How a Vendor Can Coerce Co-op/MDF Program to Ensure a Fruitful Outcome
Who doesn’t want to take advantage of free money?
Seems like a rhetorical question, doesn’t it?
I sure don’t know many people that would turn down a monetarily-based incentivize, and I’m assuming you don’t as well.
However, the inexplicable turndown of profit is an overwhelmingly common conundrum in p2p (partner-to-partner) channel relationships. Vendors and manufacturers are routinely dumbfounded by distributors, resellers and other channel affiliates’ refusal to participate in Co-op/MDF incentive programs.
But who (or where) should the blame fall on concerning this issue?
Don’t Have Time to Read this Article Right Now?
Should vendors that allocate sponsored marketing dollars blame their partners’ gross incompetence for not participating within the given timeframe of program eligibility? Or, should channel partners point the finger at their vendor, and condemn the inadequate definition of their deployed incentive?
The answer to that question is: It’s complicated.
That right, we’re using terminology that is most commonly found on a dating profile to analyze this multifaceted p2p problem.
Nonetheless, this is an accurate assessment of “where the finger should be pointed” when determining the fault of wasted Co-op/MDF dollars. But for the sake of today’s article, let’s focus on how a vendor can coerce Co-op/MDF program to ensure a fruitful outcome.
1.) Too Generic
It all seems so simple. Give your channel partners access to funds or resources so that they are able to adequately market their product without losing an eye and an arm in the process.
Many channel partners have grown an immune distaste towards Co-op/ MDF incentives based on their vanilla-like experience with offered programs. Case studies, press releases, Facebook posts, direct mail, blogs, dinners, and events can only go so far. In order for your channel partner to interpret your Co-op and MDF program as a lucrative opportunity, it must dazzle with a fresh appeal, a relevant angle, and an exciting, tangible end-result.
2.) Lack of Strategy
It has become all too common for vendors to offer their partners with incentives that are irrelevant to what they’re trying to achieve. If you have any hope of providing a lucrative award, they must be tailored and uniquely customized to fit partners’ needs. Interview and consult with partners. Actively listen to their pain points in marketing. What strategies have or haven’t they tried? Which have provided them success, which have not?
In other words:
- Research – partners’ goals, tribulations, value proposition and bottom-line.
- Blueprint – marketing tactics according to data aggregated.
- Personalize – based on location, market segmentation, industry, approach and angle of the campaign.
- Strategize – marketing positioning, program timeframe and allocation of necessary resources
- Deploy – program
3.) Ineffective Product Training
Sure, your channel partners understand what your product does and how it might help eradicate pain points for end-users; however, not all channel partners are informed on how to market it properly.
The more you explain the product’s functionality and provide best practices marketing (indirect/direct strategies), the better chance you will have at enthusing them to participate in Co-op/MDF programs. Ultimately, the more they know about your product, the more they will be able to implement creativity into their marketing efforts and strategize enticing campaigns that necessitate incentivized funds.
Experience How State-of-the-Art Software Can Accelerate Co-op/MDF Partner Participation
Computer Market Research (CMR) brings 32 years of experience into the indirect channel sales industry.
Through our state-of-the-art automated software, businesses can amplify their B2B marketing efforts via a clear and concise platform that robustly and intuitively assists the managerial process of Co-op/MDF. Our cost-effective SaaS application is the perfect tool for any business looking to strengthen and streamline their Co-op/MDF marketing strategy
Free yourself from the constant headaches of “proof-of-performance” and track your funds through tangible, quantifiable information, which converts data into intelligence.