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It isn’t news that many enterprise tech buyers have activated marketplaces as procurement channels, driven by the need to simplify complex legal, financial, and other operational mechanisms. However, marketplaces have since evolved from just procurement platforms to comprehensive problem-solving hubs. The intricate nature of enterprise use cases demands a holistic solution ecosystem, where channel partnerships play a pivotal role. As ISVs recognize the complexity of their business challenges, they are relying more on channel partners to assemble the pieces that address them. These channel partners bring critical insights into both business dynamics and technological capabilities, helping buyers get the fastest and most effective outcomes.
Canalys unearthed another pressing trend: tech buyers are under mounting pressure to maximize value from their cloud commits. This has accelerated two things: a) the strategic investment in new channel partnerships on the cloud, and b) the push to take preexisting channel partnerships to the marketplace for more powerful, value-driven relationships.
According to research by Canalys, at least 50% of all marketplace procurement will be done through partners on behalf of their end customers.
Now let’s flip the switch for you, the marketplace seller. Channel partners are your gateway to helping customers understand why you are an integral part of their solution set. By strategically positioning your product within partner ecosystems, you transform from a standalone offering to an essential component of solving complex business challenges. Think of it this way: Your marketplace success isn't just about your product—it's about how seamlessly you integrate into broader solutions that address customer pain points from end-to-end.
On the AWS Marketplace, a Channel Partner Private Offer or CPPO is the instrument by which you get to simplify collaboration with channel partners while unlocking a whole new cloud sales revenue stream.
What are Channel Partner Private Offers (CPPO) and how do they support channel-led revenue growth for AWS marketplace sellers?
Channel Partner Private Offers (CPPO) is a powerful feature offered by the AWS Marketplace that plays a crucial role in streamlining the process of tech distribution and sales through channel partners. CPPOs provide a secure and centralized way for ISVs and channel partners to negotiate terms, manage pricing, and transact seamlessly, all within the AWS marketplace ecosystem. Channel Partner Private Offers allow you to create customized pricing tailored specifically for authorized channel partners, allowing them to bundle and resell the software at negotiated rates to their end customers. CPPOs are valuable instruments for everyone involved. ISVs get to extend their reach and tap into the expertise and customer relationships of their channel partners. Channel partners on the other hand can offer their customers competitive pricing and bundled solutions. End customers don’t just get the best price but also a whole tech ecosystem that has much quicker time-to-value than accumulating point solutions and trying to piece them all together.
Components of a CPPO
Let’s get more granular about the components of Channel Partner Private Offers (CPPO) to understand why they are such powerful tools and how you can begin executing them.
Authorization: This authorization process ensures that only approved partners can access and distribute the ISV's offerings, maintaining control and visibility over the sales channels.
Pricing customization: You can work with channel partners to set unique pricing models and discounts tailored to specific customer segments or deal sizes. This flexibility allows for more competitive and attractive offers that increase the value proposition for your collective end customers.
Terms negotiation: You can collaborate with your channel partners to establish mutually beneficial terms and conditions for your partnership agreements. This includes defining commission structures, revenue-sharing models, and any specific requirements or obligations for each party. CPPOs keep everything upfront to help you align expectations and build a transparent and fair partnership ecosystem.
Steps to create a CPPO on the AWS marketplace
1. Prepare your software listing: Before creating a CPPO, ensure that your software is listed on the AWS Marketplace. If you haven't done so already, follow the necessary steps to list your product and get approved by AWS to begin selling on the AWS marketplace.
2. Identify channel partners: Find the channel partners you want to work with and build a relationship with them. You'll need their AWS Partner Network (APN) Partner ID to create a CPPO.
3. Define the terms of your offer: Decide on the terms and conditions of your CPPO, including pricing, discounts, and any additional benefits or restrictions. Make sure that these terms align with your overall sales strategy and partner agreements.
4. Create the CPPO: Log in to your AWS Marketplace Management Portal and navigate to the "Private Offers" section. Click on "Create New Private Offer" and follow the prompts to set up your CPPO. You can also send out CPPOs from Clazar. More on that later.
5. Specify partner details: Enter the APN Partner ID of the channel partner you want to work with. You can add multiple partners to the same CPPO if you need.
6. Configure the details of the offer: Provide the details about your CPPO. This will the offer name, description, and the terms you defined earlier. You can also specify the start and end dates for the offer's validity.
7. Review and submit: Carefully review all the information you've added to ensure accuracy. Once you're satisfied, submit the CPPO for AWS's review and approval process.
8. Wait for approval: AWS will review your CPPO submission and may request additional information or clarification if needed. Once approved, your CPPO will become available to the specified channel partners.
9. Promote and manage: Inform your channel partners about the new CPPO and provide them with the necessary resources and support to effectively sell and promote your software through this offer.
10. Monitor and optimize: Regularly monitor the performance of your CPPO and gather feedback from channel partners and customers. Use this information to refine and optimize your offer terms, pricing, and overall strategy for better sales outcomes.
Creating and managing CPPOs from Clazar
Clazar makes it super simple and streamlined to create and manage Channel Partner Private Offers (CPPOs) on the AWS Marketplace, eliminating the need to navigate complex cloud portal interfaces. With Clazar's intuitive platform, you can help your teams stay on top of the entire CPPO lifecycle, from creation to tracking, all within a centralized and user-friendly environment.
