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Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
Refresh Your MDF/Co-op Program for 2013
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Refresh Your MDF/Co-op Program for 2013

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  • 1. Refresh Your MDF/Co-op Program for 2013 February 6, 2013 Steven Kellam, VP Sales and Marketing
  • 2. AgendaI. Auditing Your Program • Reviewing 2012 • Setting objectives for 2013II. Optimizing Your Program • Alignment through the 8 variables • Trends influencing MDF/Co-opIII. Putting It Together • An exampleIV. Wrap Up • Common execution errors & quick tips 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 3. About CCI:Why We Understand MDF/Co-op
  • 4. CCI Provides Incentive Solutions to: Optimize Measure Manage Motivate Your Channel 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 5. Best Practice Channel Programs and Processes that intelligently engage Partners, ensure ROI and provide Competitive Advantage
  • 6. Comprehensive Solution Set Distributor Reseller Sales Reps ConsumerCo-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    7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 7. Complete Incentive Solutions Professional Services Highly Configurable Program Management At Every Step SaaS Application Program Design  ROI Metrics  Available follow-the-sun support Program Development  Multi-currency/lingual  Partner Support  Fund allocation Program Evolution  Program Administration  New fund set up  Claim administration  Approval workflows  Payments  Partner and Activity – add, deletes, changes  Email alerts 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 8. CCI Clients7250 Redwood Blvd. Suite 214 www.channelmanagement.comNovato, CA 94945 info@channelmanagement.comPhone 415.427.5100
  • 9. Part 1: Auditing Your ProgramHow did your program perform this year?
  • 10. 2012 Program AuditProgram 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? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 11. Program Metrics to Gather & ReviewMeasurement Metric • Gross profit from program/cost of programProgram ROI • Total # of qualified leads generated/cost of program • Revenue or new clients per campaign or plan/cost of plan or campaign • Dollars spent by marketing activityMarketing Mix • Dollars spent on “higher value” vs. “lower value” activities • # of active partners/total # of partnersProgram Utilization • # of users accessing program/tool • Funds accrued • Funds expiredFund Utilization • Funds outstanding (pending payment) • Funds unclaimed • Total PAs submittedPrior Approval Activity • Total PAs accepted/denied • Total Pas on hold • Total claims submittedClaim Activity • Total claims denied • Total claims on hold • Total calls/emails to support deskProgram Support • Response time to calls/emails • Time from claim approval to pay out 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 12. Qualitative Metrics – User Survey (Partners & Internal) On a scale of 1-5, how helpful is MDF What are the is driving demand? activities you find most valuable?Are you getting the On a scale of 1-5, level of reporting how would you you need? rate approval process on claim? How does MDF How would you help you engage rate the program with partners? on ‘ease of use’? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 13. 2013 Objectives and Strategy Marketing Strategy Sales Channel strategy Strategy1. Review in context of corporate2. goals/strategy How will your program contribute? Program Specific How can the dollars available best be Objectives Measurable utilized? Attainable3. Does it align with partner GTM? Customer buying process? Relevant4. Adjust (if necessary) and write in Time-bound SMART format 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 14. 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 Tip: vs. competition A narrower focus is often• Improve channel “readiness” by enabling better as moneys are more training, certification, and other targeted and a key set of knowledge-building activities metrics can be focused on. 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 15. Targeted Program Objectives “The 2013 Joint Marketing Program willIncrease provide funding to partners for field marketing Overall campaigns that will drive the launch of ourSolution To… Synergy Solutions product line with the goal of Sales $1,000,000M in sales.” Then… “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.” 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 16. Part 2: Optimizing Your Program Are my objectives translated to my program structure?What are trends are impacting joint marketing programs?
