new relic's vp of biz dev bill lapcevic on growth and partnerships
DESCRIPTION
In this Heavybit Speaker Series presentation New Relic's VP of Business Development Bill Lapcevic discusses the need for partnerships as a growth strategy. Bill is a Business Development pro & Application Performance Management industry veteran. He currently runs Business Development for New Relic. Prior to his position at New Relic, he was VP of Alliances at Solidcore Systems and Director of Business Development at Wily Technology where he built partnerships with BEA Systems, IBM, HP, Oracle, and others. Video available here: http://www.heavybit.com/library/developer-go-to-market/video/2013-09-10-bill-lapcevicTRANSCRIPT
Partnering for Growth
Or how BD makes effective partnerships, without so much golf.
Bill Lapcevic - VP BD New Relic [email protected]
My Background:
Notable Partnerships:
3rd Employee 5 1/2 years
13th EmployeeDeveloped Alliances Program Resale with Bladelogic/Opsware
BD team structure at the start
Partners
Key Partners
Top Tier
Emerging Partners and Hosting Sales
Mobile
Platform/Connect
Partner Marketing
BE
Partner Response Center
BD Org Structure Now
Europe TBD
Systems Integrators - TBD
Time
Gro
wth
$$ P
er R
ep
Time
This is a gravitational slingshot
Spacecraft moving FASTER by leveraging the gravitational pull of the planet
Bigger than you, established company
You
$$ P
er R
ep
Time
This looks like a great board chart!
Growth^Partnership
15 - 20 %
At New Relic, BD is responsible for:
5,000 Leads in 2013
428 Leads in 2011
11X Growth
New Relic’s Standard Partner Motion
1.Identify Partners with big blocks of NR prospects !
2.Let Partner give away paid New Relic product for free !
3. Let the Partner use paid New Relic product for free !
4.Joint Integration and Marketing activities to drive deployments !
5.Convert free Customers to paid Professional !
6.Share in the Revenue with the Partner
Cost of a New Relic Marketing Lead
Cost of a New Relic Partner Generated Lead
$300 $100
$700
How do I spot the right partnerships?
Brand LiftMarket
ValidationLogos for slide
Social Proof
Generate Leads
Leads
Drive Web Traffic
SEOIt’s something to blog about
Investors Said So
You have a friend who works there
Competitive LockoutYour
Competition has Partners
Improve Conversion
Market AccessAwareness
Credibility
Utility
Revenue
DefensibilityNear Golf Course
Awareness
Credibility
Utility
Revenue
Defensibility
Stage of
Growth
Earlier
Later
Platform Partners
AwarenessCredibility UtilityRevenue
Defensibility
How do you MAXIMIZE a partnership?
Compelling Reason to PartnerCover all the basesNo SurprisesThe Golden RuleBuild Trust
5 Keys to Successful Partnerships
•Solve a real problem !
•One plus One must equal three !
•Cannot be marketing only !
•The primary is not usually “Revenue”
•The more “legs of the stool” the better !
•Executives !
•Functional Areas (Mktg, Sales, Product) !
•Field (Sales, Technical, Support, Services) !
•Get the flywheel spinning
• Make every interaction a quality interaction !
•Be the easiest to do business with !
• Earn their trust through action !
• The ultimate in Defense
Treat your partner as you would like to be treated
Platform Partners
AwarenessCredibility UtilityRevenue
Defensibility
Life of a Partner
2008 2009 2010 2011 2012 2013
Credibility Awareness
!New Relic Launched
!Bundle Agreement
!Marketing
based
Credibility Awareness
!Integration
!marketing and sales process
experimentation !
Amendment #1 AND #2
(Pricing/Cost) Cloud Offering
Revenue Defensibility
!Competitors
arrive !
Penetration Efforts
Integration work !
Contract re-write (AppCloud, XCloud,
Selling rules) !
Revenue Defensibility
!Amendment #3
Direct Customer Selling by NR
!Penetration Efforts
PaaS Integration
Launch !
Exec Summits !
Revenue Defensibility
!EY moves to top 5
Frictionless Adoption
Improvements !
Support Training !
Exec Summits !
Platform Discussions (Utility)
!
So... Alliance Exec, a Partner Exec, and a Customer walk into a bar...
PRC
PartnerNew RelicPartner’s Customers
Alliance Exec Execs: Cxx, VP Functions
Partner Field Teams: Sales, Support, Services, SEs, SAs, etc.
Cxx Exec
tradit
ional
EFFE
CTIVE
Inbound Outbound
Get the Fly Wheel Spinning!
Measure, Measure, Measure !
!
!
!
!
!
!
!
!
!
and then when you’re done... !Measure even more
AwarenessCredibility UtilityRevenue
Defensibility
A Few NR BD Metrics by Stage (these are additive)
Net New Leads
Customers per Partner
Conversion Rates by Sales Team - Enterprise - Growth - SMB
Cost Per Deploy/Cust. Acq.
Churn by Partner
Penetration %
Conversion Rates - Signup--> Deploy - Deploy--> Paid
Average Selling Price (ASP)
Partner Velocity/Potential
Total ARR: XXXXX
ASP: XXXXX
•Keystone Metric Set !
•Track these Monthly !
•Track overall, by Partner, by Rep, by Sales team, etc. !
•Consistent Reporting to Execs and BOD
•Track QoQ progress !
• Use it to identify trouble spots !
•Highlight your strongest partners
Partner Velocity
Partner Potential
•Tracks POTENTIAL of a partnership !
•Identify strength of partnership •Revenue •Ubiquity
!
•Identify on which partners to apply valuable corporate resources !
•Slot partnerships for potential, not just actual performance
Early
Stage
Hint!
!
•Emphasis on significant reduction of friction through partners !
•BD no longer competing for Mainline Product Engineers !
•BD can prioritize integration efforts or product efforts based on the need/potential/velocity !
!
Business Enablement Engineering
Integrated Partnerships are STICKY
$150
/svr
/mnt
h
5,000 Customers
Key Top Tier Emerging SI/Consultant BD Strategic Sales
Sub-License DealsSI/Consultant
Self ServiceAffiliate
Channel Conflict is a good thing!
It’s a sign that things are working really really well!
Choose Goals (by stage) !
Structure Partnership !
Measure, Measure, Measure !
Adjust/End !
!
!
What do you do when a partnership goes bad?
Only a Diamond is Forever
1. Metrics headed South !
2. It’s not a Stool if it has only 1 leg... !
3. Resource Black Hole !
4. GTM Process Friction !
5. “Pay for Play” !
6. BD Love-fest! !
7. Resource Black Hole
Trouble Brewing
STAY ON TARGET!!!!
Summary
• Select a strategy
• Develop your partnering motion
• Maximize the partnership
• Measure, Measure, Measure...
• Be prepared to shift as necessary
• Watch for Red Flags