Incentive Program Survey Results Webinar

7250 Redwood Blvd. Ste. 105

Novato, CA 94945

415.472.5100

www.channelmanagement.com

Channel Incentive Usage/Acceptance Study


Survey Focus

• Perceived effectiveness across a variety of program types– Including gap in vendor/partner perceptions

• Gain deeper insight into MDF and Co-op practices– Overall– Inclusion of Social Media

• Areas of focus for 2011 (incentive programs and more)– Pain Points– Key Initiatives


Incentive Programs Included

• Co-op/MDF• Opportunity Management• SPIF/Loyalty Programs (targeting sales reps)• Partner Rebates (headquarter)• End User Rebates• Trade-In Programs


CCI provides solutions to Manage, Measure, and Optimizechannel incentive programs for improved ROI


Incentive Solutions throughout the Demand Chain

Distributor Reseller Sales Reps Consumer

Co-op/MDF

Streamline management of joint marketing programs

Marketing Planner

Plan marketing programs, forecast and measure ROI SPIF & Rebates

Run short- and long-term incentive programs Sales Performance Rewards

Reward channel partners for attaining sales goals Trade In Rewards

Manage incentive programs requiring physical return of goods Opportunity Management

Deal Registration, Referral Rewards and Special Pricing


Software and Services

Program Management

On Demand Software

Professional Services

Program and partner support streamlines operations and expedites fulfillment

Comprehensive application suite manages incentive activity across multiple programs

Industry expertise drives impactful program design and ongoing performance enhancements


Hardware Software Storage Telecom Entertainment Other

Current Clients

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Methodology:

• Quantitative, multiple choice questionnaire • 15,000 vendors/30,000 partners• Where possible, many questions were “mirror image” to

compare perceptions between vendor/partner audiences• Focus on B2B Technology

– Hardware– Software– Office Automation– Telecommunications (hardware and services)

• Results are indicative of trends and attitudes


Responder Profile: Manufacturer/Vendor Responses

• 65% Channel sales and marketing positions

• Primary regional scope: ~50% North America and ~50% Global

• Sell a majority (80%+) of their products through the channel


Responder Profile: Partner Responses

• ~70% VARs – Remainder were managed services providers, direct marketers, ISVs

• Annual sales were evenly represented between $1MM to more than $20MM


Novato, CA 94945

415.472.5100


Program Usage


Program Utilization: Manufacturer/Vendor Responses

Co-op/MDF Reimbursement 77.2%

Sales Rebates for Specified Sales Targets 62.0%

SPIF and Loyalty Programs Directed to Reseller Sales Reps 48.9%

SPIF Programs Funded by MDF and Other Soft Dollars 31.5%

Opportunity Management Rewards/Discounts 39.1%

Trade-In Programs Directed to End Users or Channel Partners 30.4%

End User Rebates—Post Purchase 23.9%

Co-op/MDF is the most commonly used program, with Channel Rebates and SPIFs coming in second and third respectively



Co-op/MDF 40.2%

Opportunity Management Programs 44.8%

Marketing Resource Center 11.5%

Rebate and Incentive Programs 48.3%

Sales & Marketing Training for partners 57.5%

Lead management to channel partners 34.5%

Joint Business Planning 39.1%

Technical Training for Channel Partners 40.2%

In the context of all program types, incentive programs at large fall just behind Sales and Marketing Training in importance.



Co-op/MDF 25.6%

Opportunity Registration/Management Programs 25.6%


Rebate and Incentive Programs 18.6%

Sales and Marketing Training for Channel Partners 12.8%

Lead Management to Channel Partners 23.3%

Joint Marketing Planning/Joint Business Planning 20.9%

Technical Training for Channel Partners 20.9%

Vendors seem to have a love or hate relationship with Co-op/MDF and Opportunity Management, as they tie for second behind Marketing Resource center for LEAST effective channel program


Program Utilization: Partner Responses

Co-op/MDF 50.1%

Opportunity Management 14.4%


Volume Rebates 40.7%

Vendor-sponsored SPIF programs 49.1%

Sales and Marketing Training 39.2%

Receiving leads from vendors 40.5%

Joint Marketing Planning/Joint Business Planning 17.0%

Technical Training 32.1%

Partners feel that incentive programs are more important than Sales & Marketing training with Co-op/MDF, SPIF Programs, and Volume rebates leading.


