We\u2019ve said it before: 3D printer OEMs will live or die in the commercial markets by the strength of their channels. Market leader 3D Systems seems to agree. After a string of disappointing quarterly earnings reports, the company has focused more intently on developing its channel as a way to grow revenue and profits.<\/p>\n
3D Systems has always been highly dependent on its channel partners. In fact, the channel is responsible for all sales except for a few legacy accounts that are still handled directly. Many times, the channel is also responsible for some of the service. The goal now is to take the channel to the next level.<\/p>\n
Actionable Intelligence recently had the opportunity to speak with 3D Systems\u2019 Chief Revenue Officer Charlie Grace, who is responsible for the company\u2019s channel operations, and VP of Marketing Barry Ader. Mr. Grace hails from the digital imaging world, formerly VP of sales for EFI and before that a district solutions manager for Xerox. That experience gives him insight into how to leverage the digital imaging channel to sell 3D printers.<\/p>\n
\u201cFor 2016, we are focused on making the [channel] organization better,\u201d said Mr. Grace. \u201cHow do we stack up in terms of market gaps or geographical white spaces?\u201d He added that 3D Systems wants to \u201cseek out the best and brightest\u201d channel partners to address the needs that they identify. The company has a clear image of what defines \u201cbest and brightest.\u201d<\/p>\n
\u201cResellers need to have a vested interest to be successful,\u201d said Mr. Grace. \u201cA lot of people got into [3D printing] because of the buzz, and then found out that it\u2019s not as easy as, say, digital imaging. It takes focus, dedication, and ownership.\u201d He also emphasized the need for technical and application training. Compared to digital imaging, a reseller needs to know \u201ca lot more things.\u201d<\/p>\n
\u201cApplication knowledge is critical,\u201d Mr. Grace said. A reseller needs to be able to help customers solve problems. That requires knowledge of not just the applications, but materials, service requirements, and customer training needs as well. A successful reseller will leverage its broad knowledge of the 3D printing ecosystem in a consultative solutions-selling approach.<\/p>\n
Dedicated personnel are also important. Ideally, 3D Systems likes resellers to employ sales, marketing, and service staff who support only 3D. The reason for this goes back to the knowledge requirements. A focused, dedicated 3D team will likely be more knowledgeable and effective.<\/p>\n
Many of 3D Systems’ channel partners that sell 3D printers are also digital imaging dealers. (The company’s software and healthcare businesses have their own separate channel operations, although they sometimes overlap.) Those partners range in size from smaller dealers to large OEMs such as Canon and Konica Minolta. They also represent different geographic and vertical markets. Mr. Ader said that all types of digital imaging resellers have found success selling 3D Systems products.<\/p>\n
\u201cIt\u2019s a huge opportunity [for digital imaging resellers] looking for a supplemental business,\u201d said Mr. Grace. He cited Konica Minolta, Canon Europe and Japan, and Fuji Xerox New Zealand as examples of successful digital imaging partners. However, Mr. Grace again cautioned that digital imaging resellers will struggle if they don\u2019t make the commitment to understanding 3D applications and solutions selling. \u201cIt will be a struggle if they just put [3D printing] in their sales bags or on their websites but don\u2019t make the investment.\u201d<\/p>\n
PartnerXcel<\/p>\n
To better support new and established channel partners, 3D Systems has launched its PartnerXcel program, announced late last year. \u201cPartnerXcel provides partners with structure and a path to growth,\u201d said Mr. Grace. The program promises to help channel partners accelerate the sales process, sell at the solutions level, and build repeatable and recurring revenue streams.<\/p>\n
PartnerXcel offers four levels of support\u2014bronze, silver, gold, and platinum\u2014depending on the level of commitment the partner is willing to make and their success. A partner may start at the bronze level and work its way up as it grows the business. As a partner\u2019s business grows, PartnerXcel allows for higher discounts, better entitlements, enhanced marketing support, and more training options. At the higher levels, dedicated expedited technical support is available.<\/p>\n
