I have been involved in channel marketing for (dare I say) 30-years now, and in global marketing almost as long. During that time, I have seen the channel program authority volley between a centralized model to a field-controlled model back and forth more often than a Chinese ping pong tournament. I have even witnessed it myself within the same client more than 3 times over a 5 year period. With each swing, of course, comes new process and infrastructure to manage the transition. This shift in the balance of power is not limited to any one particular industry-in fact it can happen in any industry, particularly where the "Brand" is tightly controlled by home office personnel.

I recently read an survey performed by a noted consultancy which stated that global program standardization managed via a common infrastructure was among the top 3 investment priorities in 2010 for global channel marketers within the technology industry. This is of no surprise considering that technology has changed through the years thus enabling infrastructure standardization to exist. That makes perfect sense...after all, what home office in their right mind would want to disseminate funds and program authority to channel partners on a global scale to spend willy nilly without having any controls in place? (BTW: "willy nilly" is a technical term for "hap hazardly" which itself is a technical term for.....well, never mind).

Well, at least one vendor we know well does...after 2 years of going to a completely centralized model to manage their global programs, they have announced intent to move back to a decentralized model permitting only local controls of program design and execution. This shift back makes perfect sense to me too. The "promise" of globalization and standardization sounds great and all, but under the mantra of "think globally, act locally" perhaps there is an admission that business practices require attention to local needs and customs as much (or in this case more) than centralized insight and controls. I've often attested to the fact that the best position is somewhere in the middle, but often the forces of office politics are at work. The pain is real strong on one side, so the tendency is to compensate by moving to the extreme opposite side, sighting: "See, I told you that having the pendulum on their side wouldn't work".

Hmmmm, the more things change, the more they stay the same.

 

January 28, 2010: it's not just the start of a new year but the start of a whole new decade. It's promised that this decade is supposed to be better for everyone-- if you believe the President's Annual State of the Union Address last night.

Our team just returned from an event targeting channel marketing professionals yesterday in San Francisco. Attendees from about 50 companies were present to talk about what new (and old) challenges are facing us. To that end, here is a rundown of some of the "more lively" topic's as gleaned from the pulse of the attendees.

1. As a vendor, are you easy for your partners to do business with? Many of us forget that our channel partners represent more lines than our own, and therefore assume that our partners' as a whole are accepting of our quirks and understand all the changes we make to our programs and extranets on a routine basis. They don't. My take: this is a topic of growing significance-and indeed vendors are starting to listen. In fact, I'll be talking about this topic at a future conference, so stay tuned.

2. Vendor sales certification and training for partners. Among the issues most pressing to channel professionals is the sales readiness of their partners. The discovery is that different partners need different types of training-unique curriculums that align the solutions they sell and their business model. Sales training is not about product training, it's about solution understanding and the best way to design and package solution to meet the needs of their prospects-training is not homogeneous anymore.

3. Using POS data to provide complete channel and program analytics. While many vendors use POS data for rebate and commission processing, still others don't collect it at all. Some more progressive vendors have unlocked the secret to using POS data to analyze program performance, evaluate partner performance, and to conduct a gap analysis for coverage and skill sets. This is the wave to be on, if you're not already doing it.

4. Social media is changing the face sales engagement. It's understood that social media has its place in vendor communities and partner communities but it is also a growing sales tool. While most partners haven't fully taken advantage of it yet, some of the more progressive ones are leveraging social media as a prospecting tool by using it as a way to learning about prospect needs and pain points before they make the introductory call. This advanced insight creates a fast track to building prospect rapport as well as targeting proposals since the sale person is already familiar with the prospects needs as they are conveyed on the social network.

I promise you that there will be complete articles on each of these areas in our newsletter moving forward, so if you haven't signed up for it, now is your chance. (just sign up on this site). I am also anxious to hear about the challenges, rants and raves from other channel professionals so we can address those in the newsletter or this blog as well. So please leave your comments as I love to read them and to use as a basis for future content. This is only good for me if it's good for you.

We recently returned from the 2009 Channel Focus North/Latin America conference in San Diego-a 2 day conference and extravaganza for all B2B channel marketers. For those that didn't attend, the conference represents a couple hundred channel marketing professionals consisting of leading vendors, luminaries, and suppliers from within the technology industry, and in this case from both North and South America.

