Building a Strong Co-Selling Foundation

Microsoft co-selling offers immense potential, but it can be challenging to navigate. You might sense that there are bigger opportunities you're missing. You're not alone in feeling this way.

We get it.  

Here's the deal: there's no secret handshake or magic word for co-selling success. But there is a way to do it better. It's all about building a solid foundation.

Think about it like building a house. You wouldn't start on sand, right? Same goes for your co-selling efforts. Without a strong base, even the best plans can fall apart.

So, what does this foundation look like? We've worked with over 200 Microsoft partners in the past few years and from our experience, we've narrowed it down to six key pillars:

1. Know Microsoft's priorities  

2. Understand the Microsoft customer journey or MCEM  

3. Master the incentives

4. Have a killer joint value proposition  

5. Create strong go-to-market assets  

6. Align your operations  

When you get this right, though, the results can be huge:

• 25% Larger deal size

• 25% Higher win rate

• 2x Consumption rate

That's real money.  

In this blog post, we're going to break down each of these six areas.  

The Power of Partnership: Why Co-Selling Matters

To build a solid co-selling foundation, we need to start with the basics. Let's examine what co-selling means and why partners often struggle with it.

Batman and Robin. Salt and pepper. Microsoft and partners.

If we've learned anything over the years, it's that the best things happen in pairs.

And selling is no exception.

• Co-selling is when two companies join forces to tackle a shared opportunity, working together to close deals faster and more effectively. It's about leveraging each other's strengths, insights, and influence to create a win-win-win situation - for you, your partner, and most importantly, the customer.  

Why Partners Struggle with Microsoft Co-Selling

Breaking Through Commoditization:  

The first major challenge is that many partners operate in a highly commoditized manner. In a crowded market, partners struggle to articulate their unique value proposition effectively. Pushing through this commoditization is crucial, yet many partners find it difficult to pitch their differentiation to potential customers or Microsoft sellers. They end up sounding like everyone else, making it hard to stand out in a sea of similar offerings.

Communicating Value to Microsoft Sellers:  

The second significant challenge is the inability to help Microsoft sellers understand the value partners bring to both Microsoft and its customers. This challenge, while related to the first, focuses on communicating the right value proposition to the right individuals within Microsoft.  Partners often struggle to:  

• Identify which Microsoft sellers are the best fit for their solutions

• Explain the value they can add to Microsoft sellers' efforts

• Understand and align with Microsoft sellers' KPIs

• Demonstrate how they can influence these KPIs positively

Partners who can overcome these hurdles are better positioned to succeed in co-selling with Microsoft, leveraging the vast opportunities the partnership offers while avoiding the pitfall of being seen as just another commoditized solution provider.

Understanding the value proposition for all parties is crucial.  

Source: https://assetsprod.microsoft.com/en-us/idc-report-microsoft-ecosystem-value.pdf

For partners, Microsoft offers significant revenue potential - on average, for every $1 of Microsoft revenue, ISVs make $10, and Services partners make $8.  

These potential underscores the importance of overcoming these struggles and effectively co-selling with Microsoft.

Alignment to Microsoft Priorities

Building a strong foundation for co-selling with Microsoft starts with aligning your efforts to Microsoft's priorities. This alignment is crucial for maximizing your partnership and unlocking new opportunities.  

Let's dive into Microsoft's key focus areas for FY25 and how you can align your strategies:

FY25 Key Highlights

• Focus on AI, Security and Migrations  

• Updated partner tiers and benefits

• Opportunities for Services Partners to co-sell

• Multi-party private offers expanding to new regions  

• SMB focus

Deep Dive into Key Areas

Let's break it down by solution area:

Business Application

Azure

Azure remains a critical focus for Microsoft

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Modern Work

The Modern Work solution area is seeing significant changes, with a strong emphasis on AI and productivity.

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Security

Microsoft is doubling down on its integrated security approach, with a focus on helping customers consolidate their security stack with Microsoft's integrated solutions.

