Cross-Sell and Upsell Strategies in the ChannelLaz Gonzalez, SiriusDecisionsJuliann Grant, eCoast Marketing

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Agenda

• Define Your Targets with Account Based Marketing• Gain Visibility with a Propensity Model• The Channel Challenge • Building Trust and Filling the Gaps• Planning A Campaign• Use Cases: Stories of Success

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SiriusDecisions Presenter:

Laz Gonzalez, SiriusDecisions – the leading provider of b-to-b sales, marketing and product research advisory services

Served in key leadership and channel roles at Lotus/IBM, Baan and Viewpoint

Extensive international experience implementing channel-driven sales and marketing programs

Group Service Director for Channel Sales and Marketing Strategies at SiriusDecisions

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Vice President of Marketing for eCoast

eCoast Marketing Presenter:

Juliann Grant, eCoast Marketing – Helping businesses tackle their marketing challenges

Recent client work includes Siemens, Rogers Corp, Cognos, Progress Software, Sustainable Minds and NaviNet

25+ years of experience developing marketing strategies for high tech and industrial that build consumer demand, revenue streams, and customer communities

Define Your Targets with Account Based Marketing

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Large Account• Very small number of large existing or

targeted accounts

Named Account• Moderate or large number of defined

existing or targeted accounts

Customer Lifecycle• Moderate or large number of existing

customers that receive differentiated outreach

Industry/Segment• Any number of new or existing

accounts in the same vertical or other specific segment

Cross-selling and Upselling Required an Account Based Approach

Account-Based Models

At the Core Lies an Account-Based Marketing (ABM) Framework

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Account-Based Marketing Advances Two Types of Goals

Opportunity Relationship

Deliver growthNew, cross-sell or up-sell

Create positive environmentRetention, loyalty, advocacy

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What Do The Best ABM Programs Have In Common?

• Visionary ABM leadership

• Dedicated, interlocked teams

• Understanding of expanded marketing role

Commitment Execution

• Structured approach

• Excellent communication

• Clear understanding of what success looks like

• Systems in place to measure and share results

Results

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Where Can ABM Deliver Quick Wins?

Enablement

• Internal communication plan

• Skills training• Template/tool

creation• Best practice

sharing• Feedback

collection (sales, marketing views)

Insights

• Actionable account profiles

• Contact discovery• Account analytics• New market

persona/messages

Planning

• Link marketing help to existing sales account plans or goals

• Cross-functional working session to define options faster

Execution

• Content assets• Interactions/

events• Pipeline

acceleration: Focus on mid- to late-stage deals

• Small-net fishing for new opportunity in defined area

• Pilot with small number (2-3) of large accounts

Getting Started with an Account Based Channel Marketing Program

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Process Steps: What Actions Will Be Taken?

Insights Selection/Prioritization Planning Execution

PilotRollout

Measurement

Short-termMedium-

termLong-term

Goals (Cross-Sell/Upsell/Rel

ationship)MessagingResources

Tactic Selection

Segmentation

Internal Account

DataExternal Data

Assessment/Scoring

Process Steps for Large, Named and Industry Account-Based

Marketing

Communication

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Step 1: What Do You Need to Know About Accounts?

Must Have

Account Industry

Account Buying Centers*

Wallet Share/Available Opportunity*

Sales Goals by Buying Center

Stage of Active Deals*

Contacts Known/Needed

Really Great to Have

Key Initiatives/Needs by Buying Center

Relationship Status

Relationship Map by Buying Center

Extra Credit

Growth Trend

Competitive Environment

Contact Engagement History

Account-Level Attributes Buying

Signals

*Must-have for longer list of named accounts initial scoring

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Step 2: Score and Rank Accounts

 ABM FACTORS 1 = Very False

5 = Very TrueAccount 1  Account 2  Account 3  Account 4

OPPORTUNITY

INDEX

This is a large, global account. Score 1-5 1 5 1 5

Distinct buying centers exist for this account. Score 1-5 1 5 2 5

Unified approach would drive value. May currently be disjointed.

Score 1-5 1 5 3 2

This account spends a lot of money in your category (but not necessarily with you).

Score 1-5 1 5 3 2

This account spends a lot in the category and spends it with you.

Score 1-5 1 5 4 2

Factors exist that could drive relatively quicker purchase/priority (e.g. economic conditions, regulations).

Score 1-5 1 5 5 1

We are aware of active pipeline opportunities within the account

Score 1-5 1 5 5 1

Total Opportunity Index Score Sum 7 35 23 18

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Is it worth it?

