Leveraging Deal Registration to Drive Channel Loyalty Programs

1
Leveraging Deal Registration to Drive Channel
Loyalty Programs
Track Channel Executives

• Frank Defesche, Salesforce.com
• Errett Kroeter, Lantronix, Inc.
• Ernie Megazzini, Network Physics, Inc.

2
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Partner Channels Are a Significant Opportunity
Channel Size Comparison
5 Million Salespeople in High Tech,
Manufacturing and Distribution (U.S.)
Indirect Sales (70)
Direct Sales (30)
Revenue Breakdown by Channel For High Tech,
Manufacturing, Consumer Goods
Source U.S. Bureau of Labor Statistics, 2005
The Gartner Group, 2002
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Key Business Issue is Achieving Channel Sales
GoalVP Sales and Channel Sales are frustrated
with channel program
Challenges to Maximizing Channel Sales
Ineffective Channel Selling
Lack of Visibility

• Lost Leads
• Low Close Rates
• Ineffective Channel Programs
• Channel Conflict

• Lack Pipeline Visibility
• Poor PRM Adoption
• Missed Forecasts

5
Partners Are Struggling TooWhat keeps partners
up at night?
Ease of doing business
Bottom line
Cash flow
More qualified Leads
We work closely with vendors that have tools
that are easy to find and use on a day to day
business. Reseller Partner
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Partner Adoption

• What drives your partner relationships?

Qualified Leads
Business Planning Tools
Cash Flow
Deal Registration
Rebates Special Pricing MDF Claims Incentives
Exclusivity and Discounts
Benefit Future revenue streams
7
Funny Money and Loyalty
8
Deal Registration

• Enable partners to register leads
• Leverages page layouts, workflow, FLS
• Approved deals are converted to opportunities

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Optimized Channel Coverage and Partner Loyalty
Convert to Opportunity
Approve
Deal Registration
Review Deal Registration
Find Duplicates
No Duplicates Exist
Create Account, Contact, and Opportunity
Channel Manager Reviews Submitted Deals
Workflow Rules are Triggered Leverage Record
Types, Layouts, Field-level security
Send Notification
Reject Deal Registration
Partner Action
Channel Manager Action
Partner Submits Proof of Performance Claim
Send Notifications
Assign Sales Team
Workflow Alert to Sales Team
Extended Sales Team
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Best Practices in Action

• A day in the life of a channel executive
• A day in the life of a partner

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Errett Kroeter
Director, Worldwide Channel Marketing
errett.kroeter_at_lantronix.com
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Lantronix At A Glance

• Headquarters Irvine, CA
• Leader in Machine-to-Machine
• Network-enabled over 2,000,000 devices
• 20,000 customers worldwide
• Over 22 million ports shipped
• Worldwide operations
• 95 indirect sales

INDUSTRY IT Networking
EMPLOYEES 200
GEOGRAPHY Global
USERS 50
PRODUCT(S) USED SFA, PRM, 3 AppExchange
applications
Every 10 Business Seconds-- Lantronix Network
Enables Another Device
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Key Challenges

• Business Challenge
• Small direct sales force
• 500 partners purchasing
• Strong lead generation
• Minimal partner forecasting
• Technology Challenge
• Manual lead distribution
• Manual deal registration and design win process
• No link from campaigns to partners

• No visibility
• Inefficiency
• Difficult forecasting

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The Solution

• How did we address the challenges?
• Pilot partner for PRM system
• Automated deal registration process
• Automated lead distribution
• Partner communications thru salesforce.com
• Evaluating partner incentives

DEPLOYMENT DETAILS

• Salesforce PRM
• 15 partners
• 40 Users
• Minimal training
• Automated deal reg templates

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Results

• What were the results?
• Simplified tracking of deal registrations
• Real-time tracking of opportunities
• Improved partner communications
• Improved partner enablement

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Lantronix PRM Implementation

