Tom Levers

Evaluating Partner Alliance Opportunity

Posted in BUSINESS DEVELOPMENT, DEMAND GENERATION, MARKETING by Tom Levers on March 19, 2009
Partner Marketing

Partner Marketing

Recently a major management consulting firm delivered the final engagement  “Evaluating Partner Relationships”,these are some of the general conclusions.

Partners deliver new sources of revenue, and are the genesis of efficiency, speed and market share. Often large organizations have too many and the small have none.

The complexity of variables to facilitate relationships is daunting, but partnerships can validate a new  product or service. It is the “Divergent ” components of partners that influence the  “business natural selection” process.

There are  Six Indicators or factors that significantly impact the  success and failure of a Partnership outcome. These are:

New Partner Attractors – Sometimes partners get together because of hot topics (ie environmentalism), some because of market buzz (company success), others have “hot” technology (technical advantages), more have functional ability, and for some it is the quality of people.  The true attractor is if the Partnership delivers a  “new value” to the customer.

Technical Domain Competency – The more similar the area of domain the less divergent, the less dependent and the more an organization can rely on in-house expertise rather than the partner.  Because an organization has a strong internal technical resource the emphasis shouldn’t necessarily measure technical competency, but more important it is the experience of doing (i.e. the number of successful implementations completed or product sold), and how complex or amount of time the domain discipline requires, is really how domain competency is measured.

Professionalism – The more strategic a solution or the larger the account, the more likely the final customer will expect a high level of “Competency” and “Professionalism”. It is the combination of “Competency” and “Professionalism” or “Service Quality” that creates the reliability of the  product and ultimate service solution.

Other key values are localization, demand generation, and sales capabilities that allow their team to drive new “up-sell” and “cross-sell” opportunities. These new capabilities provide a reasons to engage with existing clients, and a new way to introduce yourself (a foot in the door) with a new client. This can be supported by:

Localization – Thinking locally, looking local, behaving like a local, while acting globally is the key. It provides client connectedness, capability relevance, and local resilience.

Demand Generation – Hot markets can create leads from the brand and be easily integrated into the existing corporate marketing, such as Webinares, Events, Case Studies, Thought Leadership, SEM (see SEM Channel Partner Methods ) and more. If a Partner Demand Generation capability is a Pull-through only relationship often a “Technology Alliance” (i.e.”Intel Inside”) exists.  So often when competitive products or services enter the market the functional differences may not retain as much value (ie. AMD shows up and the only customer difference is “No Sticker” on the PC). The Partner successes use this to strengthen divergence by delivering partner marketing programs and tactics that both Push and Pull interest.

The Sales Cycle – Partners will likely add “speed to market” and “new market opportunity ” when selling  a complete partner solution. Some brands have a huge opportunity leveraging existing sales organizations that utilize their partner sales stakeholders. By having a partner sales force that supports the different vertical disciplines and complete product solution throughout the end-user customer buying process, rapid growth can flourish. Establishing the combined partner sales process for different products and services across different kinds of markets improves touch points, cycle speed and probability.

Divergence defines a stronger Partner

This is why ideally the best outcome for a Partner Program is “all of the listed factors of divergence”. Understanding these principals ievaluating-alliance-partner-relationships2s key to creating a strong Partner / Brand. By putting together a business relationship that generates long-term Partner Alliances, the use of divergence outreach can differentiate when direct competition creates market confusion. When multiple vendors and sub brands start to appear, creating similar functional value. Building the right Partner organization can deliver the additional momentum and breadth to support confidence and expertise that sustains market leadership.

A non-proprietary summary of the final delivery of a “Partner Marketing ” Engagement, from a major Global Management Consulting Firm for their client.
*Over 50 partner interviews were conducted for this engagement. Applying Organizational Science principals of Divergence has been used to predict outcome by defining the qualitative metric  of “New” ability over the alliance “Interdependence” (N/I)  delivered. The quantitative component is composed of organizational “Quality” as a multiplier of the “Functional” execution that uses a fraction of “Market” size and forecast market potential (Q x F)/M. This is then built into an Input /Output engine to quantify the “Opportunity” potential of a Partner relationship.->

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