Can we get it?

Can we work together?

What else to consider?

Use 4 Buckets of Criteria To Zero In on Best Chance of Success

ABM Account Selectio

n

Opportunity Index

Achievability index

Cooperation Index

Other Factors

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Examples of Criteria

* Account Size

* # Buying

Centers

* Pipeline

* Known Contacts

* Current Satisfaction

* Competitive Traction

* Amenable Account

* Account Leadership

* Sales Endorsement

* Strategic Play*New Geography

* Sales Rep Experience Level

Opportunity Achievability

Cooperation Other

Selecting the right accounts considers criteria in these key areas

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Examples of Account Prioritization Output

• Large-Account Pilot• 5 to 10 large accounts

• Selected for presence of opportunity and cooperative sales team

• Focus on customized execution for big deals

• Combines relationship goals and opportunity goals

• Named Account Pilot• 20 to 50 larger accounts• Selected for type of opportunity

• Focus on one-to-a few execution that supports sales growth objective

• Main focus is opportunity goals

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Step 3: Set SMART Goals or Get Specific About Goals

“Be the preferred supplier of

company ABC”

“Expand Sales of Product XYZ”

Not SMART

“Retain Strategic Account X by engaging senior leadership team

during next 18 months, showcasing value delivered,

resulting in five-year renewal”

“Upsell 50 more licenses of Product XYZ to Joe Smith’s group by Q4, resulting in $500,000 revenue”

SMART

Opport

unit

y G

oal

Rela

tionsh

ip G

oal

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Step 4: Build a Plan

Goal 1:        

Week 1 Week 2 Week 3 Week 4

ACTION 1 (Internal Activity)

(insert date) (insert date) (insert date) (insert date)

Internal Lead        

Activity Needed        

Measurement        

Week 1 Week 2 Week 3 Week 4

ACTION 2 (External Facing Activity)

(insert date) (insert date) (insert date) (insert date)

Persona 1        

Key Message        

Offer        

Delivery Mechanism        

Measurement        

Which Accounts        

Sample: Portion of Execution Timeline:

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Step 5: Define your Success Measures

Account InsightsNew ContactsSuccessful PlanningSales UtilizationAccount/Contact Activity

Early Progress

New PipelineExisting Opportunity ProgressRelationship Development

Initial Outcomes

Revenue Growth and RetentionIncreased Loyalty and Advocacy

Long-Term Value

© 2014 SiriusDecisions. All Rights Reserved 20

Reven

ue

3 SQLsBlitz Day

Proposal

20 MQLs

Email #1

Event

Inbound Tactic

Account Plans

Account Prioritization

SiriusPerspective: Impact is created by effectively executing the right combinations of

actions across product, marketing and sales functions.

From Activity to Output to ImpactSale

sM

ark

eti

ng

AB

M

Impact Output Activity ReadinessAccount Insights

The Channel Challenge

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The Channel Disconnect

Vendors Have Partners Lack

Content

Expertise

Resources

Skills

Infrastructure

Technology

Process

Incentive

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Poor Adoption

Registered Partners

Partner Portal

Marketing Automation

MDF/Co-Op

Execution

Channel Marketing Workflow

ROI?

Channel marketers report less than 20% of their partners regularly participate in training, access portals or take demand generation offers.” - SiriusDecisions“

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Why It’s Hard to Cross Sell in the Channel

Sharing Customer Data

Lack of Good Account Contacts

Lack of Partner Loyalty

No Visibility

No accountability

Poor ROI

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Criteria-Based

Marketing

Account-Based

Marketing

Cost $100k $60k

Leads Produced 230 86

Cost Per Lead $434.7 $697.7

No. of Deals Registered 77 51

Leads to Registered Deal Conversion Rate

33.5% 59.3%

Pipeline Produced $2.982M $3.215M

Average Opportunity Value $38,739 $63,041

ROI (Pipe:Cost) 29.8:1 53.6:1

Improved Conversions 1-3% 6-12%Network Infrastructure Enterprise Case Study

Does Account-based Marketing Really Work?