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To align your strategy:

Identify Your Integration Point:

First things first - understand which Microsoft solution you're integrating with. Is it Azure, Dynamics 365, or Microsoft 365? Each has its own focus and priorities.

Stay Current:  

Microsoft's priorities shift annually. Keep track of these changes and adjust your offerings accordingly.

Here are a few FY25 Microsoft Kickoffs Resources:

• Americas Start for Partners – Session Recordings

• FY25 Partner FastStart Decks

• MCAPS Start for Partners – Session Recordings

• MCAPS Start Blog
  

Understand the Metrics:

Each priority has associated metrics. For example, if adoption is a priority, usage becomes the key metric. If it's about expanding into new segments, customer acquisition might be the focus. Align your solutions to positively impact these metrics.

Leverage Investments:

Microsoft offers various incentives aligned with their priorities. These could be engagement incentives, sales incentives, or others. Know what's available and how you can benefit.

Showcase Alignment:  

When engaging with Microsoft sellers or customers, clearly articulate how your solutions complement Microsoft's priorities and contribute to their overall strategy.

Understanding the Customer Journey

Today's buyers come to the table well-informed. They've done their research, know exactly what they're looking for, and understand how to extract value from solutions. This shift in buyer behavior necessitates a more sophisticated approach to co-selling.  

It's not just about understanding the customer journey, but also about comprehending the motivations of everyone in the ecosystem.  

As industry expert Carson Heady notes, 'You've gotta understand what matters, what's the why with everybody that you touch in the ecosystem.' This includes both customers and partners."

Many partners focus solely on the technical aspects of their solutions, forgetting that customers don't buy technology – they buy solutions to their problems. To build a strong co-selling foundation with Microsoft, it's crucial to align your efforts with the customer's journey using the concept of a Win Formula.

A Win Formula is the cornerstone of a successful go-to-market (GTM) strategy, bringing together two critical components: the customer journey and the investments that fuel it. It serves as a blueprint for how you'll engage customers, identify resource gaps, determine required skills, and leverage Microsoft resources effectively.

Let's break down the key stages of Microsoft's Customer Engagement Methodology (MCEM) and how you can align your co-selling efforts:

Listen and Consult  

At this stage, customers are just realizing they have a problem or opportunity. Your job is to listen actively and understand their business challenges.  

Key actions:

• Research the customer's market and historical performance

• Engage in consultative discussions to uncover priorities and pain points

• Identify qualified opportunities and share them with Microsoft sellers

Inspire and Design  

Now customers are actively looking for solutions. This is your chance to showcase how your offering, combined with Microsoft's technology, can solve their specific problems.  

Key actions:

• Confirm the correct Solution Plays align with customer needs

• Collaborate with Microsoft to develop a joint solution strategy

• Create a unified front with Microsoft when presenting to the customer

Empower and Achieve  

The customer is ready to buy. Focus on proving value and building confidence in your joint solution.  

Key actions:

• Conduct proof of concepts or pilot projects

• Demonstrate both technical feasibility and business value

• Work with Microsoft to create a comprehensive proposal and agreement

Realize Value  

Once they've decided to go with you, ensure a smooth implementation and drive outcomes.  

Key actions:

• Collaborate with Microsoft Customer Success Managers and Solution Architects

• Address technical issues swiftly and mitigate risks

• Validate that the solution meets customer needs and functions impeccably

Manage and Optimize  

Look for opportunities to expand and ensure long-term customer success.  

Key actions:

• Monitor solution performance against established KPIs

• Proactively identify optimization opportunities

• Explore new ways to serve the customer, potentially starting the cycle again

For each stage of the MCEM, your Win Formula should include:

• Execution Tactics: Specific activities that move the buyer forward.

• Microsoft Program Utilization: Leveraging available Microsoft investments and incentives.

• Defined Outcomes: Setting goals and conversion rates for each tactic and stage.

