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February 6, 2013 Steven Kellam, VP Sales and Marketing
Refresh Your MDF/Co-op
Program for 2013
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Agenda
I. Auditing Your Program • Reviewing 2012 • Setting objectives for 2013
II. Optimizing Your Program • Alignment through the 8 variables • Trends influencing MDF/Co-op
III. Putting It Together • An example
IV. Wrap Up • Common execution errors & quick tips
About CCI: Why We Understand MDF/Co-op
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
CCI Provides Incentive Solutions to:
Motivate Your Channel
Manage
Measure Optimize
Best Practice Channel Programs and Processes that intelligently engage Partners, ensure ROI
and provide Competitive Advantage
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Comprehensive Solution Set Distributor Reseller Sales Reps Consumer
Co-op/MDF/BDF
Streamline management of joint marketing programs
Marketing Planner
Plan marketing programs, forecast and measure ROI SPIF & Rebates
Run short- and long-term incentive programs Sales Performance Rewards
Reward channel partners for attaining sales goals Trade-In Rewards
Manage incentive programs requiring physical return of goods Opportunity Management
Deal Registration, Lead Management, Referral Rewards and Special Pricing
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Professional Services At Every Step
Program Design
Program Development
Program Evolution
Complete Incentive Solutions
Highly Configurable SaaS Application
ROI Metrics
Multi-currency/lingual
Fund allocation
New fund set up
Approval workflows
Partner and Activity – add, deletes, changes
Email alerts
Program Management
Available follow-the-sun support
Partner Support
Program Administration
Claim administration
Payments
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
CCI Clients
How did your program perform this year?
Part 1: Auditing Your Program
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
2012 Program Audit Program Performance • What were program results? Change from baseline? • What was program ROI? • Activity levels? Utilization levels? • Program operations and support?
Objectives /Elements / Metrics Capture • Were objective(s) clearly defined? • Were they the right objectives? • Were they carried through your guidelines? • Were metrics relating to objectives captured?
Program Communication • Were program goals agreed to/signed off by key
internal stakeholders? • Were they communicated to all stakeholders? • What was ongoing program communication?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Metrics to Gather & Review Measurement Metric
Program ROI • Gross profit from program/cost of program • Total # of qualified leads generated/cost of program • Revenue or new clients per campaign or plan/cost of plan or campaign
Marketing Mix • Dollars spent by marketing activity • Dollars spent on “higher value” vs. “lower value” activities
Program Utilization • # of active partners/total # of partners • # of users accessing program/tool
Fund Utilization • Funds accrued • Funds expired • Funds outstanding (pending payment) • Funds unclaimed
Prior Approval Activity • Total PAs submitted • Total PAs accepted/denied • Total Pas on hold
Claim Activity • Total claims submitted • Total claims denied • Total claims on hold
Program Support • Total calls/emails to support desk • Response time to calls/emails • Time from claim approval to pay out
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Qualitative Metrics – User Survey (Partners & Internal)
On a scale of 1-5, how helpful is MDF is driving demand?
Are you getting the level of reporting
you need?
How does MDF help you engage with partners?
What are the activities you find
most valuable?
How would you rate the program on ‘ease of use’?
On a scale of 1-5, how would you rate approval
process on claim?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
2013 Objectives and Strategy
Program Objectives
Sales strategy
Marketing Strategy
Channel Strategy
1. Review in context of corporate goals/strategy
2. How will your program contribute? How can the dollars available best be utilized?
3. Does it align with partner GTM? Customer buying process?
4. Adjust (if necessary) and write in SMART format
S p e c i f i c M e a s u r a b l e A t t a i n a b l e R e l e v a n t T i m e - b o u n d
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Variety of Program Objectives
• Increase sales overall or of specific products/solutions
• Promote up-sell or cross-sell of new products to existing customers
• Recruit new channel partners with special “jump start” allowances
• Focus spending behind specific initiatives, media, or events
• Help introduce products/solutions to new target segments
• Focus on target industries or geographic markets
• Win channel mindshare and share of voice vs. competition
• Improve channel “readiness” by enabling training, certification, and other knowledge-building activities
Tip: A narrower focus is often better as moneys are more targeted and a key set of metrics can be focused on.
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Targeted Program Objectives
To…
Then…
Increase Overall
Solution Sales
“The 2013 Joint Marketing Program will provide funding to partners for field marketing campaigns that will drive the launch of our Synergy Solutions product line with the goal of $1,000,000M in sales.”
“The 2013 Joint Marketing Program will provide funding to Gold and Silver Partners for field marketing campaigns that will drive the launch of our Synergy Solutions product line to the into health care vertical with the goal of $800,000M in channel sales and 2% market share.”
Are my objectives translated to my program structure?
What are trends are impacting joint marketing programs?
Part 2: Optimizing Your Program
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility • Which channel partners will be offered the program?
• Will they all be offered the same program?
