Best Practices Webinar Series Presents…
“Tune Up Your Joint Marketing
Program for 2012”
Featuring Dale Taormino, Director of Professional Services, CCI Inc.
10 November 2011
Dale Taormino
Director, CCI Professional Services
• 15 years experience developing channel programs
– Partner strategy
– Program development
– Domestic and international implementations
• Currently heads CCI’s professional group
– Program design & optimization consulting
– Management of all new software deployments
– Trusted advisor
• Formerly…
– Director of Business Development & Marketing for FON Wireless
– Manager of Global Partner Programs for Mindjet Corporation
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Agenda
1.
2.
3.
4.
5.
Establishing Program Objectives
Aligning your Program with the 3 ‘Masters’
Using the 8 Key Variables to Drive Program Structure
Gathering Metrics for ROI Insight
Wrap Up: Common Pitfalls & Quick Wins
Comprehensive Solution Delivery
On Demand
Software
SaaS application suite to manage all program activity
Professional
Services
Optimize program design and performance
Program
Management
Streamline operations with administrative services
and support
Technology Focused Clients
Hardware
Software
Storage
Telecom
Entertainment
Other
PART 1:
ESTABLISHING PROGRAM OBJECTIVES
What are the right objectives for your Joint Marketing Program?
Variety Program Objectives
• Increase sales overall or of specific products/solutions
• Promote up-sell or cross-sell of new products to
existing customers
• Recruit new channel partners with special
“jumpstart” allowances
• Focus spending behind specific initiatives, media, or
events
• Help introduce products/solutions to new target
segments
• Focus on target industries, or geographic markets
• Win channel Mindshare and Share of Voice vs.
competition
• Improve channel “readiness” by enabling training,
certification, and other knowledge building activities
Review Your Program Objectives
Sales
strategy
1. Review in context of corporate
goals/strategy
2. How will your program
contribute? How can the dollars
available best be utilized?
3. Adjust (if necessary) and write in
SMART format
Marketing
Strategy
Partner
Go-to-market
strategy
Channel
Strategy
Program
Customer
Goals
Purchase
Process
Specific
Measurable
Attainable
Relevant
Time-bound
Targeted Program Objectives
“Increase sales overall or of specific products/solutions”
To…..
“Gidget Inc.’s 2012 Joint Marketing Program will provide funding to
partners for field marketing campaigns that will drive the launch of our
Synergy Solutions product line to the into health care vertical, and goal of
$1M in sales & 2% market share.”
PART 2:
ALIGNING YOUR PROGRAM WITH THE
THREE “MASTERS”
How aligned are your objectives?
Hitting the Program ‘Sweet Spot’
Customer
Purchase
Process
Partner
Go-to-market
strategy
PARTNER
1. How does your
channel GTM?
2. Are they
fulfillment?
Adding value?
3. Selling just your
solution or
other?
Partner
Go-to-market
Environment
strategy
Competition
Geography
Ideal Program
Structure
Activities
Customer
Administration
Purchase
Process
ENVIRONMENT
1. Expectations set by competition?
2. Regional needs and practices?
CUSTOMER
1. Are your brand or
are you a
component?
2. What is their
relationship with
you and your
partner?
Aligned Program Objectives
“Increase sales overall or of specific products/solutions”
To…..
“Gidget Inc.’s 2012 Joint Marketing Program will provide funding to partners for
field marketing campaigns that will drive the launch of our Synergy Solutions
product line to the into health care vertical, and goal of $1,000,000M in sales &
2% market share.”
To…..
“Gidget Inc.’s 2012 Joint Marketing Program will provide funding to certified
Gold and Silver partners for field marketing campaigns that will drive the launch
of our Synergy Solutions product line to the into health care vertical in the US &
EMEA markets, and goal of $1M in sales & 2% market share.”
And…
reflected in the 8 Key Program variables…
PART 3:
USING THE 8 KEY VARIABLES TO DRIVE
PROGRAM STRUCTURE
How do I translate my objectives to my program structure?
Program Structure: Key Variables
Program Structure: Key Variables
1. Program Eligibility
• Which channel partners will
be offered the program?
• Will they all be offered the
same program?
Robinson-Patman Guidelines:
“Competing channel partners must be
offered similar programs on a
proportionately equal basis”
Program Eligibility Examples
• B2B Mobile Solutions Provider
– Coop Program for distribution partners
– MDF Program for all other channel partners
• Design Software Company
– MDF program for certified partners only
– Top tier (over x dollar) is given specific MDF budget annually based on
sales volume
• Printing Equipment & Managed Services Company
– Program for ‘volume’ partners
– Targeted Program for ‘value’ partners that support higher end
solutions
Program Structure: Key Variables
1. Program Eligibility
2. Program Period
• Annual or quarterly are most
common
• Should align with sales cycle
and product/solution
seasonality
• Do you need a lesser or
greater degree of control?
