‘Co-op, MDF, soft dollars? What’s really being spent in the channel and how do you control it?

Keith Collins, Communications and Channels Marketing Director,

Xerox Europe Office Operations

Defining the Dollars

Gross Margin

Hard Soft

Cash Rebates

Promotions

IncentivesCoop

Marketing

Marketing Development

Funds

What’s the investment in the Channel?

Total IT market indirect channel 130Bn Euros Average channel marketing spend 1.5% = 2Bn Euros

IDC September 2002

A battleground of Agendas?

VendorBrand buildingBrand positioningRevenue growthReseller loyaltyChannel proposition

ChannelBottom lineRetain controlCompetitive advantageProgram simplicityTime & resource

Three common vendor mistakes

Slicing it too thinly

Three common vendor mistakes

Making it too complicated

Three common vendor mistakes

Wanting too much control

A fresh look at Soft Dollars

Find a simple process For the whole channel With benefits relative to commitment With transparency for external and internal

Xerox Rewards Programme

Xerox Rewards Programme

Resellers accumulate points

Xerox Rewards Programme

3 printers = 5000 points–£325 in cash–£500 in Soft Dollars

Runs through Xerox Partner extranet

Xerox Rewards Programme

Modelled on traditional loyalty programmes

Xerox Rewards ProgrammeHow Resellers benefit

Quick and easy to use Single source of Soft Dollars Open to all resellers Rewards loyalty over time Wide choice of rewards

FLEXIBILITY

Xerox Rewards ProgrammeHow we benefit

A single view of Soft Dollar investment

More influence over expenditure

Xerox Rewards ProgrammeHow we benefit

Outsourced service Better management

information More transparency and

accountability Internal buy-in Channel satisfaction and

loyalty

Soft Dollars – the way ahead

It needn't be a battleground The slowdown in IT

spending continues Let’s use Soft Dollars to

develop our business together

In Summary

The buck stops here Channel marketing

needs better process and focus

Partnership and good channel marketing equals growth