Webinar - Enable Partners Proven Solutions


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Best practices for three practical tools to implement solid partner enablement strategies:
MDF/Co-op, Deal registration, Global payment systems

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  • Good morning and afternoon.The three programs/tools that I will be sharing insights on today are Deal Registration, Global Payments and MDF/Coop.While there are a number of items on the agenda, our focus will be on practical best practices. These best practices are gleaned from direct interactions with partners, discussions with our clients and direct research that we undertake. Each month, we have more than 10,000 direct interactions with partners thru our help desk services and I am personally excited to share those insights today.
  • Briefly about hawkeye. Our focus is about improving the value of channel relationships between Vendors and their Distribution Channels. The three areas we accomplish this through is Strategy and Consulting, developing and managing Channel Programs and our most recent service offering around channel collaboration.
  • We have worked with technology vendors for over 13 years in supporting their channel. We started as Cohesion Marketing and have evolved, through our acquisition by Hawkeye Communications, into a global agency providing channel solutions for leading technology manufacturers.
  • Before touching on Best Practices, let’s step back a bit and discuss why should you consider deploying a Deal Registration program for channel partners?First off, almost everyone is doing it, which means chance are – so are your competitors.And partners use Deal Registration program to beat the competition, especially in strategic and/or big deal situations.Without going thru every bullet, there are a few primary uses/reasons for having a Deal Registration program:Reduce channel conflict – deal registration can clarify the rules of engagement and make it clear who is the deal owner that the Vendor is provided support tooEnable forecasting and early visibility into the partner pipelineGrow and win business, especially against competition and for a New customer
  • The vendor’s extended team needs, that includes CAMs, Finance and Distributors want, enhanced functionalities to make their life easier. This includes real-time visibility, workflow automation and business processes available in a more automated fashion.Specifically, these are the key areas we have heard is needed from these stakeholders.
  • Clearly defined …There are 5 key component areas needed for success.
  • Enforcement it important to develop trust with your partners in how to engage
  • GlobalizationInfluencers are an important group to consider in your deal registration program. Influencers are typically services centric with the objective to empower service opportunities, but typically do not take possession of the product itself. Resellers are solution centric, typically in a vertical area of expertise with the objective to leverage available add-on solution expertise and capabilities.Compensation – be able to match compensation to the partner role. For influencers, commission on the sale in the form of back-end rebates. For Resellers, aim for a point system where points can be used for reinvestment activities.
  • Let’s touch on a Client Success Story.
  • Solution providers – especially those that provide key links between vendors and SMBs – are still struggling in the current economy. Everything Channel reported just last year that ONE-FIFTH of North American Solution providers have gone out of business since 2007. Global payment systems certainly won’t solve all the economic challenges in the channel, but an efficient cash flow can certainly help many struggling businesses through difficult times. Let’s take a deeper look at global payment systems, their challenges, and one success story that saved money for the vendor and helped its partners “...Cash flow issues in the channel are coming up as a growing problem... ...for solution providers the trick to remaining solvent during the six to 12 more months it is going to take to see real improvement in the market is going to revolve around cash flow and managing costs.”
  • Reduce talking.
  • Primarily because joint campaigns between partners and vendors grow business.Joint campaigns extend the resources and budget of the partner, for your brand, to reach new customers thru that partner.Like we discussed with Deal Registration, your competitors are doing it. Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/Coop programs.
  • Both MDF and Co-op can be an effective use of channel support dollars if they are used correctly with the right kind of partners. MDF is most effective for partners who help create – or “push” – a product by specifying brand. Providing MDF funds allows these partners to spend ahead of sales, to enable them to grow the market. Typically the range of activities that qualifies for MDF is wide and manufacturer support is often discretionary.Percentage-based co-op programs are appropriate for partners who “pull” product through the channel. These kinds of resellers provide a predictable sales volume that lends itself well to a percentage-based model. With co-op, the advertising tools of these partners become essentially an extension of the vendor's own demand generation campaigns. It can be appropriate, however, to use MDF for “pull” partners when introducing a new product without a revenue run-rate until the flow of revenue is established.
