10 November 2011

1. 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

2. 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

3. Agenda • Establishing Program Objectives • Aligning your Program with the 3 ‘Masters’ • Using the 8 Key Variables to Drive Program Structure • Gathering Metrics for ROI Insight • Wrap Up: Common Pitfalls & Quick Wins

4. Comprehensive Solution Delivery On Demand Software SaaS application suite to manage all program activity Professional Services Optimize program design and performance Program Management Streamline operations with administrative services and support

5. Technology Focused Clients Hardware Software Storage Telecom Entertainment Other

6. Part 1: Establishing Program Objectives What are the right objectives for your Joint Marketing Program?

7. 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

8. Review Your Program Objectives PartnerGo-to-market strategy Specific Measurable Attainable Relevant Time-bound • Review in context of corporate goals/strategy • How will your program contribute? How can the dollars available best be utilized? • Adjust (if necessary) and write in SMART format Customer Purchase Process

9. Targeted Program Objectives “Increase sales overall or of specific products/solutions” To….. “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.”

10. Part 2: Aligning Your Program with the three “Masters” How aligned are your objectives?

11. Hitting the Program ‘Sweet Spot’ PartnerGo-to-market strategy • PARTNER • How does your channel GTM? • Are they fulfillment? Adding value? • Selling just your solution or other? • CUSTOMER • Are your brand or are you a component? • What is their relationship with you and your partner? Customer Purchase Process • ENVIRONMENT • Expectations set by competition? • Regional needs and practices?

12. Aligned Program Objectives “Increase sales overall or of specific products/solutions” To….. “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.” To….. “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.” And… reflected in the 8 Key Program variables…

13. Part 3: Using the 8 key variables to drive Program Structure How do I translate my objectives to my program structure?

14. Program Structure: Key Variables

15. Program Eligibility Which channel partners will be offered the program? Will they all be offered the same program? Program Structure: Key Variables Robinson-Patman Guidelines: “Competing channel partners must be offered similar programs on a proportionately equal basis”

16. 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

17. Program Eligibility 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? Program Structure: Key Variables

18. Product Seasonality vs. Program Period

19. Program Eligibility Program Period 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? Program Structure: Key Variables

20. 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

21. Program Eligibility Program Period How funds are earned Products Promoted Will the accrual or reimbursement level vary with specific products? Will program target all products/solutions or a subset? Program Structure: Key Variables

22. Program Eligibility Program Period How funds are earned Products Promoted Eligible Activities Program Structure: Key Variables • 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’?

23. Eligible Activities Co-op Marketing Expense MDF Contra Revenue

24. Program Eligibility Program Period How funds are earned Products Promoted Eligible Activities Reimbursement % Program Structure: Key Variables • To what extent do you want to reward certain behaviors? Or discourage others?

25. Program Eligibility Program Period How funds are earned Products Promoted Eligible Activities Reimbursement % Creative Requirements Program Structure: Key Variables • Brand adherence requirements for funding? • Will you provide tools? Or, provide special incentives for use of your tools?

26. Program Eligibility Program Period How funds are earned Products Promoted Eligible Activities Reimbursement % Creative Requirements Reimbursement Method Program Structure: Key Variables • How will you reimburse efforts? Cash? Credit? • Should the method be consistent across all partner segments?

27. Example of Objectives to Variables GIDGET 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

28. Example of Objectives to Variables GIDGET 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

29. How best can I best measure program results? Part 4: Gathering Metrics for ROI insight

30. Perception: Direct Mail Marketing Activities Directly Result in a Sale Sale Activity: Direct Mail Metric: Units Sold

31. Practical Application of Metrics Sales are a result of multiple activities by Vendor & Channel (Trans-) Action Awareness Interest Desire • SPIF/ Sales Incentive • Demo/ Eval. Unit • Cust. Event • Telemarketing • Direct Mail • Email • Advertising Activities: Tactical Activity Metrics Business Outcome Metrics • Units sold • Sales value • Opportunities closed • Units Placed • Proposals • Opportunities Created • Attendees • Appointments • Responders • Leads Metrics: Quick Win: Examine your program activities – are you paying for activities that are the domain of corporate marketing?

32. Metrics Hierarchy • Captured from individual activities

33. Metrics Hierarchy • Business goals attained through marketing programs

34. Metrics Hierarchy • A roll-up of partner performance

35. Metrics Hierarchy • Key take –away: • Designated metrics must be indentifiedin 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?

36. Standardization Facilitates Comparison Key Take Away: Standardizing data format (and compliance) key to insights on ROI at activity, business and program levels

37. Example of Metrics Alignment GIDGET 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

38. Part 5: Wrap Up: Common Execution Errors and Quick Tips

39. Execute for Success • 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 • Low utilization rates • Poor program understanding • Poor alignment with Partner needs • Clear, concise guidelines for program participation. • Simplified administration through automated processes • Program perceived as too vague or complex • Objectives not properly identified • Metrics not universally implemented or available • No clear benefit to the program, no clear ROI • 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 • Payments take too long • Program administration should follow-up within 48 hours for all special requests • Poor or delayed follow-through on special requests

40. Wrap Up • Establish Relevant Program Objectives • Tie your objectives to your Sales, Marketing & Channel Strategy • Be specific & measurable – use the SMART format Quick Win: Review program objectives annual in relation to Corporate objectives Update SMART format

41. Wrap Up Establish Relevant Program Objectives Align Objectives with the ‘3 Masters’ Partner Go-to-Market Customer Purchase Process Competitive and Regional Environment Quick Win: Review program objectives annual in relation to changes in the three masters Fine tune objectives accordingly

42. Wrap Up Establish Relevant Program Objectives Align Objectives with the ‘3 Masters’ Design Program to the 8 Key Variables Program Eligibility Program Period How funds are earned Products Promoted Eligible Activities Reimbursement % Quick Win: Reduce reimbursement % (or eliminate) on low value activities Provide ‘in the box’, pre-packaged campaigns & tools for high value activities

43. Wrap Up • Establish Relevant Program Objectives • Align Objectives with the ‘3 Masters’ • Design Program to the 8 Key Variables • Gather ROI insight with multi-level metrics • Tactical goals = results of individual marketing activity • Business goals = business or campaign outcomes • Program goals = overall attainment of program objectives Quick Win: Normalize metrics to standardize and enable comparisons Consider an automated marketing planner solution

44. Thank You! Questions? • Dale.Taormino@channelmanagement.com • www.channelmanagement.com • blog.channelmanagement.com • @CCIChannels • 415.472.5100