Incentive Program Survey Results Webinar


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Incentive Program Survey Results Webinar

  1. 1. Channel Incentive Usage/Acceptance Study 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  2. 2. Survey Focus• Perceived effectiveness across a variety of program types – Including gap in vendor/partner perceptions• Gain deeper insight into MDF and Co-op practices – Overall – Inclusion of Social Media• Areas of focus for 2011 (incentive programs and more) – Pain Points – Key Initiatives
  3. 3. Incentive Programs Included• Co-op/MDF• Opportunity Management• SPIF/Loyalty Programs (targeting sales reps)• Partner Rebates (headquarter)• End User Rebates• Trade-In Programs
  4. 4. CCI provides solutions toManage, Measure, and Optimizechannel incentive programs for improved ROI
  5. 5. Incentive Solutions throughout the Demand Chain Distributor Reseller Sales Reps ConsumerCo-op/MDF 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, Referral Rewards and Special Pricing   
  6. 6. Software and Services Comprehensive application suite manages incentive activity across On Demand multiple programs Software Professional Industry expertise drives impactful program design and Services ongoing performance enhancements Program Program and partner support streamlines operations and expedites Management fulfillment
  7. 7. Current ClientsHardware Software Storage Telecom Entertainment Other
  8. 8. Methodology:• Quantitative, multiple choice questionnaire• 15,000 vendors/30,000 partners• Where possible, many questions were “mirror image” to compare perceptions between vendor/partner audiences• Focus on B2B Technology – Hardware – Software – Office Automation – Telecommunications (hardware and services)• Results are indicative of trends and attitudes
  9. 9. Responder Profile: Manufacturer/Vendor Responses• 65% Channel sales and marketing positions• Primary regional scope: ~50% North America and ~50% Global• Sell a majority (80%+) of their products through the channel
  10. 10. Responder Profile: Partner Responses• ~70% VARs – Remainder were managed services providers, direct marketers, ISVs• Annual sales were evenly represented between $1MM to more than $20MM
  11. 11. Program Usage 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  12. 12. Program Utilization: Manufacturer/Vendor Responses Co-op/MDF is the most commonly used program, with Channel Rebates and SPIFs coming in second and third respectively Co-op/MDF Reimbursement 77.2% Sales Rebates for Specified Sales 62.0% Targets SPIF and Loyalty Programs 48.9% Directed to Reseller Sales Reps SPIF Programs Funded by MDF 31.5% and Other Soft Dollars Opportunity Management 39.1% Rewards/Discounts Trade-In Programs Directed to End 30.4% Users or Channel Partners End User Rebates—Post Purchase 23.9%
  13. 13. Program Utilization: Manufacturer/Vendor ResponsesIn the context of all program types, incentive programs at large fall just behind Salesand Marketing Training in importance. Co-op/MDF 40.2% Opportunity Management Programs 44.8% Marketing Resource Center 11.5% Rebate and Incentive Programs 48.3% Sales & Marketing Training for partners 57.5% Lead management to channel partners 34.5% Joint Business Planning 39.1% Technical Training for Channel Partners 40.2%
  14. 14. Program Utilization: Manufacturer/Vendor ResponsesVendors seem to have a love or hate relationship with Co-op/MDF and OpportunityManagement, as they tie for second behind Marketing Resource center for LEASTeffective channel program Co-op/MDF 25.6% Opportunity Registration/Management 25.6% Programs Marketing Resource Center 43.0% Rebate and Incentive Programs 18.6% Sales and Marketing Training for Channel 12.8% Partners Lead Management to Channel Partners 23.3% Joint Marketing Planning/Joint Business 20.9% Planning Technical Training for Channel Partners 20.9%
  15. 15. Program Utilization: Partner ResponsesPartners feel that incentive programs are more important than Sales & Marketingtraining with Co-op/MDF, SPIF Programs, and Volume rebates leading. Co-op/MDF 50.1% Opportunity Management 14.4% Marketing Resource Center 14.1% Volume Rebates 40.7% Vendor-sponsored SPIF programs 49.1% Sales and Marketing Training 39.2% Receiving leads from vendors 40.5% Joint Marketing Planning/Joint Business 17.0% Planning Technical Training 32.1%
  16. 16. Program Utilization: Partner ResponsesOpportunity ManagementPrograms were rankedLEAST effective with JointMarketing Planning as thesecond least effectivevendor provided tools.Partners and Vendors alikedon’t feel that marketingresource centers areeffective.