  • Vendors should leverage co-op and MDF programsbased on the partner’s business model and the product or service life cycle. Services partners are good targets for MDF programs, for example, while co-op works best with fulfillment partners. Of course, partners who offer a mix of both service and sales can benefit from a mixed funding model. New product or service launches are an excellent use of MDF.
  • The point here is to establish metrics and measure to those metrics to understand the success of your program. There are six areas that should be measured, Program ROI, Program Utilization, Claim Activity, Fund Utilization, Approvals and Efficiency. I won’t go thru every suggested metric here, the presentation will be available for download, but do want to spend time discussing Program ROI.
  • Whenever discussing MDF with Vendors, the two questions that invariably get asked is how do I actually go about measuring ROI and what are some of the industry benchmarks that will give me a starting place to benchmark?Let’s first start with ROI measurement and there are 3 operational ways to measure ROI. The first is Ask. Ask the partner upfront when the request for Funding for a project is made on what the expect to do, aka Projected Results and ask the partner to provide results after the project has been executed. Of course the information is only as good as what is being provided so reserve the right to audit activities directly.The second is Data Analytics. Between Sales data, an understanding of the average product sales cycle, and typical MDF project information, we can compare sales after project execution, plus the average sales cycle over previous sales from a prior period without a project. There is the age old issue of external factors affecting the results, which could be mitigated by comparing “like” participating partners with “like” non-participating partners. The bottom line here is that data analytics can be used to measure, and is both an art and a science in how data analytics is executed.The last is executing “pre-approved” campaigns for partners. If execution is controlled, there are many mechanisms to automatically track and record results, which should be offered as part of the execution package.The following is a list of industry benchmarks to consider …
  • Because Un-used Funds equal lost opportunities for additional business, hawkeye is adding a service to it’s portfolio to enable vendors to increase utilization of funds thru a combination of direct awareness outreach and pre-packaged campaigns.
  • A lot can be accomplished thru automation of key enablement programs, including significant cost savings, as long as 3 rules are followed:
  • Webinar - Enable Partners Proven Solutions

    1. 1. May 13, 2010<br />Vaughn Aust, VP Product Management<br />Enable Your Partners with Proven Strategies<br />
    2. 2. Agenda<br />2<br />Three practical tools to implement solid partner enablement strategies:<br />Deal registration<br />Benefits of deal registration<br />What partners and vendors want<br />Best practices<br />Automating deal registration<br />Global payment systems<br />Vendor and partner perspectives<br />Challenges of global payment systems<br />Implementing a global payment system<br />Client success story<br />Vendor Cost Savings<br />MDF/Co-op<br />MDF vs. Co-op and Push vs. Pull<br />Measuring Program effectiveness<br />Best practices<br />Automating MDF/Co-op<br />Agenda<br />© 2010 hawkeye, all rights reserved. <br />
    3. 3. Accelerate your channel success.<br />3<br />Capture mindshare. Increase sales. Boost margins. Foster loyalty.<br /><ul><li>Strategy. Tackle your toughest challenge with actionable strategies that maximize sales and profitability.
    4. 4. Programs. Optimize investments with turnkey and custom tools—tailored to your unique needs.
