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September 26, 2018
CHANNEL TRANSFORMATION ROLE OF INCENTIVES
AGENDA
+ Speaker Introductions
+ The Channel Transformation Challenge
+ Role of Channel Incentives
+ Core Incentive Planning Components
+ Q & A
Hello – A Brief Introduction of Your Presenters
Maria Chien
Service Director,
Channel Marketing Strategies
Maria is an industry thought leader in b-to-b channels with more than 20 years of
experience defining and implementing marketing and channel strategy. She is
experienced in a variety of disciplines including channel marketing, channel
readiness, partner enablement, partner program design and field marketing, and has
expertise in leading and executing innovative go-to-market strategies to and through
the channel.
Lisa Penn
Chief of Staff
Global Partner Marketing
Lisa brings over 20 years as an executive leader responsible for the development and
execution of business-critical channel initiatives driving innovation and best practice
across the global SAP partner eco system. She specializes in change management,
channel marketing & sales, business operations and results-based management.
Steven Kellam
Vice President,
Global Alliances
Steven is Vice President of Global Alliances at 360insights. Steven has decades of
experience and is a respected leader in channel incentives and marketing and has a
comprehensive end-to-end understanding of what it takes for brands to succeed
selling through complex sales channels.
© 2018 SiriusDecisions. All Rights Reserved
The Reality in B-to-B Buyer Behavior
The need for sales and marketing transformation
SiriusPerspective:
@siriusdecisions 5 © 2018 SiriusDecisions. All Rights Reserved
The Primary Driver: Buyer Behavior
Organizations need to understand how buyers are likely to behave, and then how
buyers actually respond to your organization’s offerings and tactics.
Loosening of
the Status Quo
Committing to
Change
Exploring
Possible
Solutions
Committing to
a Solution
Justifying the
Decision
Making the
Selection
1. 2. 3. 4. 5. 6.
SolutionEducation Vendor Selection
SiriusPerspective:
6 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
The Digital Imperative: The Reality of Buyer Behavior
Information gathering and other activity via digital channels is consistent throughout
the buying process.
66% 67% 66%
34% 33% 34%
Early Mid Late
Buyer Interaction Pattern
Online Offline
SiriusPerspective:
7 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
Top Business Challenges for Sales and Partners Today
Many of these challenges can be addressed through buyer-centric enablement and
demand programs that focus on competency gaps.
72%
Inability to connect offerings
to buyer needs and
challenges
69%
Inability to differentiate
offerings from competition
or status quo
65%
Poor content quality or
inaccessibility
Source: SiriusDecisions Command Center™
SiriusPerspective:
8 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
The SiriusDecisions B-to-B Buying Decision Process Framework
Decision making is a cognitive process defined by psychologists as the selection of a
course of action from multiple alternatives.
Education SelectionSolution
Period of Status Quo
The buying entity is
not a current client
of any provider
Period of Customer
Experience
The buying entity is a
current client
Period of Competitor
Experience
The buying entity is
a current client of a
competitor
Decision is
made that
there is a
reason for
change
Why? Decision
is made
on the
approach
on how to
change
Decision is
made on the
vendor of
choice
How? Who?
SiriusPerspective:
9 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
What Content Asset Types Are Most Valuable to Buyers?
Content asset type is the receptacle for sharing information with a buyer to progress
the journey to purchase.
Analyst Report
32%
Sales Presentation
27%
Case Study
23%
Published Article
21%
Interactive Brochure
21%
Most Popular Content Asset Types
Source: 2017 Buying Study
Static Brochure
Promotional Video
16% (tie)
10 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
Aligning Content to Buying Cycle Stages
Loosening of
the Status
Quo
Committing
to Change
Exploring
Possible
Solutions
Committing to
a Solution
Justifying the
Decision
Making the
Selection
1. 2. 3. 4. 5. 6.
SolutionEducation Vendor Selection
We might have a
problem, or we are
conceiving a vision.
• Virtual Events
• Social Media
• Trade Shows
• White Papers
• Blogs
Thought
Leadership
• Web Site/SEO
• Webcasts
• Self-Guided
Demos
• Product
Collateral
We understand the
problem and how it
connects to our
business.
