Best Practices to cCRM⢠Your Channel
Transcription
Best Practices to cCRM⢠Your Channel
l White Paper Best Practices to cCRM™ Your Channel Manufacturers have adopted CRM solutions to manage their direct sales process and organization. Though a long time coming, companies using CRM are realizing the true value that these solutions can provide. However, CRM is not targeted at managing the channel and channel management processes have often been left to manual, legacy systems that don’t integrate with the now standard CRM solutions. Research shows that high-tech vendors often have over 60 percent of their business flowing through the channel, which has become the predominant route to their customers. How does an organization leverage the time, money and effort they have put into their CRM solution and apply it to the channel? cCRM Your Channel! The obvious answer is to get channel visibility and processes incorporated into the now deployed CRM solution. We call getting channel data into your CRM, channel CRM or cCRM. More often than not, we are seeing Salesforce.com as our customers’ CRM solution. Salesforce.com has been growing at a faster pace than the other CRM solutions and is taking share rapidly. Best Practices to cCRM Your Channel Getting channel data into your CRM can deliver a number of significant benefits. Detailed below are some of the best practices and benefits of getting channel data integrated into Salesforce.com. Please note that while the examples shown are all in Salesforce.com, many of these techniques can also be utilized to deliver channel sales visibility in conjunction with other CRM applications. The key reasons to cCRM your channel include: • P ut real-time Channel Partner and Customer Performance Visibility into the hands of channel and account execs • I dentify and recruit new high-potential resellers and end customers buying across multiple distributors and geographies • Q uickly Identify Out of Warranty Products – This visibility allows you to renew maintenance agreements and stop providing free support • A utomatically Close Deal/Design Registrations saving time and driving increased partner loyalty • F orecast Channel Sales just like your direct sales in Salesforce Channelinsight has combined these best practices from a number of expert sources. • System Integrators like Accenture and PwC • Channel Analysts like Gartner and Forrester • Channelinsight benchmarking research and broad customer experience Real-Time Channel Partner and Customer Performance Visibility The first step in effectively utilizing channel data is to get it into the hands of the decision makers who are working directly with your channel partners. Since Salesforce has become their primary system for sales information and reports, it makes sense to put the channel data they need directly into a system they already use. The key to accurately getting channel sales data into Salesforce is to be able to accurately match point-ofsale (POS) data to the account objects in Salesforce. This might sound easy, but unfortunately it is quite complex. The account hierarchy in Salesforce is rarely the same as in your master customer/partner hierarchy nor does it match the data coming in as POS. They key is to create a custom Salesforce hierarchy and match your POS to that hierarchy. This keeps the data in line with what sales is using in I Continued channelinsight.com l [email protected] l 1875 Lawrence Street l Suite 1200 l Denver, CO 8O2O2 l © channelinsight 2013 l 1 l White Paper Salesforce regardless of the corporate hierarchy. For example, the corporate hierarchy might have all Bank of America sites rolling up to one state, say California. Figure 4: Channel Partner Inventory Visibility in Salesforce But the field organization may be managing Bank of America sales at the city level or postal code level, say San Francisco or 94109. You have to organize and match up the data based on how the field is organizing it. Once you have the data organized to match your Salesforce hierarchy, it is possible to make a broad range of dashboards and reports to show the key information that the field is using to make channel program decisions. Figure 2, 3 and 4 illustrate some good dashboard examples. Figure 2: Real-Time Channel Partner and Customer Performance Visibility Figure 3: Consolidated Direct and Indirect Channel Visibility in Salesforce Identify and Recruit New Channel Customers and Resellers Whether it is to replace existing under-performing partners or to grow their channel into new or developing geographies, most manufacturers are looking for new channel partners. Distribution channel partners are a good source of potential resellers and VARs. They have historic data on what products resellers focus on and have sold. Asking your distribution partners to help identify good potential resellers is a great place to start. Another way to effectively identify potential resellers and end customers is to look within your own POS data. Frequently there are emerging resellers and end customers already buying your products but these new customers or partners are difficult to spot. They often buy from multiple distributors to spread their credit profile or so they can buy from multiple geographies. These actions make it difficult to find these resellers or customers unless you automatically roll-up POS data for each customer across distributors and geographies using sophisticated matching logic. Figure 5 demonstrates how by using an automated matching approach; you can identify new potential end customers and partners. In Salesforce vernacular, these customers and partners would be called “Unmanaged” as they do not currently have a Salesforce account assigned for them. Once they are identified and qualified, it is easy to add them to your “managed” Salesforce account set by creating a “New Account.” An example of creating a new account for Cyberdyne Systems is shown in Figure 6. I Continued channelinsight.com l [email protected] l 1875 Lawrence Street l Suite 1200 l Denver, CO 8O2O2 l © channelinsight 2013 l 2 l White Paper Figure 5: Identifying New Channel Partners and Customers product sold, what partners sold it, the date it was sold, what serial numbers were sold and to which end customer. Then whenever a customer or partner asks for warranty support, the vendor’s customer service team will have all the detail needed to know if the product is still under warranty and if there is an active maintenance agreement in place. Figure 7: Identifying out of Warranty Products Figure 6: Creating a “New Account” from an Unmanaged Account Quickly Identify Out of Warranty Products Recurring maintenance agreements can be a significant portion of a vendor’s revenue and an even higher percentage of profits. Many vendors miss out on potential revenue by not getting their