The best part? You can create CPPOs right from Salesforce! Imagine never having to leave your CRM to scale channel revenue. Clazar’s seamless bi-directional integration ensures that all data gets synced in real-time between your CRM and the AWS marketplace.
Clazar also gives you a comprehensive dashboard that offers real-time visibility into all CPPOs and their current statuses, giving you an instant view of pressing action items like renewals or closures.
By leveraging Clazar's powerful CPPO management capabilities, teams can focus on driving sales and nurturing channel partner relationships, without being bogged down by the complexities of cloud portal interfaces. Clazar's user-friendly platform empowers teams to unlock the full potential of CPPOs, accelerating cloud sales and maximizing revenue opportunities.
Benefits of CPPO
There’s a reason - actually, several reasons - why CPPOs are such powerful marketplace tools for sellers looking to scale and accelerate cloud sales. Here are some of them -
- Increased market reach and expanded customer base: By collaborating with established channel partners, ISVs can access a broader audience that might be out of their reach independently. This partnership allows ISVs to penetrate new markets and industries more effectively.
- Stronger trust building: Customers often prefer purchasing through known partners who advocate for pre-vetted solutions. This trust can swing the decision in your favor much faster and reduce the perceived risk of adopting new software solutions.
- Streamlined sales processes: CPPOs simplify the procurement process for customers, allowing them to purchase software through trusted partners while using up their committed spending budgets. This opportunity to enjoy a smoother procurement experience of complete solutions works to your advantage and helps you close deals faster.
- Greater customization: As we saw, ISVs can work with channel partners to create tailored offers that meet specific customer needs. The degree of customization – from negotiated pricing, terms, and additional services – will likely make the offer significantly more appealing to potential buyers.
- Greater collaboration: CPPO helps you build closer relationships with your channel partners and erase any concerns about the marketplace coming in the way of preexisting relationships. This collaboration can evolve into joint marketing efforts and co-selling opportunities, and therefore, more cloud sales activation.
- Revenue flexibility and predictability: CPPOs allow ISVs to negotiate flexible payout structures with their channel partners, improving cash flow and incentivizing partners to promote your products more actively. By establishing these ongoing relationships with channel partners, ISVs can also create repeatable revenue streams through subscriptions or long-term contracts.
The benefits, of course, extend to the channel partners and more importantly, to the customers. This collectively ensures that everyone benefits from the comprehensiveness of the channel relationship and the procurement seamlessness of the marketplace.
Best practices for CPPO success
To maximize the effectiveness of Channel Partner Private Offers (CPPO) and hit the outcomes everyone expects, both ISVs and channel partners should put their best foot forward with these best practices.
Partner selection
As a seller ISV looking to crack a new demographic, you need to evaluate channel partners with care to select ones that align with your target markets, have relevant expertise, and can provide value-added services. Prioritize partners with a proven track record, strong customer relationships, and a deep understanding of your solutions. Ensure that partners have the necessary resources, skills, and commitment to effectively market and sell your offerings.
Offer management
Be sure to clearly define the terms, conditions, and pricing structures of your CPPO to avoid confusion and ensure transparency. This isn’t a one-and-done activity. Regularly review and update your CPPO to reflect changes in market conditions, customer demands, or product roadmaps. Leverage analytics and reporting tools to track the performance of your CPPO and make data-driven decisions.
Sales enablement
This is a big one. Always provide comprehensive training and resources to channel partners to ensure they have a deep understanding of your solutions and can effectively position and sell them. Develop co-branded marketing materials, sales playbooks, and other collateral to support partners' sales efforts. Foster open communication and collaboration with channel partners to address any challenges or concerns and continuously improve the sales process.
Partner engagement
Establish clear expectations, roles, and responsibilities for both parties to ensure a successful partnership. Maintain regular communication and provide ongoing support and guidance to channel partners. Incentivize and reward top-performing partners to encourage loyalty and drive continued success.
Continuous improvement
Regularly solicit feedback from channel partners and end customers to identify areas for improvement. Analyze sales data and customer insights to refine your CPPO strategy and offerings. Stay up-to-date with industry trends, market shifts, and emerging technologies to adapt your approach as needed.
The future of CPPO and channel sales on the AWS marketplace
As cloud adoption continues to accelerate, the role of Channel Partner Private Offers (CPPO) and channel sales strategies is going to be crucial. The future of this space promises exciting developments and trends that will shape the way you, the marketplace seller, collaborate with channel partners to drive cloud sales. The future is likely to see an even greater degree of collaboration and partnerships between ISVs, channel partners, and cloud service providers. By working closely together, the three pillars of the marketplace can develop innovative solutions, streamline processes, and create a more seamless experience for customers, ultimately driving greater adoption and success in the cloud marketplace. A win for everyone! As the cloud landscape continues to evolve, the importance of CPPO and channel sales strategies will only grow. ISVs and channel partners that embrace these trends and innovations will be well-positioned to stay ahead of the competition, drive revenue growth, and deliver exceptional value to their customers.