Your solution
applies to
our need.
• Sales
Presentations
• Webcasts
• Live Events
• Case Studies
• Internal Blogs
Your solution will
have the greatest
impact on our
business.
• Trials
• Proofs of
Concept
• Competitive
Tools
• SME Access
The business case
is justified
internally.
• ROI Tools
• TCO Tools
• Business Case
• Financial
Presentation
• Live Events
We are confident
on moving
forward.
• Executive
Briefings
• Analyst Reports
• Customer
References
Solution Category
Knowledge
Value
Story
Solution
Differentiation
Financial
Justification
Decision
Validation
© 2018 SiriusDecisions. All Rights Reserved
The Evolution of Channel Incentive Programs
Don’t take a one-size-fits-all approach – consider partner types, business
models and personas
SiriusPerspective:
12 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
Channel Incentives in the Rearview Mirror
Past performance is not an indicator of future growth – suppliers must look beyond
sales rewards and develop incentives that drive future performance.
SiriusPerspective:
@siriusdecisions 13 © 2018 SiriusDecisions. All Rights Reserved
Why Channel Incentives Are Important
Channel incentives keep the partner ecosystem engaged and motivated to drive
demand and sell the organization’s offerings.
• Recognize and reward partner
contribution and performance
• Enhance partner experience
• Strengthen partner relationships and
increase loyalty
• Establish and maintain partner
mindshare
• Drive desired partner behavior
SiriusPerspective:
14 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions
Aligning Incentives to Fuel Performance
What growth goal
are you are trying
to achieve?
Growth
G
Type
What partner types
are you trying to
influence?
T
Persona
What partner
personas would
you like to target?
P
Behavior
What behavior
would you like
to see?
B
Channel leaders should start by identifying overarching goals, then apply incentives
based on the behaviors they want specific partner types to follow.
WHICH MACRO TREND HAS HAD THE
BIGGEST IMPACT ON YOUR CHANNEL?
A.
Emergence of New
Partner Types
B.
Change in Buyer’s
Journey
C.
Born-in-the-Clouds
Resellers
D.
Other
Key Channel Transformation Challenges
Insights about how buyers
want to purchase b2b
offerings are essential for
driving growth and go-to-
market strategies aligned to
the buyer’s journey
Suppliers continue to struggle to
apply incentives, resulting in a
lack of effectiveness and ROI
Incentives often focus on past
performance, rather than on
influencing future behavior
Changing factors – such as
new routes to market,
emerging partner types and
new technology offerings –
are altering the way
incentives are created and
executed
Many partner programs have
not been transformed or
adapted to expanded routes to
market or to consolidate
disjointed programs
Suppliers must modernize
programs and incorporate
best practices
Best-in-class b2b
organizations struggle to
establish channel partner
programs that can support
their channel strategy and
growth objectives
PROGRAM GROWTH
ALIGNMENT
LACK OF PROGAM
TRANSFORMATION
ALIGNMENT TO BUYER’S
JOURNEY
INCENTIVE
EFFECTIVENESS
NEW INCENTIVE
METHODS
WHICH CHANNEL TRANSFORMATION
CHALLENGE IS MOST IMPORTANT TO YOU?
A.
Program Growth
Alignment
B.
Lack of Program
Transformation
C.
Alignment to the New
Buyer’s Journey
D.
Incentive
Effectiveness
E.
New Incentive
Methods
Incentives Decision Matrix
Planning, Implementation & Program Management
Presented by Lisa Penn
Positioning an incentive program
Planning the Right Incentive Program for Your Company
ALIGNMENT EXISTING EFFORTS
FUNDINGS EXECUTIVE SPONSORS TIMELINE
Do you have critical KPIs that
would benefit from an incentive
to drive awareness and
behavior?
Are your stakeholders (regional
or global) currently delivering
incentives? Best practice?
Extend & enhance?
Can you secure budget to fund
the start up, the maintenance
and the programs? Can the
region, product teams, sales or
marketing teams share
funding?