• Channel Sales Marketing
• Users 25
• Key Requirements
• Lead distribution
• Automate deal reg
• Partner communications
• Key Benefits
• Lead tracking
• Deal reg tracking
• Reduce multiple registrations

17
Ernie Megazzini
Senior Director Channels Alliances
Ernie_at_networkphysics.com
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Introduction

• Leader in real-time application performance
  insights
• 20 sales personnel covering15 countries
• 85 Partners on the Portal (320 users)
• http//www.networkworld.com/news/2006/091306networ
  kphysics.html
• http//www.thechannelinsider.com/article/TheLong
  TailoftheChannel/187915_1.aspx
• http//www.eweek.com/article2/0,1759,2013936,00.as
  p
• http//www.networkworld.com/newsletters/accel/2006
  /0522netop2.html?fsrcrss-mpls
• http//www.processor.com/editorial/article.asp?art
  iclearticles2Fp28302F32p302F32p30.aspguidse
  archtypeWordListbJumpToTrue
• http//www.echannelline.com/canada/story.cfm?item
  DLY082006-03

INDUSTRY Network Management Appliance Insight
EMPLOYEES 88
GEOGRAPHY Global
USERS 452
PRODUCT(S) USED SFA, Marketing, License
Management, Service Support, 2 downloaded
AppExchange applications
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A Brief Intro on our Products..
Ending the Network versus Application Blame Game
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Partners and Customers
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Key Challenges

• Business Challenge
• Convert from Direct Sales Force to 100 Channel
  Focused organization
• Lack of process and automation
• Weak lead generation
• No Products or Price Books implemented therefore
  no central forecasting
• Sub Standard Asset Tracking and Licensing
  Administration
• Technology Challenges
• Integration between systems
• Legacy architecture
• Data cleansing tools non existent
• Licensing Key Integration

• High Costs
• Reduced revenue
• Inefficiency
• Low customer service

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The Solution

• How did we address the challenges?
• Automated lead generation process
• Implement Products and Price Book which drove
  Central Forecasting
• Implemented GOT email campaigns
• Integrated with Harte Hanks
• Integrated with SPOKE
• Created custom objects and controls for license
  management
• Implemented the Partner Portal
• Deal Registration
• Registration cycle 60 days
• Rating System for classifying requests
• Lock Outs and Contesting Deal Registration
• Buyers are Liars (Discovery of misleading info to
  the partner from the end user prospect)
• No Dumping of lead lists
• Dont bend the rules
• Managing Channel Managers and Resellers
• DRP in Local, State and Federal Government Deals

DEPLOYMENT DETAILS

• Everything (Unlimited Edition)
• 408 Users
• Integration with Quick Books enterprise edition,
  Spoke, Harte Hanks, GOT, RingLead and our
  Licensing application
• 4 Training tracks, Sales, Marketing, Service and
  Partner Portal
• All Business units have one admin and all use the
  system
• Better integration with Trackonit (System used by
  telemarketing firm

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Results

• What were the results?
• 214 increase in revenue 2nd quarter 2006 over
  2005
• Order-to-cash cycle time improvements
• Improved visibility to partners thru the portal
• Improved accuracy of data
• Higher customer satisfaction due to Support
  Object being exposed through the partner portal
• Signed 85 partners in first 6 months of 2006
• Zero channel conflict due to deal registration

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Demo

• User Dynamics Sales, Marketing, Support,
  Partners Finance
• Users 405
• Key Requirements
• Support Channel sales teams with a Partner Portal
  / Deal Registration / Campaigns etc..
• Integrate with Harte Hanks, SPOKE, Quickbooks EE,
  Got Ringlead
• Executive visibility into Opportunity Products,
  quotas and forecasting (Including Partners)
• Key Benefits
• Eliminated manual order processing
• Centralize forecasting
• On-demand pipeline visibility

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QUESTION ANSWER SESSION
ERRETT KROETER
Director, Worldwide Channel Marketing
ERNIE MEGAZZINI
Senior Director Channels Alliances
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