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360insights' Webinar: 8 Essentials for a Successful MDF & Co-Op Marketing Program

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How can we as incentive program managers increase channel satisfaction with our MDF and Co-Op marketing efforts?  Diane Krakora, CEO of Partner Path and 360insights' VP of Alliances, Steven Kellam recently got together to shed light on this very topic.  We had so many questions that the webinar went quite a bit over its allotted time window, but that's good – it shows that channel marketing professionals are engaged.  They want to know more, and they want to do better work.  You can watch the replay of the webinar in its entirety by searching for the blog post on our site of the same name as this deck.

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360insights' Webinar: 8 Essentials for a Successful MDF & Co-Op Marketing Program

  1. 1. JULY 25, 2018 8 ESSENTIALS FOR A SUCCESSFUL MDF & COOP PROGRAM
  2. 2. | AGENDA  Have some fun  Audience participation – prizes galore 1. KEY TRENDS  Get Serious  The Key Elements • Best Practices • Trends 2. OPTIMIZING YOUR PROGRAM  Big Wins3. CONCLUSION
  3. 3. | Hello! — A Brief Introduction of Your Presenters Steven Kellam Vice President, Global Alliances 360insights Steven is Vice President of Global Alliances at 360insights. Steven has decades of experience and is a respected leader in channel incentives and marketing and has a comprehensive end-to-end understanding of what it takes for brands to succeed selling through complex sales channels. Diane Krakora Chief Executive Officer Partner Path Diane is known among her clients and colleagues for offering sound counsel, creative ideas and aggressive, proactive solutions. Diane believes partnering should be an integral part of every high technology company and through proper engagement and enablement, partnerships of all types can return increased sales and profitability. Jason King Marketer Extraordinaire 360insights Jason King has been with 360insights since its very early days and brings over twenty years of experience to the party. He leads much of our external communications and marketing. Jason loves music, the outdoors, cycling, CrossFit & doing hard things.
  4. 4. | Question #1 “Partners Are Most Frustrated by which of the Following ___ ” A) Too Much Red Tape: Jumping through complicated hoops to get the funds B) Slow Reimbursement: Many partners are struggling with cash flow in particular in a recurring revenue world C) Poor Timing: Vendors release MDFs 2-3 weeks prior to the end of a quarter D) Constant Changes: Vendors making last minute modifications to marketing plans E) Painful Audits: Performance results and guidelines are often not clearly communicated D) Lack of Digital Marketing Skills: Partners not built for crossing the digital divide ? A) Too Much Red Tape: Jumping through complicated hoops to get the funds B) Slow Reimbursement: Many partners are struggling with cash flow in particular in a recurring revenue world C) Poor Timing: Vendors release MDFs 2-3 weeks prior to the end of a quarter D) Constant Changes: Vendors making last minute modifications to marketing plans E) Painful Audits: Performance results and guidelines are often not clearly communicated D) Lack of Digital Marketing Skills: Partners not built for crossing the digital divide B
  5. 5. | Partner Trend: Dealing with New Buyer’s Journey (need URL) Overload of Buyer Stimulus Zero Moment of Truth Buyer Starts Discovery Moment Traditional & Modern Methods 1st Moment of Truth Purchase / Sale 2nd Moment of Truth Enjoyment of Purchase
  6. 6. “ % of vendors leveraging discretionary MDF?” | Question #2: Change in Funding Model ? THE DRIVE TO TAKE MARKET SHARE AND GET THE MOST OUT OF PARTNERS IS PUSHING TRUE MDF OVER CO-OP. 9% 21% 44% 67%