Every program that is partner
facing and requires budget,
MUST have an executive
sponsor. This leader often owns
the budget for the program.
What is the best time to launch
the program? New product
launch? Annual Kickoff?
Digital marketing enablement
End of quarter? (consider a
pilot)
OBJECTIVES
Are there partner behaviours
you need to drive? Do they
differ by partner type? By
location? By certification level?
DECISION MATRIX
Program Requirements
Identify Implementation Guidelines for Your Company
TAX & COUNTRY
GAME RULES
CORPORATE
COMPLIANCE
RULES OF
ENAGEMENT
PILOT, LAUNCH &
COMMUNICATE
REGIONAL &
LOCAL LT
SPONSORSHIP
Define ownership for
the management of
tax & country game/
program guidelines
Corporate compliance
is required; it may define
program parameters,
lengths and award
amounts
Define owners for overall
program management,
program development,
comms and
reconciliation
Sponsorship from your
regional leadership is
required to secure
approval, drive
adoption and establish
goals & targets
When working with
incentive programs,
proper timely
documentation is
mandatory
PLANNING & IMPLEMENTATION GUIDELINES
Ongoing Focus is Required
Program Management Ensures Program Longevity
PROGRAM MANAGEMENT
STAKEHOLDER MANAGEMENT
SALES MARKETING PRODUCT ENABLE SALES SALES SALESMARKETING
DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
DEVELOP
LAUNCH
BUSINESS NEED
Understand your business and how the program
supports current and future strategic efforts.
Expand use to grow program ‘stickiness’.
SPONSORSHIP
Update your executive stakeholders on a regular
cadence. Report results and highlight successes
to a broad base of stakeholders.
FUNDING
Ensure your programs are integrated into annual
planning processes. Position incentives for critical
efforts requiring behavioral transformation.
HOW IMPORTANT ARE INCENTIVES
TO DRIVING CHANNEL TRANSFORMATION?
Very Important Important So-So Less Important Not Important
CONCLUSION
Core Incentive Planning Components
What are you trying
to achieve?
Which channel segments
are you targeting?
What the best incentive for
the persona & behavior?
What behavior needs to
be influence?
GOALS PARTNERS INCENTIVEBEHAVIORS
Incentive Planning starts with a clear goal, a target audience and behavior, and a
program designed to achieve the goal through behavioral change.
QUESTIONS?
WE HAVE ANSWERS.

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Channel Transformation & The Role of Incentives

  • 1. September 26, 2018 CHANNEL TRANSFORMATION ROLE OF INCENTIVES
  • 2. AGENDA + Speaker Introductions + The Channel Transformation Challenge + Role of Channel Incentives + Core Incentive Planning Components + Q & A
  • 3. Hello – A Brief Introduction of Your Presenters Maria Chien Service Director, Channel Marketing Strategies Maria is an industry thought leader in b-to-b channels with more than 20 years of experience defining and implementing marketing and channel strategy. She is experienced in a variety of disciplines including channel marketing, channel readiness, partner enablement, partner program design and field marketing, and has expertise in leading and executing innovative go-to-market strategies to and through the channel. Lisa Penn Chief of Staff Global Partner Marketing Lisa brings over 20 years as an executive leader responsible for the development and execution of business-critical channel initiatives driving innovation and best practice across the global SAP partner eco system. She specializes in change management, channel marketing & sales, business operations and results-based management. Steven Kellam Vice President, Global Alliances Steven is Vice President of Global Alliances at 360insights. Steven has decades of experience and is a respected leader in channel incentives and marketing and has a comprehensive end-to-end understanding of what it takes for brands to succeed selling through complex sales channels.
