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Escape the shackles of ROI: Measure Channel Effectiveness
- 4. Make this a positive message to my partners?This was the challenge we were given by a client in 2009 Page 2 | All Rights Reserved © Birch Worldwide 2011
- 16. Introducing the Zee© Principle All Rights Reserved © Birch Worldwide 2011 Page 5 | With the correct measures ...... We can show business improvement With the right partners...... We generate our desired outcomes Executing them to the right level of quality...... To get the right results If we choose the right behaviours....... Making it is easy to adopt
- 18. 3 Themes All Rights Reserved © Birch Worldwide 2011 Page 7 | 20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours. Successful brands convert as much of the 60% as possible Accept 20% Undecided 60% Reject 20% The return on an investment is the result of three factors working together. Choosing the right behaviour, the most effective activities and an efficient process of production Behaviour + Effectiveness + Efficiency = Maximised Return on Investment Managing channel investments is a continual process. Budgets may vary but the results of investment can be continually improved through feedback, reflections and iterations of the cycle.
- 19. Introducing the Zee© Principle All Rights Reserved © Birch Worldwide 2011 Page 8 | With the correct measures ...... We can show business improvement With the right partners...... We generate our desired outcomes Executing them to the right level of quality...... To get the right results If we choose the right behaviours....... Making it is easy to adopt
- 20. Supporting evidence All Rights Reserved © Birch Worldwide 2011 9 20% of Partners will adopt required behaviours with little or no effort, 20% will not adopt required behaviours. Successful brands convert as much of the 60% as possible Accept 20% Undecided 60% Reject 20%
- 21. What if? All Rights Reserved © Birch Worldwide 2011 Page 10 | Current Channel Model Channel shape and delivery performance through channel engagement aligned to control Would diversion of funding generate more revenue? Red 18 Partners 160m Revenue 9m Benefits Green 90+ Partners 160m Revenue 2m Benefits If $2m benefits to green partners were doubled would revenue follow (i.e.: double)? Revenue Blue 900 Partners 80m Revenue 0m Benefits Reseller Type
- 23. The Partner Marketing Matrix All Rights Reserved © Birch Worldwide 2011 Page 12 | Brand Adoption Marketing Capability
- 24. Introducing the Zee© Principle All Rights Reserved © Birch Worldwide 2011 Page 13 | With the correct measures ...... We can show business improvement With the right partners...... We generate our desired outcomes Executing them to the right level of quality...... To get the right results If we choose the right behaviours....... Making it is easy to adopt
- 33. Ability to provide partners with higher funding Page 14 | All Rights Reserved © Birch Worldwide 2011
- 74. There are other measurements that give insight into effectiveness....... Page 18 | All Rights Reserved © Birch Worldwide 2011
- 77. Coverage Plans – an illustration Page 21 | All Rights Reserved © Birch Worldwide 2011
- 84. Mop up low level funding and cash flow limits Page 22 | All Rights Reserved © Birch Worldwide 2011
- 87. The same data should be used as an account management tool and at authorization of funding
- 89. Partner feedback on ease of doing business is invaluable Page 23 | All Rights Reserved © Birch Worldwide 2011
- 91. We introduced a quarterly planning cycle aligned to an auction of funding
- 103. Allowed our client to align activity to corporate objectives Page 25 | All Rights Reserved © Birch Worldwide 2011
- 104. Key Takeaways Gather evidence supporting investment quality (churn rate, expired activities, activity profile, participation) Examine your funding model, use the right model for each segment of your business Review the cost drivers in your activity portfolio Review the effectiveness of your joint marketing plans with partners Identify methods to redistribute your funds to avoid expiry Implement a feedback loop to partners and account management to recycle good ideas and best practice Measure the intangibles (coverage by geo, time, product) Focus on making it easy for partners to deliver activities Page 26 | All Rights Reserved © Birch Worldwide 2011
- 105. All Rights Reserved © Birch Worldwide 2007 Page 27 | Join our group on LinkedIn by Searching on BirchWorldwide Asia Pacific Office: 78C Duxton Road Singapore 089537 Singapore Phone: +65 62 23 76 04 North America Office: 765 Baywood Drive, Suite 237 Petaluma, CA 94954 United States Phone: +1 707 790 8400 European Office: Unit 16, Ilex,Mulberry Business Park,Fishponds Road, Wokingham, Berkshire, United Kingdom, RG41 2GY Phone: +44 1189 121200