    5. 5. Collaboration. Connect, collaborate and sell more through a partner-centric, multi-vendor community.</li></ul>Why hawkeye?<br />Rare insight into emerging trends and best practices<br />Unique understanding of what it takes to engage partners<br />Turnkey and custom solutions tailored to your unique needs<br />Global deployment of industry-leading channel solutions. 108 currencies • 189 countries • 16 languages<br />Why hawkeye?<br />© 2010 hawkeye, all rights reserved. <br />
    6. 6. Solutions for the world’s leading companies.<br />4<br />You can depend on hawkeye to maximize your channel investments<br />2009 Hawkeye introduces PartnerConduit and SaaS offerings<br />Why hawkeye?<br />Channel focused. Strategic, experienced minds. Rare insight into emerging channel trends with a quest for game-changing opportunities.<br />Results driven. Flawless execution in translating strategic concepts into real channel solutions with a laser focus on results.<br />
    7. 7. deal registration<br />5<br />© 2010 hawkeye, all rights reserved. <br />
    8. 8. Why deal registration? <br />6<br />Deal Registration<br />© 2010 hawkeye, all rights reserved. <br />More vendors – 78.6% - offer deal registration programs than just a year ago (only 70%).<br />2010 Partner Program Guide,<br />Everything Channel<br />Reduce channel conflict<br />Protect partner sales investment<br />Reduce partner margin erosion<br />Provide early visibility into the partner pipeline<br />Enhance sales forecasting capabilities<br />Reduce partner attrition/turnover<br />Sustain and build mindshare<br />Grow markets, market share, new customer base<br />Serve as a “control valve” for the sales process<br />Partners most often participate in deal reg programs to beat the competition and increase margin opportunities.<br />IPED<br />
    9. 9. What do partners want?<br />Deal Registration<br />A fast, responsive deal registration process supports the relationship of trust between partner and vendor that deal registration programs should help enhance. <br /><ul><li>Fast turnaround – no more than 24 hours
    10. 10. Online registration process
    11. 11. Simple & uncomplicated – no more than one screen of info
    12. 12. Vendor to monitor process and restrict use for “deal squatters”
    13. 13. Allow for longer sales cycles on some products without having to file for multiple extensions
    14. 14. Enforce the rules and protect the registrant</li></ul>Make sure the process is available online and requires the minimum amount of paperwork to verify that a real deal exists, then base future registrations on how much business is actually won. Don’t let one partner just list all the big opportunities, without working the deals.<br />Partner<br />
    15. 15. What do vendors want?<br />The vendor’s extended team needs enhanced functionalities.<br />Deal Registration<br /><ul><li>Sales territory mapping
    16. 16. Automated routing and status updates
    17. 17. Routing option for Special Pricing deals and standard Deals
    18. 18. Online review and approval available for all stakeholders
    19. 19. Mobile approval available, especially for the CAMs
    20. 20. Status updates and Routing emails are easily available in history
    21. 21. Financial compliance controls
    22. 22. Opportunities associated to distributors
    23. 23. Upfront discount processes linked to Distribution
    24. 24. Link final payment/sales data back to deal application
    25. 25. Rebate payment check processing
    26. 26. The ability to self serve, especially changing territory mapping, routing and approval rules</li></li></ul><li>What are best practices in deal registration programs?<br />Clearly defined and enforced business rules with infrastructure to simplify participation and documentation.<br />9<br />© 2010 hawkeye, all rights reserved. <br />Program features and access<br />Easy-to-use registration process<br />Online visibility and reporting for both partners and vendors<br />Flexible and scalable application<br />Self-service interfaces<br />Optimal resources to process and validate registrations<br />Optimal payment process to approve and process deals<br />Supporting infrastructure<br />Secure portal access<br />Ability to set partners up as suppliers<br />Automatic payment mechanisms<br />Automated matching of opportunities and orders<br />Verification of order eligibility<br />Exception processing<br />Automated metrics and reporting/scorecards<br />Key Components<br /><ul><li> Program Features
