree Very comf rtable Somewhat comfortable Neither comfortable nor uncomfortable Somewhat uncomfortable Very uncomfortable 33% 28% 20% 13% 6% channel management July - August, 2018 | Channel Vision 45