Increasing the effectiveness and efficiency of your channel investments<br />Prepared by:<br />Tony White, Bill Kelly and ...
The other side of possible<br />What if.........<br /><ul><li>You had to double the benefit generated from your MDF / Coop...
You had to prove it with evidence...AND
Make this a positive message to my partners?</li></ul>This was the challenge we were given by a client in 2009<br /> Page ...
Your Program Framework<br /> Page 3   |   <br />All Rights Reserved  © Birch Worldwide 2011<br />
Common concerns<br />We have to work with:<br /><ul><li>Shrinking budgets
Partners with little marketing resource
Multiple stakeholders with differing objectives
Quarterly focus driving priorities
ROI measurement
Time available
Ease of doing business concerns
Entitlement vs. discretionary fund structures
Poor fund churn rate
Fund expiry</li></ul> Page 4   |   <br />All Rights Reserved  © Birch Worldwide 2011<br />
Introducing the Zee© Principle<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 5   |   <br />With the correct ...
Terminology<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 6   |   <br />
3 Themes<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 7   |   <br />20% of Partners will adopt required beh...
Introducing the Zee© Principle<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 8   |   <br />With the correct ...
Supporting evidence<br />All Rights Reserved  © Birch Worldwide 2011<br />9<br />20% of Partners will adopt required behav...
What if?<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 10   |   <br />Current Channel Model<br />Channel sha...
4 Available Funding Models<br />11<br />All Rights Reserved  © Birch Worldwide 2011<br />
The Partner Marketing Matrix<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 12   |   <br />Brand Adoption<br ...
Introducing the Zee© Principle<br />All Rights Reserved  © Birch Worldwide 2011<br /> Page 13   |   <br />With the correct...
Activities need definition<br /><ul><li>Differentiating activities by probable outcome
Increasing funding for reduced risk by provision of content and resources
Improved returns by negotiating rate cards and accredited agencies
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Escape the shackles of ROI: Measure Channel Effectiveness

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Increasing the effectiveness and efficiency of your channel investments

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Escape the shackles of ROI: Measure Channel Effectiveness

  1. 1. Increasing the effectiveness and efficiency of your channel investments<br />Prepared by:<br />Tony White, Bill Kelly and Dave Griffiths<br />7/8/11<br />
  2. 2. The other side of possible<br />What if.........<br /><ul><li>You had to double the benefit generated from your MDF / Coop or rebate programs and your budget was reduced by 20%....AND
  3. 3. You had to prove it with evidence...AND
  4. 4. Make this a positive message to my partners?</li></ul>This was the challenge we were given by a client in 2009<br /> Page 2 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  5. 5. Your Program Framework<br /> Page 3 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  6. 6. Common concerns<br />We have to work with:<br /><ul><li>Shrinking budgets
  7. 7. Partners with little marketing resource
  8. 8. Multiple stakeholders with differing objectives
  9. 9. Quarterly focus driving priorities
  10. 10. ROI measurement
  11. 11. Time available
  12. 12. Ease of doing business concerns
  13. 13. Entitlement vs. discretionary fund structures
  14. 14. Poor fund churn rate
  15. 15. Fund expiry</li></ul> Page 4 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  16. 16. Introducing the Zee© Principle<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 5 | <br />With the correct measures ...... <br />We can show business improvement<br />With the right partners...... We generate our desired outcomes<br />Executing <br />them to the<br /> right level of <br />quality......<br />To get the right results<br />If we choose the right behaviours....... <br />Making it is easy to adopt<br />
  17. 17. Terminology<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 6 | <br />
  18. 18. 3 Themes<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 7 | <br />20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours.<br />Successful brands convert as much of the 60% as possible<br />Accept<br />20%<br />Undecided<br />60%<br />Reject<br />20%<br />The return on an investment is the result of three factors working together. Choosing the right behaviour, the most effective activities and an efficient process of production<br />Behaviour + Effectiveness + Efficiency = Maximised Return on Investment<br />Managing channel investments is a continual process. Budgets may vary but the results of investment can be continually improved through feedback, reflections and iterations of the cycle.<br />