Product Seasonality vs. Program Period
Program Structure: Key Variables
1. Program Eligibility
2. Program Period
3. How funds are earned
• Discretionary or earned
accruals? Combination?
• Past sales performance or
anticipated future
performance?
• Do the funds roll off or expire at
once?
Baseline definitions
• Co-op programs
– Marketing allowances are accrued as a percentage of sales, funds are considered
more of an entitlement
– Guidelines are well defined, with comprehensive proof-of-performance
requirements
– May require minimal pre-approval requirements fostering ease-of-use
– Lend themselves to expense accounting
• MDF/JMF programs
– Discretionary funds, not ‘owned’ by partners
– The available funds are often not announced in advance, but are negotiated to
achieve specific goals
– Often require less complete proof-of-performance documentation than
traditional co-op programs, and pre-approval is required
– Lend themselves to contra-revenue accounting
Program Structure: Key Variables
1.
2.
3.
4.
Program Eligibility
Program Period
How funds are earned
Products Promoted
• Will the accrual or
reimbursement level vary with
specific products?
• Will program target all
products/solutions or a subset?
Program Structure: Key Variables
1.
2.
3.
4.
5.
Program Eligibility
Program Period
How funds are earned
Products Promoted
Eligible Activities
• How will the activities allowed
support your go to market
strategies?
• How will they support your
Partners’ go-to-market
strategies?
• What behaviors will you want
to ‘reward’?
Eligible Activities
Marcom
•
•
•
•
•
•
Advertising
Direct Mail
Tradeshow
Literature
Catalogs
Merchandising
Business Development
•
•
•
•
Co-op
Marketing Expense
Demo Programs
Telemarketing
Events/Seminars
Purchase/Sales
incentives
Partner Enablement
• Training and
certification
• Product Champion/
Funded headcount
• Facilities
MDF
Contra Revenue
Program Structure: Key Variables
1.
2.
3.
4.
5.
6.
Program Eligibility
Program Period
How funds are earned
Products Promoted
Eligible Activities
Reimbursement %
• To what extent do you want
to reward certain behaviors?
Or discourage others?
Program Structure: Key Variables
1.
2.
3.
4.
5.
6.
7.
Program Eligibility
Program Period
How funds are earned
Products Promoted
Eligible Activities
Reimbursement %
Creative Requirements
• Brand adherence requirements
for funding?
• Will you provide tools? Or,
provide special incentives for
use of your tools?
Program Structure: Key Variables
1.
2.
3.
4.
5.
6.
7.
8.
Program Eligibility
Program Period
How funds are earned
Products Promoted
Eligible Activities
Reimbursement %
Creative Requirements
Reimbursement Method
• How will you reimburse
efforts? Cash? Credit?
• Should the method be
consistent across all partner
segments?
Example of Objectives to Variables
GIDGET INC.
•
•
•
•
Corporate Strategy (Sales/Mrkt/Channel)
– Focused on cross-sale, up sale in
existing accounts
– Direct sales and small value add,
solution oriented channel
Channel GTM
– Complementary products, selling
network implementation, service
contracts
Customer Buying
– Expertise, reliability, uptime & fast
service for issues of key importance
Environment
– Regulations differ greatly region to
region
– Brand vs competition recognition
differs greatly
Example of Objectives to Variables
GIDGET INC.
PROGRAM IMPACT
•
•
•
•
•
Corporate Strategy (Sales/Mrkt/Channel)
– Focused on cross-sale, up sale in
existing accounts
– Direct sales and small value add,
solution oriented channel
Channel GTM
– Complementary products, selling
network implementation, service
contracts
Customer Buying
– Expertise, reliability, uptime & fast
service for issues of key importance
Environment
– Regulations differ greatly region to
region
– Brand vs competition recognition
differs greatly
•
•
•
•
•
Program available to established, certified
and trained partners
Funds run annual
Funds are accrued based on past sales
volume, additional discretionary fund for
service only partners
Only enterprise products eligible
higher reimbursement %’s on funded
headcount, and education oriented
activities (for partner)
Branding & competitor displacement
activities have higher reimbursement in
some markets
PART 4:
GATHERING METRICS FOR ROI INSIGHT
How best can I best measure program results?
Perception:
Marketing Activities Directly Result in a Sale
Direct Mail
Activity: Direct Mail
Sale
Metric: Units Sold
Practical Application of Metrics
Sales are a result of multiple activities by Vendor & Channel
Awareness
Activities:
Metrics:
Interest
•Direct Mail
•Email
•Advertising
• Cust. Event
• Telemarketing
• Responders
• Leads
• Attendees
• Appointments
Desire
• Demo/
Eval. Unit
Tactical Activity Metrics
(Trans-)
Action
• SPIF/ Sales
Incentive
Business Outcome Metrics
• Units sold
• Units Placed
Quick Win: • Sales value
• Proposals
• Opportunities closed
• Opportunities
Examine your program
Created
activities – are you paying for
activities that are the domain
of corporate marketing?