partners to renew these agreements in a timely manner. Unfortunately, many vendors support customers whose products are no longer under warranty because the vendor does not have the data available to determine if the product is still eligible. The benefit of having visibility to this data in Salesforce is two fold: knowing which customers have a valid warranty and which customers are candidates for maintenance agreement renewals thus reducing costs and increasing revenue. A best practice to manage warranties is to include the product serial number when POS data is loaded into Salesforce. Vendors will then have visibility to the Another benefit to this approach is the ability to provide leads to partners when maintenance agreements are about to expire. Partners receive leads based on maintenance agreements sold 10 or 11 months ago that are now up for renewal. Metrics and incentives can be put in place to encourage partners to renew these maintenance agreements. Additionally, some vendors will redistribute their maintenance renewal leads if the partner does not close them within a defined timeframe. Automatically Close Deal and Design Registrations Deal or Design registrations, named differently depending on your industry, are one of the key metrics that vendors use to measure their partners’ demand creation activity as well as how their partners protect design efforts with a preferred price from the vendor. I Continued channelinsight.com l [email protected] l 1875 Lawrence Street l Suite 1200 l Denver, CO 8O2O2 l © channelinsight 2013 l 3 l White Paper A lot of time and effort is put into developing registration programs and trying to measure results. Unfortunately, POS data is often not matched to channel registrations. When it is matched, it is often a manual process that is very time consuming. The best practice is to automatically close the registration loop and match POS data to open channel registrations. This is done by pulling in approved registrations from your partner portal and creating opportunities in Salesforce. Your partner portal can be built in Salesforce or in a number of other applications. The key is that they load the registration as an opportunity into Salesforce. Figure 8 shows an open opportunity waiting in Salesforce for POS data to come in and match to it. Figure 8: Open Registration Waiting for POS Data to Match Figure 9: POS Automatically Matches to Registration in Salesforce Once all the POS for a particular opportunity has shipped, the opportunity can be configured to close and the shipping status automatically changes to “Complete.” Figure 10 shows an opportunity that has closed based on all the product shipping. In this particular case, the partner sold a bit more than was expected and a negative unshipped amount is shown. Figure 10: Closed Registration – All POS Shipped Once the registration is loaded into Salesforce, the best practice is to create rules to automatically match this POS to open opportunities. These matching rules can contain a combination of partner name, end customer name, date range, product or SKU, special price or debit ID. Once developed, the rules are used to automatically associate POS to an open registration so full visibility of registration results can be analyzed. As seen in Figure 9 below, when POS is reported it will automatically match to an open opportunity in Salesforce. The shipping status, opportunity stage, probability and shipped amount automatically update. Automating this closed-loop registration process has a number of significant benefits. Having a robust registration process increases partner loyalty and the likelihood that they will push your product. A closed-loop registration process also gives marketing much needed feedback to determine if their channel marketing programs are effective or not and saves a lot of time when trying to determine the ROI of the registration program. Closing the loop on channel registrations also improves channel forecasting. I Continued channelinsight.com l [email protected] l 1875 Lawrence Street l Suite 1200 l Denver, CO 8O2O2 l © channelinsight 2013 l 4 l White Paper Forecast Channel Sales Like Direct Sales in Salesforce Figure 11: Forecast Channel Sales Using the Same Tools as Direct Sales in Salesforce Now that we have automatically closed the loop on channel partner registrations, we can manage channel forecasts much like we do direct forecasts in Salesforce. Salesforce offers a number of tools to support this effort. The first step in forecasting the channel is to forecast run-rate business. Run-rate business is the ongoing channel sales that are not based on large, registered opportunities. The best way to forecast run-rate business is to project channel sales based on the combination of historic sales trends, how much has recently been sold, and include a seasonal adjustment for sales expectations for the time of year. This is usually a fairly accurate projection especially as the number of partners and transactions becomes large. Open deal registrations are then added to the runrate business to get a complete channel forecast. Just like with direct sales, opportunities have a probability to close in the month or quarter expected. Now that we are automatically closing registrations, we have visibility into which opportunities are still open. We can forecast registrations using probabilities for open unshipped, open partially shipped, and closed registrations. Figure 11 shows how registrations based on expected close date, value and probability can be reported in Salesforce. After calculating both channel run-rate and registration forecasts, the sales organization can combine the channel forecast with their direct forecast into a unified company forecast, all in Salesforce. In Conclusion Salesforce is the dominant CRM application that sales organizations use to obtain visibility into direct account activity, sales opportunities and results. It is important to leverage that investment and include channel visibility into the tool that channel and sales managers are already familiar with and use on a daily basis. Better visibility into channel partner and customer sales performance, emerging partners, warranties, registrations and forecasts gives sales executives and their management teams real-time information to make better decisions and truly drive channel growth. © Copyright 2011 Channelinsight. The information contained herein is subject to change without notice. The only warranties for Channelinsight products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. Channelinsight shall not be liable for technical or editorial errors or omissions contained herein. Created May 2011; Updated October 2013 channelinsight.com l [email protected] l 1875 Lawrence Street l Suite 1200 l Denver, CO 8O2O2 l © channelinsight 2013 l 5