  17. 17. Co-op /MDF Programs 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  18. 18. Co-op/MDF: Manufacturer/Vendor Responses Biz Dev efforts are Online Advertising (Google Pay-Per-Click orconsidered to be the similar) 11.3%most effective use of Application Development 10.0%funds—at the effectof traditional Public Relations 11.3%marketing programs Trade Show and Conference Attendance 37.5% Offset Staffing Costs for Sales or Technical 10.0% Specialist Website Development and Management 16.3% E-mail Expenses 11.3% Social Media 16.3% Customer Events 47.5%
  19. 19. Co-op/MDF: Partner ResponsesPreferred activitiesparallel that of vendors.Partners believe thatincentive programs andBiz Dev activities are thebest use of funds to helpbuild their business.
  20. 20. Co-op/MDF: Manufacturer/Vendor ResponsesTraditional Advertisingefforts are losing favoramong vendors.Print advertising ranks higherthan promotional give-awaysas the LEAST-effectivereimbursable activity.
  21. 21. Co-op/MDF: Partner ResponsesAgain, print based activityseems unpopular as doesall traditionalpromotional activity
  22. 22. Co-op/MDF: Partner ResponsesWhen it comes to what partners seek most in a co-op /MDF program, simplicity andexpediency are the most important characteristics Prompt approval/turnaround of 64.2% funding request Prompt reimbursement 55.4% Clear guidelines 34.6% Easy claim submittal 60.4% Reimbursement for lead generation 16.1% and marketing activities Offset business development expenses (such as training, staffing, 21.1% demo equipment) Predictable budgets 12.0% Easy access to available allowances 17.9% Claim and payment tracking 17.3%
  23. 23. Co-op/MDF: Partner Responses Partners feel that vendors need to streamline their programs Simplified guidelines and 51.5% administration Faster payment and 46.4% reimbursement More predictable allowances 23.1% Joint marketing planning for 26.0% optimal program usage Marketing assistance 26.0% Improve program support and 16.8% escalation processes Faster turnaround of funding 32.6% requests/prior approvals
  24. 24. Co-op/MDF: Manufacturer/Vendor ResponsesConversely, Vendors are more interested in improved analytics with a strong lead Improve analytics and ROI 60.8% Improve partner support 25.3% and issue resolution Improve marketing 31.6% support/program planning Revise guidelines to better 24.1% reflect company goals Faster payment process 12.7% Global standardization 11.4% Streamline administration 29.1% Integration with SFA/CRM 22.8% system
  25. 25. Social Media 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  26. 26. Social Media: Partner Responses Only 40% of partners surveyed use social media 60% “No” 40% “Yes”
  27. 27. Social Media: Partner ResponseOf those that use social media, LinkedIn andFacebook are the most popular.
