Co-Op Reseller Adoption: Fixing the Five Biggest Co-Op Advertising Program Issues

Click here to load reader

  • date post

  • Category


  • view

  • download


Embed Size (px)


This presentation explores the main problems that limit successful reseller adoption of co-op advertising programs. This presentation dives into the issues (from the perspective of both the vendor and the partner) and then provides clear, actionable direction that a product manufacturer can use to improve overall reseller adoption.

Transcript of Co-Op Reseller Adoption: Fixing the Five Biggest Co-Op Advertising Program Issues

This is Where the Title Goes

Co-op Reseller AdoptionFixing the Five Biggest Co-Op Advertising Program IssuesFor national brands with co-op marketing programs1

Across the board, 50% of the co-op advertising dollars corporations and manufacturers offer to their resellers, arent being utilized.

This significant statistic indicates that something clearly isnt working in the co-op advertising ecosystem

FACT:Ive instigated a fantastic co-op advertising program

MOST COMMONLY STATED CO-OP MARKETING GRIPE:Why aren't my resellers taking advantage of it? Why does reseller adoption even matter to my corporation?


its crucial that you understand how important reseller adoption is to your corporation. Fostering and increasing adoption can and will significantly impact your bottom line, while also boosting that of your resellers at the local level.

once you determine that you are ready to improve your current co-op program, you must carefully consider how to track its overall effectiveness.

Why is Reseller Adoption Important?FIRST,SECOND,

track the overall effectiveness of their (your) program

Monitoring a suite of key performance indicators (with return on investment (ROI) being the ultimate measure) will help you get started.

NOTE: Many co-op advertisers mistakenly leave reseller adoption rates off their list without understanding your adoption rate, theres no hope for improving it.

Monitoring Key Performance IndicatorsEvery Co-Op Advertiser ShouldThree Important QuestionsThe following three questions will help you understand how tracking and focusing on your reseller adoption rates can shape your co-op advertising strategy and improve overall performance


Why You Need To Address This Question:Your overall reseller adoption percentage is the ultimate measure of the friendliness of your program. At a macro level, its an indicator of the:Reseller awareness of your programCommitment of your sales force to the programCreative and financial flexibility within the programEase-of-use of the program


Question 2 BudgetQUESTION 2:

Why You Need To Address This Question:A co-op advertising program likely represents a significant financial and resource investment. A low adoption rate means these investments are not being effectively leveraged across the entirety of your reseller network.


Question 3 AccessibilityQUESTION 3:

Why You Need To Address This Question:Co-op advertising programs with low adoption rates are typically slanted to serve larger retailers, often ignoring smaller, independent resellers. As channel consolidation continues especially in retail and technology it becomes increasingly important to build out smaller channel partners to mitigate the risk of relying too heavily on specific channel partners.


Now that you have a better understanding of how tracking and focusing on your reseller adoption rates can shape your co-op advertising strategy and improve overall performance.


The Key Issues that Hinder Your Programs Reseller Adoption Rate

What Steps You Can and Should Take to Boost Overall Results

Moving ForwardLETS LOOK AT.

Expense vs. Investment

Goal Misalignment

Low Reseller Awareness

Limited Creative Options Administrative Burden

Key Issues Impacting Reseller Adoption


Expense vs. Investment

Most manufacturers view their co-op advertising program as an expense, rather than as a long-term investment that they are making in their brands and its overall market visibility.

With this misguided mindset, a middling 50% adoption rate can hastily be brushed off as insignificant. Issue #1: Expense vs. InvestmentISSUE #1:

THE PROBLEM:When manufacturers look at their co-op advertising program as an expense rather than an investment, theyre not just OK with a low adoption rate they prefer it!

In their minds, the math reads something like this:[Revenue from Resellers - Co-op Advertising Costs = Total Revenue]

For organizations that view co-op as an investment, the math looks quite different: [Co-op advertising investment x Return-on-Investment = Total Revenue]

In the second model, you can see that the key is measuring and maintaining a consistent and repeatable level of ROI for the co-op program. This model COMPLETELY changes the strategic mindset of the entire organization!

