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2007Autum
ParterScorecards:EvaluatigCaelEffectiveess 
PART 1
 
As we ead ito aoter ew year, itseems oe of te ew “Buzzwords”beig discussed amog cliets ad teidustry i geeral is “scorecards”.Iterestigly, te use of te termas it relates to vedor ad caelcommuities meas differet tigsdepedig o te idustry.For most packaged goods (food addrug) ad oter cosumer goodmaufacturers, te use of te termofte refers to
vendor scorecards 
.
Specically, how the retailer scores the
vedor across a umber of attributes,icludig; delivery ad stockig policies,marketig programs, ad oter metrics
related to category protability. It
is te up to eac vedor to pla asolutio tat will improve teir failigareas or tey will risk beig de-listedfrom te retailer’s mercadisigassortmet.Alteratively, for most busiess-to-busiess marketers, a
partner scorecard 
 refers to te vedor’s evaluatio ofa idividual parter or reseller as
a means to gauge protability and
growt potetial. Tese ParterScorecards are te primary subject oftis article— ad a focus at CCI.For te 23-years of CCI’s existece,vedors ave bee seekig a way to
measure the protability and true
potetial of teir cael parters. Ourow aecdotal data, as well as moreformal researc coducted by oterparties, idicates tat te iability tosecure meaigful, actioable isigtabout parter ad program activity iste #1 issue amog strategic sales adcael maagers. Like te old adage:“I kow tat alf of my advertisig isgoig to waste, I just do’t kow wicalf.” Cael maagers cotiue tolauc ew cael programs to amore diverse cael orgaizatiowit little isigt as to wat’s workigad wy. Tis is particularly frustratigas product life cycles, customereeds, ad cael busiess modelsare cagig more rapidly ta everbefore. Essetially, tis eaces teeed for accurate, real-time isigts.After all, doublig sales volume vs YAGis really o accomplismet if te costto do so cosumes all te cotributiomargi ad ties up your resources. Butow do you kow???I te past, factors tat ave limitedte ability to develop valid metrics aveicluded oe or more of te followig:• Te iability to effectively measuresell-troug volume, particularly i amulti-tiered, multi-distributor caelmodel.• Te iability to correlate marketigprogram participatio to icremetalsales gais (ad more importatlyte direct ad idirect cost of tosemarketig programs).• Disparate systems ad processestat ca’t really provide roll-upreportig across a umber ofdimesios—because tey were reallyever desiged to do so.Well, we are at te daw of a woleew era. Te tecology ad acumeare ow available to vedors of alltypes to capture key isigt aboutteir cael parters, ad idividualcael programs. Armed wittis isigt, vedors ca acievegreater cael optimizatio troug
improved program efciency, partner
effectiveess, ad faster speed tomarket (or at least improved reactiotime).Troug CCI ad oter compaies, tetecology exists to capture POS data,
Continued on Page 4 
Te tecology adacume are ow availableto vedors of all types tocapture key isigt aboutteir cael parters,ad idividual caelprograms.
InSIGhTS
Cael Maagemet
CCI provides software ad services toelp marketers maage, measure, adoptimize sales cael performace.
 
02Busiess
Te aswer turs out to be “a lot” if youare resposible for global program fudmaagemet. For istace, i te real-world example sow iTABLE A, wicdate or actio would a maufactureruse as a basis for reimbursemet of teapproved activity?We call tis example te
partner centric 
 model. Ad, i tis example, te reseller(or retailer) gets all te moey e/seexpected, but te maufacturer absorbsall te risk of te resultig currecy
uctuation. If they were to reimburse for
activities based o te latest excagerate, tey actually pay $680 more forte activity ta tey oterwise wouldat te time te actual prior approval was
submitted. This uctuation would not be
a big deal if te USD was ideed growigstroger. however, i today’s decliig
U.S. market this uctuation will have thenance people screaming that marketing
departmet wet over budget relative tote origial commitmet of $10,000. (Wekow, we get te poe calls.) Te $680differece betwee Jauary ad May iTABLE Amay ot seem like muc, butwe you are dealig wit $ Millios,
the impact can inuence earnings per
sare.
Want to keep the nance people happy?
Well, te try te approac iTABLE BWe call tis table (b) te
base centric 
currency model. In it, the nance people
get off te marketig departmet’sback because te local currecy valueis adjusted agaist a costat USD.however, i doig so, te result is auiverse of uappy cael parterswo are complaiig tey ave’treceived teir just due as iitiallyapproved.Truly decetralized programs do’texperiece tese problems at teparter level because te programsare fuded, admiistered, ad paid i
I
If you ave bee listeig to te fiacial ews or travelig abroad, you kow tatte excage rates betwee te US Dollar (USD$) ad most oter currecies ave otbee i our favor. Te value of te dollar as bee droppig faster ta Mr. newto’s
apple. For instance, at the turn of the new millennium the Euro (€) was valued at a mere 86
cets. As of tis writig, eac Euro costs i excess of $1.46 to purcase, ad most expertsexpect it to pus $1.60 i te ot-too-distat future. If so, te oce migty dollar will aveexperieced early a 50% slide i a 7 year spa.Wat’s te impact o tese fluctuatig rates for cael marketers?
Bridgig te Excage Rate Gap forGlobal Cael Program Paymets
Time Period Actio Cost $ Cost
 €
Jauary 2007 Completed Prior Approval 10,000 7800Marc 2007 Complete activity 10,450 7800April 2007 Submit claim 10,554 7800May 2007 Approve for Reimbursemet 10,680 7800
   T   A   B   L   E   A
Time Period Actio Cost $ Cost
 €
Jauary 2007 Completed Prior Approval 10,000 7800Marc 2007 Complete activity 10,000 7500April 2007 Submit claim 10,000 7450May 2007 Approve for Reimbursemet 10,000 7350
   T   A   B   L   E   B
 
