give bad mdf the boot
TRANSCRIPT
Give Bad MDF the Boot in 2016The 8 Key Factors for Maximizing Success
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Steven Kellam
President
CCI | Global Channel Management
PRESENTERS
Peter Hornberger
Product Marketing
CCI | Global Channel Management
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1. Key Trends
a) Trends for Channel Vendors
b) Trends for Channel Partners
AGENDA
2. Optimizing Your Program
a) The 8 Key Elements
3. Conclusion
a) ROI
b) Big Wins
Key Channel Trends
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Too much red tape: Jumping through complicated hoops to get the funds
Last minute windfalls: Vendors release MDFs 2-3 weeks prior to the end of a quarter
Constant changes:Vendors making last minute modifications to marketing plans
Random rebates: Program parameters are often complicated and may change frequently
Painful audits: Performance results and guidelines are often not clearly communicated
PARTNER TREND: MANY ARE FRUSTRATED
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PARTNER TREND: DEALING WITH NEW BUYER JOURNEYhttp://bit.ly/WinningZMOT_CCI
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20% of our clients have moved
100% to discretionary MDF in
the past 24 months.
VENDOR TREND: CHANGE IN FUNDING MODELThe drive to take market share and get the most out of partners is pushing true MDF over Co-op.
Current Trend
Movement to MDF (Market Development
Funds)
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“If I do not have the right
measurements in place by end
of year I am losing my job.”
VP Channel Marketing Fortune 500 tech company
VENDOR TREND: TARGET ON MARKETERS BACKS
Optimizing Your Program
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1. Program Eligibility
2. Program Period
3. How Funds Are Earned
4. Products Promoted
5. Eligible Activities
6. Reimbursement %
7. Marketing Execution
8. Payments
PROGRAM STRUCTURE: KEY ELEMENTS
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KEY ELEMENT #1
1. Program Eligibility
Which channel partners will be offered the program?
Will they be offered the same program?
Robinson-PatmanGuidelines:
“Competing channel partners must be
offered similar programs on a
proportionately equal basis.”
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PARTNER ASSESSMENT Scorecarding is key – you have to know your partners
Partner Assessment Process Phases
Screening Criteria
Formulate Questions
Prepare and Execute
Apply Categories and Lenses
Define Participant Pool
Communicate Results
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KEY ELEMENT #2
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?
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PRODUCT SEASONALITY VS. PROGRAM PERIOD
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KEY ELEMENT #3
3. How Funds Are Earned
Discretionary or earned accruals? Combination?
Past sales performance or anticipated future
performance?
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Growth oriented – BDF (business development fund)
Greater flexibility, no direct link to ‘sell thru’ by a partner
Flexibility in funding commitments YoY or QoQ
Great for changing markets and new technologies
WHY MDF VS COOP
44%
31%
22%
3%
Discretionary or Accrual?
Discretionary
Accrual per partner
Contractuallycommitted
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KEY ELEMENT #4
4. Products Promoted
Will the accrual or reimbursement level vary with
specific products?
Will program target all products/solutions or a subset?
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MULTI-VENDOR SOLUTIONS BECOMING MORE COMMON
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KEY ELEMENT #5
5. Eligible Activities
How will the allowed activities support your go-
to-market strategies?
How will they support your partners’ go-to-market
strategies?
What behaviors will you want to ‘reward’?
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TREND: INCREASE YOUR DIGITAL FOOTPRINTB2B research is self-directed.
0%
57%of the way towards making a decision before reaching out to a potential vendor
100%
80%of the way towards making a decision before reaching out to a potential vendor
Traditional Cloud
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Today’s B2B Buyer
Lengthening ‘getting to know you’ period (marketing)
Shortening ‘making a decision’ period (sales)
Looking for ‘continuum’ vs. ‘episodic’ relationship
Impact on B2B Marketing Tactics
Marketer’s key role now is to help buyer get smarter
Content is King, but Context trumps King
MDF Activities to Focus On
Activities are those that support delivery of ‘thought leadership’
Key are the vehicles that best support delivery of ‘thought leadership’
THE “CONSUMERIZED” B2B BUYER
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65%
66%
67%
71%
76%
79%
79%
81%
81%
81%
82%
93%
B2B MARKETING TRENDS
B2B Content Marketing Tactic Usage
Social Media Content – other than blogs
Case Studies
Blogs
eNewsletters
In-person Events
Articles on Your Website
Videos
Illustrations/Photos
White Papers
Infographics
Webinars/Webcasts
Online Presentations
2016 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs
Effectiveness Ratings for B2B Tactics
58%
58%
59%
60%
61%
62%
63%
65%
66%
75%In-person Events
Webinars/Webcasts
Case Studies
White Papers
Videos
Research Reports
eNewsletters
Blogs
Infographics
Online Presentations
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15%
12%
9%
18%
10%
14%
5%6%
1%
2% 2%2%
2%
1%
13% 13% 13%12%
11%
8%7% 7%
4%3% 3%
2%2%
2%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
2013
2014
CCI TOP ACTIVITIES
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KEY ELEMENT #6
6. Reimbursement %
To what extent do you want to reward certain behaviors?
Or discourage others?
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TACTICAL VS. STRATEGIC METRICS
Awareness Interest Desire Transaction
Email Advertising Digital Marketing
Responders Leads
Customer Event Telemarketing
Attendees Appointments
Demo
Units Placed Proposals Opportunities
created
SPIF/ Sales Incentive
Units sold Sales value Opportunities closed
Activities:
Metrics:
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KEY ELEMENT #7
7. Marketing Execution
How do you measure success?Will you provide execution tools? Or, provide special
incentives for use of your tools?
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TPMA benefits:
Protect your brand by ensuring proper campaign protocols and standards
Make is easy for the partner to execute marketing
Provide objective, reliable marketing outcomes data
Remove need for proof of performance complexity
THE RISE OF THROUGH PARTNER MARKETING AGENCIES
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INTEGRATIONSKey to measurement
SERVICES Follow-the-Sun Support Claims Administration Global Payments Program Administration
SOFTWARE Fund Management
MDF Co-op Joint Planning
Incentive Management SPIF Rebate
CHANNEL WISDOM Strategy Best Practices & Benchmarking Operational ‘Do’s and Don’ts’ Global Monetary & Currency Expertise Compliance with local laws and customs
TPMAs CRM/PRM
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KEY ELEMENT #8
8. Payments
Pay Quickly Partner vs Program Centric
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PAY QUICKLY
Best Practice
21 days or less
Industry Leaders
14 days or less
Reinforce the right behaviors
Conclusion
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CHANNEL TREND: CLOSING THE LOOP ON MDF ROI
Partner Scorecarding & Benchmarking
Joint Business Planning
Joint Marketing Planning & Approvals
MDF Fund Allocation & Distribution
Marketing Campaign Execution
Deal Registration
Point of Sale Data Creation, Collection,
Scrubbing
Systems of Record –Partner Info &
Outcomes
ROI Measurement & Predictive
Analysis
Partner Investment
Lifecycle
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1. “Year of the partner” – Truly partner-centric channel vendors who make partner engagement easy, simple, and rewarding
2. Behavior modification – Vendors who move beyond rewarding based purely on past revenue performance, to ‘soft targets’ that drive new sets of behaviors
3. Connected the dots – moved towards measurement, accountability around ROI
4. Single pane of glass – Created single view for partners and administrators
WHAT THE WINNERS DID IN 2015
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Steven Kellam
President
CCI | Global Channel Management
THANK YOU & QUESTIONS
Peter Hornberger
Product Marketing
CCI | Global Channel Management