• Investments Required: Identifying necessary resources, including marketing, staffing, and skilling.

• Owners: Assigning accountability for each component of the Win Formula.

Remember, this journey isn't linear. Customers might jump back and forth between stages. Your job is to be there, ready to help, no matter where they are in the process.

By aligning your approach with both the customer's journey and Microsoft's MCEM, you're not just selling a product - you're becoming a trusted advisor. This alignment demonstrates your commitment to customer success and strengthens your position as a valuable Microsoft co-selling partner.

Importantly, this customer-centric approach opens doors for continuous engagement and expansion opportunities. As you successfully guide customers through their journey, you'll build deeper relationships and uncover new ways to add value – creating a virtuous cycle of growth for both your business and your partnership with Microsoft.

To maximize the impact of your Win Formula, regularly review and refine your approach based on performance data and learnings. Engage your Partner Development Manager (PDM) in these discussions to leverage their experience and best practices.

By implementing a disciplined, customer journey-based sales methodology and effectively utilizing Microsoft's programmatic investments, you can accelerate deal velocity, increase close rates, and improve average revenue per user (ARPU) – all while reducing your cost of sale.

Build an effective joint value proposition

At the heart of every successful partnership lies a compelling "better together" story. This narrative showcases how your solution and your Microsoft's offerings combine to create unique value for customers.

Your "better together" story should clearly communicate:

1. How your product complements Microsoft's offerings

2. The unique benefits of this combination

3. How together you solve real customer pain points more effectively than either solution alone

When crafted well, this story becomes a powerful tool across all your channels. It equips your teams - from sales to marketing to support - to have more meaningful conversations with customers about the value you bring together.

Why Your Better Together Story Matters

In the crowded Microsoft partner ecosystem, a well-crafted Better Together story helps you:

1. Stand out to Microsoft sellers who are inundated with partner solutions

2. Clearly communicate your unique value to customers

3. Align your offering with Microsoft's priorities and metrics

Remember, you're selling twice - first to Microsoft sellers, then to customers. Your story needs to resonate with both audiences.

Instructions:

1. Make a copy of the Excel Sheet (it's read only)

2. Fill out the second tab (“reverse account mapping”) during your joint-customer interviews.  As appropriate, add your own questions as well.

3. Continue interviewing customers until most answers are repetitive with prior interviews (which is the best signal of diminishing returns).

4. Summarize your findings as inputs into your “better together” story.

Step 1: Joint Customer Identification

Start by identifying 5-10 customers who are actively using both your solution and Microsoft's. Focus on customers that align with your target profile to maintain relevance.

Step 2: Conduct Customer Interviews

Schedule 30-minute calls with core user of your solution and purchase decision maker (if they are different) and ask them the following questions:

1. User Persona: Who are the primary users of [your solution] within the organization?

2. Decision Makers: Who was involved in the decision to implement [your solution]?

3. Problem Solved: What specific challenges does [your solution] address for you?

4. Triggers: Were there particular events that prompted the need for [your solution]?

5. Impact on Microsoft ecosystem: How did [your solution] impact your use of Microsoft products and services? Were there specific use cases you leveraged [your solution] for?

6. Microsoft Services Influenced: Which Microsoft services have seen increased adoption or usage due to [your solution]?

7. Differentiation: What unique capabilities does [your solution] provide compared to alternatives?

Step 3: Analyze and Synthesize

After conducting these interviews, look for common themes and standout insights. Pay particular attention to:

• Recurring pain points your solution addresses

• Specific Microsoft services that benefit from your solution

• Quantifiable impacts on the customer's business

• Unique differentiators that set you apart in the Microsoft ecosystem

Step 4: Craft Your Better Together Story

Now, it's time to weave these insights into a compelling narrative. Your story should include:

Clear Value Proposition:  

Articulate how your solution enhances Microsoft's offerings.  

