www.hawkeyechannel.comwww.hawkeyechannel.com
May 13, 2010
Vaughn Aust, VP Product Management
Enable Your Partners with Proven Strategies
www.hawkeyechannel.com 2© 2010 hawkeye, all rights reserved.
Agenda
Three practical tools to implement solid partner enablement strategies:1. Deal registration
• Benefits of deal registration• What partners and vendors want• Best practices• Automating deal registration
2. Global payment systems• Vendor and partner perspectives• Challenges of global payment systems• Implementing a global payment system
– Client success story
• Vendor Cost Savings
3. MDF/Co-op• MDF vs. Co-op and Push vs. Pull• Measuring Program effectiveness• Best practices• Automating MDF/Co-op
Ag
en
da
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Accelerate your channel success.
3
Capture mindshare. Increase sales. Boost margins. Foster loyalty.
Wh
y ha
wke
ye?
Strategy. Tackle your toughest challenge with actionable strategies that maximize sales and profitability.
Programs. Optimize investments with turnkey and custom tools—tailored to your unique needs.
Collaboration. Connect, collaborate and sell more through a partner-centric, multi-vendor community.
Why hawkeye?
Rare insight into emerging trends and best practices
Unique understanding of what it takes to engage partners
Turnkey and custom solutions tailored to your unique needs
Global deployment of industry-leading channel solutions. 108 currencies • 189 countries • 16 languages
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Solutions for the world’s leading companies.
4
You can depend on hawkeye to maximize your channel investments
1996 Cohesion, Inc. founded
1998 Hawkeye Group founded
2000 Hawkeye acquires Cohesion
2003 Hawkeye expands into Europe
2007 Hawkeye expands into Asia Pacific
2009 Hawkeye introduces PartnerConduit and SaaS offerings
Wh
y ha
wke
ye?
Channel focused. Strategic, experienced minds. Rare insight into emerging channel trends with a quest for game-changing opportunities.
Results driven. Flawless execution in translating strategic concepts into real channel solutions with a laser focus on results.
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DEAL REGISTRATION
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Why deal registration?
6
De
al R
eg
istratio
n
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Reduce channel conflict Protect partner sales investment Reduce partner margin erosion Provide early visibility into the partner
pipeline Enhance sales forecasting capabilities Reduce partner attrition/turnover Sustain and build mindshare Grow markets, market share, new
customer base Serve as a “control valve” for the sales
process
More vendors – 78.6% - offer deal registration
programs than just a year ago (only 70%).
2010 Partner Program Guide,Everything Channel
Partners most often participate in deal reg programs to beat the
competition and increase margin opportunities.
IPED
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What do partners want?D
ea
l Re
gistra
tion
A fast, responsive deal registration process supports the relationship of trust between partner and vendor that deal registration programs should help enhance.
Fast turnaround – no more than 24 hours Online registration process Simple & uncomplicated – no more than one screen of info Vendor to monitor process and restrict use for “deal squatters” Allow for longer sales cycles on some products without having to file
for multiple extensions Enforce the rules and protect the registrant
Make sure the process is available online and requires the minimum amount of paperwork to verify that a real deal exists, then base future registrations on how
much business is actually won. Don’t let one partner just list all the big opportunities, without working the deals.
Partner
www.hawkeyechannel.com
What do vendors want?
The vendor’s extended team needs enhanced functionalities.
De
al R
eg
istratio
nChannel Account
Managers
FinanceDistributors
Sales territory mapping Automated routing and status updates Routing option for Special Pricing deals and
standard Deals Online review and approval available for all
stakeholders Mobile approval available, especially for the
CAMs Status updates and Routing emails are easily
available in history Financial compliance controls Opportunities associated to distributors Upfront discount processes linked to
Distribution Link final payment/sales data back to deal
application Rebate payment check processing The ability to self serve, especially changing
territory mapping, routing and approval rules
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What are best practices in deal registration programs?
9
Clearly defined and enforced business rules with infrastructure to simplify participation and documentation.