  • 17. Program Structure: Key Variables1. 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” 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 18. Channel Evolution and Mix System Integrators Direct Corporate reseller Consultants Hosting/ DirectInfrastructure Marketers Distributor OEM ISVs MSPs Retailer Solution VAR Providers 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 19. Program Eligibility ExamplesB2B Mobile Solutions Provider• Co-op program for distribution partners• MDF program for all other authorized channel partnersDesign Software Company• MDF program for certified partners only• Top tier (over x dollar) is given specific MDF budget annually based on sales volumePrinting Equipment & Managed Services Company• Low accrual Co-op program for ‘volume’ partners• Targeted MDF Program for ‘value’ partners that support higher-end solutions 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 20. Program Structure: Key Variables1. Program eligibility2. 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? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 21. Product Seasonality vs. Program Period Sales Marketing Activities 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 22. Program Structure: Key Variables1. Program eligibility2. Program period3. 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? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 23. Baseline DefinitionsCo-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 accountingMDF 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 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 24. Pros & ConsAdvantages 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 marketsAdvantages of MDF • Greater flexibility, no direct link to ‘sell thru’ by a partner • Flexibility in funding commitments YoY or QoQ • Great for more dynamic marketsBest of both worlds? Hybrid Model with both Co-op and MDF 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 25. Program Structure: Key Variables1. Program eligibility2. Program period3. How funds are earned4. Products/Solutions • Will the accrual or promoted reimbursement level vary with specific products? • Will program target all products/solutions or a subset? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 26. Multi-Vendor Solutions Becoming More Common 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 27. Program Structure: Key Variables1. Program eligibility2. Program period3. How funds are earned • How will the allowed activities4. Products/Solutions support your go-to-market promoted strategies?5. Eligible activities • How will they support your partners’ go-to-market strategies? • What behaviors will you want to ‘reward’? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 28. The ‘Consumerized’ B2B BuyerToday’s B2B Buyer• Lengthening ‘getting to know you’ period (marketing)• Shortening ‘making a decision’ period (sales)• Looking for ‘continuum’ vs. ‘episodic’ relationshipImpact on B2B Marketing Tactics• Marketer’s key role now is to help buyer get smarter• Content is King, but Context trumps KingMDF/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’ 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 29. B2B Marketing TrendsMost popular B2B marketing tactics in 2012 (by usage):• Article Posting (79%) • In-Person Events (56%)• Social Media (74%) • Videos (52%)• Blogs (65%) • White Papers (51%)• eNewsletters (63%) • Webinars/Webcasts (46%)• Case Studies (58%)Most effective B2B marketing tactics in 2012:• In-Person Events (78%) • Blogs (58%)• Webinars/Webcasts (70%) • Microsites (56%)• Case Studies (70%) • Articles (51%)• Videos (61%) • Social Media (50%)• eNewsletters (60%)• White Papers (60%) Source: Marketing Profs, Content Marketing Institute 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 30. B2B Marketing TrendsSocial 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 year86% of decision makers use social media for business purposes.The largest challenge of B2B marketers in “producing the kind of contentthat 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 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 31. Program Structure: Key Variables1. Program eligibility2. Program period3. How funds are earned4. Products/Solutions promoted5. Eligible activities6. Reimbursement % • To what extent do you want to reward certain behaviors? Or discourage others? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 32. Tactical vs. Strategic Metrics Tactical Metrics Strategic Metrics (Contribute to Business Drivers) (Business Drivers) EXAMPLES: EXAMPLES: • Number of responders • Number of new clients • Number of leads • Sales Value • Event attendees • Sales Units • Number of proposals • Reference Accounts • Number of demos given/units place (Trans-) Awareness Interest Desire ActionActivities: • Direct Mail • Customer Event • Demo/ Eval. Unit • SPIF/ Sales Incentive • Email • Telemarketing • AdvertisingMetrics: • Responders • Attendees • Units Placed • Units sold • Leads • Appointments • Proposals • Sales value • Opportunities created • Opportunities closed 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 33. Standardize Your Tactical MetricsMETRICS BY ACTIVITY TYPE Impressions Responders Leads Qualified Attendees Presentation Sales Placed # of Units Opportunitie Proposals/Advertising: Print/ Broadcast   Advertising Online   Direct Mail   Demo Equipment  Marketing Collateral   Quick Win: Standardizing data format (andNewsletters    compliance) key to insights onSeminar Events    ROI at activity, business andTelemarketing    program levels. Tradeshows  Training  Webcasts   7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 34. Program Structure: Key Variables1. Program eligibility2. Program period3. How funds are earned4. Products/Solutions promoted5. Eligible activities6. Reimbursement %7. POP/Creative • Brand adherence requirements for funding? Requirements • Will you provide execution tools? Or, provide special incentives for use of your tools? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 35. Marketing Portals7250 Redwood Blvd. Suite 214 www.channelmanagement.comNovato, CA 94945 info@channelmanagement.comPhone 415.427.5100
  • 36. Program Structure: Key Variables1. Program eligibility2. Program period3. How funds are earned4. Products promoted5. Eligible activities6. Reimbursement % • How will you reimburse7. Creative requirements efforts? Cash? Credit? 3rd8. Reimbursement party payment redirect? method • Should the method be consistent across all partner segments? 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 37. Part 3:Let’s Put It All Together An Example
  • 38. Example of Objectives to VariablesVERITECH INC. PROGRAM IMPACTCorporate Strategy (Sales/Mrkt/Channel) • Program available to established,• Focused on cross-sale, up-sale in existing accounts certified and trained partners• Direct sales and small value add, solution- • Funds run annual oriented channel • Funds are accrued based on past salesChannel GTM volume, additional discretionary fund• Complementary products, selling network for service only partners implementation, service contracts • Only enterprise products eligibleCustomer Buying • higher reimbursement %’s on funded• Expertise, reliability, uptime & fast service headcount, and education oriented for issues of key importance activities (for partner)Environment • Brand & competitor displacement• Regulations differ greatly region to region activities have higher reimbursement in• Brand vs. competition recognition differs greatly some markets 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 39. Example of Metrics AlignmentVERITECH INC. METRICS HIERARCHYProgram Goal Program Metrics• Increase product up sales in existing • % increase in accounts moved accounts from legacy to new productBusiness Outcome • Pipeline conversion %• Develop opportunities by promoting • Gross Margin of opp. won benefits of newest product to accounts Business Metrics with old legacy product • # of new opportunities createdTactical Activities • # of proposal delivered to• Email and direct mail campaigns existing accounts for new• Educational webinars proposal• Regional 1-day seminars Tactical Metrics • # of impressions • # of attendees • # of leads • # of demos 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 40. Part 4: Wrap Up for 2013Common Execution Errors and Quick Tips
  • 41. Execute for SuccessCommon Execution Errors RemedyLow utilization rates • Survey partners to better understand your program alignment with their go-to-market strategyPoor program understanding • Assure adequate training is in place to ensure uniform understanding of program benefits and administrationPoor alignment with partner needs • Consider joint planning with larger partners through high-touch Channel Account ManagersProgram perceived as too vague or complex • Clear, concise guidelines for program participation • Simplified administration through automated processesNo clear benefit to the program, no clear ROI • Objectives not properly identified • Metrics not universally implemented or availablePayments 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 approvalPoor or delayed follow-through on special requests • Program administration should follow-up within 48 hours for all special requests 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 42. Wrap Up for 20131. 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 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 43. Wrap Up for 20131. Audit your Current Program2. Optimize your program Drive your objectives through the 8 variables • Program Eligibility • Program Period • How funds are earned • Products Promoted • Eligible Activities Quick Win: • Reimbursement % • Creative Requirements • Reduce reimbursement % • Reimbursement Method (or eliminate) on low-value activities • Look to leverage marketing automation platforms & nurture marketing tools 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 44. Wrap Up for 20131. Audit your current program2. Optimize your program3. 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 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 45. Wrap Up for 20131. Audit your current program2. Optimize your program3. Evaluate impact of key trends4. 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 7250 Redwood Blvd. Suite 214 www.channelmanagement.com Novato, CA 94945 info@channelmanagement.com Phone 415.427.5100
  • 46. Thank you! Steven Kellam Vice President, Sales and Marketing CCI: Channel Management Solutionssteven.kellam@channelmanagement.com channelmanagement.com

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