    27. 27. Supporting infrastructure
    28. 28. Business rules
    29. 29. Globalization
    30. 30. Compensation</li></ul>Deal Registration<br />
    31. 31. What are best practices in deal registration programs?<br />10<br />© 2010 hawkeye, all rights reserved. <br />Business rules<br />Full participant in vendor’s channel program<br />Single Sales Objective (SSO/deal) entered 30 days prior to closing deal<br />Rewards paid only after customer invoice is paid<br />Reward paid for agreed upon products & services<br />Exceptions processed by channel sales rep<br />Expiration of registered deals after “x” months (6 months is typical, but may vary based on sales cycle for product/solution)<br />Enforcement!<br />Vendors’ direct sales team<br />Arbitration options<br />Co-engagement and sub-contracting<br />Re-registration of expired deals<br />Deal Registration<br />
    32. 32. What are best practices in deal registration programs?<br />11<br />© 2010 hawkeye, all rights reserved. <br />Globalization<br />Ability to handle multiple currencies<br />Appropriate regional business rules<br />Multiple language capability<br />Compensation<br />Match compensation to partner role<br />Influencers: commission on the sale or back-end rebates<br />Resellers: points system applied to training, marketing, etc. (reinvestment)<br />Deal Registration<br />
    33. 33. Client Success Story<br />Automated Deal Registration<br />12<br />© 2010 hawkeye, all rights reserved. <br />Case in Point<br />A network vendor needed a global, automated deal registration system that would help unify it’s operations. Within 3 years of implementation, the number of partners registering deals has tripled and the number of transactions has increased five-fold. Administration time has dropped dramatically – all resulting in increased partner profitability and incremental revenue growth.<br />Protect and reward partners<br />Streamlined interface facilitates identification, registration, development and closing of new sales opportunities<br />Ability to search and view all opportunities by status, customer, product<br />Enforce program rules<br />Enhance pipeline visibility<br />Minimize administration requirements<br />Deliver clear ROI<br />Line-of-sight to ROI with deal tracking, full audit trails, and real-time, global, consolidated reporting<br />Deal Registration<br />Hawkeye’s ChannelDeal solution is powered by our channelconduit platform<br />
    34. 34. global payment systems<br />13<br />© 2010 hawkeye, all rights reserved. <br />
    35. 35. 14<br />© 2010 hawkeye, all rights reserved. <br />“The number of solution providers rated as "in trouble" based on net income data jumped to 9.3 percent in 2010 from 5.8 percent in 2009...<br />After reaching a high of 250,000 in 2007, the number of solution provider businesses in the North American market dropped to 200,000 in 2009 as IT spending declined. Most of the solution providers that closed up shop generated less than $1 million in annual revenue.<br />Everything Channel research reported in<br />ChannelWeb, March 2010<br />Global Payment Systems<br />
    36. 36. Why do partners want a global payment system? <br />15<br />Global Payment Systems<br />© 2010 hawkeye, all rights reserved. <br />Partners are focused on business critical processes. They want to reduce time spent on administration.<br />On time payments<br />Payments in their preferred currency<br />Consolidated payments for multiple programs<br />Clear visibility into benefits<br />Clear, consistent and understood process<br />Cash flow and on time payments are more important than ever before!<br />
    37. 37. Why do vendors want a global payment system? <br />16<br />Global Payment Systems<br />© 2010 hawkeye, all rights reserved. <br />Vendors are focused on reducing costs and increasing partner satisfaction.<br />Program managers and Operations managers want:<br />Reduce/eliminate partner complaints<br />Focus on program success<br />Finance Directors want:<br />Focus on other finance functions<br />Global tax liability painlessly addressed<br />Cost efficient payment process<br />
    38. 38. Why are global payments so challenging?<br />Global Payment Systems<br />17<br />© 2010 hawkeye, all rights reserved. <br />