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Program features and access• Easy-to-use registration process• Online visibility and reporting for both partners
and vendors• Flexible and scalable application• Self-service interfaces• Optimal resources to process and validate
registrations• Optimal payment process to approve and
process deals
Supporting infrastructure• Secure portal access• Ability to set partners up as suppliers• Automatic payment mechanisms• Automated matching of opportunities and orders• Verification of order eligibility• Exception processing• Automated metrics and reporting/scorecards
Key Components
Program Features
Supporting infrastructure
Business rules
Globalization
Compensation
De
al R
eg
istratio
n
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What are best practices in deal registration programs?
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Business rules• Full participant in vendor’s channel program• Single Sales Objective (SSO/deal) entered 30
days prior to closing deal• Rewards paid only after customer invoice is
paid• Reward paid for agreed upon products &
services• Exceptions processed by channel sales rep• Expiration of registered deals after “x” months
(6 months is typical, but may vary based on sales cycle for product/solution)
• Enforcement!– Vendors’ direct sales team– Arbitration options– Co-engagement and sub-contracting– Re-registration of expired deals
De
al R
eg
istratio
n
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What are best practices in deal registration programs?
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Globalization• Ability to handle multiple
currencies• Appropriate regional business
rules• Multiple language capability
Compensation• Match compensation to partner
role– Influencers: commission on the
sale or back-end rebates– Resellers: points system applied
to training, marketing, etc. (reinvestment)
De
al R
eg
istratio
nInfluencers• Services-centric
revenue model with generalist approach
• Objective is to empower services opportunities
Resellers• Solution
development revenue model based on vertical market expertise
• Objective is to leverage available add-on solution expertise and capabilities
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Client Success Story
12
Automated Deal Registration
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Protect and reward partners• Streamlined interface facilitates
identification, registration, development and closing of new sales opportunities
• Ability to search and view all opportunities by status, customer, product
Enforce program rules
Enhance pipeline visibility
Minimize administration requirements
Deliver clear ROI• Line-of-sight to ROI with deal tracking, full
audit trails, and real-time, global, consolidated reporting
De
al R
eg
istratio
n
Hawkeye’s ChannelDeal solution is powered by our channelconduit platform
Case in PointA network vendor needed a global, automated deal registration system that would help unify it’s operations. Within 3 years of implementation, the number of partners registering deals has tripled and the number of transactions has increased five-fold. Administration time has dropped dramatically – all resulting in increased partner profitability and incremental revenue growth.
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GLOBAL PAYMENT SYSTEMS
13© 2010 hawkeye, all rights reserved.
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“The number of solution providers rated as "in trouble" based on net income data jumped to 9.3
percent in 2010 from 5.8 percent in 2009...
After reaching a high of 250,000 in 2007, the number of solution provider businesses in the North American market dropped to 200,000 in
2009 as IT spending declined. Most of the solution providers that closed up shop generated
less than $1 million in annual revenue.Everything Channel research reported in
ChannelWeb, March 2010
Glo
ba
l Pa
yme
nt S
ystem
s
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Why do partners want a global payment system?
15
Glo
ba
l Pa
yme
nt S
ystem
s
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On time payments Payments in their preferred
currency Consolidated payments for
multiple programs Clear visibility into benefits Clear, consistent and understood
process
Partners are focused on business critical
processes. They want to reduce time spent on
administration.
Cash flow and on time payments are more important than ever
before!
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Why do vendors want a global payment system?
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Glo
ba
l Pa
yme
nt S
ystem
s
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Program managers and Operations managers want:• Reduce/eliminate partner
complaints• Focus on program success
Finance Directors want:• Focus on other finance functions• Global tax liability painlessly
addressed• Cost efficient payment process
Vendors are focused on reducing costs and increasing partner satisfaction.
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Why are global payments so challenging?