  7. 7. | Fund Trends: 44% COMMITMENT TO ENABLEMENT – PREPARE TO SUCCEED Discretionary spend up every year on our survey 44% 31% 22% 3% Discretionary or Accrual? Discretionary Accrual per partner Contractually committed Other (please specify)
  8. 8. | # 3 Target on the Backs of Marketers “If I do not have the right program and measurements in place by end of year I am losing my _____ ” – VP Channel Marketing Fortune 500 tech company Job! Mind Job Funding Espresso Machine
  9. 9. | Program Structure: Key Elements Program Eligibility Program Period How Funds Are Earned Products Promoted 1 2 3 4 Eligible Activities Reimbursement % Marketing Execution Payments 5 6 7 8
  10. 10. | Best Practice Partner Assessment Process Phases Screening Criteria Formulate Questions Prepare and Execute Apply Categories and Lenses Define Participant Pool Communicate Results ©Copyright SiriusDecisions Inc. All rights reserved. PARTNER ASSESSMENT – SCORECARDING IS KEY – YOU HAVE TO KNOW YOUR PARTNERS
  11. 11. | Trends Partners Need to Demonstrate Business Development and Marketing Capabilities MORE ABOUT THE BUSINESS OF BUSINESS • Quickly sort out who needs what • Build paths to success for different groups • Get sales in the loop early in all of this CONTRIBUTION Sales Revenue Sales Product Marketing Track Record COMMITMENT Customer Satisfaction Level Mindshare Business Growth Plan CAPABILITY Sales & Marketing Skills Technical Capabilities Vertical Expertise COVERAGE Geographic Footprint Product Depth Market Penetration THE 4 C’s of SCORECARDING
  12. 12. | Best Practices PRODUCT SEASONALITY VS. PROGRAM PERIOD Sales Marketing Activities
  13. 13. | Trend • Building a digital brand takes time – partners need to “adopt, obtain and execute” – Lisa Penn, SAP • The selling will happen fast – the buyer is 70% there PARTNERS LOOKING PAST THE NEXT QUARTER? CAN YOU? Partners Need to: Think ‘Longer Plan, Shorter Sell’
  14. 14. | Best Practices – MDF vs. Co-op? “SHOW ME THE MONEY” MDF ADVANTAGE #1 Greater flexibility, no direct link to ‘sell thru’ by a partner Flexibility in funding commitments YoY or QoQ MDF ADVANTAGE #2 Great for changing markets and new technologies MDF ADVANTAGE #3
  15. 15. | Fund Trends: • Move to Proposal-based MDF Spend - Discretionary spend up every year on our survey • Many Looking for Hybrid Middle Ground - Combination of MDF and Co-op • Spoiler Alert! - Don’t forget to communicate with partners 55.4% 38.6% 27.7% 3.6% Discretionary Accrual per partner Contractually committed Other (please specify) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Discretionary or Accrual? Discretionary Accrual per partner Contractually committed Other (please specify) COMMITMENT TO ENABLEMENT – PREPARE TO SUCCEED
  16. 16. | Best Practices • Partners will follow the dollars – weight accordingly • Encourage Partners to use MDF toward bundled marketing MULTI-VENDOR SOLUTIONS BECOMING MORE COMMON
  17. 17. | Product Trends Partner’s World is Changing at an Exponential Rate • Partners really need help here – vendors responding • New buyers journey (cloud even further along than traditional products) = marketing challenged • New revenue stream model = cash flow challenge GROWTH IN RECURRING REVENUE PRODUCTS GROWTH IN CLOUD PRODUCTS CHALLENGE YOUR PARTNERS Exponential Change New Buyers Journey New Revenue Stream
  18. 18. | Best Practices in the “Consumerized” B2B Buyer World Today’s B2B Buyer • Lengthening ‘getting to know you’ period (marketing) • Shortening ‘making a decision’ period (sales) • Looking for ‘continuum’ vs. ‘episodic’ relationship TARGET Impact on B2B Marketing Tactics • Marketer’s key role now is to help buyer get smarter • Content is King, but context trumps King TACTICS MDF Activities to Focus On • Activities are those that support delivery of ‘thought leadership’ • Key are the vehicles that best support delivery of ‘thought leadership’ FOCUS
  19. 19. | Trend: Increase Your Digital Footprint B2B RESEARCH IS SELF-DIRECTED 100% 0% 57% of the way towards making a decision before reaching out to a potential vendor Traditional 80% of the way towards making a decision before reaching out to a potential vendor Cloud