For those readers that attended, I'd be interested in your response to the conference overall, as well as any key learning that may have come out of it. This is all somewhat subjective, as all attendees have their own agenda as to the desired learning from such meetings, as well as their actual take-away post conference. I have read impressions of this conference from other attendees on other sites, so I thought it was fitting to submit my own key take-aways:

The economy sucks for everyone right now. Can I use that word? In this context, I mean it in the true sense of the word (cut to the sound of a vacuum taking everyone's budget). During a recession, it is customary for vendor's to rely on their channel to "get the job done", yet -per a reseller panel-each has expectations of the other that are impossible to fulfill due to resource constraints and poor program execution. There was a lot of finger pointing at that session. But the take away from the debate was that resellers' (as a whole) were bad marketers and that vendors aren't sensitive to the needs of their channel partners which ---and this is key-is unique to each reseller, be it leads, cash flow assistance, or simply to ‘butt out' (queue next topic).

Manufacturer sales assistance for reseller-originated opportunities should be invited with their roles clearly defined: A reseller panel (and the conference host himself) articulated instances when a vendor's sales rep tried to "close" an opportunity outside the reseller's processes. This not only complicated matters, but jeopardized the closing due to conflicting information. Apparently, this happens more often than not. Could you be guilty of this?

The financial obligations of vendors to assure channel partner solvency during tough economic times. This is another hotly contested topic as democrat vs republican politics, or Daniel Craig vs Pierce Brosnan (or Sean Connery if you're as old as I am). The net result, though, is that for companies who rely on channel partners for their sales, there is a co-dependency for success, and that even something as simple as adjusting credit terms or as complex as developing sponsored leasing programs can go a long way to assure channel velocity, and maintain cash flow for channel partners-the life blood of small businesses.

Vendor's are totally enamored with Social Networking as "Marketing 3.0". Which is interesting, because no one really knows how to formulate (or at least articulate) a clear social networking strategy-especially for channel partner integration--nor provide clear metrics. But yet, the room falls to a hush when the subject comes up.

Segmenting "lifestyle" channel partners from those who have real growth potential. Gee, there seems to be something like 40,000 registered VARs and resellers in North America (don't hold me to those figures), yet most of them are content with their size with no intention to grow (I believe the speaker said: "they already have their Ferrari"). So how can Vendors identify these "lifestyle" partners so as not to over invest? It takes a comprehensive profiling and scoring system that includes both objective and subjective data-and the list of characteristics is the subject of a future article...so stay tuned for more on that (via a workshop that was conducted by yours truly)

Co-op/MDF programs are "mature" yet most vendors struggle with how to get it right. Per a luncheon presentation, theses funds can make up the lion's share of the channel budget, yet most vendors are not confident that they can effectively measure ROI from their program. I could write an article on this, but I already have. There is enough content on this blog and website to end that problem for ever-‘nuff said.

 

CCI today announced releasing Sales Performance Rebate Application- version 2.0.

The CCI Sales Performance Rebate Application was designed to reward a manufacturer's channel partners for achieving specific sales targets during a pre-defined time period. Version 2.0 enhances the original version by providing greater flexibility to adapt business rules in support of complex multicurrency and multilingual program and channel structures -- allowing manufacturers to modify existing programs and create new reward programs on-demand. Plus, in addition to cash rebates, rewards may take the form of loyalty points, MDF funds, other "soft" incentives, or any combination thereof. "In this economy, we are seeing a growing interest in incentive management solutions for manufacturers to maintain sales momentum within a target range through their sales channels." said Craig DeWolf, Vice President of Sales and Marketing at CCI. "Motivating and rewarding partners to achieve sales goals and real-time ability to track progress towards those goals is more vital than ever for our clients. The CCI Sales Performance Rebate Application will enable channel marketers to manage very complex reward scenarios for their partners with greater ease and improved flexibility."

The CCI Sales Performance Rebate Application accommodates multi-tiered channel models offering differing reward structures. This allows manufacturers to set individual sales goals by partner, as well as provide additional rewards for incremental attainment. Rewards may be configured across a combination of variables, including: reseller classification, sales period, specific products sold, units (value or quantity), and reward type (cash rebate or other). Additionally, rewards may be "stacked" allowing any partner to work toward multiple rewards simultaneously. Partners can then benefit from combinations of awards such as a tiered reward structure or the assignment of different rewards per product line or product type.

"This Sales Performance Rebate Application is an integral part of a comprehensive incentive solution suite CCI offers manufactures to motivate each level of the sales and demand chain", says Mr. DeWolf. "Depending on our client's objectives, they can combine stretch goals with end-user rebates, opportunity management programs and other incentive types to help assure an efficient and active sales pipeline. And because CCI offers both professional and administrative services, we can provide clients with an end-to-end solution including front end program design, and ongoing program management, including compliance auditing, reward distribution and user support."

Like all CCI solutions, the Sales Performance Rebate Application runs on the CCI SPECTRUM Platform, so reporting and business process for all incentive programs may be managed through a single interface. Management can easily keep track of current and prior reward earnings for their partners through in-depth reports and handy dashboard tools. Partners can track progress through their own set of reports allowing them to quickly access up to date information on sales targets, attainment to date, rewards earned and their requirements to reach the next earning level.