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Glo
ba
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yme
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•Multiple programs, duplicated effort•Different sources of payment information•Different methods of collecting bank account information•Front-line support knowledge
Process Inconsistency
•Different VAT/GST tax advice and resulting processes•More than 130 countries have these taxes•Vary between 5% and 25%•Partners are required to invoice the Vendor for the value of the benefit
VAT/GST Tax Liability
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Why are global payments so challenging?
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Glo
ba
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yme
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•Storage of partner personal information•Partner account entry – beneficiary name•Third parties: SAS 70, GAAP•Vendor bank account: access, batch control, auditing
Security*
•Varying routing methods: SWIFT, IBAN, ABA•Up-front/online versus Back-end processing
Bank Account Validation
*Hawkeye disclaimer: We are not tax experts, but are simply pointing out best practices that we have implemented for global, fortune 100 technology clients.
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What are the benefits of a global payment system?G
lob
al P
aym
en
t Syste
ms
For Partners For Vendors
Consolidation of payments Improved cash flow with
faster payment Provide bank details once Effective communication Managing fewer payments Standardized, predictable
cycle Online tracking of payment
process Payments in local currency
Standardized, single global payment platform
Reduced payment cycle time Predictable delivery of payments Improved partner satisfaction Consolidation of multiple payments Reduced transaction costs Centralized reporting & tracking Consistent banking data collection Standardized payment
communications Online, consolidated reporting Decreased Help Center volume
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What are best practices in a global payment system?
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Glo
ba
l Pa
yme
nt S
ystem
Centralize programs
Standardize payments
Validate banking information upfront
Utilize electronic invoicing
Require partners to invoice for market penetration services
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Client Success Story
21
System efficiencies improved cash flow for partners and cut costs for the vendor
© 2010 hawkeye, all rights reserved.
Where they were able to save:
Glo
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Hawkeye’s ChannelPay solution is powered by our channelconduit platform
Case in PointA technology vendor had programs in over 100 countries and had been using regionalized vendors and internal, regionalized accounting centers to process ~$1 billion in payments annually to over 8,000 partners. A global payment system helped them realize significant cost savings and increased partner satisfaction.
Customer service savings 38%Delivery & audit savings 67%Management savings 20%Saved per payment $25.1330-Day payment delivery >40%SLA >95%
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MDF/CO-OP
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Why do vendors fund partner marketing and sales campaigns?
23
Joint campaigns grow business through the channel.
MD
F/C
o-o
p
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MDF/Co-Op Spend
Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs
Partners contribute 4% of their marketing budgets to MDF/co-op programs
Grow channel
sales
Extend resources & budget
Build brand
awareness
Reach new
customers
Generate demand
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What are MDF and co-op funds—and how do they differ?
24
Funds differ by partner type and objective Market Development Funds (MDF): distributed to partners in advance of
sales• Ideal for partners with a services business model who “push” products through
channel; specify brand, develop markets, and grow business Co-op (Cooperative) Funds: distributed to partners based on % of trailing
sales• Ideal for partners who fulfill demand and “pull” products through channel;
do not specify brand or sell services
© 2010 hawkeye, all rights reserved.
MD
F/C
o-o
p
Push
Pull
Co-op and MDF should be used
differently based on “push” versus
“pull” expectations of the partner’s business
model.
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The Role of Partner Type
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Service PartnersConsult, Design, Implement
PUSH ABILITY
Mixed ModelTransactions + Services
“VAR”
Fulfillment PartnersTransaction, Volume
PULL REQUIREMENT
From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.
MD
F/C
o-o
p
Develop your discretionary funds program based on the types of partners you plan to enable.
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What do partners want in MDF/Co-op Programs?
26
MD
F/C
o-o
p
© 2010 hawkeye, all rights reserved.
Clear processes with simple rules Speedy payments—
30 days or less Online status/tracking and updates Pay claims in cash, not credit Greater flexibility for activities—
trust the partner to know their customers
and how to market to them Vertical-friendly options Solution-friendly options
“Simplifying the tool is the best way. I suggest having someone who knows
nothing about marketing or co-op try to work the tool and see what difficulty
that person has.”Partner
Most partners are involved in more than one program and
some in as many as a dozen; with each program, the
administrative burden grows.
