Reseller Partner Channel Insights. Michael French
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1 Reseller Partner Channel Insights Michael French
2 Partners Cost-Effectively Growing Revenue and Retaining Customers Reach Capability Into geographies, segments & verticals To add-value, perform service, provide support Scalability For acquiring and retaining more addressable market 2
3 Legacy of Channel Success Building Borders, Walls &Turf Geographic and vertical markets Account territories End customer ownership 3
4 Legacy of Channel Success Command and Control Rules and requirements From compensation to ransom hard to do business 4
5 Disruption Ecommerce Knows No Borders, Revolutionizes Buyer Preferences 5
6 Disruption - Product Modernization By 2020, over 80% of software vendors will change from traditional license to subscription. Internet of Things will support services spending of $235 billion in 2016, up 22% from By 2018, 59% of cloud workloads will be SaaS workloads. Spending on the cloud will grow at a 30% CAGR from 2013 through 2018 compared with 5% for the overall IT. SMBs in particular want to consume what they need not buy something they might not use. 6
7 The Impact of Disruption Losing Customers, Partners, Revenue and Pricing I m losing partners to competition because we re hard to do business with and can t help them tackle ecommerce. I can t sell my subscription or cloud products through my partners we re not set up to handle recurring revenue. I don t know where or at what price my products are being sold online, or how customers are getting there. I can t get my partners to connect offline customers purchases to an online experience for upsell and retention. 7
8 Engaging Partners in Ecommerce Existing Ecommerce Infrastructure Capabilities MARKETING COMMERCE PAY & FULFILL Search, SEO, Display, , Merchandising Shop, Configure, Products, Pricing, Orders Order Fulfillment, Remittance, Reconciliation, Settlement CHANNEL MARKETING Brand promotion, sales referral, renewal nurturing, channel expansion CHANNEL COMMERCE Partner orders, partner stores, co-branded stores, syndicated commerce CHANNEL COMPENSATION Multi-party, multi-currency settlement, reconciliation, customer transparency SMARTCHANNEL PLATFORM: Extends to support SMB & multi-channel go to market 8
9 Partner-Engaged Commerce Business Models 2-6x direct revenue Mitigating conflict with full engagement and broad, flexible options Protect profit and make it easy Provide brand continuity and continued end-customer ownership Buy and Resell Partners purchase online at buy price, resell offline at their own Refer, Renew, Fulfill End-customer purchase, partners receive revshare, reporting Provision and Bill Partners manage cloud platform, are billed for usage by customer Syndicated Commerce Partners operate their own commerce environment, leveraging yours Partner Marketplace Partners publish their products to your catalog, receive revenue split 9
10 Partner-Enabled Commerce Benefits Everyone Benefits to You Growth through online commerce without cutting out partners Order admin cost reduction and cycle time improvement Modernization and automation of channel programs A new capability to buy, market and sell online Benefits to Your Partners Retain end customer ownership and autonomy Ease of doing business and more focus on core competency 10
11 Product Complexity Partner-Engaged Commerce Opportunity Industry View Digital River s View Channel Mix Models for Select Vertical Industries Medical equipment & technologies Tech / telecom Healthcare + Product Modernization Shift to subscription Cloud delivery Product-as-a-platform Industrial equipment & technologies Energy (contracted) Transportation / logistics Financial services (wealth mgmt.) Insurance Financial services Automotive Consumer electronics + Partners and Go to Market Mitigating conflict Reach, scale, capability Hybrid direct Chemicals Industrial supplies Office supplies Travel Number of Market Customers Retail banking Food and consumer goods + B2B - Needs Beyond the Consumer Pricing and products Account data / contracts Transaction scope B2B B2C 11
12 Adapt, Evolve and Benefit Subscriptions sold online with the channel SALES GROWTH 500% growth year over year End-customer retention with online nurturing HIGHER RENEWAL RATES 150% improved maintenance renewal rate Improvements with online channel purchasing STREAMLINED PROCESS 77% more efficiency from 21 to 5 steps Ease of doing business - compensation TIME TO PAYMENT AT SCALE 75% faster from 180 to 45 days 12
13 Facing Disruption The Need to Evolve Challenge barriers and old ideas Engage partners and collaborate Pick the low hanging fruit Co-opt product and business model changes 13
14 THANK YOU
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