Robinson-Patman Guidelines:
“Competing channel partners must be offered similar programs on a proportionately equal basis”
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Channel Evolution and Mix
Direct Corporate reseller
Distributor
VAR Retailer
ISVs
Consultants
System Integrators
Direct Marketers
MSPs
Hosting/ Infrastructure
OEM
Solution Providers
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Eligibility Examples
B2B Mobile Solutions Provider • Co-op program for distribution partners • MDF program for all other authorized channel partners Design Software Company • MDF program for certified partners only • Top tier (over x dollar) is given specific MDF budget annually based on
sales volume Printing Equipment & Managed Services Company • Low accrual Co-op program for ‘volume’ partners • Targeted MDF Program for ‘value’ partners that support higher-end
solutions
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period • Annual or quarterly are
most common
• Should align with sales cycle and product/solution seasonality
• Do you need a lesser or greater degree of control?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Product Seasonality vs. Program Period
Sales Marketing Activities
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned • Discretionary or earned
accruals? Combination? • Past sales performance
or anticipated future performance?
• Do the funds roll off or expire at once?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Baseline Definitions
Co-op Programs • Marketing allowances are accrued as a percentage of past sales • Guidelines are well defined, with comprehensive proof-of-performance
requirements • May require minimal pre-approval requirements fostering ease-of-use • Lend themselves to expense accounting
MDF Programs • Discretionary funds, not ‘owned’ by partners • The available funds are often not announced in advance, but are negotiated
to achieve specific goals • Often require less complete proof-of-performance documentation than
traditional Co-op programs, and pre-approval is required • Lend themselves to contra-revenue accounting
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Pros & Cons
Advantages of Co-op • Better advanced planning as partners • Typically easier to get internal funding/buy-in • Can be perceived as a better incentive/benefit • Great for more mature markets
Advantages of MDF
• Greater flexibility, no direct link to ‘sell thru’ by a partner • Flexibility in funding commitments YoY or QoQ • Great for more dynamic markets
Best of both worlds?
Hybrid Model with both Co-op and MDF
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned 4. Products/Solutions
promoted • Will the accrual or
reimbursement level vary with specific products?
• Will program target all products/solutions or a subset?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Multi-Vendor Solutions Becoming More Common
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned 4. Products/Solutions
promoted 5. Eligible activities
• How will the allowed activities support your go-to-market strategies?
• How will they support your partners’ go-to-market strategies?
• What behaviors will you want to ‘reward’?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
The ‘Consumerized’ B2B Buyer
Today’s B2B Buyer • Lengthening ‘getting to know you’ period (marketing) • Shortening ‘making a decision’ period (sales) • Looking for ‘continuum’ vs. ‘episodic’ relationship
Impact on B2B Marketing Tactics • Marketer’s key role now is to help buyer get smarter • Content is King, but Context trumps King MDF/Co-op Activities to Focus on • Activities are those that support delivery of ‘thought leadership’ • Key are the vehicles that best support delivery of ‘thought leadership’
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
B2B Marketing Trends
Most popular B2B marketing tactics in 2012 (by usage): • Article Posting (79%) • Social Media (74%) • Blogs (65%) • eNewsletters (63%) • Case Studies (58%)
Most effective B2B marketing tactics in 2012: • In-Person Events (78%) • Webinars/Webcasts (70%) • Case Studies (70%) • Videos (61%) • eNewsletters (60%) • White Papers (60%)
Source: Marketing Profs, Content Marketing Institute
• In-Person Events (56%) • Videos (52%) • White Papers (51%) • Webinars/Webcasts (46%)
• Blogs (58%) • Microsites (56%) • Articles (51%) • Social Media (50%)
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
B2B Marketing Trends
Social media is still considered the most effective of the top tactics:
• 50% of respondents think it was effective in 2012 • In fact, 61% more marketers perceive social media as being effective in
2012 than last year
86% of decision makers use social media for business purposes.
The largest challenge of B2B marketers in “producing the kind of content that engages prospects and customers.” • 60% of respondents indicate they plan to increase their content
marketing budgets over the next 12 months
Source: Forrester, Marketing Profs, Content Marketing Institute
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned 4. Products/Solutions promoted 5. Eligible activities 6. Reimbursement %
• To what extent do you want to reward certain behaviors? Or discourage others?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Tactical vs. Strategic Metrics
• Direct Mail • Email • Advertising
• Responders • Leads
• Customer Event • Telemarketing
• Attendees • Appointments
• Demo/ Eval. Unit
• Units Placed • Proposals • Opportunities created
• SPIF/ Sales Incentive
• Units sold • Sales value • Opportunities closed
Activities: Metrics:
Awareness Interest Desire (Trans-) Action
Tactical Metrics (Contribute to Business Drivers)
Strategic Metrics (Business Drivers)
EXAMPLES: EXAMPLES:
• Number of responders • Number of leads • Event attendees • Number of proposals • Number of demos given/units place
• Number of new clients • Sales Value • Sales Units • Reference Accounts
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Standardize Your Tactical Metrics METRICS BY ACTIVITY TYPE
Impressions
Responders
Qualified
Leads
Attendees
Sales Presentation # of U
nits Placed
Proposals/ O
pportunitie
Advertising: Print/ Broadcast
Advertising Online
Direct Mail
Demo Equipment
Marketing Collateral
Newsletters
Seminar Events
Telemarketing
Tradeshows
Training
Webcasts
Quick Win: Standardizing data format (and compliance) key to insights on ROI at activity, business and program levels.