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How can you measure the effectiveness of MDF/co-op programs?
27
Use solid, consistent metrics to measure performance
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Measurement MetricProgram ROI • ROI = Total Gross Profit/Total Cost of Program
• Revenue Per Invested Dollar (RPI) = Revenue Generated by Activity Cost of Activity• Sales $$• Total # Leads Generated
Program Utilization • # of Active MDF Partners Total # of MDF Partners
• # of Partners Using Tool• Total Hits to Site
Claim Activity • Claimed $$$ + Allocated $$$ Beginning $$$ + Adjustment $$$
• Total Claims Submitted• Total # Claims Denied (compliance)
Fund Utilization • Funds Accrued• Funds Expired
• Outstanding Liability• Unclaimed Funds
Prior Approvals • Total Pre-approvals Submitted• Total Pre-approvals Accepted
• Total Denied• Total Currently on Hold
System Efficiency • Total Calls to Channel Mgmt• Response Times on Calls• Total Emails to Channel Mgmt• Response Time on Emails
• Length of Time from Claim Approval to Payout
MD
F/C
o-o
p
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How do I measure ROI?
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MD
F/C
o-o
p
© 2010 hawkeye, all rights reserved.
1. Ask
2. Data analytics• Use Sales, MDF Campaigns, Average
Product Life Cycle, comparison of participating and non-participating
3. Execute campaigns on behalf of partners
Industry Benchmarks
Time from claim to payment—
3 weeks
Administrative cost / project—$20-$30 per project
Program cost vs. total value—
Less than 1%
Fund utilization rate—12%-50% industry range
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Program Utilization Challenges
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By some estimates, 50% or more of all potential MDF/Co-op funds go unused
© 2010 hawkeye, all rights reserved.
Why do funds go unused? Unfamiliarity/unaware Complexities, administrative burdens Processes that do not engender trust Long delays in approvals and
payment
Partners want to easily apply for funds—and
receive payments quickly.
Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden
grows.
Un-used funds = lost opportunities
MD
F/C
o-o
p
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What are best practices in MDF/co-op programs?
30
Employ integrated components to boost utilization.
MD
F/C
o-o
p
© 2010 hawkeye, all rights reserved.
Make it easy and
profitable
• Ease-of-use• Speedy
payments• Clear ROI• Online tools
Sell the value
• Drive awareness
• Help partners leverage unused funds
• Help field understand value
Speed deployment
and pay-outs
• Ready-to-go marketing campaigns
• Pre-approval• Easy fulfillment
End-to-end global
support
• Help desk• Claims auditing• Payment
processing• Reporting
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Client Success Story
31
Maximize fund utilization—and partner satisfaction
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Easily manage funds and approve/deny requests• Highly flexible, automated workflow• Online submission and management
Speed time-to-payment• Electronic funds distribution• Simplified compliance with tax and legal regulations
Easily track and measure program metrics• Single view of program activity status and reports• Complete, visible audit trail through integration of all
functions—Finance, CAM, Partner, and Administrator
Quickly deploy the solution—worldwide • Integration with your existing systems• Multi-languages, multi-currencies, local business rules
MD
F/C
o-o
p
Hawkeye’s ChannelMDF solution is powered by our channelconduit platform
Case in PointSubstantial ROI benefits can be realized with an automated solution. For one hawkeye client, deploying an automated solution to 325 partner companies in more than 60 countries, resulted in partner projects doubling within the first six months and payment time frames shrank from 12 weeks to less than four weeks.
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SUMMARY & QUESTIONS
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Key PointsK
ey P
oin
ts
Automation of key partner enablement
programs and features results in
critical cost savings for both the vendor and their partners.
MAKE IT FAST
MAKE IT EASY
MAKE IT TRANSPARENT
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Questions, Discussion
34
Qu
estio
ns
© 2010 hawkeye, all rights reserved.
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Vaughn Aust
VP, Product Management
THANK YOU
425.656.5825
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