  • 4. © 2018 SiriusDecisions. All Rights Reserved The Reality in B-to-B Buyer Behavior The need for sales and marketing transformation
  • 5. SiriusPerspective: @siriusdecisions 5 © 2018 SiriusDecisions. All Rights Reserved The Primary Driver: Buyer Behavior Organizations need to understand how buyers are likely to behave, and then how buyers actually respond to your organization’s offerings and tactics. Loosening of the Status Quo Committing to Change Exploring Possible Solutions Committing to a Solution Justifying the Decision Making the Selection 1. 2. 3. 4. 5. 6. SolutionEducation Vendor Selection
  • 6. SiriusPerspective: 6 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions The Digital Imperative: The Reality of Buyer Behavior Information gathering and other activity via digital channels is consistent throughout the buying process. 66% 67% 66% 34% 33% 34% Early Mid Late Buyer Interaction Pattern Online Offline
  • 7. SiriusPerspective: 7 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions Top Business Challenges for Sales and Partners Today Many of these challenges can be addressed through buyer-centric enablement and demand programs that focus on competency gaps. 72% Inability to connect offerings to buyer needs and challenges 69% Inability to differentiate offerings from competition or status quo 65% Poor content quality or inaccessibility Source: SiriusDecisions Command Center™
  • 8. SiriusPerspective: 8 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions The SiriusDecisions B-to-B Buying Decision Process Framework Decision making is a cognitive process defined by psychologists as the selection of a course of action from multiple alternatives. Education SelectionSolution Period of Status Quo The buying entity is not a current client of any provider Period of Customer Experience The buying entity is a current client Period of Competitor Experience The buying entity is a current client of a competitor Decision is made that there is a reason for change Why? Decision is made on the approach on how to change Decision is made on the vendor of choice How? Who?
  • 9. SiriusPerspective: 9 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions What Content Asset Types Are Most Valuable to Buyers? Content asset type is the receptacle for sharing information with a buyer to progress the journey to purchase. Analyst Report 32% Sales Presentation 27% Case Study 23% Published Article 21% Interactive Brochure 21% Most Popular Content Asset Types Source: 2017 Buying Study Static Brochure Promotional Video 16% (tie)
  • 10. 10 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions Aligning Content to Buying Cycle Stages Loosening of the Status Quo Committing to Change Exploring Possible Solutions Committing to a Solution Justifying the Decision Making the Selection 1. 2. 3. 4. 5. 6. SolutionEducation Vendor Selection We might have a problem, or we are conceiving a vision. • Virtual Events • Social Media • Trade Shows • White Papers • Blogs Thought Leadership • Web Site/SEO • Webcasts • Self-Guided Demos • Product Collateral We understand the problem and how it connects to our business. Your solution applies to our need. • Sales Presentations • Webcasts • Live Events • Case Studies • Internal Blogs Your solution will have the greatest impact on our business. • Trials • Proofs of Concept • Competitive Tools • SME Access The business case is justified internally. • ROI Tools • TCO Tools • Business Case • Financial Presentation • Live Events We are confident on moving forward. • Executive Briefings • Analyst Reports • Customer References Solution Category Knowledge Value Story Solution Differentiation Financial Justification Decision Validation
  • 11. © 2018 SiriusDecisions. All Rights Reserved The Evolution of Channel Incentive Programs Don’t take a one-size-fits-all approach – consider partner types, business models and personas
  • 12. SiriusPerspective: 12 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions Channel Incentives in the Rearview Mirror Past performance is not an indicator of future growth – suppliers must look beyond sales rewards and develop incentives that drive future performance.
  • 13. SiriusPerspective: @siriusdecisions 13 © 2018 SiriusDecisions. All Rights Reserved Why Channel Incentives Are Important Channel incentives keep the partner ecosystem engaged and motivated to drive demand and sell the organization’s offerings. • Recognize and reward partner contribution and performance • Enhance partner experience • Strengthen partner relationships and increase loyalty • Establish and maintain partner mindshare • Drive desired partner behavior
  • 14. SiriusPerspective: 14 © 2018 SiriusDecisions. All Rights Reserved@siriusdecisions Aligning Incentives to Fuel Performance What growth goal are you are trying to achieve? Growth G Type What partner types are you trying to influence? T Persona What partner personas would you like to target? P Behavior What behavior would you like to see? B Channel leaders should start by identifying overarching goals, then apply incentives based on the behaviors they want specific partner types to follow.
