Indicates Optimizing the Indirect Sales Channel is More Important Than Ever
SAN MATEO, Calif. - August 29, 2005 - BLUEROADS Corporation, a channel management Software-as-a-Service company, today announced the results of a channel lead management benchmark study, demonstrating a strong and consistent correlation between speed and closure rates in the channel. The study is the first-of-its-kind, and addresses the five key areas of channel lead management: lead aging, lead distribution, opportunity feedback, sales latency and closure rates. The study not only explains these concepts, but also explains at length how to leverage them to lay the groundwork for near-term performance improvements on which to build long-term strategies.
"Channel lead management plays a vital role for high-technology companies as channel sales increasingly account for more revenue and market share growth opportunities," said Axel Schultze, president and CEO, BLUEROADS. "In today's competitive environment, it's crucial to optimize channel lead management. A leading analyst firm pointed out that more than 70 percent of leads are never acted on because they don't get into the right hands at the right time. This figure is staggering and is a real wake-up call for an industry that is fighting tooth and nail to revitalize sales."
The benchmark study was designed to measure the comprehensive channel lead management process in order to identify the key performance indicators that have the highest impact on stimulating revenue. The study results outlined how the process time between lead generation and availability to sales is a crucial factor to closing a lead, and that reducing lead aging can be a demonstrable competitive advantage. To ensure leads get into the right hands at the right time, BLUEROADS has pioneered a unique pull-based lead distribution methodology, where the available and interested individual partner salesperson self-selects the lead for active follow-up. This is extremely important because in the traditional "push" model there is no clear measurability and no visibility into the follow on process, whereas the "pull" methodology provides a clear performance indicator that allows measurement of the reaction time in the partner channel.
In addition to the importance of the "pull" methodology, the study revealed that initial feedback from the partner is a strong performance indicator, as it shows the ability of the channel to aggressively follow-up with prospect demand. Finally, study findings showed the correlation between closure rates and the sales cycle. Closure rate on raw leads as a relative value tells more about the partner's ability to close new business versus installed base revenue than any other key performance indicator. The ability to close new opportunities indicates which partners are ideal candidates to help launch new products or explore new markets.
BLUEROADS Corporation sponsored the research study among customers of the company's channel management Software-as-a-Service. The company drew upon data supplied in a random sample of 100,000 channel sales leads generated between 2001 and 2005. These sales leads represent the demand generated by high-technology companies of various sizes, product segements, and average sales prices.
To download a full copy of the benchmark study, please register at: http://www.BLUEROADS.com/lead_benchmark/index.html
About BLUEROADS 6
BLUEROADS 6 is the latest version of the company's leading-edge channel management software that allows companies to market and sell more effectively through indirect channels, strengthening the bond between vendor and partner. Unlike traditional PRM systems, BLUEROADS 6 is designed with unique partner-centric methodologies that streamline channel processes, which yield the highest possible results with the least amount of partner effort. This reduces the time and effort required to actively participate, and increases partner adoption of programs and processes.
BLUEROADS Corporation
BLUEROADS Corporation provides channel management Software-as-a-Service, which enables companies to market and sell more effectively through indirect channels. BLUEROADS was recognized by Gartner Group as a "cool vendor" for 2005, for its delivery of innovative, impactful and intriguing solutions for the industry. BLUEROADS' impressive customer list includes Hitachi Data Systems, Nortel, SurfControl and many more. The company is headquartered in San Mateo, California and funded by ArrowPath Venture Capital, El Dorado Ventures and Cardinal Venture Capital. For more information about how BLUEROADS is helping companies create active channels with higher returns visit our website at www.BLUEROADS.com or call 650.349.8500.
