A framework for successful partner ecosystem for an enterprise software company.

1. A Framework for
Successful Partner Ecosystem
Vineet Sharma

2. Partner Ecosystem – 4 Pillars
White-label
(OEM) Partners
System
Integrators (SIs)
Technology
Partners
Value Added
Reseller (VARs)
+ Managed
Service
Providers
(MSPs)
Partner Ecosystem
Sell with Sell thru
Sell
with/thru
Sell to
Sales
Motion
Partner
Type
Partnership is all about creating value for the customers!

3. Framework for Building a Successful Partner Program,
to Stimulate Revenue Growth
Partner
Marketing/ Field
Marketing
Channel &
Alliances
Sales
7 Keys to
Partner
Program
Success
Objectives &
Strategy
Program &
Partner
Selection
Internal
Capabilities
& Systems
Go-To-Market
Model
Partner
Marketing
Partner
Success
KPIs &
Analytics
1
6
5 4
3
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4. Key Questions to Define Your Strategy
 How do we get from “where we are” to “where we want to be” using the partner
ecosystem?
 Define a value proposition for each partner type based on their needs and drivers
 Outside-in approach –
❑ How do we enhance our customer value through our partner ecosystem?
❑ Can partners improve our products and services offerings to the customers?
❑ What partner ecosystem mix do we need to meet our strategic goals?
Make sure to have executive support and management buy-in
Objectives
& Strategy

5. A Model to Define Your Channel Penetration
Variable Level 1 Level 2 Level 3
Company Matureness
Start-up
Looking for a profitable and
scalable business model
Stable Growth
Profitable and growing faster
than the market
Leadership
Domestic market share >20%
and global market penetration
initiated
Market Matureness
Emerging Market
There are only few and small
providers of this type of solutions
Fragmented Market
Several providers, but none with
>20% market share
Mature Market
A few clear market leaders with
< 20% market share
Channel Matureness
Low
Less then 25% of the market can
be reached through channel
partners
Medium
25-50% of the market can be
reached through channel
partners
High
>50% of the market can be
reached through channel
partners
Customer Touch and
Sales Cycle
Low
No field sales required -avg. sales
cycles <3 months
Medium
Field sales required-avg. sales
cycles are <12 months
High
Field sales required-avg. sales
cycles are >12 months
Value-add Potential
Low
Auxiliary products and services
are <50% of CLV 1
Medium
Auxiliary products and services
are 50-75% of CLV
High
Auxiliary products and services
are >75% of CLV
Channel Importance
Low
<25% of the revenue is from
channel partners
Medium
25-50% of the revenue is from
channel partners
High
>50% of the revenue is from
channel partners
Channel Development
Stage
Early Mode
<25% of the revenue is from
current partners
Growth Mode
25-75% of the revenue is from
current partners
Mature Mode
25-75% of the revenue is from
current partners
Note: CLV=Customer Lifetime Value; Source: “ Building Successful Partner Channel” by Hans Peter Bech
Objectives
& Strategy

6. Define Program Levels & Responsibilities
 Define your partner program levels
 Define what responsibilities and benefits that comes with each level
 Most partner programs have different levels. This type of framework is used to define
what partners that are more involved in your partner program.
 It is also used as a way to motivate partners. For an example by joining the education
program and getting certified the partner can achieve a higher partner status and get
more benefits.
Partner
Program &
Selection
The program should stand out. Your competitors are also fighting for same partners attention

7. Business Compatibility
1. Is the partner sales/management receptive?
2. Do they have strategic partnership with our
competitor(s)?
3. Do we have any joint business use cases?
4. Is the partner strategic to our success?
Market Potential
1. What is the market opportunity $$ of partnership?
2. How much incremental rev. they can bring?
3. Do they have a growing customer base?
4. Can we accelerate our market growth with the partner?
Partner Selection Criteria
Technical Compatibility
1. Is the solution a good fit for technology?
2. Do we have existing connectors?
3. Do they support the current versions?
4. Are the product roadmap aligned?
Current Engagement
1. Have the technical team tested the solution?
2. Are the sales teams currently engaged?
3. Do we have any joint customers?
4. Do we have any joint marketing activities?
The focus should be on building deep and strategic partnerships for the benefit of end-customers
Business
Compatibility
Market
Potential
Current
Engagement
Technical
Compatibility
Partner
Program &
Selection

8. Internal Capabilities & Systems
❑ Partner Portal with Social/Mobile UX
❑ Deal Registration
❑ On-Demand Training
❑ MDF
❑ Technical Support
Internal
Capabilities
& Systems
Self serving portal with automated processes and measurements

9. GTM Model – Avoiding Channel Conflicts
 Defining a clear Go-To-Market model is important to avoid the channel conflict
 A channel conflict arise when a channel partner’s perception of roles, responsibilities, and
accomplishments are not consistent with the perceptions of vendor.
 The power struggle between the “Direct Sales” and channel partners can be avoid by having clear
rules of engagement
 Minimizing channel conflict:
➢ Define clear “Rules of Engagement” for direct sales and channel partners
➢ Divert fulfillment of orders to partners
➢ A robust deal registration system with clearly defined processes and online tool
➢ The direct sales should be encouraged to work with the channel partners with a win-win approach
➢ The direct sales team should be able to earn same level of compensation when selling through channel
Go-To-
Market
Model
Channel should be seen as an extension of the sales team