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned 4. Products/Solutions promoted 5. Eligible activities 6. Reimbursement % 7. POP/Creative
Requirements
• Brand adherence requirements for funding?
• Will you provide execution tools? Or, provide special incentives for use of your tools?
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Marketing Portals
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Program Structure: Key Variables
1. Program eligibility 2. Program period 3. How funds are earned 4. Products promoted 5. Eligible activities 6. Reimbursement % 7. Creative requirements 8. Reimbursement
method
• How will you reimburse efforts? Cash? Credit? 3rd party payment redirect?
• Should the method be consistent across all partner segments?
Part 3: Let’s Put It All Together
An Example
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Example of Objectives to Variables
PROGRAM IMPACT • Program available to established,
certified and trained partners • Funds run annual • Funds are accrued based on past sales
volume, additional discretionary fund for service only partners
• Only enterprise products eligible • higher reimbursement %’s on funded
headcount, and education oriented activities (for partner)
• Brand & competitor displacement activities have higher reimbursement in some markets
VERITECH INC. Corporate Strategy (Sales/Mrkt/Channel)
• Focused on cross-sale, up-sale in existing accounts
• Direct sales and small value add, solution-oriented channel
Channel GTM • Complementary products, selling network
implementation, service contracts Customer Buying • Expertise, reliability, uptime & fast service
for issues of key importance Environment • Regulations differ greatly region to region • Brand vs. competition recognition differs
greatly
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Example of Metrics Alignment
VERITECH INC. Program Goal • Increase product up sales in existing
accounts Business Outcome • Develop opportunities by promoting
benefits of newest product to accounts with old legacy product
Tactical Activities • Email and direct mail campaigns • Educational webinars • Regional 1-day seminars
METRICS HIERARCHY Program Metrics
• % increase in accounts moved from legacy to new product
• Pipeline conversion % • Gross Margin of opp. won
Business Metrics • # of new opportunities created • # of proposal delivered to
existing accounts for new proposal
Tactical Metrics • # of impressions • # of attendees • # of leads • # of demos
Common Execution Errors and Quick Tips
Part 4: Wrap Up for 2013
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Execute for Success
Common Execution Errors Remedy
Low utilization rates • Survey partners to better understand your program alignment with their go-to-market strategy
Poor program understanding • Assure adequate training is in place to ensure uniform understanding of program benefits and administration
Poor alignment with partner needs • Consider joint planning with larger partners through high-touch Channel Account Managers
Program perceived as too vague or complex • Clear, concise guidelines for program participation • Simplified administration through automated processes
No clear benefit to the program, no clear ROI • Objectives not properly identified • Metrics not universally implemented or available
Payments take too long • Cash flow is the largest concern for most businesses today. Most programs are pre-funded by channel partners, reimbursement should be prompt – less than 30 days from claim approval
Poor or delayed follow-through on special requests • Program administration should follow-up within 48 hours for all special requests
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Wrap Up for 2013 1. Audit your current program
• Identify results, opportunities, changes needed • Establish your 2013 objectives • Align your objectives to corporate strategy, partner GTM, customer buying • Be specific and measurable – use the SMART format
Quick Win:
• Review program objectives in relation to corporate objectives annually
• Update SMART format
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Wrap Up for 2013 1. Audit your Current Program 2. Optimize your program
Drive your objectives through the 8 variables • Program Eligibility • Program Period • How funds are earned • Products Promoted • Eligible Activities • Reimbursement % • Creative Requirements • Reimbursement Method
Quick Win:
• Reduce reimbursement % (or eliminate) on low-value activities
• Look to leverage marketing automation platforms & nurture marketing tools
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Wrap Up for 2013 1. Audit your current program 2. Optimize your program 3. Evaluate the impact of key trends
• Evolving channel ecosystems • ‘Consumerized’ B2B buyer • Changes in B2B marketing
Quick Win:
• Make funding available to ‘non traditional’ partners that do not resell for you
• Add thought leadership-oriented activities to your eligible list
www.channelmanagement.com [email protected]
7250 Redwood Blvd. Suite 214 Novato, CA 94945 Phone 415.427.5100
Wrap Up for 2013 1. Audit your current program 2. Optimize your program 3. Evaluate impact of key trends 4. Gather multi-level metrics
• Tactical goals = results of individual marketing activity • Business goals = business or campaign outcomes • Program goals = overall attainment of program objectives
Quick Win:
Determine now what data points you need to gather to do a better audit prior to 2014
Thank you!
Steven Kellam Vice President, Sales and Marketing CCI: Channel Management Solutions
[email protected] channelmanagement.com