Example: "X's AI-powered security solution extends Azure Sentinel's capabilities, providing 24/7 threat hunting and response for enterprises."

Customer Problem:  

Describe the specific challenges your joint customers face.  

Example: "As organizations rapidly adopt cloud services, they struggle to maintain consistent security across hybrid environments."

Joint Solution:  

Explain how your offering integrates with Microsoft's services.  

Example: “X seamlessly integrates with Azure Sentinel, enriching its SIEM capabilities with our proprietary threat intelligence and automated response playbooks."

Key Benefits:  

Highlight 3-4 concrete benefits customers gain.  

Example:  

• 60% faster threat detection and response times

• 40% reduction in false positives

• 25% increase in Azure Sentinel adoption within the organization

Microsoft Impact:  

Clearly state how your solution drives Microsoft's priorities.  

Example: "On average, customers using X increase their Azure consumption by 35% within the first year, primarily through expanded use of Azure Sentinel and related security services."

Differentiation:  

Emphasize what sets you apart from other Microsoft partners.  

Example: "Unlike other security solutions, X's AI engine is trained on industry-specific threat data, making it uniquely effective for financial services and healthcare organizations."

Step 5: Tailor for Different Audiences

Create versions of your story for different stakeholders:

1. For Microsoft Sellers: Focus on how you help them meet their quotas and KPIs.

2. For Customers: Emphasize ROI and specific use cases.

3. For Technical Audiences: Dive deeper into integration points and architecture.

Step 6: Validate and Refine

Share your Better Together story with friendly Microsoft sellers and customers. Gather feedback and iterate. The goal is a story that's clear, compelling, and immediately relevant to both Microsoft and your target customers.

Putting Your Better Together Story to Work

Now that you've crafted your story, it's time to put it into action:

1. Enable Your Team: Ensure everyone from sales to support can articulate your Better Together story confidently.

2. Create Collateral: Develop a suite of materials including:  

                1. One-page summary

               2. Detailed pitch deck

               3. Technical integration guide

                4. Customer case studies

3. Integrate into Sales Processes: Make your Better Together story a central part of your sales playbook, especially for opportunities involving Microsoft.

4. Showcase on Digital Channels: Feature your story prominently on your website, in social media, and in digital marketing campaigns.

5. Use in Microsoft Engagements: Leverage your story in joint account planning sessions, partner events, and when requesting seller support.

Remember, your Better Together story isn't static. As your partnership with Microsoft evolves and you gather more customer successes, continue to refine and expand your narrative.

By investing in a robust, data-driven Better Together story, you're not just improving your marketing – you're laying the foundation for true collaborative selling with Microsoft. It's your key to standing out in the crowded partner ecosystem and unlocking the full potential of the co-selling motion.

Create Strong Go-to-Market Assets

To truly excel in co-selling with Microsoft, equipping both your team and Microsoft sellers with powerful go-to-market (GTM) assets is crucial.  

These resources are the backbone of successful joint sales efforts, helping everyone involved to articulate your value proposition effectively and close deals faster.  

Let's dive into the key assets you should develop to strengthen your co-selling foundation.

Comprehensive Sales Guidance

Develop clear, actionable sales guidance that helps both your team and Microsoft sellers navigate the co-selling process:

• Outline the ideal customer profile and use cases for your joint solution

• Provide step-by-step instructions for engaging Microsoft sellers

• Include tips for leveraging Microsoft's resources and programs

Remember, the goal is to make it as easy as possible for Microsoft sellers to understand and promote your solution alongside Microsoft's offerings.

Customer-Centric Pitch Deck

Create a visually compelling pitch deck that:

• Clearly articulates the joint value proposition

• Highlights integration points with Microsoft technologies

• Showcases relevant case studies and success metrics

Pro tip: Develop multiple versions tailored to different industries or company sizes to increase relevance and impact.

