What struck me in this survey were the repetitive comments on the impact of channel program ROI. From measurement to trends to best practices, the ROI dynamic appeared multiple times as a response. Here are some of the pertinent survey questions:

Q. How do you measure the success of your MDF/co-op program?
A. ROI on activity.

Q. What measurements are important to your organization?
A. ROI, based on revenue.

Q. What are your biggest challenges with your MDF/co-op program?
A. Measuring ROI of activities.

Q. What have you done to overcome these challenges?
A. Implemented requirements for partners to communicate ROI.
A. Understand the importance of being able to demonstrate ROI.

Q. What innovations would you like to integrate into your MDF/co-op program in the future?
A. Better metrics/tracking of ROI.

Q. What changes have you made in your MDF/co-op program in the past 3 years?
A. Heavy ROI scrutiny-a good thing.

Q. What impact have these changes made, if any?
A. Better ROI measurement.

Q. Name one change to your MDF/co-op program that has made the most positive impact?
A. Focusing on ROI.

Q. Name one change to your MDF/co-op program that has made the most negative impact?
A. Funded programs that did not yield an ROI.

Q. 33% of respondents feel pressure from management to discontinue their MDF/co-op programs in the future. Why?
A. Lack of clear ROI.

In these challenging economic times when companies are scrutinizing every internal investment dollar, the last question and response is particularly relevant. Are you currently being asked to justify the value of your channel program? Do you have the ability to report in a timely manner on the metrics which tie your program objectives and activities to positive results? When push finally comes to shove, will your executive management team support your program because you were able to demonstrate a greater ROI versus another company program? It is not an understatement to say that the survival of your channel program may ultimately depend on how you answer these questions.

Yeah, social media is all the rage in channel marketing these days, but like sex in junior high school, everyone is talking about it, but no one is really doing it.

Clearly, social media has its place in today's marketing mix. That place is defined by your industry in general, and your own social media strategy in specific. So how social media fits in your marketing mix is beyond the scope of this writing, the bigger question often asked by our clients is: "Can/should we reimburse for social media as an activity within our promotional allowance program"? The answer, like most in marketing is "it depends".

Promotional allowance programs at their core are based on:

• Reimbursement for expenses incurred by channel partners to do mutually beneficial sales/marketing programs
• Established proof-of-performance that an activity took place (evidence that can be counted or tracked)
• Provide clear ROI, with business outcomes that are directly attributable to your brand/products
• Assuring message consistency throughout all branded, channel, and consumer communications

Your ability to overcome the challenges expressed above as it relates to social media that will define your answer as to whether it's a reimburseable activity or not in your MDF program.

However, here are some general thoughts on what we're observing today:

• None of our clients are offering reimbursement for social media efforts as of yet.
• One "best practice" may be to provide a comprehensive tool box to help partners start, or contribute to established social media vehicles promoting your brand or products (e.g.: "how to" flash or video content)
• If "reimbursement" is the issue, consider a sponsorship of private social media efforts (user group bulletin boards) that is either ‘flat rate' or tied to overall audience size.
• Consider the development of a sponsored social media vehicle of your own, in which partners are encouraged to participate as the "experts"-this however ignores popular the vehicles already in place, and thus shouldn't be your only approach.

Bottom line: don't feel that you have to be the first on your block to provide reimbursement for social media efforts through your promotional allowance program, but do feel free to experiment and to come up with creative ways to extend your own social media strategies down through the channel to encourage partner participation, collaboration and message consistency.

A common, and dangerous, misconception about social media is that it cannot be used as a business tool. Uninformed traditionalists go on-and-on about the inanity of reading personal posts about lunches, shopping trips, and even bathroom breaks. Executives rant about the loss of control and undisciplined communication that is encouraged by sites like Twitter, YouTube, Facebook, and even LinkedIn. Some companies even block worker access to popular social media sites in the mistaken belief that they divert workers from the real business of serving customers. My Response: ROTFL.

Despite the protestations of some, end-user customers increasingly use social media to get information about products, services, manufacturers, and even resellers. And reseller salespeople are following right behind. Here are some things they are already doing to build their business using social media tools.

1. Find New Customers: Resellers are already staffing to identify new sales prospects in public on-line forums, communities, and networking sites like LinkedIn and Plaxo. It's even possible to join the branded communities of competitors and trade associations and participate in the dialogue. With this kind of access to information, it's easy to develop a qualified prospect list by reading their comments and posts over a period of time.
2. Improve Close Rates and Shorten Sales Cycles: According to a recent Powered Social ROI Report, customers in an on-line community are 68% more likely to purchase a product if they learn about it in an on-line community. And the cost of acquiring new customers (or staying in touch with old ones) is significantly lower.
3. Reduce Support Costs: According to Lithium Solutions (providers of enterprise on-line communities) social media can reduce support costs in a variety of ways - and they have the usage data to prove it. Support problems can be deflected to on-line technical communities, which are far less expensive than call centers. Within the community, technical issues can be resolved more quickly and with greater accuracy. Plus, language issues are less of a problem.
4. Increase Customer Satisfaction: Customers are happy when their needs are met quickly. So if they find information, get technical support, or communicate with an experienced user about a potential product purchase on a social networking site, then their needs are met quickly. Customer satisfaction surveys consistently show that customers are significantly happier when they are in active on-line communities.
5. Train Employees and Customers: Resellers can go to their favorite social media site and quickly get the information they need. For example, type Cisco into the Flickr search engine and get 50,000 matches, many of them detailed product pictures. Do the same search on YouTube and find 10,000 Cisco videos on products, programs, and services. Many of these videos are neatly organized into play lists so resellers or customers can watch them in order.
6. Build Partnerships with other Resellers: As the number of resellers declines, partnering with the ones who are left is more competitive. But not if you know where they hang out in the social web. Channel partners can join one of the many reseller groups on LinkedIn or Facebook -- or create a profile on Partnerpedia - to develop complementary partnerships. This is how many new SaaS developers are building their channels.

These examples are in addition to resellers using social media to help with advertising, building a brand, recruiting employees, disseminating information, filling webinars, and other business building functions.

Some vendors are already training their partners on how to use social media to build their business and increase revenue. (Cisco recently announced a program to do just that!) Unfortunately for the channel, most channel programs fall into the laggard category - and their channels will suffer for it.

Mike Dubrall is Managing Director of Gilwell Group, a consulting company that specializes in "Channels of the Future" research. He is a regular blogger on Channel Champion and manages the Channels of the Future group on LinkedIn. (All channel managers are welcome to join the group.)