    39. 39. Why are global payments so challenging?<br />18<br />© 2010 hawkeye, all rights reserved. <br />Global Payment Systems<br />*Hawkeye disclaimer: We are not tax experts, but are simply pointing out best practices that we have implemented for global, fortune 100 technology clients.<br />
    40. 40. What are the benefits of a global payment system?<br />19<br />Global Payment Systems<br />© 2010 hawkeye, all rights reserved. <br />For Partners<br />For Vendors<br /><ul><li>Consolidation of payments
    41. 41. Improved cash flow with faster payment
    42. 42. Provide bank details once
    43. 43. Effective communication
    44. 44. Managing fewer payments
    45. 45. Standardized, predictable cycle
    46. 46. Online tracking of payment process
    47. 47. Payments in local currency
    48. 48. Standardized, single global payment platform
    49. 49. Reduced payment cycle time
    50. 50. Predictable delivery of payments
    51. 51. Improved partner satisfaction
    52. 52. Consolidation of multiple payments
    53. 53. Reduced transaction costs
    54. 54. Centralized reporting & tracking
    55. 55. Consistent banking data collection
    56. 56. Standardized payment communications
    57. 57. Online, consolidated reporting
    58. 58. Decreased Help Center volume</li></li></ul><li>What are best practices in a global payment system? <br />20<br />© 2010 hawkeye, all rights reserved. <br /><ul><li> Centralize programs
    59. 59. Standardize payments
    60. 60. Validate banking information upfront
    61. 61. Utilize electronic invoicing
    62. 62. Require partners to invoice for market penetration services</li></ul>Global Payment System<br />
    63. 63. Client Success Story<br />System efficiencies improved cash flow for partners and cut costs for the vendor<br />21<br />© 2010 hawkeye, all rights reserved. <br />Case in Point<br />A technology vendor had programs in over 100 countries and had been using regionalized vendors and internal, regionalized accounting centers to process ~$1 billion in payments annually to over 8,000 partners. A global payment system helped them realize significant cost savings and increased partner satisfaction.<br />Customer service savings 38%<br />Delivery & audit savings 67%<br />Management savings 20%<br />Saved per payment $25.13<br />30-Day payment delivery >40%<br />SLA >95%<br />Where they were able to save:<br />Global Payment Systems<br />Hawkeye’s ChannelPay solution is powered by our channelconduit platform<br />
    64. 64. mdf/co-op<br />22<br />© 2010 hawkeye, all rights reserved. <br />
    65. 65. Why do vendors fund partner marketing and sales campaigns?<br />Joint campaigns grow business through the channel.<br />23<br />MDF/Co-op<br />© 2010 hawkeye, all rights reserved. <br />MDF/Co-Op Spend<br />Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs<br />Partners contribute 4% of their marketing budgets to MDF/co-op programs <br />
    66. 66. What are MDF and co-op funds—and how do they differ?<br />Funds differ by partner type and objective<br />Market Development Funds (MDF): distributed to partners in advance of sales<br />Ideal for partners with a services business model who “push” products through channel; specify brand, develop markets, and grow business<br />Co-op (Cooperative) Funds: distributed to partners based on % of trailing sales<br />Ideal for partners who fulfill demand and “pull” products through channel; do not specify brand or sell services<br />24<br />© 2010 hawkeye, all rights reserved. <br />MDF/Co-op<br />Co-op and MDF should be used differently based on “push” versus “pull” expectations of the partner’s business model. <br />
    67. 67. The Role of Partner Type<br />© 2010 hawkeye, all rights reserved. <br />Develop your discretionary funds program based on the types of partners you plan to enable. <br />MDF/Co-op<br />Service Partners<br />Consult, Design, Implement<br />PUSH ABILITY<br />Mixed Model<br />Transactions + Services<br />“VAR”<br />Fulfillment Partners<br />Transaction, Volume<br />PULL REQUIREMENT<br />From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.<br />25<br />