Engaging On-Demand Training Videos

Produce a series of short, informative videos that:

• Explain your solution's key features and benefits

• Demonstrate how it integrates with Microsoft products

• Offer sales tips and best practices for positioning the joint offering

These videos can serve as quick refreshers for sellers before important customer meetings.

Customizable Email Templates

Design a set of email templates for various stages of the sales cycle:

• Introduction emails highlighting the joint value proposition

• Follow-up emails after demos or meetings

• Case study sharing emails to build credibility

Ensure these templates are easily customizable to maintain a personal touch.

Comprehensive Datasheet

Create a detailed yet concise datasheet that:

• Outlines key features and technical specifications

• Highlights integration capabilities with Microsoft technologies

• Includes relevant certifications and compliance information

This serves as a quick reference guide for both sellers and technical decision-makers.

Strategic Competitor Battlecard

Develop a battlecard that equips sellers to position your solution effectively against competitors:

• Highlight key differentiators of your Microsoft-integrated solution

• Provide talking points to address common objections

• Include win/loss analysis from past deals to inform future strategies

Compelling Customer Stories

Craft detailed customer success stories that:

• Showcase the tangible benefits of your joint solution

• Include quantifiable results and ROI metrics

• Demonstrate how the integration with Microsoft technologies solved specific challenges

These stories are powerful tools for building credibility and illustrating real-world value.

Flexible Proposal Template

Design a proposal template that:

• Clearly outlines the joint offering and its benefits

• Includes customizable sections for specific customer needs

• Highlights the advantages of purchasing through Microsoft's marketplace

This template should make it easy for sellers to quickly generate professional, tailored proposals.

Strategic Target Account List

Develop a list of high-potential target accounts:

• Align with Microsoft's priority industries and segments

• Include key decision-makers and their roles

• Highlight potential use cases for each account

This list helps focus co-selling efforts on the most promising opportunities.

Incentive and Compensation Guide

Address concerns around compensation by creating a clear guide that outlines:

• How deals are attributed in co-sell scenarios

• Commission structures for various deal types

• Incentives for Microsoft sellers who contribute to joint wins

Being transparent about these aspects can significantly boost motivation and alignment among all parties involved in co-selling.

By developing these comprehensive GTM assets, you're not just equipping your team – you're empowering the entire Microsoft ecosystem to effectively promote and sell your joint solution.

Remember to regularly update these materials based on feedback, market changes, and evolving Microsoft priorities. This ongoing refinement ensures your co-selling efforts remain relevant, impactful, and aligned with Microsoft's go-to-market strategies.

Align Your Operations

To truly excel in co-selling with Microsoft, aligning your internal operations with Microsoft's systems and processes is crucial. This alignment creates a seamless collaboration that can significantly boost your partnership's effectiveness.  

Here's how to get it right:

Integrate with Microsoft's Partner Systems  

Familiarize yourself with and integrate your processes into key Microsoft platforms:

• Partner Center: Your hub for managing the Microsoft partnership

• Partner Sales Connect (PSC): Used for sharing co-sell opportunities

• Azure Marketplace and AppSource: Platforms for listing and selling solutions

Pro Tip: Assign a dedicated team member to become an expert in these systems, serving as an internal resource and liaison with Microsoft.

Embrace Automation:

Move beyond 'random acts of co-sell' using spreadsheets. Implement automated systems that enable secure sharing of account and opportunity data at scale.  

This allows for more strategic, data-driven co-selling approaches and facilitates multi-partner sales plays.  

