Businesses need a properly structured channel strategy that involves both C-level and field employees. There is a vast opportunity within partnerships, but one needs the right expertise to make it mutually beneficial, according to Sandy Salty, Chief Marketing Officer at Trace3.

Trace3, a pioneer in business transformation solutions, provides data intelligence services to enterprise clients, including companies like Nvidia and AppDynamics, both partner-aligned under Sandy's watch. Widely-respected for her wealth of industry knowledge and client rapport, Sandy has been recognized as one of the top Women of the Channel in 2010, 2011, and 2012, as well as awarded Outstanding Executive by Advancing Women in Technology in 2016.

Interviewed by Shubharthi Ghosh

/ / How has the PRM function evolved in your company over the past few years?

Sophisticated system integrators and resellers covet the “and” factor.  We have been able to identify paradigm-shifting technologies very early, but now there is just as much focus on finding paradigm shifting channel programs.  Manufacturers that want to see momentum through the channel must provide both a disruptive technology and an equally disruptive or attractive channel program.

/ / What parameters do you consider while choosing a partner?

Partners that we deem strategic have the following trifecta:

• An advancing technology, a technology that creates a tangible outcome for the client and the business they serve.

• A clear path to profitability, for corporate and the field.

• The right field and executive DNA. Having observed many partnerships over the years, I can tell you definitively that this, more than the other metrics, is the make or break pillar of a partnership.  Manufacturers can have an amazing technology and a clear path to profitability, but if the behavior at the field level lacks integrity or if leadership is lopsided in favor of direct versus channel business, and they compensate their reps accordingly, the first two pillars are moot, growth will be hindered.

/ / What are the challenges that you face while managing your partners?

Often a manufacturer will claim that they are channel-led, but they have not structured their organization accordingly.  A pervasive symptom of this is manufacturers that financially penalize their reps. In other words, their compensation has been structured negatively for working through the channel, despite the organization’s “channel-led” mantra. Or, organizations who have channel executives, but have given them little to no authority to resolve channel conflict.  Manufacturers that truly want to lead with channel need to walk the walk, and that can be a hard pivot to make if your roots grew in a direct approach.

/ / Is partner onboarding a critical function in partner management? Should companies create different onboarding programs for different partners?

Yes, it's critical and there absolutely has to be multiple paths to onboarding.  Ultimately, you want to create velocity for your reps, but reduce risk to corporate’s financial and legal well-being and your brand.  There are multiple ways to achieve these objectives simultaneously.

/ / What are the different partner performance metrics do you track?

We use metrics such as total sales volume, net profitability, number of deals brought to the channel, and ease of doing business or number of field escalations.

/ / What are the different types of training that you conduct for your partners?

We have dedicated leaders that manage our strategic tier of partners; they essentially provide white glove services to these partners: ranging from developing growth plans for them, educating them on our business strategy, brokering strategic connections within the field, and even more tactically managing through field challenges and opportunities.  These strategic partners also get showcased in regional training sessions and we include them in our go to market solutions.

/ / What role does MDF (Marketing Development Fund) play in partner marketing? How do you allocate the MDF amongst your partners?

It plays a critical role in that it allows us to direct visibility to the partners that are most strategic by featuring them at our marketing events and throughout our marketing initiatives.

/ / Do you create co-branded marketing content for your partners? What are the other partner activities that you undertake?

Yes, we have a very mature marketing organization that weaves our partnerships throughout our entire marketing strategy, events and digital.

/ / Do you think companies are investing enough in PRM?

The smart ones are. There is so much opportunity that lives within partnerships and you have to know how to harvest that opportunity to make it mutually beneficial, but you must have the right expertise to do that.

/ / What are the tools you use in PRM?

We have a whole portfolio of “levers” that we’ve developed over the years.  Ultimately, we deploy these levers to garner mindshare from the field.  As that mindshare grows, so does pipeline and revenue. To put these levers into action, the manufacturer partners need to be open to feedback, creativity, and in some cases, change.  We have an intimate understanding of the DNA of our sales teams, so the manufacturers who allow us to influence their programs to the degree that we can attract the attention of our field tend to see the greatest momentum and returns.

/ / How are the evolution of technologies like LMS (Learning Management System), lead distribution through marketing automation changing the PRM function?

Marketing automation can play a critical role in winning the mid-market segment and for-point-product selling.  When it comes to high-end consulting, a high touch is required, especially in the large enterprise space. That’s not to say that you don’t need a strong digital strategy for the enterprise, you absolutely do, but it’s designed differently than the basics of what a traditional marketing automation platform would offer.