Increasing Channel Investment Effectiveness

1. Increasing the effectiveness and efficiency of your channel investments Prepared by: Tony White, Bill Kelly and Dave Griffiths 7/8/11

3. You had to prove it with evidence...AND

7. Partners with little marketing resource

8. Multiple stakeholders with differing objectives

9. Quarterly focus driving priorities

10. ROI measurement

11. Time available

12. Ease of doing business concerns

13. Entitlement vs. discretionary fund structures

14. Poor fund churn rate

16. Introducing the Zee© Principle All Rights Reserved © Birch Worldwide 2011 Page 5 | With the correct measures ...... We can show business improvement With the right partners...... We generate our desired outcomes Executing them to the right level of quality...... To get the right results If we choose the right behaviours....... Making it is easy to adopt

18. 3 Themes All Rights Reserved © Birch Worldwide 2011 Page 7 | 20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours. Successful brands convert as much of the 60% as possible Accept 20% Undecided 60% Reject 20% 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 Behaviour + Effectiveness + Efficiency = Maximised Return on Investment 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.

20. Supporting evidence All Rights Reserved © Birch Worldwide 2011 9 20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours. Successful brands convert as much of the 60% as possible Accept 20% Undecided 60% Reject 20%

21. What if? All Rights Reserved © Birch Worldwide 2011 Page 10 | Current Channel Model Channel shape and delivery performance through channel engagement aligned to control Would diversion of funding generate more revenue? Red 18 Partners 160m Revenue 9m Benefits Green 90+ Partners 160m Revenue 2m Benefits If $2m benefits to green partners were doubled would revenue follow (i.e.: double)? Revenue Blue 900 Partners 80m Revenue 0m Benefits Reseller Type

26. Increasing funding for reduced risk by provision of content and resources

27. Improved returns by negotiating rate cards and accredited agencies

28. Identifying and controlling reusable elements

29. Simplification and increased ease of use (reduced POP etc)

30. Improved returns on investment

31. Improved accountability

32. Improved rate of execution

35. What are the cost drivers in your marketing activity?

36. Economies of scale enable reduction of production costs (approved suppliers)

37. Economies of scope enable consistency and brand alignment (multiple capabilities)

38. Dedicated costs (costs that only occur for one activity) can be subject to rate carding

39. Reusable costs (i.e. brand creative) can be centralised and reused15

41. Training meetings

42. Teambuilding

43. Association meetings

44. Sales incentives

45. Customer loyalty

46. Training incentives

47. “Campaigns in a Box"

48. Product launches

49. Customer satisfaction marketing

50. Email campaigns

51. Webinars

52. Venue negotiations

53. Theme design

54. Invitations to drive attendance

55. Registration services

56. Confirmations and reminders

57. Payment processing

58. Meeting room rental and setup

59. On-site operations

60. Transportation management

61. Meeting kits and fulfillment

62. Less time with greater impact

63. Measurement and reporting

64. Diagnose key performance drivers

65. Provide web-based participant tracking

66. Best-practice insights

69. ROI indicators give feel not measurement

70. Collection of ROI can be difficult

71. The ultimate ROI (Revenue) comes from many activities

72. “Cost of Brand” is a real investment and should be recognised

73. How real is the evidence we currently use

79. Alignment criteria include product, corporate goals and activity mix

80. Return on Investment honesty should be rewarded

81. Coverage to your market needs should be integrated into the funding process

82. Maximize returns through lower risk and pre-formatted activities

83. Remember that partners change, find today's seedling, spreading funding

86. ROI statements provide partners with a view of the benefits of conducting activities

87. The same data should be used as an account management tool and at authorization of funding

88. Funding should track return value and performance

91. We introduced a quarterly planning cycle aligned to an auction of funding

92. We negotiated rate cards with a few accredited suppliers

93. We simplified the process paying agencies directly

94. We reduced the need for POP

97. Increased partner uptake (35%)

98. Reduction in expired funds (72%)

99. Direct agency payment eliminated cash flow issues for partners

100. Activity unit costs reduced

101. Number of activities increased (17%)

102. Positive partner feedback

104. Key Takeaways Gather evidence supporting investment quality (churn rate, expired activities, activity profile, participation) Examine your funding model, use the right model for each segment of your business Review the cost drivers in your activity portfolio Review the effectiveness of your joint marketing plans with partners Identify methods to redistribute your funds to avoid expiry Implement a feedback loop to partners and account management to recycle good ideas and best practice Measure the intangibles (coverage by geo, time, product) Focus on making it easy for partners to deliver activities Page 26 | All Rights Reserved © Birch Worldwide 2011

105. All Rights Reserved © Birch Worldwide 2007 Page 27 | Join our group on LinkedIn by Searching on BirchWorldwide Asia Pacific Office: 78C Duxton Road Singapore 089537 Singapore Phone: +65 62 23 76 04 North America Office: 765 Baywood Drive, Suite 237 Petaluma, CA 94954 United States Phone: +1 707 790 8400 European Office: Unit 16, Ilex,Mulberry Business Park,Fishponds Road, Wokingham, Berkshire, United Kingdom, RG41 2GY Phone: +44 1189 121200

Increasing Channel Investment Effectiveness

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