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. Establishing Program Objectives2. Aligning your Program with the 3 ‘Masters’3. Using the 8 Key Variables to Drive Program Structure4. Gathering Metrics for ROI Insight5. Wrap Up: Common Pitfalls & Quick Wins

Comprehensive Solution Delivery

Optimize program design and performance

SaaS application suite to manage all program activity

Streamline operations with administrative services and support

On Demand Software

Program Management

ProfessionalServices

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

Partner Go-to-market

strategy

Customer

Purchase Process

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

SpecificMeasurableAttainableRelevantTime-bound

Targeted Program Objectives

To…..

“Increase sales overall or of specific products/solutions”

“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’

Partner Go-to-market

strategy

Customer

Purchase Process

PARTNER1. How does your

channel GTM?2. Are they

fulfillment? Adding value?

3. Selling just your solution or other?

CUSTOMER1. Are your brand or

are you a component?

2. What is their relationship with you and your partner?

ENVIRONMENT1. Expectations set by competition?2. Regional needs and practices?

Aligned Program Objectives

To…..

To…..

And…

“Increase sales overall or of specific products/solutions”

“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.”

“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.”

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 Variables1. 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”

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 Variables1. Program Eligibility2. 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 Variables1. Program Eligibility2. Program Period3. 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 Variables1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted

• Will the accrual or reimbursement level vary with specific products?

• Will program target all products/solutions or a subset?

Program Structure: Key Variables1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted5. 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 ActivitiesMarcom Business Development Partner Enablement

• Advertising• Direct Mail• Tradeshow• Literature• Catalogs• Merchandising

• Demo Programs• Telemarketing• Events/Seminars• Purchase/Sales

incentives

• Training and certification

• Product Champion/ Funded headcount

• Facilities

Co-opMarketing Expense

MDFContra Revenue

Program Structure: Key Variables1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted5. Eligible Activities6. Reimbursement % • To what extent do you want

to reward certain behaviors? Or discourage others?

Program Structure: Key Variables1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted5. Eligible Activities6. Reimbursement %7. Creative Requirements

• Brand adherence requirements for funding?

• Will you provide tools? Or, provide special incentives for use of your tools?

Program Structure: Key Variables1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted5. Eligible Activities6. Reimbursement %7. Creative Requirements8. Reimbursement Method

• How will you reimburse efforts? Cash? Credit?

• Should the method be consistent across all partner segments?

Example of Objectives to VariablesGIDGET 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 VariablesGIDGET 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

PROGRAM IMPACT• 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:

Direct Mail

Marketing Activities Directly Result in a Sale

Sale

Activity: Direct Mail Metric: Units Sold

Practical Application of MetricsSales are a result of multiple activities by Vendor & Channel

•Direct Mail•Email•Advertising

• Cust. Event • Telemarketing

• Demo/ Eval. Unit

• SPIF/ Sales Incentive

• Responders• Leads

• Attendees• Appointments

• Units Placed• Proposals• Opportunities

Created

• Units sold• Sales value• Opportunities closed

Activities:

Metrics:

Awareness Awareness Interest Interest Desire Desire (Trans-) Action (Trans-) Action

Tactical Activity Metrics Business Outcome Metrics

Quick Win:

Examine your program activities – are you paying for activities that are the domain of corporate marketing?

Captured from individual activities

Metrics Hierarchy

Metrics Hierarchy

Business goals attained through marketing programs

Metrics Hierarchy

A roll-up of partner performance

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?

Standardization Facilitates Comparison

Key Take Away:

Standardizing data format (and compliance) key to insights on ROI at activity, business and program levels

Key Take Away:

Standardizing data format (and compliance) key to insights on ROI at activity, business and program levels

Example of Metrics AlignmentGIDGET 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 SuccessCommon Execution Errors Remedy

• Low utilization rates

• Poor program understanding

• Poor alignment with Partner needs

• Clear, concise guidelines for program participation. • Simplified administration through automated processes

• No clear benefit to the program, no clear ROI

• Payments take too long

• Poor or delayed follow-through on special requests

• Program perceived as too vague or complex

• Objectives not properly identified• Metrics not universally implemented or available

• 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

• Program administration should follow-up within 48 hours for all special requests

• 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

Wrap Up1. 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 Up1. Establish Relevant Program Objectives2. Align Objectives with the ‘3 Masters’

1. Partner Go-to-Market2. Customer Purchase Process3. Competitive and Regional Environment

Quick Win:

Review program objectives annual in relation to changes in the three masters

Fine tune objectives accordingly

Wrap Up1. Establish Relevant Program Objectives2. Align Objectives with the ‘3 Masters’3. Design Program to the 8 Key Variables

1. Program Eligibility2. Program Period3. How funds are earned4. Products Promoted5. Eligible Activities6. Reimbursement %

Quick Win:

Reduce reimbursement % (or eliminate) on low value activities

Provide ‘in the box’, pre-packaged campaigns & tools for high value activities

Wrap Up1. Establish Relevant Program Objectives2. Align Objectives with the ‘3 Masters’3. Design Program to the 8 Key Variables4. Gather ROI insight with multi-level metrics

1. Tactical goals = results of individual marketing activity2. Business goals = business or campaign outcomes3. Program goals = overall attainment of program objectives

Quick Win:

Normalize metrics to standardize and enable comparisons

Consider an automated marketing planner solution

Thank You! Questions?

Dale.Taormino@channelmanagement.comwww.channelmanagement.com blog.channelmanagement.com@CCIChannels

415.472.5100

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