Reviewing the PartnerXcel guidelines, it is clear that 3D Systems is aiming to provide solid support at all levels, but also reward the success and commitment of its partners. All partners have access to training, technical support, and sales and marketing support. The latter includes co-marketing and market development funds, leads, and promotional collateral. The level of those benefits increases as the reseller grows. For example, a reseller might get onsite training once it reaches the higher levels and not have to send its staff to a 3D Systems facility.<\/p>\n
The program clearly spells out expectations for each level. PartnerXcel levels are assigned based on a point system that depends on a reseller\u2019s commitment and capability in four areas: sales and sales growth, investment in demonstration equipment, investment in dedicated sales and service staff, and history of being a 3D Systems partner. The system is designed to support \u201cmutual goals of success,\u201d said Mr. Grace.<\/p>\n
Ongoing communication is key to the success of PartnerXcel, said Mr. Grace. It started with a partner kick-off event at the Consumer Electronics Show early this year where partners had the opportunity to network and meet key 3D Systems staff and customers. The conversation has continued with web conferencing and calls where topics such as go-to-market strategies and new marketing programs are discussed.<\/p>\n
Our Take<\/p>\n
In general, resellers of 3D printers feel under-supported and out of the communications loop with their OEM partners. The better OEMs understand this and \u2014like 3D Systems\u2014are making strong efforts to improve their relationships with the channel. PartnerXcel is one of the best-thought-out plans we have seen. It\u2019s too early to know if it will be effective, but we like how it encourages the kinds of activities that will help resellers succeed.<\/p>\n
The 3D Systems resellers that Actionable Intelligence has spoken with, mostly larger digital imaging OEMs, seem happy with the support they get from the company. Those resellers already have significant resources that will enable them to sell the full range of 3D Systems\u2019 products. The real test will be how the small to midsize resellers respond. Will they be able to leverage what they get from PartnerXcel to make more and bigger sales? Perhaps, but 3D Systems will need to listen to all its channel partners as it continues to implement PartnerXcel.<\/p>\n
<\/p>\n
Originally posted by Actionable Intelligence on March 28 at\u00a0www.action-intell.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" We\u2019ve said it before: 3D printer OEMs will live or die in the commercial markets by the strength of their channels. Market leader 3D Systems seems to agree. After a string of disappointing quarterly earnings reports, the company has focused more intently on developing its channel as a way to grow revenue and profits. 3D Systems has always been highly dependent on its channel partners. In fact, the channel is responsible for all sales except for a few legacy accounts that are still handled directly. Many times, the channel is also responsible for some of the service. The goal now is to take the channel to the next level. Actionable Intelligence recently had the opportunity to speak with 3D Systems\u2019 Chief Revenue Officer Charlie Grace, who is responsible for the company\u2019s channel operations, and VP of Marketing Barry Ader. Mr. Grace hails from the digital imaging world, formerly VP of sales for EFI and before that a district solutions manager for Xerox. That experience gives him insight into how to leverage the digital imaging channel to sell 3D printers. \u201cFor 2016, we are focused on making the [channel] organization better,\u201d said Mr. Grace. \u201cHow do we stack up in terms of market gaps or geographical white spaces?\u201d He added that 3D Systems wants to \u201cseek out the best and brightest\u201d channel partners to address the needs that they identify. The company has a clear image of what defines \u201cbest and brightest.\u201d \u201cResellers need to have a vested interest to be successful,\u201d said Mr. Grace. \u201cA lot of people got into [3D printing] because of the buzz, and then found out that it\u2019s not as easy as, say, digital imaging. It takes focus, dedication, and ownership.\u201d He also emphasized the need for technical and application training. Compared to digital imaging, a reseller needs to know \u201ca lot more things.