SOURCE: BLUEROADS

 

SAN MATEO, CA--(Marketwire - October 6, 2008) - A new survey released today by BLUEROADS and SiriusDecisions has demonstrated a clear link between the types of partner programs that top channel executives emphasize and their impact on revenue growth in the indirect channel. Of those executives surveyed who said they focused on sales 'effectiveness' strategic activities such as lead management and deal registration, 62 percent reported an increase in revenue in 2008.

Paradoxically, 80 percent of the channel investments by the vendors that were surveyed focused around tactical issues such as training, partner portals, and partner communication tools -- all activities that simply automate the relationship with partners. Of those who focused investment on these types of 'efficiency' programs, only 40 percent reported an increase in channel revenue in 2008.

"The Channel Survey: 2009 Priorities," which polled an audience of over 1,000 high ranking vendor channel leaders, also indicates that vendors are seeking to drive revenues, but don't always know how, and often resort to brute force tactics including channel partner recruitment in their existing markets rather than focusing on programs that increase the productivity and yield of their current resellers and partners. The survey covered a variety of channel-dependent industries -- including software, telecommunications, computer hardware, and information services -- on their channel plans, investments, and expectations.

"Too many channel chiefs are engaged in low-risk, low-return activities," said Charles Watson, Senior Vice President of Marketing and Sales for BLUEROADS. "Too few are ready to drive fundamental changes that help them achieve greater equality with direct sales and enable increased visibility, empowerment and accountability in the channel."

Nearly 60 percent of respondents recognize they need to spend more on sales effectiveness programs in 2009. However, their intended actions don't necessarily support that goal. For example, training and partner content portals were among the top technology investments, yet these are often simply easy-to-implement infrastructure investments with limited return.

Several other data points from the survey point to the need for a change in focus away from efficiency initiatives for channel chiefs in 2009:

--  Most are not measuring and monitoring the performance of leads or
    sales opportunities effectively
--  Required reporting from the channel focuses merely on tactical
    pipeline and deal status, rather than on strategic issues such as lead
    acceptance and deal registration, which hampers the opportunity for vendor
    staff to provide high value sales support to the partner community.
    

BLUEROADS points to several key recommended investment areas that will help channel chiefs to boost effectiveness:

--  Measurement of every partner, lead and opportunity KPI
--  Generate high quality leads for the channel
--  Rapid delivery of leads to channel
--  Get each lead to the right partner every time
--  Lead and opportunity accountability on the part of channel partners
--  Protection from channel conflict
--  Bi-directional accountability and benefit for all revenue generating
    programs
--  Selling guidance and coaching to help partners accelerate sales cycles
    

About BLUEROADS Corporation

BLUEROADS Corporation delivers proven enterprise Partner Opportunity Management solutions that help organizations with complex, multi-dimensional channels market and sell more effectively. Customers like Avaya, Polycom and Juniper depend on BLUEROADS' unique closed-loop system which empowers individual partner representatives to actively participate in sales and marketing processes. BLUEROADS strengthens the bond between vendors and their partners, achieving the mutually beneficial goals of increased conversion rates, revenue and market share. BLUEROADS is headquartered in San Mateo, California and is financed by ArrowPath Venture Capital, Cardinal Venture Capital, El Dorado Ventures and The Halo Fund. For more information, please visit www.blueroads.com.

About SiriusDecisions

SiriusDecisions is the world's leading source for business-to-business sales and marketing best practice research and data. SiriusDecisions Executive Advisory Services, Management Consulting Services, Benchmark Assessment Services and Events provide senior-level executives with the sales and marketing operational intelligence required to improve topline performance. The unique combination of thought leadership, benchmark data, analytic tools, best practices and access to a peer and analyst network allow SiriusDecisions clients to quickly receive the critical insight they need to make decisions effectively. For more information, visit www.siriusdecisions.com.