The Hybrid Sales Channel
How to Ignite Growth by Bridging the Gap Between Direct and Indirect Sales
Rich Blakeman, Managing DirectorChannel Sales Center of Excellence
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Why are we here?
Your “Front Door”
Call Centers Integrators Outside Sales
Electronic Commerce
Multiple Distribution
TiersAlliances Inside Sales • • •
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Buying Dynamics Changing
Buying Influences Per Sale
Buyer Expectation
of Value Sales
Resources Per Sale
Buyer DemandFor ROI
Customers purchasingthrough partners
as a % of total spending
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Poll Question #1
Which trend is most dominant in as you see the market?
A. New and changing buying influences in most sales
B. More sophisticated buyers and buying processes
C. Increased customer choices over how to buy
D. Customers requiring more and deeper levels of resource
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Growth Expectations Escalate Growth through acquisition has peaked in many companies Growth projections of acquisitions and integrations have not
been realized to their fullest Many companies no longer have the (capital, share value, PE
support, equity) to continue to acquire Therefore: Organic growth is finally required, not optional But: Many CEOs, Presidents, and CFOs of today have never
actually grown a company organically
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Sales Leadership Options Add more direct sales resources Give the direct team more quota Pray for magic from marketing Recruit more partners / better partners Give partners more incentives Move more accounts to the channel
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Poll Question #2
What is the highest priority to address the need for organic growth?A. Addition of more direct sales resourcesB. Improving partner coverage/quantity/qualityC. Increasing expectations of productivity
(Revenue per headcount or per partner firm)D. Increasing investment in marketing / tools
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The Hybrid Sales Channel
Customer at the Core Coverage Strategy at the
Territory Level Capitalizing on Unique
Strengths of all Resources Eliminating Duplication of
Effort in all Selling Motions
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• Separate but co-dependent components
• Unique strengths maximized
• Systems work together to leverage results
• Duplication of function is eliminated
What is a Hybrid Model?
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Everything starts with the customer Outside-in, not inside-out Coverage strategy to drive growth, not cost models to increase
“efficiency” Complete transparency and joint planning at the territory and
salesperson level (direct & channel)→ not at the company level Eliminating “seagull behavior”
How do you make it work in sales?
Finding Nemo © 2003 Disney/Pixar. All Rights Reserved.
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What happens to seagulls?
Finding Nemo © 2003 Disney/Pixar. All Rights Reserved.
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Poll Question #3
How does seagull behavior impact productive customer coverage at the territory level?A. Conflict between partners and direct at the customerB. Separation of coverage by rules of engagement that are
ineffective or inconsistently appliedC. Customer confusion as to the coverage modelD. All of the above
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The Process, Simplified……..How
customers are buying now
Where partners are selling now
Products mapped in
their lifecycle
Whole solution
components
Align direct & indirect coverage at territory level
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Territory level Unique Strength leverage Sales Motion
Demand generation marketing
Opportunity identification and qualification
Discovery and solution creation
Demonstration, pilot, proof of concept
Proposal and commercial agreement creation
Implementation planning and management
Account coverage and relationship management
Technical implementation
Solution integration with customer systems or processes
Post-implementation support
DirectSalesperson
PerAccount,
Opportunity,Solution Set,
Buying Influence,
or Segment
ChannelSalesperson
PerAccount,
Opportunity, Solution Set,
Buying Influence,
or Segment
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Where do you go from here? Read the book, of course! Ask for help – this isn’t DIY stuff Business case for change Leadership alignment Readiness First line manager engagement Imbed the concepts Do the hard work, then ignite growth!
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Channel Sales Competency Study
16
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ChannelPRO™: The Channel Ready Operating Model
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Channel Ready Sales Competencies
1. Channel Core Fundamentals
Ability to execute on the strategy to identify, recruit, enable, manage and transition channel partners in their
territory
2. Channel Business Acumen
Understand the business model and investment criteria of Channel
Partners and use this to influence their investment and behaviour
3. Influencing Skills
Articulate the key issues & business priorities that affect partners
stakeholders and have the influencing skills to manage
partners to change and invest as required
4. Partnership Planning
Manage the channel partner relationship, engagement and achievement of joint objectives through the partner plan
process
5. Leading and Managing Partnerships
Virtual sales management. Manage partners through critical stages in the sales process and the partner planning and
management processCoach and develop partners to identify and resolve their
own barriers to success and to become independently able to generate indirect sales revenue
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Channel Enablers Programs
Channel Success Essentials Leading Trusted Partnerships
Influencing Partnership Outcomes Coaching Partners to Results
Channel Sales Financials
Effective Partner Planning
Miller HeimanProgram
ChannelPartner
Management
1. Channel Core Fundamentals
2. Channel Business Acumen 3. Influencing Skills
4. Partnership Planning 5. Leading and Managing Partnerships
Channel Ready Competencies Mapped to Programs
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