Establishing a US Technology Vendor in Europe

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Operatix
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Episode

Establishing a US Technology Vendor in Europe

Lead Generation for B2B Software Companies

Operatix

It’s tempting to think that just because you’ve had success in one market…

You’ll automatically be successful wherever you decide to expand your business.

Patrick Conte is the Senior Vice President & General Manager of International Business at HyTrust, and he understands the challenge in taking your product and moving it to another market like Europe.

HyTrust is a cyber-security company that specializes in cloud security.  They protect the cloud workload for their clients (which is becoming increasingly important in this era of data protection we live in). They also focus on locking down the virtual infrastructure (cloud servers and admins) for their clients.

Patrick and his team were able to expand their services into the European market through careful strategy and execution.  Patrick joined us for this episode of B2B Revenue Acceleration to talk about the European expansion journey and the lessons learned along the way.

The European Expansion Journey

Patrick believes the number one thing companies need when expanding to another market is leverage.  In order to be successful, you need something that can help you lift more than your own weight.

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Every company that wants to expand into a new market needs to look for some point of leverage.

Patrick Conte

There are different ways to gain leverage.  They could come in the form of reseller channels, strategic partnerships, or even in an original equipment manufacturer (OEM) capacity.

Utilizing a large salesforce to sell directly to prospects before you have the opportunity to establish relationships in that market gives you little leverage.

In general, companies outside the US want to buy locally from a source who is trusted.  Partnerships and alliances help expanding companies establish trust; selling directly without this type of investment does not.

Patrick and his team took a look at other vertical markets that were different than the ones they saw success with in the United States. HyTrust couldn’t just rely on the previous success they saw with financial industry customers in the US.

When they moved to the European market, they shifted their focus specifically to manufacturing companies because that segment of businesses had the greatest need for their services. They also realized they couldn’t cover an entire region; Europe is too large.

They needed primary and secondary markets because they couldn’t spread their focus too thin.

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You have to have primary markets and secondary markets. In those secondary markets, you can only be opportunistic, you can’t be strategic.

Patrick Conte

Biggest Challenges in European Expansion

Patrick’s biggest challenge was finding partners that could meet all of his needs.  He views partnerships as a balance sheet, and these were the three things he needed from a partner in the European market:

  1. A wider funnel – He needed a partner to go talk to customers that it would take him a long time to find in a new market.
  2. A shortened sales cycle – If a partner vouches for your product and brings it to the attention of their current customers, this helps tremendously in moving deals through your pipeline.
  3. People on the street – He needed local people in the local markets talking about his product and services in order to drum up interest.  People from the actual region he was expanding to needed to be involved and touting his product to their existing customers.

A partnership is a two way street, and this is what Patrick was offering his partners:

  1. A promise to uphold margin structure – All companies do business on margins, and Patrick’s aim was to help his partners maintain or improve those margins they were already working with.
  2. New and cool products to talk to customers about.
  3. Added services supporting the partner’s current product offering.


More Advice for Expanding to New Territories

If Patrick could give one piece of advice for those companies expanding into the European market, it would be to find partners that want to evangelize your product for you in the new market. Those partners are very rare.

Successful companies from the US can’t use the same models for success they’ve had previously.  If you already have a successful business, many times your partners are content with simply taking orders for your product. They don’t need to work hard to spread the word about what you are selling.

But if you are in a new market, you need to seek an evangelist partner. Find partners that are in agreement with you: the number one priority is to knock down doors and to find customers who can be helped by your innovative technology.

 “A channel partnership in many ways has nothing to do with the technology itself.” – Patrick Conte“

This post is based on a podcast with Patrick ConteTo hear this episode, and many more like it, you can subscribe to The B2B Revenue Acceleration Podcast.

If you don’t use iTunes, you can listen to every episode here.

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About Operatix

Operatix is a Sales Acceleration company specialized in supporting B2B Software vendors to identify new revenue streams, increase qualified sales pipeline, and accelerate channel development across Europe and North America. Operatix has a wealth of experience in working with the biggest tech players worldwide as well as a multitude of emerging software vendors.

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Channel Transformation

Digital transformation is changing how companies buy and use business solutions, making vendors re-assess the capabilities of their channel ecosystem. With channel dynamics in constant flux, vendors need to be ready to cut ties with partners that don’t share their vision or have connections with the right B2B buyers.