For more information, please visit: http://www.channelmanagement.com/solutions_incentive.html
http://www.channelmanagement.com/solutions_incentive_salesperform_app.html

Click Here to download the data sheet.

What inspires you? The beginning of a new year? The inauguration of a new president? Following on this theme of reflection and renewal, we seem to be hearing a lot about refreshing the channel. Beyond the time-tested and typical co-operative funding, leading channel-centric companies are expanding their reach to deliver incentive offerings that go above and beyond "classic co-op". Here is a sampling of what we have uncovered:

Flexible Rebates:
Not merely "one size fits all" but multiple rebate programs tailored to partner tier, selling capability, and product category. These are programs that can run concurrently, each with their own shelf life and business objective (hopefully to create incremental revenue for the manufacturer!). They can change in mid-stream as business conditions and consumer responses change.

Branded SPIFs:
SPIF campaigns are the most direct route-to-market for influencing channel sales behavior. Many principals in partner organizations are reluctant to have their sales reps participate in these programs because of a perceived lack of control over the sales cycle. But successful SPIF programs engage their principals for buy-in well before the launch, aligning common business objectives between manufacturer and partner. Reloadable debit cards are a popular way to remit rewards and are literal "in-pocket" reminders of the manufacturer's branding and goodwill.

Banking Points:
The awarding of points can be understood as payment in a "currency" scaled to the measurement and performance standards set by the manufacturer. Points can be exchanged for tangible rewards: cash, vacation trips, furnishings, etc. They are often tied to incentive programs in which the manufacturer-partner objective is not revenue oriented. We know of one company program which remits points or dollars directly to their channel partners when they reach 100% of goal or above, and for those partners under 100%, the program "banks" points/dollars in partner accounts specifically for co-marketing activities.

Business Planning:
Manufacturers who understand the value of long-term investing in their channels will sometimes offer funding over a protracted period in return for a strategic business plan submitted by the channel partner. This funding is used by the partner for development purposes such as infrastructure, personnel, education, and training. The amount and type of funding is often tied to the actions and commitments by the partner to increase and accelerate manufacturer sales within an extended timeframe, usually in months or fiscal quarters. Within the past year, we have seen a number of companies making a conscious shift away from funding "one-off" partner marketing activities and toward strategic marketing campaigns which are part and parcel of annual partner business plans.

Advancing and diversifying in these areas will keep you ahead in partner mindshare and prove to invigorate your channel programs. It's a brand new year-- time to get inspired!

Michael DeBarros is the Business Development Manager at CCI. He is a veteran of 22 years in technology sales and has held channel management positions at two leading software companies. Michael's experience in working for both partners and vendors offers unique insight into today's channel challenges.

 

by Craig DeWolf CCI

The marketing planning process involves both the development of objectives and specifications for how they will be accomplished. There are five basic steps in the process in this process.

1. Determination of Organizational Objective

The basic objectives, or goals, of the organization are the starting point for marketing planning. They serve as the foundation from which marketing objectives and plans are built. These objectives provide direction for all phases of the organization and serve as standards in evaluating performance. Soundly conceived goals should be S.M.A.R.T - specific, measurable, attainable, realistic and time-specific.

2. Assessing Organizational Resources

Planning strategies are influenced by a number of factors both within and outside the organization. Organizational resources include capabilities in production, marketing, finance, technology, and personnel. By evaluating these resources, organizations can pinpoint their strengths and weaknesses. Strengths help organizations set objectives, develop plans for meeting objectives, and take advantage of marketing opportunities. Resource weaknesses, on the other hand, may inhibit an organization from taking advantage of marketing opportunities.

3. Evaluating Risks and Opportunities

Environmental factors - competitive, political, legal, economic, technological and social - also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products. The marketing environment may also pose threats to marketing opportunities. For example, a new genetically engineered drug may be developed with the potential to become a $1 billion-a-year product. But a government agency may delay requests to market the drug due to regulations.

4. Marketing Strategy

The net result of opportunity analysis is the formulation of marketing objectives designed to achieve overall organizational objectives and develop a marketing plan. The marketing planning effort must be directed toward establishing marketing strategies that are resource efficient, flexible, and adaptable. The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.

5. Implementing and Monitoring Marketing Plans

The overall strategic marketing plan serves as the basis for a series of operating plans necessary to move the organization toward accomplishment of its objectives. At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.

Craig DeWolf is Vice President of Sales and Marketing for CCI.

Craig's extensive experience spans over 20-years, across a variety of industries and distribution models. This background has given Craig an excellent perspective of the issues facing marketers and their distribution partners, and the solutions that will make them mutually successful.