Best Practices for Consistent Partner Engagement

Market Development Funds (MDF) are a channel staple. For years, vendors have offered MDF to partners who then complain that the programs are too hard to use, not transparent enough, or don’t engage with them, which translates to lost opportunities and sales.

So, how do you create an engaging and successful MDF program that benefits you and your partners? And how do you design a program to make it easy, trackable, and repeatable? We asked the experts.

Three Key Practices

Ryan Morris, Principal at Morris Management Partners, shares, “The most effective MDF programs align with three key practices: 1) Initiative-based: zero entitlements for any partner, but no limits for partners who perform. 2) Outcome-centric: no product marketing messages, only customer result promises. 3) Human concierge-driven: big partners can be self-sufficient, but small partners will never grow in DIY programs. The bottom line is to invest in growth and not pay for past performance.”

Financial Considerations

The foundation of IT channels has remained the same since inception: when your partners succeed, you succeed. However, the tools and support they need have changed. Today, they are looking for influential event and digital marketing campaigns, advanced training, and sales enablement tools.

Dalyn Wertz, Executive Director of indirect Programs and marketing at Comcast Business, emphasizes the importance of understanding and efficiency in MDF programs: “As marketing resources and bandwidth are stretched in our industry, working efficiently is key. Understanding marketing trends and streamlining repeatable offerings with clear metrics and KPI goals will allow you and your team to work smarter and more efficiently.”

Successful companies and programs are all about the metrics. The simplest way to calculate this is MDF Program ROI = (Sales growth resulting from MDF Program – MDF Cost) / MDF Cost.

For instance, if a partner needs to increase the number of MQLs to hit a $20,000 opportunity in one quarter, you and the partner may determine the need for 300 MQLs. With an estimated cost per lead of $100, resulting in a $3,000 investment, you might share this cost with the partner. If your $1,500 investment results in $20,000 revenue, your ROI would be about 12 times.

Repeatable Processes

We all love an “easy button,” and being easy is the key to success when it comes to MDF programs. Michelle Ragusa McBain, Global Channel Chief, SonicWall, shares, “The purpose of market development funds is to help reinvest back into the partners that invest in us. Our goal is to drive mutual success by co-branding, co-marketing, co-selling, and imagining together!”

“We know many partners have multiple vendors they might work with to complete their solutions stack. In our numerous surveys of our SonicWall partners and through outside-in listening, doing business was a top priority. It was essential that we used automation and intelligence to drive a repeatable playbook of success for our partners. In addition, we partnered with ecosystem partners that can help innovative ideas foster growth and creativity to execute their business needs.”

Reporting and Feedback

Jen Waltz, founding vice president at Kron Technologies, highlights the importance of reporting and continuous feedback. “At Kron Technologies, we emphasize the importance of robust tracking and reporting systems for MDF fund usage and campaign performance. We recommend implementing automated systems that leverage CRM and marketing automation tools to integrate data seamlessly. Regular reporting for partners is crucial, showcasing critical metrics such as lead conversion rates, sales impact, and overall campaign effectiveness.

Moreover, continuous feedback and improvement are vital. Regularly soliciting feedback from partners on the MDF process, understanding their challenges, and gathering their suggestions for improvement allows us to make necessary adjustments. We continue refining and enhancing our MDF program by utilizing this feedback and performance data to ensure its effectiveness and relevance.”

About ZiftONE: Make Your Partner Experience Legendary

ZiftONE’s Partner Relationship Management platform simplifies the partner experience. It provides training, a collateral library, and detailed reporting. ZiftONE users saw a 34% reduction in time-to-revenue for partners. Features include a portal builder, integrated training, and advanced analytics. 

Read more about Unlocking the Potential of Market Development Funds in our e-book.

Creating a successful MDF program starts with listening to your partners’ needs, asking questions, and showing you are interested and curious about their business and success. Our industry experts agree that the keys are setting clear expectations, investing in growth, and using automation to create a successful MDF program with increased partner engagement.

Recommended reading from additional industry experts: Investment with Market Development Funds (MDF) and Beyond for Partners