Program Utilization: Partner Responses

Opportunity Management Programs were ranked LEAST effective with Joint Marketing Planning as the second least effective vendor provided tools.

Partners and Vendors alike don’t feel that marketing resource centers are effective.


Novato, CA 94945

415.472.5100


Co-op /MDF Programs


Co-op/MDF: Manufacturer/Vendor Responses

Online Advertising (Google Pay-Per-Click or similar) 11.3%

Application Development 10.0%

Public Relations 11.3%

Trade Show and Conference Attendance 37.5%

Offset Staffing Costs for Sales or Technical Specialist 10.0%

Website Development and Management 16.3%

E-mail Expenses 11.3%

Social Media 16.3%

Customer Events 47.5%

Biz Dev efforts are considered to be the most effective use of funds—at the effect of traditional marketing programs


Co-op/MDF: Partner Responses

Preferred activities parallel that of vendors.

Partners believe that incentive programs and Biz Dev activities are the best use of funds to help build their business.



Traditional Advertising efforts are losing favor among vendors.

Print advertising ranks higher than promotional give-awaysas the LEAST-effective reimbursable activity.



Again, print based activity seems unpopular as does all traditional promotional activity



Prompt approval/turnaround of funding request 64.2%

Prompt reimbursement 55.4%

Clear guidelines 34.6%

Easy claim submittal 60.4%

Reimbursement for lead generation and marketing activities 16.1%

Offset business development expenses (such as training, staffing,

demo equipment)21.1%

Predictable budgets 12.0%

Easy access to available allowances 17.9%

Claim and payment tracking 17.3%

When it comes to what partners seek most in a co-op /MDF program, simplicity and expediency are the most important characteristics



Simplified guidelines and administration 51.5%

Faster payment and reimbursement 46.4%

More predictable allowances 23.1%

Joint marketing planning for optimal program usage 26.0%

Marketing assistance 26.0%

Improve program support and escalation processes 16.8%

Faster turnaround of funding requests/prior approvals 32.6%

Partners feel that vendors need to streamline their programs



Improve analytics and ROI 60.8%

Improve partner support and issue resolution 25.3%

Improve marketing support/program planning 31.6%

Revise guidelines to better reflect company goals 24.1%

Faster payment process 12.7%

Global standardization 11.4%

Streamline administration 29.1%

Integration with SFA/CRM system 22.8%

Conversely, Vendors are more interested in improved analytics with a strong lead


Novato, CA 94945

415.472.5100


Social Media


Social Media: Partner Responses

60% “No”

40% “Yes”

Only 40% of partners surveyed use social media


Social Media: Partner Response

Of those that use social media, LinkedIn and

Facebook are the most popular.


Responder Profile: Partner Responses

Only 12 % of Social Media programs are funded by

partner Co-op/MDF programs, in whole or part.

12%“Yes”

88% “No”


Responder Profile: Manufacturer/Vendor Responses

60% of vendors responding currently do not support their partners for social media in any form. Of those that do, most supply content only.

Only 8% of vendors reimburse for social media activity through co-op MDF.

32%

31%

26%

8%


Novato, CA 94945

415.472.5100


Looking Ahead


Looking Ahead: Manufacturer/Vendor Responses

Most respondents expect their channels to carry a higher percentage of total sales for 2011

66%

33%

1%



Correspondingly, vendors expect to recruit more partners in the new year

Increase 54%

Reduce 23%

Maintain 22%



Exactly half the audience expects their channel budget to grow 50% Grow

44% Maintain

6% Decrease



Despite an expected growth in total channel sales and partner population, just under half of the vendors expect to grow their channel management teams

53% Maintain

44% Grow

3% Decrease



Vendors are concerned about their partners’ ability to effectively sell and market.

