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Effectively managing channel incentives to drive partner behavior and program roi
The document discusses the management of channel incentives, emphasizing the need to evolve beyond traditional sales-based rewards to a more comprehensive approach that includes various incentive types to drive partner behavior and improve ROI. It highlights common challenges faced in incentive programs, such as misalignment with partner goals and lack of measurement of ROI. The Zyme Incentives solution is presented as an end-to-end management system designed to address these challenges and enhance partner engagement and performance.
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Effectively managing channel incentives to drive partner behavior and program roi
- 1. Effectively Managing Channel Incentivesto Drive Partner Behavior and Program ROI
- 2. 2www.zyme.com Safe Harbor Statement ©Zyme Solutions Inc. 2017 The content of this presentation is for information purposes only and any unreleased product capabilities or services that are referenced in this or other presentations or public statements may not be delivered or available on time or at all. Any purchasing decision should be made based upon capabilities and services that are currently available.
- 3. 3www.zyme.com Agenda © Zyme SolutionsInc. 2017 Evolution of Channel Incentives Programs Angela Leech, Research Director – Channel Marketing Services, SiriusDecisions zymeIncentives – End to End Incentives Management Solution Deepanjan Chattopadhyay, Associate Director – Solutions, Zyme Managing Incentives Effectively at Western Digital Colleen Crowley, Sr. Director – Credit, Collections and Rebates, Western Digital
- 4. Angela Leech Research Director @AngelaLeech TheEvolution of Channel Incentive Programs Angela Leech Research Director @AngelaLeech
- 5. SiriusPerspective: 5 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Channel Incentives in the Rearview Mirror Past performance is not an indicator of future growth – suppliers must look beyond sales rewards and develop incentives that drive future performance.
- 6. 6 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Incentive Challenges 5 14 17 18 19 24 24 27 33 INCENTIVES ONLY FOCUS ON SALES PERFORMANCE INCENTIVES NOT TARGETED TO PARTNER ROLES NO ALIGNMENT TO CHANNEL GOALS INCENTIVES NOT MOTIVATING THE RIGHT PARTNERS INCENTIVES NOT MONITORED AND MEASURED CORRECTLY NO INCENTIVE ROI MEASUREMENT INCENTIVE NOT INFLUENCING THE RIGHT BEHAVIOR INCENTIVES NOT DRIVING GROWTH POOR PARTNER PARTICIPATION Biggest Incentive Challenges today
- 7. 7 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Incentive Offerings and Goals 0% 15% 44% 27% 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% ALL MOST SOME FEW NONE How many of your incentive programs meet your incentive goals 40 21 6 7 1 TO 3 4 TO 6 7 TO 10 MORE THAN 10 Number of Annual Incentives
- 8. SiriusPerspective: 8 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions The Expanding Universe of Incentives As channel incentives programs evolve, the ideal mix of programs will expand to include leading-indicator incentives as well as persona-level programs. Accrued marketing funds earned through revenue attainment Co-Op Funds Revenue/ Performance Achievement Market Development Funds (MDF) SPIFs Sales performance incentive funds earned by reaching specific sales goals MDF C Points-Based Rewards123 Launch Funds Deal Registration Onboarding Velocity Lead Reporting Managed Business Objectives Reward for completing onboarding within the desired timeframe R MBO Certification/ Specialization Achievement Discretionary funds used to seed new market opportunities Monetary rebates earned upon reaching specific goals or targets Reward for reaching predefined revenue or performance objectives Reward for registering opportunities, deals, sales accepted leads Cumulative rewards earned through specific behaviors or activities Discretionary funds to launch partnerships, drive awareness/demand for offerings Reward for partners reaching certification/ specialization goals Reward for closed- loop lead reporting and adherence to SLAs Reward for achievement of specific supplier- defined objectives Rebates
- 9. SiriusPerspective: 9 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions The Expanding Universe of Incentives As channel incentive programs evolve, the ideal mix of programs will expand to include leading-indicator incentives as well as persona-level programs. Accrued marketing funds earned through revenue attainment Co-Op Funds Revenue/ Performance Achievement Market Development Funds (MDF) SPIFs Sales performance incentive funds earned by reaching specific sales goals MDF C Points-Based Rewards123 Launch Funds Deal Registration Onboarding Velocity Lead Reporting Managed Business Objectives Reward for completing onboarding within the desired timeframe R MBO Certification/ Specialization Achievement Discretionary funds used to seed new market opportunities Monetary rebates earned upon reaching specific goals or targets Reward for reaching predefined revenue or performance objectives Reward for registering opportunities, deals, sales accepted leads Cumulative rewards earned through specific behaviors or activities Discretionary funds to launch partnerships, drive awareness/demand for offerings Reward for partners reaching certification/ specialization goals Reward for closed- loop lead reporting and adherence to SLAs Reward for achievement of specific supplier- defined objectives Rebates Incentives Types
- 10. SiriusPerspective: 10 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions The Expanding Universe of Incentives As channel incentives programs evolve, the ideal mix of programs will expand to include leading-indicator incentives as well as persona-level programs. Accrued marketing funds earned through revenue attainment Co-Op Funds Revenue/ Performance Achievement Market Development Funds (MDF) SPIFs Sales performance incentive funds earned by reaching specific sales goals MDF C Points-Based Rewards123 Launch Funds Deal Registration Onboarding Velocity Lead Reporting Managed Business Objectives Reward for completing onboarding within the desired timeframe R MBO Certification/ Specialization Achievement Discretionary funds used to seed new market opportunities Monetary rebates earned upon reaching specific goals or targets Reward for reaching predefined revenue or performance objectives Reward for registering opportunities, deals, sales accepted leads Cumulative rewards earned through specific behaviors or activities Discretionary funds to launch partnerships, drive awareness/demand for offerings Reward for partners reaching certification/ specialization goals Reward for closed- loop lead reporting and adherence to SLAs Reward for achievement of specific supplier- defined objectives Rebates Incentives Programs
- 11. SiriusPerspective: 11 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions • Adoption rates are low • Overspending, cumulative rebates/margin/fraud • Little or no governance • Siloed programs, little connection to overarching goals • Hard to prove ROI – lack of measurement • Influencing wrong behaviors The Problems With Incentives Continue The current misuse of incentives is undermining the ability for b-to-b suppliers to achieve objectives and revenue growth.
