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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
2.
3.
You had to
prove it with evidence...AND
4.
Make this a
positive message to my partners?This was the challenge we were given by a client in 2009 Page 2 | All Rights Reserved © Birch Worldwide 2011
5.
Your Program Framework
Page 3 | All Rights Reserved © Birch Worldwide 2011
6.
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
15.
Fund expiry Page
4 | All Rights Reserved © Birch Worldwide 2011
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
17.
Terminology All Rights
Reserved © Birch Worldwide 2011 Page 6 |
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.
19.
Introducing the Zee©
Principle All Rights Reserved © Birch Worldwide 2011 Page 8 | 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
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
22.
4 Available Funding
Models 11 All Rights Reserved © Birch Worldwide 2011
23.
The Partner Marketing
Matrix All Rights Reserved © Birch Worldwide 2011 Page 12 | Brand Adoption Marketing Capability
24.
Introducing the Zee©
Principle All Rights Reserved © Birch Worldwide 2011 Page 13 | 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
25.
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
33.
Ability to provide
partners with higher funding Page 14 | All Rights Reserved © Birch Worldwide 2011
34.
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
40.
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
67.
68.
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
74.
There are other
measurements that give insight into effectiveness....... Page 18 | All Rights Reserved © Birch Worldwide 2011
75.
Coverage Plans All
Rights Reserved © Birch Worldwide 2011 Page 19 |
76.
Coverage Plans All
Rights Reserved © Birch Worldwide 2011 Page 20 |
77.
Coverage Plans –
an illustration Page 21 | All Rights Reserved © Birch Worldwide 2011
78.
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
84.
Mop up low
level funding and cash flow limits Page 22 | All Rights Reserved © Birch Worldwide 2011
85.
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
89.
Partner feedback on
ease of doing business is invaluable Page 23 | All Rights Reserved © Birch Worldwide 2011
90.
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
95.
Increased funding percentage
for using accredited suppliers Page 24 | All Rights Reserved © Birch Worldwide 2011
96.
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
103.
Allowed our client
to align activity to corporate objectives Page 25 | All Rights Reserved © Birch Worldwide 2011
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
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