  • 15. WHICH MACRO TREND HAS HAD THE BIGGEST IMPACT ON YOUR CHANNEL? A. Emergence of New Partner Types B. Change in Buyer’s Journey C. Born-in-the-Clouds Resellers D. Other
  • 16. Key Channel Transformation Challenges Insights about how buyers want to purchase b2b offerings are essential for driving growth and go-to- market strategies aligned to the buyer’s journey Suppliers continue to struggle to apply incentives, resulting in a lack of effectiveness and ROI Incentives often focus on past performance, rather than on influencing future behavior Changing factors – such as new routes to market, emerging partner types and new technology offerings – are altering the way incentives are created and executed Many partner programs have not been transformed or adapted to expanded routes to market or to consolidate disjointed programs Suppliers must modernize programs and incorporate best practices Best-in-class b2b organizations struggle to establish channel partner programs that can support their channel strategy and growth objectives PROGRAM GROWTH ALIGNMENT LACK OF PROGAM TRANSFORMATION ALIGNMENT TO BUYER’S JOURNEY INCENTIVE EFFECTIVENESS NEW INCENTIVE METHODS
  • 17. WHICH CHANNEL TRANSFORMATION CHALLENGE IS MOST IMPORTANT TO YOU? A. Program Growth Alignment B. Lack of Program Transformation C. Alignment to the New Buyer’s Journey D. Incentive Effectiveness E. New Incentive Methods
  • 18. Incentives Decision Matrix Planning, Implementation & Program Management Presented by Lisa Penn
  • 19. Positioning an incentive program Planning the Right Incentive Program for Your Company ALIGNMENT EXISTING EFFORTS FUNDINGS EXECUTIVE SPONSORS TIMELINE Do you have critical KPIs that would benefit from an incentive to drive awareness and behavior? Are your stakeholders (regional or global) currently delivering incentives? Best practice? Extend & enhance? Can you secure budget to fund the start up, the maintenance and the programs? Can the region, product teams, sales or marketing teams share funding? Every program that is partner facing and requires budget, MUST have an executive sponsor. This leader often owns the budget for the program. What is the best time to launch the program? New product launch? Annual Kickoff? Digital marketing enablement End of quarter? (consider a pilot) OBJECTIVES Are there partner behaviours you need to drive? Do they differ by partner type? By location? By certification level? DECISION MATRIX
  • 20. Program Requirements Identify Implementation Guidelines for Your Company TAX & COUNTRY GAME RULES CORPORATE COMPLIANCE RULES OF ENAGEMENT PILOT, LAUNCH & COMMUNICATE REGIONAL & LOCAL LT SPONSORSHIP Define ownership for the management of tax & country game/ program guidelines Corporate compliance is required; it may define program parameters, lengths and award amounts Define owners for overall program management, program development, comms and reconciliation Sponsorship from your regional leadership is required to secure approval, drive adoption and establish goals & targets When working with incentive programs, proper timely documentation is mandatory PLANNING & IMPLEMENTATION GUIDELINES
  • 21. Ongoing Focus is Required Program Management Ensures Program Longevity PROGRAM MANAGEMENT STAKEHOLDER MANAGEMENT SALES MARKETING PRODUCT ENABLE SALES SALES SALESMARKETING DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN DESIGN DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH DEVELOP LAUNCH BUSINESS NEED Understand your business and how the program supports current and future strategic efforts. Expand use to grow program ‘stickiness’. SPONSORSHIP Update your executive stakeholders on a regular cadence. Report results and highlight successes to a broad base of stakeholders. FUNDING Ensure your programs are integrated into annual planning processes. Position incentives for critical efforts requiring behavioral transformation.
  • 22. HOW IMPORTANT ARE INCENTIVES TO DRIVING CHANNEL TRANSFORMATION? Very Important Important So-So Less Important Not Important
  • 24. Core Incentive Planning Components What are you trying to achieve? Which channel segments are you targeting? What the best incentive for the persona & behavior? What behavior needs to be influence? GOALS PARTNERS INCENTIVEBEHAVIORS Incentive Planning starts with a clear goal, a target audience and behavior, and a program designed to achieve the goal through behavioral change.