Takeaway: Increased Program Investment = Greater Overall Revenue

Issue #1: Expense vs. Investment

THE SOLUTION:Step 1: Segment your reseller base into at least three tiers and look at your metrics based on these tiers:Tier 1: First 20% of Total Reseller RevenueTier 2: Middle 50% of Total Reseller RevenueTier 3: Last 30% of Total Reseller Revenue

Step 2: Track the adoption rate and correlation of co-op investment vs. revenue driven (ROI) on the above tiers and update accordingly, on a quarterly basis.

Step 3: In your quarterly update, include an action and investment plan for each tier. Each plan should indicate the opportunities available within that tier and the expected return for the corresponding investment.Issue #1: Expense vs. Investment

THE RESULTS:The simple approach of using defined tiers to segment your partner base and to measure ROI gives you a clear perspective on the performance of your co-op advertising program. Layering in an action plan and the expected ROI for each tier does two things:It makes it simple for your organization to understand the investment value of each tierSimplifies the application of resources needed to realize the associated returnsIssue #1: Expense vs. Investment

Goal Misalignment

In an unproductive co-op advertising program, the goals and incentives of the product manufacturer and the reseller do not align.Issue #2: Goal MisalignmentISSUE #2: THE PROBLEM:By nature, the vendor/reseller relationship is both cooperative and competitive. In the context of a co-op advertising, this can spur competing business objectives

PRODUCT MANUFACTURERS (VENDORS) WANT:Increased sales and brand awareness for their productsStrict adherence to brand guidelines and control over messaging, tactics and creative at the local levelRock-solid financial control and predictabilityRESELLERS WANT:Increased sales and brand awareness for their business, often independent of national-brand associationsFlexibility to execute tactics and materials that they know will work in their marketSimplified processes and quick payment/repayment transactions

Issue #2: Goal Misalignment

THE SOLUTION:Step 1: Perform an annual reseller satisfaction survey with your co-op participants. Identify the areas that require improvement, fix the issues and then communicate the actions you took to your resellers.

Step 2: View your co-op program as your key competitive advantage in the channel every customer engagement your reseller makes using the program means one less engagement with a competitor. Instead of demanding compliance entice participation!

Step 3: Review your documentation processes from beginning to end with the goal of removing absolutely anything unnecessary. Focus on moving to a primarily digital interaction and increasing the speed of your payments by 50%.

Issue #2: Goal MisalignmentTHE RESULTS:By understanding the objectives and challenges your resellers have and by reshaping your program to address these issues youll come away with a happier, more profitable and increasingly loyal reseller base.Issue #2: Goal Misalignment

Low Reseller Awareness

Resellers are generally unaware, unsure or dissatisfied with how the co-op marketing program operates. In addition, they often lack an understanding of how the program can benefit them.Issue #3: Low Reseller AwarenessISSUE #3: THE PROBLEM:While low reseller awareness might sound like a clear, straightforward issue, its important to note that your unaware resellers often fall into three distinct categories

TRULY UNAWARE Those who dont know that the program exists

AWARE BUT UNSURE Those who know that program exists but are unsure (or have a misguided understanding) of how it works

AWARE AND DISSATISFIED Those who tried the program and found it unsatisfactory

Issue #3: Low Reseller Awareness

Issue #3: Low Reseller Awareness

THE SOLUTION:Step 1: Develop an activation campaign that considers each of your segments and proactively brings them into (or back into) the program. Tailor and target it for your three identified reseller categories and your reseller tiers (identified in Issue# 1).

Step 2: If you have a distributed sales/marketing team, engage them in your program and reseller activation process. These teams are the mouthpiece for your company if you can sell the benefits of the program to them, theyll translate it to your resellers.

Step 3: Create marketing materials around the program. If you approach this as a consumer-oriented campaign and effectively pinpoint the features and benefits of the program to your audience, youll drive success and activation.

THE RESULTS:In the short-term, increasing the overall awareness of your program can and will have the most immediate impact on your adoption metrics.

Consider this the low-hanging fruit of reseller adoption!Issue #3: Low Reseller Awareness

Limited Creative Option