Metrics Hierarchy
Captured from individual activities
Tactical Metrics
Metrics Hierarchy
Business goals attained through
marketing programs
Business
Outcome
Tactical Metrics
Metrics Hierarchy
A roll-up of partner performance
Program
Goals
Business
Outcome
Tactical Metrics
Metrics Hierarchy
Key take –away:
• Designated metrics must be indentified
in advance and captured at every level
• ‘Lowest’ metric must map to ‘highest’
• Begin by measuring baseline: where are
at in relation to where you are going?
Program
Goals
Business
Outcome
Tactical Metrics
Standardization Facilitates Comparison
Responders
Qualified
Leads
X
X
X
Advertising Online
X
X
X
Direct Mail
X
X
X
Demo Equipment
X
Marketing Collateral
Newsletters
Proposals/
Opportuniti
es
# of Units
Placed
Impressions
Advertising: Print/ Broadcast
Sales
Presentatio
ns
Attendees
METRICS BY ACTIVITY TYPE
X
X
X
X
X
X
Seminar Events
Key Take Away:
X
Telemarketing
X
Xdata format
X
X
Standardizing
(and compliance)
X
key to insights on ROI at activity,
businessX
and program levels X
X
Tradeshows
Training
Webcasts
X
X
X
X
Example of Metrics Alignment
GIDGET INC.
•
•
•
Program Goal
– Increase product up sales in
existing accounts
Business Outcome
– Develop opportunities by
promoting benefits of newest
product to accounts with old
legacy product
Tactical Activities
– Email and Direct mail campaigns
– Educational Webinars
– Regional 1-day seminars
Metrics Hierarchy
•
•
•
Program Metrics
– % increase in accounts moved
from legacy to new product
– Pipeline conversion %
– Gross Margin of opp. won
Business Metrics
– # of new opportunities created
– # of proposal delivered to existing
accounts for new proposal
Tactical Metrics
– # of impressions
– # of attendees
– # of leads
– # of demos
PART 5:
WRAP UP: COMMON EXECUTION
ERRORS AND QUICK TIPS
Execute for Success
Common Execution Errors
• Low utilization rates
• Poor program understanding
• Poor alignment with Partner needs
Remedy
• Survey partners to better understand your program
alignment with their go-to-market strategy
• Assure adequate training is in place to assure uniform
understanding of program benefits and administration
• Consider joint planning with larger partners through
high-touch Channel Account Managers
• Program perceived as too vague or complex
• Clear, concise guidelines for program participation.
• Simplified administration through automated processes
• No clear benefit to the program, no clear ROI
• Objectives not properly identified
• Metrics not universally implemented or available
• Payments take too long
• Cash flow is the largest concern for most business
today most programs are pre-funded by channel
partners, reimbursement should prompt-- less than 30
days from claim approval
• Poor or delayed follow-through on special
requests
• Program administration should follow-up within 48
hours for all special requests
Wrap Up
1. Establish Relevant Program Objectives
1. Tie your objectives to your Sales, Marketing & Channel
Strategy
2. Be specific & measurable – use the SMART format
Quick Win:
Review program objectives
annual in relation to Corporate
objectives
Update SMART format
Wrap Up
1. Establish Relevant Program Objectives
2. Align Objectives with the ‘3 Masters’
1. Partner Go-to-Market
2. Customer Purchase Process
3. Competitive and Regional Environment
Quick Win:
Review program objectives
annual in relation to changes in
the three masters
Fine tune objectives
accordingly
Wrap Up
1. Establish Relevant Program Objectives
2. Align Objectives with the ‘3 Masters’
3. Design Program to the 8 Key Variables
1.
2.
3.
4.
5.
6.
Program Eligibility
Program Period
How funds are earned
Products Promoted
Eligible Activities
Reimbursement %
Quick Win:
Reduce reimbursement % (or
eliminate) on low value
activities
Provide ‘in the box’, prepackaged campaigns & tools
for high value activities
Wrap Up
1.
2.
3.
4.
Establish Relevant Program Objectives
Align Objectives with the ‘3 Masters’
Design Program to the 8 Key Variables
Gather ROI insight with multi-level metrics
1. Tactical goals = results of individual marketing activity
2. Business goals = business or campaign
outcomes
Quick Win:
3. Program goals = overall attainmentNormalize
of program
metricsobjectives
to
standardize and enable
comparisons
Consider an automated
marketing planner solution
Thank You! Questions?
Dale.Taormino@channelmanagement.com
www.channelmanagement.com
blog.channelmanagement.com
@CCIChannels
415.472.5100
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