Building Trust and Filling the Gaps

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How a Neutral Third-Party Can Assist

• Need a trusted party to mitigate partner campaign concerns• Sharing customer lists

• Not overstepping boundaries

• Ensure campaign execution• More accountability • Improved reporting on all activities• Hands-on partner support

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Role of Prescriptive Concierge Services

Assess Strengths & Weaknesses

Identify Desired Outcomes

Share Best Practices

Prescribe Solutions

Define Campaign Goals

Establish Benchmarks

Monitor Progress

Flag and Address Potential Issues

Regular Review Calls

Review Metrics

Make Adjustments

Exceed goals

5+ Years Average eCoast Tenure

Engaged with Thousands of

Channel Partners

Collaborate Measure Review Expertise

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Servicing the Partner Landscape

1st Tier

2nd Tier

3rd Tier

More resources

No resources

Some resources

White Glove Concierge

Low Touch Concierge

Medium Touch Concierge

Planning an Effective Cross-Sell UpSell Campaign

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Account-Based Marketing Steps

Identify between 20 and

30 target accounts

Include geography and desired titles to

acquire

Prepare Survey Tool

Determine what information do

you want to know?

Define what is a “qualified” lead

Train the Call Agents

Identify Prepare Define Train

GO!

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Key Ingredients of a Cross-Sell Upsell Program

DigitalMarketing

Tele-Marketing

ContentMarketing

• Email marketing

• Social Media promotion

• Banner Ads

• Appointment Setting

• Lead Generation

• Call To Actions provided or customized

• Special offers

Lists & Data

• Customer Data provided

• Account based marketing

Integrated Multi-Touch Approach

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High Touch vs. Low Touch Integrated Packages

Full Customization Pkg Could Include:

• Email Marketing• Telemarketing• Natural Web Page

Optimization• Social Media Postings• 2 Blog Postings• Social Ads

Light Customization (Low Touch) Pkg Could Include:

• Email Marketing• Telemarketing• Social Media Postings

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Measurements of Success

Opens

Clicks

Conversions

Bounces

Unsubscribes

CTO

Right Party Contacts

Conversations

Leads

Estimated Lead Value

Popular Postings

Clicks

Traffic Source Growth

Conversions

# of Partners Participated

Partner-specific

Results

Leads Generated

Estimated Lead Value

EmailTele-

Prospecting SocialSupplier

Level

Use Case: Upselling in the Channel

Target Audience:

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Integrated Email and Telemarketing Campaign• eCoast Created Marketing Assets:

– 6 Varied Email & Landing Page Templates

– CTAs

– Telemarketing Script

• 26 Partners participated

A Successful Cross-Sell Upsell Campaign Reseller Clients who were not currently customers of the

Supplier

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The Cross-Sell Upsell Campaign Rollout Process

Pipelin

e V

alu

eeCoast validates list

List submitted to eCoast

Mark

eti

ng

Tele

mra

keti

ng

List

Partner Identifies Customers

Email #1

Telemarketing

Within 48 hrs

Email #214 days

14 days Email #3

Email open and click data provided to Call Agents after each send

Average Duration 8-12 weeks

© 2014 SiriusDecisions. All Rights Reserved 38

Make this look interesting

• Estimated Leads Generated: 323• Estimated Lead Value: $23.7M

• Average Estimated Leads per partner: 12.4 leads• Average Estimated Lead Value per partner: $914,226

Campaign Results

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Cross-Sell Upsell Campaign Results

323 Estimated Leads Generated Estimated Lead Value: $23.7M

Average Estimated Leads Per Partner: 12.4 LeadsAverage Estimated Lead Value Per Partner: $914,226

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Cross-Sell Upsell Campaign Results

323 Estimated Leads Generated

$23.7M Estimated Lead Value

12.4 Average Estimated Leads Per Partner

$914,226 Average Estimated Lead Value Per Partner

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Campaign Success Factors

A Systematic Approach

Full Campaign

Visibility andAccountabilit

y

All Opportunities Registered In System

Fully MDF-Funded Campaign

ConsistentBranding

Assets And Messaging

SiriusPerspective:

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Adobe Define & Assign• Actionable

– Provided sales with clear visibility

– Provided reasons to call

• Profitable

– Pay-for-performance rebate and MDF

• Measurable

– Real-time updates

Enabling Partner-Led Activities: AdobeBy understanding a customer’s propensity to buy, Adobe launched a

best-in-class program that drives channel demand.

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SiriusPerspective:

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• Which segments would have the highest propensity to buy?

• Is there specific functionality that would convince customers to upgrade?

• Focused on the customer and choose natural segments that have a higher propensity to buy based on new functionality for that customer type

Adobe’s Approach to Estimating Buyer PropensityCreated messaging that communicated the value this new

functionality offered the reseller’s target segment.