 

Operatix has supported numerous vendors in their path to Channel transformation by assessing current partners and recruiting new partners that are more aligned with their new channel strategy. Once the right partners have been identified, Operatix built scalable outbound sales development programs that accelerated their routes to market.

Inbound Response Management

In a competitive industry like technology every lead counts. Operatix can help you maximize conversion from MQL to SQL and from lead to pipeline, increasing both your revenue and ROI on marketing activities.

Account Identification

Identifying the accounts that are more likely to buy from you is part of our expertise. We will research the market, identify verticals and industries that can benefit from your solution and set up qualified sales engagements for your teams to kick-off the sales process. 

Cold Prospecting

Our team will identify new sales opportunities within the strategic accounts that you haven’t been successful in penetrating through your sales & marketing efforts. By applying the ‘Challenger Sale’ methodology we use a tailored, multitouch approach to connect with prospects, generating qualified sales engagements for your team and ultimately increasing your pipeline.

Outbound Sales Development

Using a proactive outbound sales approach has been proven to be one of the most effective methods to engage with prospective customers. By applying the ‘Challenger Sale’ methodology we use a tailored, human approach to getting in touch with prospects to increase your qualified sales engagements and ultimately generate more pipeline.

Outbound Sales Development

Using a proactive outbound sales approach has been proven to be one of the most effective methods to engage with prospective customers. By applying the ‘Challenger Sale’ methodology we use a tailored, human approach to getting in touch with prospects to increase your qualified sales engagements and ultimately generate more pipeline.

Partner Concierge Service

Our Partner Concierge Service helps vendors accelerate their channel programs, by engaging and nurturing channel partners and supporting them to get to revenue quicker.

Demand Generation

Whether you need to implement a demand generation strategy or get more results out of your existing demand gen engine, Operatix can work alongside your marketing team to yield better results out of your demand generation programs.

Account-based Marketing

An Account-based Marketing strategy is only as successful as the revenue it generates. At Operatix we will support your 1:1, 1:few or 1:many approach to get your team in front of decision makers in the accounts that matter the most to you. 

Lead Qualification

If your marketing leads aren’t converting, it might be a lead qualification issue. Operatix can help sieve through leads that need further qualification, so they are ready for an AE or sales team member to engage with.

Account-based Selling

At Operatix we will support your 1:1, 1:few or 1:many approach to get your team in front of decision makers in the accounts that matter the most to you. 

Pipeline Generation

Generating Pipeline for our clients is our key-objective. And we do that by using a multi-touch, multi-channel approach to generate qualified sales engagements for our customers’ sales teams.   

Account Intelligence / Deep Dive

Understanding buying centres, hierarchies and relevant personas in strategic accounts is a fundamental step to increase conversion rates. By leveraging account intelligence in a sales conversation your team can tailor their message and provide value to their prospective customer. But sales & marketing teams often struggle to dedicate time and resources to do the deep research and this is where Operatix can help.

DMID – Decision Maker Identification

Finding quality data is an on-going challenge for B2B Tech vendors. The accuracy of data platforms is questionable and that is why Operatix developed a manual process to identify & verify contact details for decision makers within strategic target accounts.

Playbook design

Operatix can develop Sales Playbooks that enable teams to sell more effectively. Your Playbook will be fundamental to get your messaging right, accurately position your solution against competitors, and adapt the communication of your value proposition to different buyer personas.

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Sales Playbook Development

Operatix can develop Sales Playbooks that enable teams to sell more effectively. Your Playbook will be fundamental to implementing the correct messaging, accurately position your solution against competitors, and adapting the communication of your value proposition to different buyer personas.

Lead Qualification

If your leads aren’t converting, it might be a lead qualification issue. Operatix can help filter through leads that need further qualification, ensuring that they’re ready for an AE or sales team member to engage with and progress through the funnel. 

Partner Portal / Marketing Concierge Service

Vendors often spend thousands of dollars building multifunctional Partner Portals to help channel partners educate their teams, manage opportunities, and create marketing programs. Still, these portals are often underutilized due to lack of bandwidth and capacity from vendors to offer support in enabling their partner community. Operatix, through their Partner Development team, can support your partners to make the best use out of your partner portal, managing the relationship with your partners and helping them set up co-marketing campaigns to drive more revenue for both businesses. 