    68. 68. What do partners want in MDF/Co-op Programs? <br />26<br />MDF/Co-op<br />© 2010 hawkeye, all rights reserved. <br />Clear processes with simple rules<br />Speedy payments—<br />30 days or less<br />Online status/tracking and updates<br />Pay claims in cash, not credit<br />Greater flexibility for activities—<br />trust the partner to know their customers <br />and how to market to them<br />Vertical-friendly options<br />Solution-friendly options <br />Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows.<br />“Simplifying the tool is the best way. I suggest having someone who knows nothing about marketing or co-op try to work the tool and see what difficulty that person has.”<br />Partner<br />
    69. 69. How can you measure the effectiveness of MDF/co-op programs?<br />Use solid, consistent metrics to measure performance<br />27<br />© 2010 hawkeye, all rights reserved. <br />MDF/Co-op<br />
    70. 70. How do I measure ROI? <br />28<br />MDF/Co-op<br />© 2010 hawkeye, all rights reserved. <br />Industry Benchmarks<br /><ul><li> Time from claim to payment—</li></ul>3 weeks<br /><ul><li> Administrative cost / project—</li></ul>$20-$30 per project<br /><ul><li> Program cost vs. total value—</li></ul>Less than 1%<br /><ul><li> Fund utilization rate—</li></ul>12%-50% industry range <br />Ask<br />Data analytics<br />Use Sales, MDF Campaigns, Average Product Life Cycle, comparison of participating and non-participating<br />Execute campaigns on behalf of partners<br />
    71. 71. Program Utilization Challenges <br />By some estimates, 50% or more of all potential MDF/Co-op funds go unused <br />© 2010 hawkeye, all rights reserved. <br />Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows.<br />Why do funds go unused?<br />Unfamiliarity/unaware<br />Complexities, administrative burdens<br />Processes that do not engender trust<br />Long delays in approvals and payment<br />Partners want to easily apply for funds—and receive payments quickly.<br />Un-used funds = lost opportunities<br />29<br />MDF/Co-op<br />
    72. 72. What are best practices in MDF/co-op programs?<br />Employ integrated components to boost utilization.<br />30<br />MDF/Co-op<br />© 2010 hawkeye, all rights reserved. <br />Make it easy and profitable<br /><ul><li>Ease-of-use
    73. 73. Speedy payments
    74. 74. Clear ROI
    75. 75. Online tools</li></ul>Sell the value<br /><ul><li>Drive awareness
    76. 76. Help partners leverage unused funds
    77. 77. Help field understand value</li></ul>Speed deployment and pay-outs<br /><ul><li>Ready-to-go marketing campaigns
    78. 78. Pre-approval
    79. 79. Easy fulfillment</li></ul>End-to-end global support<br /><ul><li>Help desk
    80. 80. Claims auditing
    81. 81. Payment processing
    82. 82. Reporting</li></li></ul><li>Client Success Story<br />Maximize fund utilization—and partner satisfaction<br />31<br />© 2010 hawkeye, all rights reserved. <br />Case in Point<br />Substantial ROI benefits can be realized with an automated solution. For one hawkeye client, deploying an automated solution to 325 partner companies in more than 60 countries, resulted in partner projects doubling within the first six months and payment time frames shrank from 12 weeks to less than four weeks.<br />Easily manage funds and approve/deny requests<br />Highly flexible, automated workflow<br />Online submission and management<br />Speed time-to-payment<br />Electronic funds distribution<br />Simplified compliance with tax and legal regulations<br />Easily track and measure program metrics<br />Single view of program activity status and reports<br />Complete, visible audit trail through integration of all functions—Finance, CAM, Partner, and Administrator<br />Quickly deploy the solution—worldwide <br />Integration with your existing systems<br />Multi-languages, multi-currencies, local business rules<br />MDF/Co-op<br />Hawkeye’s ChannelMDF solution is powered by our channelconduit platform<br />
    83. 83. Summary & questions<br />32<br />© 2010 hawkeye, all rights reserved. <br />
    84. 84. Key Points<br />33<br />Key Points<br />© 2010 hawkeye, all rights reserved. <br />Make it fast<br />Make it easy<br />Make it transparent<br />Automation of key partner enablement programs and features results in critical cost savings for both the vendor and their partners.<br />
    85. 85. Questions, Discussion<br />34<br />Questions<br />© 2010 hawkeye, all rights reserved. <br />
    86. 86. Vaughn Aust<br />VP, Product Management<br />THANK YOU<br />© 2010 hawkeye, all rights reserved. <br />425.656.5825<br />vaust@hawkeyeww.com<br />