\u201d \u201cApplication knowledge is critical,\u201d Mr. Grace said. A reseller needs to be able to help customers solve problems. That requires knowledge of not just the applications, but materials, service requirements, and customer training needs as well. A successful reseller will leverage its broad knowledge of the 3D printing ecosystem in a consultative solutions-selling approach. Dedicated personnel are also important. Ideally, 3D Systems likes resellers to employ sales, marketing, and service staff who support only 3D. The reason for this goes back to the knowledge requirements. A focused, dedicated 3D team will likely be more knowledgeable and effective. Many of 3D Systems’ channel partners that sell 3D printers are also digital imaging dealers. (The company’s software and healthcare businesses have their own separate channel operations, although they sometimes overlap.) Those partners range in size from smaller dealers to large OEMs such as Canon and Konica Minolta. They also represent different geographic and vertical markets. Mr. Ader said that all types of digital imaging resellers have found success selling 3D Systems products. \u201cIt\u2019s a huge opportunity [for digital imaging resellers] looking for a supplemental business,\u201d said Mr. Grace. He cited Konica Minolta, Canon Europe and Japan, and Fuji Xerox New Zealand as examples of successful digital imaging partners. However, Mr. Grace again cautioned that digital imaging resellers will struggle if they don\u2019t make the commitment to understanding 3D applications and solutions selling. \u201cIt will be a struggle if they just put [3D printing] in their sales bags or on their websites but don\u2019t make the investment.\u201d PartnerXcel To better support new and established channel partners, 3D Systems has launched its PartnerXcel program, announced late last year. \u201cPartnerXcel provides partners with structure and a path to growth,\u201d said Mr. Grace. The program promises to help channel partners accelerate the sales process, sell at the solutions level, and build repeatable and recurring revenue streams. PartnerXcel offers four levels of support\u2014bronze, silver, gold, and platinum\u2014depending on the level of commitment the partner is willing to make and their success. A partner may start at the bronze level and work its way up as it grows the business. As a partner\u2019s business grows, PartnerXcel allows for higher discounts, better entitlements, enhanced marketing support, and more training options. At the higher levels, dedicated expedited technical support is available. Reviewing the PartnerXcel guidelines, it is clear that 3D Systems is aiming to provide solid support at all levels, but also reward the success and commitment of its partners. All partners have access to training, technical support, and sales and marketing support. The latter includes co-marketing and market development funds, leads, and promotional collateral. The level of those benefits increases as the reseller grows. For example, a reseller might get onsite training once it reaches the higher levels and not have to send its staff to a 3D Systems facility. The program clearly spells out expectations for each level. PartnerXcel levels are assigned based on a point system that depends on a reseller\u2019s commitment and capability in four areas: sales and sales growth, investment in demonstration equipment, investment in dedicated sales and service staff, and history of being a 3D Systems partner. The system is designed to support \u201cmutual goals of success,\u201d said Mr. Grace. Ongoing communication is key to the success of PartnerXcel, said Mr. Grace. It started with a partner kick-off event at the Consumer Electronics Show early this year where partners had the opportunity to network and meet key 3D Systems staff and customers. The conversation has continued with web conferencing and calls where topics such as go-to-market strategies and new marketing programs are discussed. Our Take In general, resellers of 3D printers feel under-supported and out of the communications loop with their OEM partners. The better OEMs understand this and \u2014like 3D Systems\u2014are making strong efforts to improve their relationships with the channel. PartnerXcel is one of the best-thought-out plans we have seen. It\u2019s too early to know if it will be effective, but we like how it encourages the kinds of activities that will help resellers succeed. The 3D Systems resellers that Actionable Intelligence has spoken with, mostly larger digital imaging OEMs, seem happy with the […]<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2347],"tags":[],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17320"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=17320"}],"version-history":[{"count":7,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17320\/revisions"}],"predecessor-version":[{"id":17330,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17320\/revisions\/17330"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=17320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=17320"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=17320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}