The Most Successful Route To The SMB Market
The Most Successful Routeto the SMB MarketPlus: What SMB Partners areAsking for and How IT Vendorsare RespondingSMB Market InsightsComputer Generated Solutions, Inc
The Most Successful Routeto the SMB MarketPlus: What SMB Partners areAsking for and How IT Vendorsare RespondingOverviewToday’s economy has presented IT vendors with many challenges, including the need to increase salesperformance in their SMB channel.Many IT vendors have revised their SMB go-to-market strategies to more effectively penetrate andachieve market leadership through their SMB channel partners.The Most Successful Route to the SMB Market reportprovides a view of the changes taking place within theSMB channel and provides a mix of strategic and tacticalrecommendations that address many categories including: New successful tactics and best practices toidentify and recruit a great set of new qualitySMB partners that will make the requiredcommitments to drive sales.A close look at what the successful SMBpartners are asking for and how IT vendorsare responding to their needs in a costeffective manner.SMB Market InsightsComputer Generated Solutions, Inc Proven strategies and tactics that place SMBpartners on a fast track to accelerate sales.How to achieve dramatic new levels of productivity and sales from your inactive base of SMBpartners. This is major untapped revenue source.
The Most Successful Routeto the SMB MarketPlus: What SMB Partners areAsking for and How IT Vendorsare RespondingTable of ContentsThe Most Successful Route to the SMB Market3Best Practices: Identifying and Recruiting the Right SMB Partners4What SMB Partners Are Asking for From Their Vendors6The Changing Dynamics of Vendors’ SMB Partner Programs9New Tactics to Gain Partners’ Mindshare and Their Business10A Best Practice Model: Partner Engagement, Enablement and Sales Activation Program 11A Major Source of Untapped Revenue: Vendors’ Inactive Partners22A Proven Cost Effective Program that Drives Incremental Sales24SMB Market InsightsComputer Generated Solutions, Inc
The Most Successful Routeto the SMB MarketPartners that primarily focus on selling to the SMB market are critically important for IT vendors toreach the SMB market in a cost efficient manner.Note: SMB partners are defined as value-addedresellers, solution providers, system integrators,independent software vendors and dealers.Small and medium businesses represent an importantand growing market for many IT product and servicesvendors. As revenue and margins slow or stagnatewithin the enterprise client market, the SMB marketrepresents many vendors’ best opportunity fornew growth.Although SMB customers’ individual budgets aresmaller than those of larger enterprises, these customers understand that IT is critical to their business in order to keep them competitive and operating efficiently.Less than 30% of SMB businesses have dedicated ITstaff, while the rest rely upon their relationship withtheir local SMB partner. A large percentage of SMBbusinesses have developed long term relationshipswith their local SMB partner.Small businesses seek capabilities from their SMBpartners that go beyond their product knowledge andsupport services. These small business owners look tobuild relationships with local partners that haveempathy for the challenges of small businesses,understand their market and business model andof course, provide the ability to advise, service andsupport all of their IT needs.SMB Market InsightsComputer Generated Solutions, IncThe SMB partners typically are also small organizationsthat have been in business for several years. CompetentSMB partners are capable of providing many valuableservices including advising the small business ownerson how to get the most out of their IT investments,educate them on how new technology solutions canhelp them achieve their immediate and long term goalsand provide complete solutions that include training andother services.With the partner’s assistance, SMB owners can makeknowledgeable decisions when purchasing newinnovative solutions and technology. The SMB partnersassist the company to quickly adjust by implementingthe new solutions, training the company’s staff andproviding on-going support and services.The most successful SMB partners work hard atcontinually acquiring new customers in their localgeography and developing trusted advisor status thatleads to establishing long term business relationships.3
