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.

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.

by Martin McNally

Director of Product Marketing, CCI

Channel sales and marketing is one of many business functions for whom incentive programs are commonplace. They are an expected ingredient of the model. But just having one is not enough: It has to hit all the right notes to generate desired results. The design of an incentive program must focus on the goal. Consider how the incentive program will help achieve the business objective. Just as important: What's in it for the channel partner?

In designing an incentive program, identifying the behaviors to incent is half the equation. Those parameters focus on the business - activities, dates, funding allocation, etc. Part of the program design must also focus solely on the channel partner. Incorporating enticing rewards is where you can forge the best likelihood for success. Consider what will compel your channel partners to be active participants in the incentive program. Include desirable rewards that will generate activity by channel partners and thus achieve results for channel marketers.

A wide range of reward models are available to channel marketers to fit both your program financial model and partner composition. Choose a reward that truly has value to your channel partners and don't be reluctant to experiment and mix it up. Nobody will say no to money, though some may view that approach as too predictable and therefore uninspiring. Points-based models can make thing interesting, as redemption can be available for a myriad of merchandise, events or other experiences. The partner may very well gain something that they would not otherwise acquire. (Points-based incentive programs work well for ongoing programs, as opposed to transactional programs, though that's another angle to pursue.) It may also be appropriate to hold the reward close to the vest and offer soft funds only. This too can be appealing to the channel if subsequent co-op/MDF marketing activity is likely. It always feels good to have a credit on the books, so to speak. And don't forget about stored value cards, another reward vehicle that can feel like "money in the bank."

Whatever reward you choose, know that although reward fulfillment is the last step in an incentive program cycle, it may be the first consideration of your channel partners.