- 12. Introducing the SiriusDecisions ChannelIncentives Selection Model A four-step approach to effective partner incentives selection
- 13. 13 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions • Recognize and reward partner contribution and performance • Enhance partner experience • Strengthen partner relationships and increase loyalty • Establish and maintain partner mindshare • Drive desired partner behavior Why Channel Partner Incentives Are Important
- 14. 14 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Incentive Selection Model Inputs What growth goal are you are trying to achieve? Growth G Type What partner types are you trying to influence? T Persona What partner personas would you like to target? P Behavior What behavior would you like to see? B
- 15. 15 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Step One: Alignment to Growth Strategies T G P B The SiriusDecisions Channel Incentive Selection Model Acquisition Buyers Markets Offerings Productivity
- 16. 16 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Step Two: Alignment to Partner Types T G P B The SiriusDecisions Channel Incentive Selection Model Referral Partner Service Provider MTSISIOEM/ ISV Reseller/ Dealer Volume Reseller Services Only Solution Provider MSP Electronic ResellerDistributor
- 17. 17 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Step Three: Alignment to Partner Persona Engineering or Technical Leadership TECH LEAD Owner, CEO, CFO or President EXEC MGMT 0 VP, or Director of Sales SALES MGMT Sales Rep/ Individual SALES REP VP, Director or Marketing Manager MKTG LEAD Consulting or Services Director PROF SVCS T G P B The SiriusDecisions Channel Incentive Selection Model
- 18. 18 © 2017SiriusDecisions. All Rights Reserved@siriusdecisions Step Four: Desired Behavior Outcome FINANCIAL GOALS PARTNER CAPABILITY DEMAND CREATION T G P B The SiriusDecisions Channel Incentive Selection Model
- 19. zymeIncentivesSM End to EndIncentives Management
- 20. 20www.zyme.com Channel Partner IncentiveManagement – Challenges Driving partner participation Tracking program effectiveness Aligning with business goals © Zyme Solutions Inc. 2017 • Complex channel structures • Alignment to channel goals • Complex program requirements • Go beyond sales performance
- 21. 21www.zyme.com Channel Partner IncentiveManagement – Challenges Driving partner participation Tracking program effectiveness Aligning with business goals © Zyme Solutions Inc. 2017 • Targeting wrong partners • Unclear partner eligibility • Complex claim management • Long payment cycles
- 22. 22www.zyme.com Channel Partner IncentiveManagement – Challenges Driving partner participation Tracking program effectiveness Aligning with business goals © Zyme Solutions Inc. 2017 • Calculate partner payouts accurately • Incentive ROI measurement • Siloed processes • Match actual sales to payouts • Track changes in partner activity
- 23. 23www.zyme.com Channel Partner IncentiveManagement – Market Expectations OEMs • Single pane view of all programs and payouts • Automated, accurate partner payout calculations • Flexible, configurable calculation engine • Performance and activity-based programs • Claim validation and management workflows • Partner payout workflows and disbursals • Easy integration, especially with OEM’s CRM • Measure program ROI Partners • Unified, cohesive, simplified user experience • Accurate calculations • Emails and notifications • Short payment cycles • Integrated into OEM’s PRM • Dispute resolution workflows • Flexible payment options • Multi-currency and multi-language support © Zyme Solutions Inc. 2017
- 24. 24www.zyme.com zymeIncentives – EvenBetter with CCI Combining Zyme’s decision-grade channel data and enterprise- grade incentives management solution with CCI’s highly configurable MDF/Co-op solution results in the most powerful and comprehensive incentives management solution in the industry. © Zyme Solutions Inc. 2017
- 25. 25www.zyme.com Expanded Program Coverage Product Based Programs Special Pricing Programs SalesQuota Attainment Deal Registrations Volume Discounts Ship & Debit Programs Performance Based Incentives © Zyme Solutions Inc. 2017 SPIFFs Co-op Programs Referral Programs Activity Based Incentives Trade-in Programs Discretionary MDF Marketing Campaigns
- 26. 26www.zyme.com Expanded Solution Coverage ©Zyme Solutions Inc. 2017 zymeIncentives Program Design Program Requests & Approvals Program Communication Program Setup Claim Management & Approvals Payout Calculation & Approvals Payments Processing & Disbursement ROI and Performance Reporting
- 27. 27www.zyme.com zymeIncentives – AligningIncentive Programs with Business Needs © Zyme Solutions Inc. 2017 zymeIncentives Sales Growth Partner Competencies Reseller Coverage New Customers Grow Geographies Marketing Campaigns Inventory Optimization Deal Activity Lead Generation Product Bundles Sunset Products Grow Margins Grow Services Brand Awareness Partner Certifications Customer Education Partner Recruitment Partner Loyalty Product Launch Develop Pipeline Predictable Sales A flexible, configurable, end-to-end solution to define, track and manage global partner incentives v vAligning with Business Goals Driving Partner Participation Tracking Program Effectiveness
- 28. 28www.zyme.com zymeIncentives – EnablingHigher Partner Participation © Zyme Solutions Inc. 2017 Driving Partner Participation Clear Program Objectives Targeted Partner Groups Automated Claim Processing Fast & Accurate Payments Dispute Resolution v vAligning with business goals Driving Partner Participation Tracking Program Effectiveness
- 29. 29www.zyme.com Tracking Program Effectiveness ©Zyme Solutions Inc. 2017 Claim Management Program Studio Accurate Payment Calculations Payment Approvals Partner Payment Disbursement OEMs Dispute Resolution Claim Submission Claim Approvals Partners zymeIncentives Reports and Dashboards Master Data Channel Sales Partner Claims Partner Data Measuring Program Effectiveness • Program goal achievement • Program payouts • Program optimization • Partner sales trends and content • Partner engagement • Partner participation • Partner dispute trends • Partner satisfaction • MDF usage trends • Partner marketing activity • Partner deal activity • Partner geo coverage ….and much more! HIGHQUALITYCHANNELDATA v vAligning with business goals Driving Partner Participation Tracking Program Effectiveness
- 30. 30www.zyme.com zymeIncentives – EnablingSingle Pane of Glass View © Zyme Solutions Inc. 2017 Salesforce Microsoft Dynamics 365 zymeIncentives is now integrated with your favorite CRMs
- 31. 31www.zyme.com Why zymeIncentives? © ZymeSolutions Inc. 2015 Broad Program Coverage Track Program ROI Automated Claims ManagementFlexible Solution Global Payments Processing Increased Partner Satisfaction zymeIncentives
- 32. 8/10/2017©2017 Western DigitalCorporation or its affiliates. All rights reserved. Confidential. Effectively Managing Channel Incentives
- 33. Western Digital: Storageand Memory Products 33©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. Client Devices Client Solutions Data Center Devices & Solutions
- 34. • Original problemstatement • Calculation accuracy, Processing time, Rebate accruals & analytics • zymeIncentives (powered by TruePay engine) launched with HGST subsidiary in 2015 • 12 month implementation project • Staged roll out covering data transfers, fields & formats, definitions and program launches • On-site Zyme support for critical phases • 150 direct Distributors; thousands of channel partners • Mature customer incentive programs • Claimless programs with minimal disputes Western Digital: Zyme relationship 8/10/2017 34©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. Sales-based rebates Special pricing Step-function payout Target-based rebates Price Mask Lump sum payout Price Protection Tier II incentives Customer deductions
- 35. • Key Learning:Streamline beforehand where possible • Business process and org alignment – Copy exactly of legacy processes facilitated the launch, but extended stabilization period – Program simplification and standardization eventually lead to faster set up and refresh times • Technical efficiency: Data Feeds – Eventual alignment of refresh dates around payout periods helped to avoid weekend work for Zyme • Key Partnership: Zyme’s Operational support team • Engaged & responsive Operations team has been critical to continuous improvement • Unforeseen Benefit: Data aggregation for agile reporting • Aggregation of data from multiple WD tools into a coherent, compatible format provided quick wins for reporting enhancements – ASP tracking – Advanced analytics for accruals • And we’ve just begun scratching the surface of potential benefits… HGST Key Learnings and Observations 8/10/2017 35©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential.
- 36. 368/10/2017©2017 Western DigitalCorporation or its affiliates. All rights reserved. Confidential.
- 37. 37www.zyme.com Upcoming Zyme Events ©Zyme Solutions Inc. 2017 November 6 – 9, San Francisco Booth # 1819 For future webinars and other Zyme events: http://www.zyme.com/about/events
- 38. 38www.zyme.com Questions © Zyme SolutionsInc. 2017 inquiry@zyme.com