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Rejuvenate Your Channel Programs by Going Beyond Co-op

Posted by Michael DeBarros on Thu, Jan 22, 2009
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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.

 


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COMMENTS

Great post, really well thought out.

posted @ Friday, January 23, 2009 12:04 PM by Mike N.


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