Best Practices:Identifying and Recruiting the Right SMB PartnersAvoid the Pitfalls New Tactics that Deliver Qualified PartnersIf partner recruitment is a near term requirement, thefollowing new tactics should be considered for your nextpartner recruitment campaign.Over the past 4-5 years, most IT vendors have launchedrecruitment campaigns to attract SMB partners.Every vendor offers compelling reasons to entice partnersto enroll in their partner programs - but are they theright partners?The success of a recruitment campaign has typicallybeen measured on the number of new partnersrecruited. Many vendors outsource recruitment to theirdistributors or an external organization that has somelevel of partner recruitment experience.The vendors provide descriptions of the partnersrequired and the number of new partners needed bygeography. The organization chosen to implement theprogram typically focuses on achieving the desirednumber of new recruits and has no way to know ormeasure if they have recruited the right partners. Theright partners are partners that align to the vendors’requirements and will commit to engage and sell thevendors’ products and services.Changing the Recruitment MetricsPractically any distributor or outsourcing company candeliver hundreds or thousands of new partners.However, a truly successful and productive partnerrecruitment campaign is measured based on the numberof partners that “make commitments” up-front to thevendor prior to being accepted into the partner program.The new partner recruitment strategies and tacticsdescribed in this document have resulted in theSMB Market InsightsComputer Generated Solutions, Inc“We recruited over 5,000 newSMB partners but after 1 yearonly 15% are selling our products”recruitment of the “right” partners that made therequired “commitments” to “engage” and becomequickly “enabled” to sell the vendors’ products andservices. Recruitment candidates that do not makethe required commitments are not accepted intothe program.How to Identify a Great Set of New Quality SMBPartners to Drive SalesThe tactics described below ensure that each new partnerrecruited does not become just another name on your list ofunproductive partners that are not generating the revenueand business results you desire.1. Recruitment PlanPrior to launching a recruitment campaign, it is criticalfor vendors to define a specific set of parameters thatidentify and segment the type of SMB partners theyrequire to successfully sell their products and services.Establishing clear parameters for identifying, qualifyingand recruiting new partners will ensure that the partnersthat are targeted for recruitment possess the desiredcompetencies and business models you are seeking.4
Best Practices:Identifying and Recruiting the RightSMB PartnersRecruiting the right business partners is the key todeveloping or expanding a successful SMB channelprogram. The following is a sample of categories forconsideration when developing the criteria and parameters for recruiting new SMB partners: Size of the companyNumber of sales, technical & marketingpersonnel Number of years in business Number of current customers Geographic coverage Primary industry focus Specific vertical market expertise Type of solutions and services provided Size of companies they sell to: very small, small,medium, large enterprise Specific technical certifications Primary and secondary sources of revenue Current partner agreements with other vendors Other key qualifications Will the partners make commitments? The partnersmust be asked about their intentions to committo specific vendor programs such as enrolling inthe training courses required to become proficientto sell and support the vendor’s productsand services. Partners’ responses need to becaptured with training enrollment timeframesthey committed to for future follow-up. Partnersthat do not commit to engaging and enrolling intraining programs or other requirements shouldbe dropped from the program.Based on the information gathered in items 1 and 2, vendorsare now able to evaluate and determine which partnerstruly qualify for their SMB partner program initiatives.Through this qualification process, vendors are positionedto engage and develop a great set of new quality partnersto sell their products and services to the SMB partners’current and new customers.2. Qualify the new partner candidates.Once the new SMB partner candidates have beenidentified, vendors typically do not build into theirrecruitment plan the need to “qualify” each new partnerrecruitment candidate before moving forward with thenew partners. Do the partners fit the criteria? Each new partnercandidate should be asked a list of very specificquestions, based on the recruitment parametersand criteria that were developed, to determine ifthey fit the “profile” of a successful partnerto sell the vendor’s products and services.Partners that do not align to the vendors’requirements should be told why and droppedfrom the program.SMB Market InsightsComputer Generated Solutions, Inc5
