Rewards Programs and MDF/Co-op Programs serve different purposes, but the more I speak with clients and present solutions to real-life issues, the more I think that these programs have significant overlap. Let me explain.

• Some Rewards Programs target the company to incent and reward specific behaviors that have value to the vendor and their partners.
• MDF and Co-op programs target the company and make funds available to be used in co-marketing activities.

Given that both programs are targeting and driving company level behaviors how do you use that intersection to your benefit? Let’s look at some facts:

• According to a recent CMP Media article, every year 25 percent of the $1 billion in MDF available to the channel goes unclaimed.
• Based on historical information in our running rewards programs, breakage associated with a Rewards program runs between 5 and 10%.
• There are many reasons why companies do not take advantage of your programs—ease of use, not enough funds/points to make a difference, awareness or the fact that the partner company doesn’t know the best way to use the funds.
• Partners not using your programs to the fullest are not going to be as successful selling your products and services.

One method to address these issues is to create a way for the Business Owners/Managers to use funds in some way that is program neutral—no matter where the funds are earned, they can have access to campaigns/tools/resources with proven value to both you, the Vendor and the Partner company. So how can you make this work? Read more…

{ 0 comments }