The need for analytics and reduced complexity is also widespread



Analytics is the # 1 priority for vendors in the new year,

followed by Sales and Marketing initiatives



No Program Planned Maintain Increase

FocusDecrease

Focus

Co-op/MDF 10.0% (8) 61.3% (49) 27.5% (22) 1.3% (1)

Opportunity Management 14.5% (12) 33.7% (28) 51.8% (43) 0.0% (0)

Partner Analytics 14.6% (12) 25.6% (21) 59.8% (49) 0.0% (0)

Partner Lead Management 9.6% (8) 37.3% (31) 53.0% (44) 0.0% (0)

Marketing Resource Center 13.6% (11) 55.6% (45) 29.6% (24) 1.2% (1)

Rebate and Incentive Programs 6.2% (5) 48.1% (39) 44.4% (36) 1.2% (1)

Channel Sales and Marketing Training 2.4% (2) 45.8% (38) 51.8% (43) 0.0% (0)

Partner Portal/PRM/Back Office Systems 14.5% (12) 38.6% (32) 45.8% (38) 1.2% (1)

Partner Joint Marketing Planning 11.3% (9) 47.5% (38) 41.3% (33) 0.0% (0)

Vendors are increasing their focus on Channel Analytics and Lead Management, with Sales & Marketing Training and Opportunity Management tied for 3rd


Looking Ahead: Partner Responses

Partners are concerned about their lack of Sales & Marketing capabilities. This is second, however to their concern about the impact of cloud computing and adapting to a managed service model.


Novato, CA 94945

415.472.5100


Conclusions


Analytics

The Issue: Analytics is the #1 initiative expressed by Vendors• CCI has a library of ebooks and white papers available, as well as blog

topics– www.channelmanagement.com– blog.channelmanagement.com

• ID KPIs by “Program” as well as by “Partner”– Benchmark what successful partners are doing– Index individual partner performance based on those benchmarks

e.g.: 30% close ratio on deals registered within 60-days, or XX% utilization of MDF

• Consolidate costs and metrics for all programs to evaluate total investment in any one partner (Scorecard)


Joint Marketing Planning (JMP)

• The issue: – Partners’ don’t see the value. Vendors are beginning to embrace it.

• The opportunity-- JMP is the best way to:– Forecast of sales and marketing activity, and – Help align resources and funding with partner goals

• Tips and Trends:– Use JMP to simplify existing processes, e.g.: MDF funding allowance or

claiming– Extending JMP to unmanaged partners to justify investment– Provide rewards to partners for updating plans to report on progress

against goals– Capturing ROI information of all activities against business goals


Co-op/MDF

• The Issue:– “Most utilized program” among vendors, most popular among

partners. Yet, among “least effective” programs for vendors.

• The Opportunity:– Review program guidelines, revise to align with GTM strategy– Incorporate metrics to help evaluate spending against GTM goals

• Trends:– Simplify and streamline MDF program, e.g.: Reduce approval

requirements and accelerate partner reimbursement (less than 30-days from claim)


Social Media

• The Issue: – Partners’ are not yet embracing social media as marketing vehicle

• The opportunity today– Still too early to formally include social media as a reimbursable activity

• Trends– Provide partners with tools they can use to support social media efforts

(white papers, YouTube video’s etc)– Share “how to” advice and best-practices with partners


Deal Registration

• The Issue:– Partners and Vendors alike agree that Deal Registration programs are

providing diminishing returns

• The Opportunity:Has Deal Registration strayed from the initial promise?– Manage channel conflict– Convert “farmers” to “hunters”– Provide pipeline visibility

• The Trend– Many vendors are reviewing/revising structure, streamlining

administration


Questions/Discussion

Craig DeWolf

VP Strategic Development

P: 415.526.3223

E: [email protected]

Incentive Program Survey Results Webinar

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