  28. 28. Responder Profile: Partner Responses Only 12 % of Social Media programs are funded by partner Co-op/MDFprograms, in whole or part. 88% “No” 12% “Yes”
  29. 29. Responder Profile: Manufacturer/Vendor Responses60% of vendors respondingcurrently do not support 32%their partners for socialmedia in any form. Of thosethat do, most supply 31%content only.Only 8% of vendors 26%reimburse for social mediaactivity through co-op MDF. 8%
  30. 30. Looking Ahead 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  31. 31. Looking Ahead: Manufacturer/Vendor ResponsesMost respondents expecttheir channels to carry ahigher percentage of total 33%sales for 2011 66% 1%
  32. 32. Looking Ahead: Manufacturer/Vendor ResponsesCorrespondingly, vendorsexpect to recruit morepartners in the new year Increase 54% Reduce 23% Maintain 22%
  33. 33. Looking Ahead: Manufacturer/Vendor ResponsesExactly half the audienceexpects their channelbudget to grow 50% Grow 44% 6% Maintain Decrease
  34. 34. Looking Ahead: Manufacturer/Vendor ResponsesDespite an expectedgrowth in total channelsales and partner 44% Growpopulation, just under halfof the vendors expect togrow their channelmanagement teams 53% Maintain 3% Decrease
  35. 35. Looking Ahead: Manufacturer/Vendor ResponsesVendors are concernedabout their partners’ability to effectively selland market.The need for analytics andreduced complexity is alsowidespread
  36. 36. Looking Ahead: Manufacturer/Vendor Responses Analytics is the # 1 priorityfor vendors in the new year, followed by Sales and Marketing initiatives
  37. 37. Looking Ahead: Manufacturer/Vendor ResponsesVendors are increasing their focus on Channel Analytics and Lead Management, withSales & Marketing Training and Opportunity Management tied for 3rd No Program Increase Decrease Maintain Planned Focus Focus Co-op/MDF 10.0% (8) 61.3% (49) 27.5% (22) 1.3% (1) Opportunity Management 14.5% (12) 33.7% (28) 51.8% (43) 0.0% (0) Partner Analytics 14.6% (12) 25.6% (21) 59.8% (49) 0.0% (0) Partner Lead Management 9.6% (8) 37.3% (31) 53.0% (44) 0.0% (0) Marketing Resource Center 13.6% (11) 55.6% (45) 29.6% (24) 1.2% (1) Rebate and Incentive Programs 6.2% (5) 48.1% (39) 44.4% (36) 1.2% (1) Channel Sales and Marketing Training 2.4% (2) 45.8% (38) 51.8% (43) 0.0% (0) Partner Portal/PRM/Back Office 14.5% (12) 38.6% (32) 45.8% (38) 1.2% (1) Systems Partner Joint Marketing Planning 11.3% (9) 47.5% (38) 41.3% (33) 0.0% (0)
  38. 38. Looking Ahead: Partner ResponsesPartners are concernedabout their lack of Sales &Marketing capabilities.This is second, however totheir concern about theimpact of cloudcomputing and adaptingto a managed servicemodel.
  39. 39. Conclusions 7250 Redwood Blvd. Ste. 105 Novato, CA 94945 415.472.5100
  40. 40. AnalyticsThe Issue: Analytics is the #1 initiative expressed by Vendors• CCI has a library of ebooks and white papers available, as well as blog topics – –• ID KPIs by “Program” as well as by “Partner” – Benchmark what successful partners are doing – Index individual partner performance based on those benchmarks e.g.: 30% close ratio on deals registered within 60-days, or XX% utilization of MDF• Consolidate costs and metrics for all programs to evaluate total investment in any one partner (Scorecard)
  41. 41. Joint Marketing Planning (JMP)• The issue: – Partners’ don’t see the value. Vendors are beginning to embrace it.• The opportunity-- JMP is the best way to: – Forecast of sales and marketing activity, and – Help align resources and funding with partner goals• Tips and Trends: – Use JMP to simplify existing processes, e.g.: MDF funding allowance or claiming – Extending JMP to unmanaged partners to justify investment – Provide rewards to partners for updating plans to report on progress against goals – Capturing ROI information of all activities against business goals
  42. 42. Co-op/MDF• The Issue: – “Most utilized program” among vendors, most popular among partners. Yet, among “least effective” programs for vendors.• The Opportunity: – Review program guidelines, revise to align with GTM strategy – Incorporate metrics to help evaluate spending against GTM goals• Trends: – Simplify and streamline MDF program, e.g.: Reduce approval requirements and accelerate partner reimbursement (less than 30- days from claim)
  43. 43. Social Media• The Issue: – Partners’ are not yet embracing social media as marketing vehicle• The opportunity today – Still too early to formally include social media as a reimbursable activity• Trends – Provide partners with tools they can use to support social media efforts (white papers, YouTube video’s etc) – Share “how to” advice and best-practices with partners
  44. 44. Deal Registration• The Issue: – Partners and Vendors alike agree that Deal Registration programs are providing diminishing returns• The Opportunity: Has Deal Registration strayed from the initial promise? – Manage channel conflict – Convert “farmers” to “hunters” – Provide pipeline visibility• The Trend – Many vendors are reviewing/revising structure, streamlining administration
  45. 45. Questions/Discussion Craig DeWolf VP Strategic Development P: 415.526.3223 E: