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There is no “Silver Bullet” channel program

Posted by Craig DeWolf on Thu, Jul 01, 2010
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Having just returned from a recent channel marketing conference in San Jose, my usual self would summarize some key learnings and insights. That would be pretty easy to do as I was the host of day-two and as such was requested to take copious notes. The reality is, that there was essentially three key take-aways, only one of which I’m going to write about today. (I’m sorry, but the other two will have to wait for future editions—and besides, they emphasis points made previously in this blog).

There was great quote from a delegate during a standard post-presentation Q/A session:

“There is no silver bullet channel program.”

Amen, brother. This is one of those points you instinctively know, but somehow don’t articulate quite as clearly as someone else—a truly “duh” moment.

Why is this point so profound? Because I can’t tell you how many channel marketers, that despite having the title of “Senior Manager”, “Director”, or even “VP” come to me and say: “I want the same _____________ program that works best for your other clients”. Fill in that blank with your choice of programs—SPIF, MDF, Rebate, Deal Registration, Lead Management….. whatever. In fact, that just happened to me yesterday when talking with a client about their trade-in program. The bad part is that the request is always followed by an anxious moment when I fumble in my attempt to say for the um-teenth time that “There is no such thing, the program design is really based on your objectives and requirements”. No matter how subtle or bold I say that, or what words I chose to use, I get the same look on the subjects face as if they just saw a ghost—or heard their mother in law tell them that they are “no longer good enough for their daughter”. (Note, just to be clear, that last statement was never expressed to me so I don’t really know the feeling first hand—but I hear it’s horrific). You see, this otherwise “Senior Manager” was hoping we would say: “OK, we’ll have it ready for you in the morning”.

I can honestly say that despite how may ____________ (again fill in the blank) programs we do, no two of them are alike—even a little bit (really!). For instance, just take the aforementioned trade-in program: Do you really require physical return of the merchandise? Or, is this just another disguised incentive program where a serial number plate or certificate of destruction would do? Is the incentive based on what’s purchased? What’s traded in? or both? Who gets paid? End user? Reseller? Either? Who receives and validates the trade-in? Trust me, the list of variables goes on and on and on and on……….But that’s the easy part. The process really starts with your objectives, defining key metrics to validate program performance against goals, and special parameters and processes you specify. But even then, the ideal recommendation would have to consider things like: what you are doing now, what has or hasn’t worked in the past, what competition is doing in specific and the industry is doing in general, what geographies the program encompasses (for regulatory review, logistics and currency issues) and again---on and on and on and on. But wait, there’s more….your market and product have a lot to do with program design as well. For instance, are you a core technology, or a commodity product? Are you an industry leader or follower? Do you have to “buy” business or is there already a strong demand? The answers to these questions have a big impact on your program, and address why Microsoft can do what they do, yet Tier 4 switch company can’t seem to pull it off when they try to do the same thing.

Instinctively you already know this though, don’t you?

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