10. Three Levers of Partner Marketing
Create
Value
Enable
Engage
Bi-directional intelligent communication
• Partner Community approach, Mobile enabled and App ready
• Feedback mechanism inbuilt; Gamification
Right material at right time
• Sales, Marketing and technical enablement
• Aligned to Sales Stages, Usage statistics
Metrics Driven Demand Generation
• Partner Marketing campaigns, webinars, events
• Real-time Dashboards, Partner Value Score
Partner
Marketing

11. Online Partner Enablement Kit – An Example
Objective: To enable the Account Managers, Sales Engineers and Technical Teams of the partners
Format: Short Videos and voice over slides
Pre-requisites Sales & Marketing Module Product Module
Topic Duration
Message from the CEO 3:51 min
Market Perspective 3:33 min
Partner Program Highlights 2:51 min
Topic Duration
How to start the conversation 3:34 min
Differentiators 2:08 min
Value Proposition 4:51 min
Use cases overview 3:40 min
Use case 1 2:35 min
Use case 2 2:01 min
Use case 3 2:56 min
Customer wins examples 4:05 min
Knowledge check – 15 questions
Topic Duration
Product Overview 2:20 min
Main Feature 1 2:12 min
Main Feature 2 3:24 min
Main Feature 3 2:12 min
How to use demo 3:47 min
How to handle Support? 3:48 min
Vision and Roadmap 6:20 min
Knowledge check – 15 questions
Partner
Marketing

12. Partner Success – What it means
 Partner Success is about understanding Partner’s business model, motivators and pain-points and
taking initiatives to empower them to become successful.
 Managing the technical and business relationships with partner ecosystem to maximize customer
value
 There are four areas:
➢ Technical Enablement
➢ On-Going Support
➢ Knowledge Enablement
➢ Business / Sales Relations
 Partner Success Management is more than just Partner Support
 It is important to incorporate the access to support resources and services knowledge into your
program offering
 The role of PAM should shift to ensure partner’s success rather than just pipeline management and
forecast.
An improved partner experience will enhance customer experience
Partner
Success

13. Implementing a KPI-Driven Partner Ecosystem
Key Performance
Indicator
Definition
Suggested
Weightage
Partner Sourced
Revenue
Revenue* from any deals sourced and executed by partner 20%
Influenced Revenue
Revenue* from any deals passed by the vendor and fulfilled by partner
OR the partner helped in closing the deal
10%
Revenue Growth
A rolling 12-month comparison between current and previous year’s
revenue
5%
Pipeline ($M) Pipeline for next two quarters 5%
Online Enablement
completed
Number of professionals with completed Sales, Marketing and technical
module
10%
Technical certification
Number of professional with technical certification to implement the
solution
15%
Customer Renewal The customers % who renew the subscriptions every month 10%
Customer Satisfaction Customer satisfaction score 15%
Marketing Contribution Customer success stories, quotes or other support to vendor’s marketing 10%
* Note: All data over 12 months rolling period
KPIs &
Analytics

14. Motivation Drivers and Elements
 Engagement with the partners in critical. Gamification can be an important element
of the program to engage partners
 Easy to understand benefits of your partner program
 Partners can’t sell if they are not enabled.
 Motivate the partners to certify their solutions. Deliver excellent support
 Lead generation platform. Most partners have limited resources for demand
generation activities
 A well laid out partner program guide

15. Other Important Factors for Partner Program
1. Customer First: Every investment you do should in
the end benefit the customer.
2. Match your solution to the proper channel: This
includes all your marketing material and
information.
3. Just in Time Content: Make sure that partners have
all the information they need to become successful.
4. Measure & Analytics: There are always room for
improvements.
5. Consistency: It takes at least 90 days after signed
contract before you can expect to see any sales at
all. Don’t change your program to often. Instead
focus on your program elements and how to deliver
them even better.
6. Partner’s Roles & Responsibility: Make sure that
you expectations are clear and that they are
aligned to the partners business model.
7. Pre & Post Sales Support: with technical and sales
assistance to help them grow their business.
8. Competitive Intelligence: Your partner will meet
your competitors so make sure you keep them
educated and informed.
9. Partner council, representing a cross section of
partners to help you to keep a finger on the pulse
of your channel's satisfaction.
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16. Potential Pitfalls for Partner Program
1. Lack of Communication: A successful partner program demands constant engagement and
improvements.
2. One Size Fits All: Beyond the obvious differences between mature and emerging markets, there lie
governmental, financial and cultural differences. Consider these when designing a first-time channel
program.
3. Investment in systems and resources. Without the appropriate allocation of resources, even the
best program can't come to life. While you can outsource some areas to deliver various pieces,
internal resources are still required.
4. Diverse channel ecosystem. Each partner type has unique requirements, expectations and
perspectives. Be flexible with systems, programs and sales initiatives to maximize investments across
a greater partner base.
5. Partner Selection – The partner you have signed up fails because there is a mismatch between
expectations and the partners business model.
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17. Feedback & questions:
vsharma99@Hotmail.com
https://www.linkedin.com/in/vsharma1