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
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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
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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
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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?
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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
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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
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
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
LinkedIn linkedin.com/companies/ecoast
Twitter twitter.com/ecoast
Facebook facebook.com/ecoast