  19. 19. Introducing the Zee© Principle<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 8 | <br />With the correct measures ...... <br />We can show business improvement<br />With the right partners...... We generate our desired outcomes<br />Executing <br />them to the<br /> right level of <br />quality......<br />To get the right results<br />If we choose the right behaviours....... <br />Making it is easy to adopt<br />
  20. 20. Supporting evidence<br />All Rights Reserved © Birch Worldwide 2011<br />9<br />20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours.<br />Successful brands convert as much of the 60% as possible<br />Accept<br />20%<br />Undecided<br />60%<br />Reject<br />20%<br />
  21. 21. What if?<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 10 | <br />Current Channel Model<br />Channel shape and delivery performance through channel engagement aligned to control<br />Would diversion of funding<br /> generate more revenue?<br />Red<br />18 Partners<br />160m Revenue<br />9m Benefits<br />Green<br />90+ Partners<br />160m Revenue<br />2m Benefits<br />If $2m benefits to green partners were doubled would revenue follow (i.e.: double)?<br />Revenue<br />Blue<br />900 Partners<br />80m Revenue<br />0m Benefits<br />Reseller Type<br />
  22. 22. 4 Available Funding Models<br />11<br />All Rights Reserved © Birch Worldwide 2011<br />
  23. 23. The Partner Marketing Matrix<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 12 | <br />Brand Adoption<br />Marketing Capability<br />
  24. 24. Introducing the Zee© Principle<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 13 | <br />With the correct measures ...... <br />We can show business improvement<br />With the right partners...... We generate our desired outcomes<br />Executing <br />them to the<br /> right level of <br />quality......<br />To get the right results<br />If we choose the right behaviours....... <br />Making it is easy to adopt<br />
  25. 25. Activities need definition<br /><ul><li>Differentiating activities by probable outcome
  26. 26. Increasing funding for reduced risk by provision of content and resources
  27. 27. Improved returns by negotiating rate cards and accredited agencies
  28. 28. Identifying and controlling reusable elements
  29. 29. Simplification and increased ease of use (reduced POP etc)
  30. 30. Improved returns on investment
  31. 31. Improved accountability
  32. 32. Improved rate of execution
  33. 33. Ability to provide partners with higher funding</li></ul> Page 14 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  34. 34. Cost drivers in marketing activity<br /><ul><li>Where do opportunities for efficiency exist?
  35. 35. What are the cost drivers in your marketing activity?
  36. 36. Economies of scale enable reduction of production costs (approved suppliers)
  37. 37. Economies of scope enable consistency and brand alignment (multiple capabilities)
  38. 38. Dedicated costs (costs that only occur for one activity) can be subject to rate carding
  39. 39. Reusable costs (i.e. brand creative) can be centralised and reused</li></ul>15<br />
  40. 40. Consider Accredited Agencies<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 16 | <br />Available Activities<br />Reusable Costs<br />Benefits<br /><ul><li>Conference and road shows
  41. 41. Training meetings
  42. 42. Teambuilding
  43. 43. Association meetings
  44. 44. Sales incentives
  45. 45. Customer loyalty
  46. 46. Training incentives
  47. 47. “Campaigns in a Box"
  48. 48. Product launches
  49. 49. Customer satisfaction marketing
  50. 50. Email campaigns
  51. 51. Webinars
  52. 52. Venue negotiations
  53. 53. Theme design
  54. 54. Invitations to drive attendance
  55. 55. Registration services
  56. 56. Confirmations and reminders
  57. 57. Payment processing
  58. 58. Meeting room rental and setup
  59. 59. On-site operations
  60. 60. Transportation management
  61. 61. Meeting kits and fulfillment
  62. 62. Less time with greater impact
  63. 63. Measurement and reporting
  64. 64. Diagnose key performance drivers
  65. 65. Provide web-based participant tracking
  66. 66. Best-practice insights
  67. 67. Budget forecasting </li></li></ul><li>Introducing the Zee© Principle<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 17 | <br />With the correct measures ...... <br />We can show business improvement<br />With the right partners...... We generate our desired outcomes<br />Executing <br />them to the<br /> right level of <br />quality......<br />To get the right results<br />If we choose the right behaviours....... <br />Making it is easy to adopt<br />
  68. 68. ROI<br />ROI indicators are excellent however<br /><ul><li>ROI takes time to mature on most activities
  69. 69. ROI indicators give feel not measurement
  70. 70. Collection of ROI can be difficult
  71. 71. The ultimate ROI (Revenue) comes from many activities
  72. 72. “Cost of Brand” is a real investment and should be recognised
  73. 73. How real is the evidence we currently use
  74. 74. There are other measurements that give insight into effectiveness.......</li></ul> Page 18 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  75. 75. Coverage Plans<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 19 | <br />
  76. 76. Coverage Plans<br />All Rights Reserved © Birch Worldwide 2011<br /> Page 20 | <br />
  77. 77. Coverage Plans – an illustration<br /> Page 21 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  78. 78. Selecting the right investments<br /><ul><li>Criteria for investments change over time
  79. 79. Alignment criteria include product, corporate goals and activity mix
  80. 80. Return on Investment honesty should be rewarded
  81. 81. Coverage to your market needs should be integrated into the funding process
  82. 82. Maximize returns through lower risk and pre-formatted activities
  83. 83. Remember that partners change, find today's seedling, spreading funding
  84. 84. Mop up low level funding and cash flow limits</li></ul> Page 22 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  85. 85. Feedback Loop<br /><ul><li>Provision of feedback to both account management and partners drives continual growth of returns
  86. 86. ROI statements provide partners with a view of the benefits of conducting activities
  87. 87. The same data should be used as an account management tool and at authorization of funding
  88. 88. Funding should track return value and performance
  89. 89. Partner feedback on ease of doing business is invaluable</li></ul> Page 23 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  90. 90. The outcome<br /><ul><li>We pooled the clients funds to increase availability to partners
  91. 91. We introduced a quarterly planning cycle aligned to an auction of funding
  92. 92. We negotiated rate cards with a few accredited suppliers
  93. 93. We simplified the process paying agencies directly
  94. 94. We reduced the need for POP
  95. 95. Increased funding percentage for using accredited suppliers</li></ul> Page 24 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  96. 96. The benefits<br /><ul><li>More evenly spread activity profile
  97. 97. Increased partner uptake (35%)
  98. 98. Reduction in expired funds (72%)
  99. 99. Direct agency payment eliminated cash flow issues for partners
  100. 100. Activity unit costs reduced
  101. 101. Number of activities increased (17%)
  102. 102. Positive partner feedback
  103. 103. Allowed our client to align activity to corporate objectives</li></ul> Page 25 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  104. 104. Key Takeaways<br />Gather evidence supporting investment quality (churn rate, expired activities, activity profile, participation)<br />Examine your funding model, use the right model for each segment of your business<br />Review the cost drivers in your activity portfolio<br />Review the effectiveness of your joint marketing plans with partners<br />Identify methods to redistribute your funds to avoid expiry<br />Implement a feedback loop to partners and account management to recycle good ideas and best practice<br />Measure the intangibles (coverage by geo, time, product) <br />Focus on making it easy for partners to deliver activities<br /> Page 26 | <br />All Rights Reserved © Birch Worldwide 2011<br />
  105. 105. All Rights Reserved © Birch Worldwide 2007<br /> Page 27 | <br />Join our group on LinkedIn by Searching on BirchWorldwide<br />Asia Pacific Office:<br />78C Duxton Road<br />Singapore 089537<br />Singapore<br />Phone: +65 62 23 76 04<br />North America Office:<br />765 Baywood Drive, Suite 237<br />Petaluma, <br />CA 94954<br />United States<br />Phone: +1 707 790 8400<br />European Office:<br />Unit 16, Ilex,Mulberry Business Park,Fishponds Road,<br />Wokingham,<br />Berkshire, <br />United Kingdom, RG41 2GY<br />Phone: +44 1189 121200<br />

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