  20. 20. | Best Practices – Tactical vs. Strategic Metrics Activities:  Demo  Units Placed  Proposals  Opportunities created  SPIF/ Sales Incentive  Units sold  Sales value  Opportunities closed Metrics: AWARENESS INTEREST DESIRE TRANSACTION  Email  Advertising  Digital Marketing  Responders  Leads  Customer Event  Telemarketing  Attendees  Appointments
  21. 21. | Best Practices – Tactical vs. Strategic Metrics Activities:  Sales  Marketing  Product Metrics:  Certification  Marketing Plans  Business Plans ENABLEMENT Activities:  Email  Advertising  Digital Marketing  Social Media Metrics:  Responders  Leads AWARENESS Activities:  Customer Event  Telemarketing Metrics:  Attendees  Appointments INTEREST Activities:  Renewals  Referrals  References  Ratings Metrics:  Satisfaction POST SALE Activities:  SPIF/ Sales Incentive Metrics:  Units sold  Sales value  Opportunities closed TRANSACTION Activities:  Demo Metrics:  Units Placed  Proposals  Opportunities created DESIRE Tactical vs. Strategic Metrics
  22. 22. | Reimbursement Trends • Drop Rates for activities that don’t contribute to lead generation or business development • Measure effectiveness • Not a Slush Fund for sales MORE BANG FOR YOUR DOLLAR More Desirable Rates More Desirable Activities (up to 100%)
  23. 23. | Best Practices Determine What You Have to Work With DISCOVERY IS THE KEY  Make creative requirements simple and clean  Any tools that facilitate branding are easy to access  Make any third party easy to engage  Partner A = self reliant – support only  Partner B = mix of prescriptive and support  Partner C = all prescriptive Then Cover the Basics
  24. 24. | Trends: Through-Channel Marketing Automation Provide objective, reliable marketing outcomes data Protect Your Brand by ensuring proper campaign protocols and standards Make it Easy for the partner to executive marketing Remove Need for Proof of performance complexity TCMA Benefits
  25. 25. | Trends: Integrations SERVICES  Global Support  Claims Administration  Global Payments  Program Administration SOFTWARE  Fund Management – MDF – Co-op – Joint Planning  Incentive Management – SPIF – Rebate CHANNEL WISDOM  Strategy Best Practices & Benchmarking  Operational ‘Do’s and Don’ts’  Global Monetary & Currency Expertise  Compliance with local laws and customs KEY TO MEASUREMENT INTEGRATIONS  TCMA  ERP  CRM  PRM  SSO
  26. 26. | Best Practices: Pay Quickly Best Practice DAYS or LESS Industry Leaders DAYS or LESS
  27. 27. | Trends Check vs. Wire ACH and Wire transfer replacing checks and bank drafts “SHOW ME THE MONEY” HOW TO PAY HOW TO INTERACT WHEN TO PAY Partner Centric vs. Program Centric Partners want to get paid in local currency Prepay? Do we dare to trust
  28. 28. 1 | What the Winners Did in 2017 Truly partner-centric channel vendors who make partner engagement easy, simple, and rewarding – think UI/UX to guidelines 2 3 4 Vendors who move beyond rewarding based purely on past revenue performance, to ‘soft targets’ that drive new sets of behaviors like engaging in marketing and driving right activities Move towards measurement, accountability around ROI – leveraging proposal based MDF with CoOp, Joint planning and SPIFFs Created single view for partners and administrators – get view of all programs for everyone in one place - think: allowing you to comprehensively plan – execute - measure – evaluate - iterate - repeat “Year of the Partner” “Behavior Modification” “Connect the Dots” “Single Pane of Glass”
  29. 29. | Thank You & Questions Steven Kellam Vice President, Global Alliances 360insights skellam@360insights.com Diane Krakora Chief Executive Officer Partner Path dkrakora@partner-path.com ADDITIONAL REFERENCES & LINKS Partner Program Benchmark Report 10 Trends for a 2020 Vision Report Measuring Partner KPIs Blog Post

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