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.

1. JULY 25, 2018
8 ESSENTIALS FOR A SUCCESSFUL MDF & COOP PROGRAM

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. | 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.

5. | 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

6. | 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

7. “ % 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%

8. | 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)

9. | # 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

10. | 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

12. | 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

13. | 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

15. | Best Practices
PRODUCT SEASONALITY VS. PROGRAM PERIOD
Sales Marketing Activities

16. | 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’

18. | 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

19. | 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

21. | Best Practices
• Partners will follow the dollars –
weight accordingly
• Encourage Partners to use MDF toward
bundled marketing
MULTI-VENDOR SOLUTIONS BECOMING MORE COMMON

22. | 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

24. | 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

25. | 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

27. | 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

28. | 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

29. | 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%)

31. | 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

32. | 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

33. | 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

35. | Best Practices: Pay Quickly
Best Practice DAYS or LESS
Industry Leaders DAYS or LESS

36. | 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

38. 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”

39. | 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