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Feature Set A

Feature Set B

Feature Set C

Entertainment Med N/R Low

Education High Med High

AEC N/R Low Low

For Each Direct Marketing Reseller

(DMR)

SiriusPerspective:

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Define & Assign Impact on Partner MarketingAdobe realized higher revenue, better adoption and greater

marketing efficiencies.

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Impact Areas Results

Strategic Supported Adobe’s launch of the latest Creative Suite through high-impact channels

Channel Program ROI

Top 20 percent of DMR sales reps drove 85 percent penetrations (3X normal average)

Impact on Business

$32M incremental revenue in 24-month cycle for N.A.

Partner Type: Direct Marketing Resellers

Size/Rev $200M-$9B

Avg Deal $14K

Coverage U.S.

Target/Goal 125 percent of upgrade goal

SiriusPerspective:

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• Used historical data to show channel partners exactly what the opportunity was for each rep, and tracked performance

• Developed talk tracks that sales reps could use with existing customers

• Realized early that one size doesn’t fit all; created campaigns that leveraged the strength of each partner

Critical Success FactorsKey to Adobe’s success was tailoring demand creation programs for

specific partner types using the data it collected.

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DEFINE & ASSIGN

Use Case: Employing Predictive Analytics in Cross-sell Campaigns

SiriusPerspective:

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• Targeted 5,000 accounts with highest propensity to buy

• Selected a cross-section of 16 partners to participate (based on capability, capacity, compatibility)

• Increased the cross-sell and upsell of new products

VMware Recommended Highest-Propensity AccountsThe predictive recommendations focused partners on opportunity

sweet spots and highest-propensity accounts to grow VMware partner bookings.

2.6X

0 1,000 2,000 3,000 4,000 5,000 6,0000%

5%

10%

15%

20%

25%

30%

35%

40%

PredictedAverage

AccountsPu

rcha

se P

roba

bilit

y 20% 40% 60% 80% 100% 0%

Heavily invested in vSphereOver 100 vSphere licensesSource: VMware

Security focused industrySource: VMware

Last Purchased View over 6 months agoSource: VMware

Aging desktopsCompany has desktops that will likely be refreshed in the near-termSource: Data Collaboration Agreement

High-GrowthCompany has grown 15%+ in 1 yearSource: Lattice Business Events

Source: Lattice-Engines

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SiriusPerspective:

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Impact on Partner Program Engagement and ROIBy aligning partner capability and commitment, and focusing on

partner engagement, VMware was able to help partners sell more and make more money.

Supplier Impact Areas

Results

Strategic Global rollout determined halfway through pilot

Channel program ROI

#2 overall GTM initiative

Impact on business

Increased product adoption essential for VMware’s continued growth

Partner Impact Areas

Results

Strategic Economic upside on renewal opportunities

Program ROI Retooling and aligning renewals and sales functions

Impact on business

Three times more effective than organic cross-sell/upsell

SiriusPerspective:

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• Structure and metrics were a big part of program success• Deal size, cross-sell rate in pipeline and bookings were defined

up front, with control groups to evaluate incremental lift in pilot• Weekly pipeline management calls were established to confirm

partner engagement and measure progress against opportunities

Critical Success FactorsEarly program success, evidenced by partner bookings and breadth

of products sold, was used to fuel momentum for accelerating global rollout.

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In Summary (dress up)

• Marketers need to apply different approaches to creating demand when they are addressing a defined universe of direct and partner named accounts. A systematic approach is required.

• Analysis and account and buyer insights, along with clear goals, form the foundation for an effective defined-universe plan. Partner sales and channel marketing cooperation is an important factor.

• Upselling and Cross-selling success starts with applying ABM principles when gathering account information, prioritizing channel accounts, and planning to build effective tactics partners can use.

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In Summary

Marketers need to apply different approaches to creating demand when they are addressing a defined universe of direct and partner named accounts. A systematic approach is required.

Analysis and account and buyer insights, along with clear goals, form the foundation for an effective defined-universe plan. Partner sales and channel marketing cooperation is an important factor.

Cross-selling and upselling success starts with applying ABM principles when gathering account information, prioritizing channel accounts, and planning to build effective tactics partners can use.

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Questions?

Connect with eCoast:

Email sales@ecoastmarketingcom

Website ecoastmarketing.com

Blog blog.ecoastmarketing.com

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Twitter twitter.com/ecoast

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