Streamline CRM Integration  

If you're using Salesforce or another CRM, consider implementing the Microsoft Co-sell Connector:

• Enables bi-directional deal flow between your CRM and Microsoft's systems

• Ensures both teams have up-to-date information on shared opportunities

• Automates deal registration processes to protect your pipeline

Implement a Co-Sell Governance Model  

Establish clear guidelines for co-sell engagement:

• Define roles and responsibilities for both teams in various co-sell scenarios

• Create an escalation path for both technical and business issues

• Set up regular check-ins with your Microsoft Partner Development Manager (PDM)

Develop a Shared Pipeline Management  

Approach Create a system for jointly managing and prioritizing opportunities:

• Agree on criteria for qualifying co-sell opportunities

• Establish a cadence for pipeline reviews with Microsoft counterparts

• Use data-driven insights to focus on the most promising deals

Measure and Optimize Co-Sell Performance

Implement robust tracking and analytics:

• Define clear KPIs for your co-sell efforts (e.g., joint pipeline growth, win rates)

• Regularly analyze performance data to identify areas for improvement

• Share insights and best practices across your organization

Maintain a Centralized Co-Sell Resource Repository  

Create a single, easily accessible location for all co-sell resources:

• Store sales collateral, technical documentation, and training materials

• Ensure all team members and relevant Microsoft sellers can quickly access up-to-date information

• Regularly update and curate the repository to keep it relevant and valuable

By aligning your operations with Microsoft's systems and priorities, you create a foundation for efficient, effective co-selling. This alignment not only streamlines your processes but also demonstrates your commitment to the partnership, making you a more attractive co-sell partner for Microsoft sellers.

Remember, operational alignment is an ongoing process. Regularly review and refine your approach to ensure you're maximizing the value of your Microsoft partnership and staying ahead in the dynamic world of cloud solutions.

Master the Incentives

The final pillar in building a strong co-selling foundation with Microsoft is mastering the incentive structure. This aspect is often overlooked, but it can be a game-changer for partners who take the time to understand and leverage it effectively.

Microsoft invests billions of dollars annually into its partner ecosystem through various incentive programs. However, a significant portion of this investment often goes unclaimed. By mastering these incentives, you can not only boost your revenue but also align more closely with Microsoft's strategic priorities.

Key Points to Remember: ‍

           1. Stay Informed: Microsoft's incentive landscape evolves annually. Make it a priority to stay up-to-date with the latest programs and changes.

          2. Align with Solution Areas: Focus on incentives that match your expertise in key areas like Business Applications, Azure, Modern Work, and Security.

         3. Leverage AI and Security Opportunities: In FY25, there's a strong emphasis on AI-powered solutions and security consolidation. Aligning your offerings with these areas can unlock significant incentive potential.

         4. Understand the Win Formula: Develop a strategic approach that maps your sales process to Microsoft's Customer Engagement Methodology (MCEM) and available incentives.

          5. Operational Excellence: Implement systems to track, claim, and optimize your incentive earnings. Consider designating an incentives expert within your team.

          6. Integrate Incentives into Your Strategy: Don't treat incentives as an afterthought. Build them into your product development, pricing, and go-to-market strategies.

Remember, mastering incentives is not just about claiming what's available. It's about strategically aligning your business to maximize the value of your Microsoft partnership.

To dive deeper into Microsoft partner incentives and learn how to unlock their full potential, check out our comprehensive guide: "Unlock Billion-Dollar Potential with Microsoft Partner Incentives". This resource provides in-depth insights into FY25 incentive changes, detailed breakdowns by solution area, and strategies for maximizing your incentive earnings.

By mastering these incentives, you're not just increasing your bottom line – you're positioning your company as a strategic, aligned partner in the Microsoft ecosystem. This alignment can open doors to deeper collaboration, joint sales opportunities, and long-term growth.

It’s time to double down

The decade of the ecosystem is here, and the shift from 'winning alone' to 'winning together' is no longer optional—it's essential. As customers increasingly demand comprehensive, end-to-end solutions, building a strong co-selling foundation has become critical for success in the Microsoft partner ecosystem.

If you ready to transform your co-selling strategy and unlock new levels of partnership success

Take the First Step: Join Our Invite-Only Free 1-Hour Co-Selling Workshop

What we will cover in this:

• Overview of solution play priorities

• Assessment of your current partnership

• Path to maximizing Microsoft value  

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