Marketing & Sales Alignment

The sales development function is often seen as the “glue” that brings sales & marketing teams together. By working as an extension of your teams, Operatix will be your predictable source of pipeline, sales & revenue.

Optimization of MDF

Market Development Funds are an important component of any channel ecosystem, though vendors believe they are not maximizing the return on investment they should be getting from their MDF programs. At Operatix, we build scalable outbound sales development programs that will give you the visibility of return over the invested spend and will provide clear value for your channel partners.

Increase Partner Productivity

The 80/20 rule is still very applicable to the channel, which means that investing in partner productivity should be a priority for vendors looking to grow their businesses. Operatix can increase partner productivity and shorten sales cycles, by identifying ready to engage sales opportunities for your most valued channel partners.

Virtual Channel Account managers

Our VCAM team is responsible for building, maintaining, and managing sound relationships with current and prospective channel partners. They can get involved in opening up new sales conversations as well as closing small businesses up to $ 10k.

Tier 1 & Tier 2 Activation

Whether your business decided for a Tier 1 or Tier 2 distribution model, Operatix can help your channel partners get to revenue quicker. By providing qualified sales engagements to your channel partners we can accelerate your route to market with tangible and easily measurable results.

Solution Selling Training

Far too often vendors insist on enabling their channel partners to talk about features and technical details of their solutions. Customers don’t buy features; they buy the benefits your solution can bring. Operatix will work with your partner community to train them in articulating your message from a high-level business perspective, enabling them to talk to prospects about the value your solution can bring to their company from a board-level perspective.

Channel Enablement

Enabling your channel partners have measurable wins for your business when done right. Operatix has a proven track record in enabling channel partners from a sales & marketing perspective, providing them the knowledge and tools to successfully pitch your solution and sell the value & benefits of it. 

Partner Recruitment

Recruiting the right Channel Partners is the first step for a successful channel program. Operatix has helped over 350 B2B Software vendors recruit suitable channel partners across EMEA and North America, supporting them to scale and expand their presence in different geographies and verticals. 

Risk/Reward Business Model

To truly work as an extension of our client’s sales & marketing teams, we have also adapted our business models to show how our clients operate, and how their success is measured. With our risk/reward business model your investment is proportional to the results our team delivers.

Sales Qualified Leads

On average, 52.5% of the sales engagements set up by our team progress into a next step in the sale process. That means that 5 out of 10 meetings will progress either into a POC, a Demo or a pipeline opportunity.

Geographical Scale

Trading in different geographical markets not only requires a knowledge of the native language, local rules & policies, but a deeper understanding of the local culture and habits. We have the ability to deliver campaigns in multiple countries with flexible resource allocation. This is through our team of international speakers, who have the ability to sell in 17 different languages across the globe.

Increase Revenue & Decrease Cost

Building an internal sales development team comes with many additional costs and challenges that aren’t always taken into account: recruiting resources, training and enabling them etc. You also need to take into account the need for having the data and tools to make them successful, which in turn requires time, capital and effort. By outsourcing your sales development to Operatix you will see your revenue increasing, while decreasing costs and business risk.

Predictable Pipeline Generation

On average, our clients see a 26X ROI on the programs we deliver. By understanding your revenue targets and sales pipeline gap, we will work on a sales & marketing plan that will deliver tangible results.

Vertical Growth

Entering new industries or launching new product lines? Operatix can accelerate your growth by supporting your go-to-market strategy, and getting your sales teams in front of decision makers in key target accounts.

Reduce Headcount

By outsourcing your sales development and partner programs to Operatix; we reduce headcount and the challenges that come with managing people, technologies, and processes. We take care of your sales development, so you can focus on what matters the most: growing your business.

Revenue Acceleration

Operatix helps your business get to revenue quicker. By providing qualified sales engagements for your direct sales team (to kick-off new sales cycles), or by accelerating the growth of your channel partners, our focus remains on delivering tangible results for your business. 

Persona-based Selling

Operatix team will design specifically tailored messages to influence the different levels of decision makers in the sales process, tailoring the communication according to each job function. Our focus is to sell the value of your solution from a business perspective, not its features.    

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