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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.
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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.
Enough about me, lets transfer the idea of complacency to you now. It amazes me how many marketers-particularly those in a dynamic industry like technology-maintain their channel programs year over year and expect better results. If you fall within this category, I remind you that it fits the definition of insanity-"doing the same thing over and over and expecting different results". So, I guess it's time for you to overcome your complacency.
Face it, your business objectives change, the economic environment changes (or so we hope), your competitors certainly aren't sitting still, why are you doing the same ol' same ol'? In fact, we recommend reviews no less often than annual with a schedule for quarterly enhancements likely. Yet, it's common that I see programs carry over with minimal revisions 3-5 years or more.
If you answer "yes" to any of these questions, it's time to review and revise your channel program NOW.
Ok, then. You know who you are. Your channel programs are not a cost of doing business; they are your competitive advantage. I have to believe that, I'm in the business of promoting that. My promise to you in return is that many more articles will come on this site that will help you simplify the process and guide you through the right decisions-really. Stay tuned.
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