What SMB Partners Are Asking For FromTheir VendorsVendors are addressing the needs of their SMB partners via outsourced, low-cost alternatives. Thisincludes outsourcing services to help secure a strong relationship with their SMB partners, acceleratepartner enablement on their products and services and drive new sales.“Make it Easy-to-Do Business.”vendors, how they go to market and addvalue. This information is also used to developthe partners’ profile and formulate plans toaccommodate the partners needs.This is one of the most important requirements SMBpartners are asking for. In the 1990’s, vendors began focusing on easy-todo-business initiatives, but these initiatives weredesigned primarily for their Tier-1 partners. Today,Tier-2 SMB partners are making commitments tovendors that provide a similar level of support.Vendors that have implemented the programsthat address this need have experienced substantial commitments and sales growth through theirSMB partners.“I Do Not Want to Interface With Multiple People.I Want One Interface.”Secure and nurture a strategic relationship withthe partners. “I Seldom Receive a Call From My Vendor You Do NotUnderstand My Business or What We Do.” Partners often complain they rarely receive adirect call from their vendor unless they want theirsales forecast. Otherwise they receive genericemail communications.Partner centricity is all important. Vendors mustspend time talking directly to the partners and listening to their stories, understanding their issues,needs and business goals.The first step in addressing this need is tounderstand the partners’ business model,num ber of employees, market focus, solutions,geographic focus, key issues with currentSMB Market InsightsComputer Generated Solutions, Inc It is critical to demonstrate real value andestablish the relationship. Assign a PartnerResource Manager to the partner as theirsingle point of contact. (We will demonstratehow to accomplish this on a low-cost basisthrough an outsourced resource).Partners need vendors to clearly define the compelling product advantages and increased marginopportunities. Provide key competitive data, andtake the perspective of the partners’ businessmodel and key issues in crafting effective messages regarding opportunities, profitability andbusiness growth. It’s not about budget limitations- it’s about providing measurable value to theirbusiness and gaining the partners’ mindshare.6
What SMB Partners Are Asking For FromTheir Vendors Successful vendors make it easy for partners tobecome enabled and ensure they are easy-todo-business with. Partners have proven they willprovide loyalty to vendors that make it easier todo business. Educate and demonstrate to thepartners the various easy-to-do-business initiatives in place to assist them to become sales andtechnically enabled. This ensures they will bemore successful selling your products.not initially qualify to receive qualified vendorsales leads. Help identify vendor programs,resources and tools to assist the partners todevelop and implement their own local leadgeneration programs.“Can You Identify the Training Courses My TeamNeeds to Take?”Help identify the right training.“I Can’t Find What I Need to Work With You.” Offer a guided resource tour. SMB partners appreciate being guided throughthe vendor’s partner portal. Identify specific salescollateral, marketing programs, incentive programs, technical resources and training programsthat apply to them.“Given Today’s Economy, What is Available to Help MeSell Your Products Based on Financial Benefits?”“Where Do I Go to Get Guidance and Resources toPort/Develop My Solution on Your Platform?”Provide technical enablement support. Provide sales skills training to address today’seconomic factors. Partners need to obtain training on ROI tools andimprove their skills to enter “financial benefits”discussions with their clients. Most of the SMBpartners have sold on the merits of “technical”benefits. In today’s economy, these partners realize they need help in articulating the business andfinancial value of the solution.“How Can You Help Me Find New Business?”Generate sales leads. Partners need detailed training roadmaps and helpin identifying appropriate sales and technical training courses based on their current needs. Assistthem to enroll in the courses. Distance learning istheir preference.Successful vendors understand that partners needhelp in identifying key resources, programs andtools that are available to assist them to quicklydevelop or port their solutions.“What is Available to Help Get My Sales Reps Prepared toSell Your Products With My Solutions?”Offer sales enablement tools. Providing the right tools for partners to easilydevelop professional quality sales collateral (forexample, PowerPoint slides and Word documenttemplates including ROI tools) will increase theirability to confidently and professionally presentyour products with their solution and services.Not surprisingly, these SMB partners are askingfor sales leads. The majority of SMB partners willSMB Market InsightsComputer Generated Solutions, Inc7
