Companies selling through indirect channel partners often rely on incentive programs to reward sales and other behaviors. These program have many labels: SPIF programs, Rebates, MDF, Opportunity Registration more. Despite the pervasive use of these programs, many channel managers are struggling with and understanding of which programs are the most effective, and have a difficult time providing evidence of true program ROI. This webinar is for sales and marketing personnel who are tasked with designing and managing incentive programs to improve effectiveness from their indirect sales channels, regardless of industry.

1. Designing a Comprehensive
Incentive Strategy that Engages
your Channel Partners
Craig DeWolf
RVP, Channel Solutions

2. Part 3: Defining your Incentive
Strategy for Maximum
Effectiveness

3. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.3
Shift the incentive focus from sales alone
to the behaviors that result in more sales (and
behaviors that impact your GTM goals)
Why?
• You can change behaviors (and by extension, the
outcomes) via incentive engineering
• Behaviors are easier to track individually, their
collective impact is what improves sales
performance
• Use incentives to remove “friction” in the sales
process to streamline lead to revenue
management (L2RM)
Incentive Engineering

4. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.4
A sampling of pre-sales behaviors
• Sales training
• Technical training
• Marketing training
• Deal registration
• Deal conversion %
• Advertising/Marketing
• Portal engagement
• Community involvement
• Lead generation
• Lead follow-up
• Lead conversation %
What Channel Behaviors Drive your
Success?
• Customer event hosting
• Vendor events attendance
• Joint Business Planning
• Participation in vendor marketing
programs
• Social media
• Customer training
• Customer satisfaction
• Co-op/MDF utilization
• Proof of Concept via demo
or seed unit placement
• Vendor SE engagement

5. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.5
How do Desired Behaviors Align with your
Incentive Strategy?
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40%
50%
60%
70%
80%
90%
100%
1.5 2 2.5 3 3.5 4 4.5
% Incentive
Investment
Impact on Sales Performance
Find efficiencies through focus
Increase investment
Scale back investment
Selective investment based on
broader GTM alignment

6. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.6
Sampling of desirable sales behaviors that build
your business
• Sales growth period/period
• Net new business/competitive displacement
• Sales to target verticals
• Sales of new solutions or bundles
• Cross sell/upsell to existing clients
• Attaining overall sales targets
• Closing opportunities
Sales Behaviors that are Easy to Measure
and Trend

7. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.7
How does your Incentive Strategy Align with
the Behaviors?
• Net new business
• Sales of to targeting
verticals
• Sales of new solutions or
bundles
• Cross sell/upsell to existing
clients
• Closing sales opportunities
• Sales growth
• Deal conversion %
• Lead conversation %
• Customer
satisfaction
• Attaining overall
sales targets
• Sales training
• Technical training
• Marketing training
• Advertising/Marketing
• Lead generation
• Customer event hosting
• Joint Business Planning
• Participation in vendor
marketing programs
• Proof of Concept via demo
or seed unit placement
• Vendor events attendance
• Vendor SE engagement
• Lead follow-up
• Portal engagement
• Community engagement
• Deal registration/
management
• Social media participation
Post-Sales RewardsPre-Sales Enablement

8. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.8
3 Incentive Programs is all it Takes
Promotional Allowances Headquarter Rebates
Individual Rewards
Traditional SPIF Programs
• Net new business
• Sales of to targeting
verticals
• Sales of new solutions or
bundles
• Cross sell/upsell to existing
clients
• Closing sales opportunities
• Sales growth
• Deal conversion %
• Lead conversation %
• Customer
satisfaction
• Attaining overall
sales targets
• Sales training
• Technical training
• Marketing training
• Advertising/Marketing
• Lead generation
• Customer event hosting
• Joint Business Planning
• Participation in vendor
marketing programs
• Proof of Concept via demo
or seed unit placement
• Vendor events attendance
• Vendor SE engagement
• Lead follow-up
• Portal engagement
• Community engagement
• Deal registration/
management
• Social media participation
Post-Sales RewardsPre-Sales Enablement

9. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.9
What Should your Investment Look Like?
Product
Characteristic
Pre-sales
enablement
Post sales
Rewards
Market sizing Niche Mass market
Sales cycle Long Short
Category maturity Early Stage Mature
Information exchange
needed
High Low
Partner community New Mature
Product differentiation Highly
differentiated
Commoditized
Allocation between pre-sales activities and
post-sales rewards

10. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.10
What Should your Investment Look Like?
SiriusDecisions Core Strategy Report, 2013
How does your budget stack up?
Channel Marketing Budget as % of Revenue*
Company Size % of Revenue % Split
Program/ Personnel
$100M - $1B 2% - 4% 50/50
$1B - $5B 3% - 5% 55/45
$5B - $10B 1% - 4% 60/40
$10B - $20B+ 1% - 3% 70/30
*For companies with greater than 60% of revenue through channels

11. ©2015 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution.11
Questions?
Craig R. DeWolf
RVP Channel Sales
Blackhawk Engagement Solutions
p) 415.407.5741
e) Craig.Dewolf@bhengagement.com
Get more details through these whitepapers:
Designing an Effective Channel Incentive Strategy
http://info.bhengagement.com/acton/media/7506/effective-channel-strategy-
design
Evaluating ROI for your Channel Incentive Programs
http://info.bhengagement.com/acton/media/7506/evaluate-roi
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