Upload
vaughn-aust
View
5.018
Download
5
Tags:
Embed Size (px)
DESCRIPTION
Basics of channel MDF and channel Coop Programs
Citation preview
www.hawkeyechannel.comwww.hawkeyechannel.com
18 November 2009
Vaughn Aust
William Gilsing
The Basics of MDF & Co-Op Programs
www.hawkeyechannel.com
Agenda
2
Why joint marketing and sales campaigns?• Why do vendors fund partner marketing and sales campaigns?• What are MDF and co-op funds—and how do they differ?
What are best practices in MDF/co-op programs?• Why do partners not fully utilize MDF and/or co-op funds?• How can you measure the effectiveness of MDF/co-op programs?• What are the best practices of an effective MDF/co-op program?
Why hawkeye’s channelMDF solution?• Why the hawkeye channelMDF solution?• What tools are available to promote the channelMDF solution?
Ag
en
da
© 2009 hawkeye, all rights reserved.
www.hawkeyechannel.com
Why do vendors fund partner marketing and sales campaigns?
3
Joint campaigns grow business through the channel
Wh
y join
t ma
rketin
g a
nd
sale
s cam
pa
ign
s?
© 2009 hawkeye, all rights reserved.
MDF/Co-Op Spend
Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs
Partners contribute 4% of their marketing budgets to MDF/co-op programs
Grow channel
sales
Extend resources &
budget
Build brand awareness
Reach new customers
Generate demand
www.hawkeyechannel.com
What are MDF and co-op funds—and how do they differ?
4
Funds differ by partner type and objective Market Development Funds (MDF): distributed to partners in advance of sales
• Ideal for partners with a services business model who “push” products through channel; specify brand, develop markets, and grow business
Co-op (Cooperative) Funds: distributed to partners based on % of trailing sales• Ideal for partners who fulfill demand and “pull” products through channel;
do not specify brand or sell services
© 2009 hawkeye, all rights reserved.
Service PartnersConsult, Design, Implement
PUSH ABILITY
Mixed ModelTransactions + Services
“VAR”
Fulfillment PartnersTransaction, Volume
PULL REQUIREMENT
From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.
Wh
y join
t ma
rketin
g a
nd
sale
s cam
pa
ign
s?
www.hawkeyechannel.com
Why do channel partners not fully utilize MDF/co-op funds?
5
By some estimates, as much as 50% of all potential funds go unused
Wh
at a
re b
est p
ractice
s in M
DF
/co-o
p fu
nd
s?
© 2009 hawkeye, all rights reserved.
Why do funds go unused? Unfamiliarity/unaware Complexities, administrative burdens Processes that do not engender trust Long delays in approvals and payment
What do partners want in MDF/co-op programs? Clear processes with simple rules Speedy payments—
30 days or less Online status/tracking and updates Pay claims in cash, not credit Greater flexibility for activities—
trust the partner to know their customers
and how to market to them Vertical-friendly options Solution-friendly options
Partners want to easily apply for funds—and receive payments
quickly
Most partners are involved in more than one program and some in as
many as a dozen; with each program, the administrative burden
grows.
“Simplifying the tool is the best way. I suggest having someone who
knows nothing about marketing or co-op try to work the tool and see what difficulty that person has.”
–Partner
www.hawkeyechannel.com
How can you measure the effectiveness of MDF/co-op programs?
6
Use solid, consistent metrics to measure performance
© 2009 hawkeye, all rights reserved.
Measurement MetricProgram ROI • ROI = Total Gross Profit/Total Cost of Program
• Revenue Per Invested Dollar (RPI) = Revenue Generated by Activity Cost of Activity• Sales $$• Total # Leads Generated
Program Utilization • # of Active MDF Partners Total # of MDF Partners
• # of Partners Using Tool• Total Hits to Site
Claim Activity • Claimed $$$ + Allocated $$$ Beginning $$$ + Adjustment $$$
• Total Claims Submitted• Total # Claims Denied (compliance)
Fund Utilization • Funds Accrued• Funds Expired
• Outstanding Liability• Unclaimed Funds
Prior Approvals • Total Pre-approvals Submitted• Total Pre-approvals Accepted
• Total Denied• Total Currently on Hold
System Efficiency • Total Calls to Channel Mgmt• Response Times on Calls• Total Emails to Channel Mgmt• Response Time on Emails
• Length of Time from Claim Approval to Payout
Wh
at a
re b
est p
ractice
s in M
DF
/co-o
p fu
nd
s?
www.hawkeyechannel.com
What are best practices in MDF/co-op programs?
7
Eliminate complexities—and foster relationships of mutual trust
© 2009 hawkeye, all rights reserved.
Make programs easy to use• Clear, concise program guidelines that can be
downloaded, printed and saved• Integration with other systems—business
planning tools, collateral builders• Offer pre-approved activities for quick
deployment and pay-outs—”Campaign in a Box”• Easy access to customer support• Streamline documentation
Deliver a collaborative, transparent process• Online tools—to track status of approvals and
payouts• Online account statements—to view available
funds and historical usage data
Be competitive• Be aware of how much your competitors are
paying for similar activities
Industry Benchmarks
Time from claim to payment—
3 weeks
Administrative cost / project—$20-$30 per project
Program cost vs. total value—
Less than 1%
Fund utilization rate—12%-50% industry range
Wh
at a
re b
est p
ractice
s in M
DF
/co-o
p fu
nd
s?
www.hawkeyechannel.com
What are best practices in MDF/co-op programs?
8© 2009 hawkeye, all rights reserved.
Sell the program—to the field and partners alike• Engage channel reps in the process from the start• Demonstrate the value• Increase adoption with training, education, incentives• Proactive, timely, ongoing communication
Close the loop• Require that partners estimate ROI when requesting
approval for projects• Map factors to activities and use consistent values to
facilitate reporting—drop-down and numerical values• Requires that partners review and amend ROI
estimates as a part of the claiming process
Submit project
Estimate ROI
Execute activity
Submit claim
Report on ROI
Wh
at a
re b
est p
ractice
s in M
DF
/co-o
p fu
nd
s?
www.hawkeyechannel.com
Why the hawkeye channelMDF solution?
9
Maximize fund utilization—and partner satisfaction
© 2009 hawkeye, all rights reserved.
Easily manage funds and approve/deny requests• Highly flexible, automated workflow• Online submission and management
Speed time-to-payment• Electronic funds distribution• Simplified compliance with tax and legal regulations
Easily track and measure program metrics• Single view of program activity status and reports• Complete, visible audit trail through integration of all
functions—Finance, CAM, Partner, and Administrator
Quickly deploy the solution—worldwide • Integration with your existing systems• Multi-languages, multi-currencies, local business rules
Wh
y the
ha
wke
ye ch
an
ne
lMD
F so
lutio
n?
Powered by hawkeye’s proven channelconduit platform
www.hawkeyechannel.com
What tools are available to promote the channelMDF solution?
10
Integrated tools to generate awareness and demand
© 2009 hawkeye, all rights reserved.
Website Data Sheet
White Paper
Channel Fact Sheet
… With more on the way!
Wh
y the
ha
wke
ye ch
an
ne
lMD
F so
lutio
n?
www.hawkeyechannel.com
THANK YOU
© 2009 hawkeye, all rights reserved.