What SMB Partners Are Asking For FromTheir Vendors“Will You Assist Me to Develop a Sales Plan?”“How Can I Get Visibility for My Solutions and Services?”Help accelerate sales plan development.Provide help developing solution profiles. Most small SMB partners need help in thiscategory. Step through a series of salesquestions to prime the partners’ thinking andactions to start developing strategies and plansfor their sales campaigns. Provide templates andsamples of well documented sales plans. Provide templates and automated tools to assistthe partners to develop professional profiles oftheir solutions and services. Partners want togain visibility through the vendor’s solution database. They will also use these solution profiles intheir sales and marketing programs.“Can You Help Me Develop a Simple Yet EffectiveMarketing Plan?”“Can You Help Me Connect With Other Partners?”Support marketing plan development.Help your SMB partners collaborate with your partnerecosystem. SMB partners realize the importance of having amarketing plan. However, these same partnersoften push back because most vendors wantthem to complete the vendors’ supplied marketing plan template which contains 10-12 pages.Provide an easy-to-use three page marketing plantemplate that allows the partners to define theirtop 3-4 marketing initiatives, goals, executionelements, schedules and owners. Follow-up withthe partners to find out what worked/did notwork. Then guide them on how to improve theirmarketing strategy.SMB Market InsightsComputer Generated Solutions, Inc SMB partners, especially those with deepvertical market expertise, want to connect withother vendor’s partners to grow their business.By collaborating with other partners they canextend their geographic and market reach andpotentially grow revenue in new directions.You can help partners align with other participating partners based upon common marketobjectives with complementary skills and offerings. Provide a process to help them formalizenew relationships, develop joint business plansand go-to-market schedules.8
The Changing Dynamics of Vendors’ SMB Partner ProgramsA Fast Track to Accelerating Partner SalesVendors are realizing they cannot rely only on the general strength of their brand to cultivate the trustingrelationships with the SMB partners that sell to the SMB market. They must address the needs of the SMBpartners beyond providing inbound telesales support through distributors or in-house telesales teams.SMB partners tend to enroll in partner programs withmultiple vendors and normally do not commit their resources to one vendor unless they can achieve substantial benefits, business growth and a higher levelof support.“Why should I invest my resources tosell your products and services versusvendor X?”“What differentiates your partnerprogram from the rest of the vendors?”SMB partners are pushing back when vendorsattempt to gain a higher share of their business. Thepartners want assurance from the vendor that it makessense for them to invest and commit their resources tothe relationship.Most IT vendors today do not have effective go-to-market programs and outbound nurturing and developmentsupport in place for their smaller SMB partners. Theyhave not developed and implemented the programsnecessary to cultivate the trusted relationships requiredto win mindshare and accelerate sales.Utilizing distributors to grow partner saleshas gone full circleOver 15 years ago, IT vendors relied on their distributors to provide cost effective support to their smallertiered partners. Significant results were not achieved,costs rose and the vendors pulled back key categoriesof the support. Today, some vendors are again relyingon their distributors to recruit and develop partners,especially in the SMB space. Again, vendors are realizingmixed results.While vendors’ channel-oriented telemarketing centers are necessary, most have been treated as tools ofinbound “reactive” response centers rather than tools of“proactive” partner enablement and sales development.Smaller SMB partners normally qualify for the lowestsupport category of the vendors’ partner programs.However, today’s new tactics have been extremelysuccessful gaining the mindshare and commitmentsrequired to get the new partners on the fast track to“sales/technical enablement and sales activation.”Partner TypeRegisteredAdvancedPremierSupport AvailableMinimalMoreMostSMB Market InsightsComputer Generated Solutions, Inc9
New Tactics to Gain Partners’ Mindshare and Their BusinessA Best Practice Model: Partner Engagement, Enablement andSales Activation ProgramThe following provides a summary of proven and successful tactics and programs that are winningsignificant business for IT vendors in the SMB market through their SMB partners.“Through this program, we increasedSMB partner sales sequentially 30%quarter over quarter in the first year.”Quote from a General Manager of aMajor IT vendor that contracted CGS forpartner development servicesPost-Recruitment: Partner Engagement, Enablement, SalesActivation, Nurturing, and On-Going Development Support.Recruiting new qualified SMB partners is the first steptowards success. Quickly engaging, enabling, nurturingand assisting the partners to be ready to go-to-marketand sell is the critical next step, otherwise the partnersmay not be able to generate th
Identifying and Recruiting the Right SMB Partners Recruiting the right business partners is the key to developing or expanding a successful SMB channel program. The following is a sample of categories for consideration when developing the criteria and param-eters for recruiting new SMB partners: Size of the company
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Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. 3 Crawford M., Marsh D. The driving force : food in human evolution and the future.