03Wat’s new
local currecy—wit o eed to “roll up”accoutig to a cetral currecy.For te rest of us, te good ews is tat tereis a variety of ways to mitigate currecy riskad cotribute to a true “wi/wi” sceario
for your nancial people and your channel
parters.For all iteratioal programs fuded witUSD, te simplest –ad most accurate way ofassurig cogruity betwee currecies is tobuy te foreig currecies simultaeouslywit te allocatio of moies to your caelparters. Tis way, you kow exactly owmuc your allocatio is wort at te timeof approval. however, tis requires tatyou pre-fud accruals, effectively tyig
up monies your nancial wizards would
oterwise ave plas for.A secod metod ivolves a futurescotract wit your bak ad/or programadmiistrators to guaratee excage
rates for a specied period of time. In this
sceario, it is te baks wo absorb te riskby lockig-i excage rates witout tepre-fudig burde.Lastly, daily recociliatio of excagerates ca keep te reportig of accrualsad balaces accurate i te base currecywile keepig claims ad paymets accuratei te parter’s currecy. Balaces eed tobe calculated usig daily excage rates
to allow for rate uctuations. Using thisapproach, the uctuations still occur but
surprises are miimized because reportigis geerally more accurate for parters ad
nancial managers alike.
Relative pros ad cos aside, represeted
above are 5 distinct methods of nancial
accoutig for global cael programs.Ofte, te iitial coice was made becauseof accoutig madates rater ta caelmarketig best-practices. Wit te currecy
uctuations we are experiencing today, it
migt be best to re-evaluate your program
nancials. You may nd that an alternative
approac is preferred i today’s ecoomy,as well as for maitaiig a “wi/wi”relatiosip wit your cael parters.
You may ave oticed a ew title for te ewsletter. Eve more profoud is te ewface autorig tis regular colum. Wat’s goig o? Well, a lot really.
Back in 1983 when we rst started as Co-Op Communications Incorporated we
specialized i offerig admiistratio of Co-Op, MDF, ad oter cael icetiveprograms. Te ature of cael programs as evolved, ad tere is a expadigarray of program types required to effectively maage your sales caels. Weuderstad te importace of maagig all your cael programs i oe tool for tecoveiece of a cetralized resource. More importatly, owever, we uderstad tateffective cael marketig requires measurig parter performace ad acumefor all your cael programs. To tat ed, CCI is proud to itroduce a expadedsolutio set to elp maage, measure, ad optimize te array of programs requiredby effective cael marketers. We’re proud of our ability to offer complete caelmaagemet--ad ideed-- complete cael isigt. Tis expaded solutios setcovers te full spectrum of cael marketig programs, icludig:Deliverig cael isigt begis wit te ability to deliver meaigful metricsabout your sales cael performace by capturig sales, promotio, ad programdata across a umber of touc-poits. Te iformatio captured from all te aboveactivities ca be combied wit your POS sales data to create parter ad programscorecards. Te result is tat cael maagers will ow ave te ability to coductquatitative aalysis o parter ad program performace.It takes more ta software to deliver cael isigt ad make iformed busiessdecisios. So we exted our Professioal Services to elp cliets desig programsusig our vast experiece ad library of best practices, ad aalytic capabilities toelp track program performace agaist goals.
And nally, the astute will also notice a different head shot above—that’s me: the new
Vice Presidet of Sales & Marketig. I’m very excited to be i tis role at CCI. Myrelatiosip wit CCI started about 10-years ago we I was Geeral Maager of J.Brow/LMC Group, a $250MM divisio of Grey Advertisig Worldwide tat specializedi Cael Marketig for cliets i a variety of idustries. I ave bee ivolved ite developmet of cael programs sice 1985—just as cael marketig started
being recognized as the specialized eld it has become today. Through the years, I
ave ad a log-stadig partersip wit CCI. Fially, oe year ago I was persuaded
to come on board because the potential “t” was obvious to all parties then… and
ideed it is ow.
Te Cael Campio:
Craig DeWolfVP Sales & Marketig for CCI
• Co-op/MDF• SPIF/Rebate• Stretc Goal Rewards• Trade-i Programs• Lead Maagemet• Deal Registratio• Referral Maagemet• Special Price Requests• Cotract/ReewalMaagemet• Creative Maager/AdBuilder
• Partner Prole
Maager• Parter BusiessPlaer• Parter Scorecards/Report Maager
IcetiveMaagemetOpportuityMaagemetParterMarketigParterMaagemet
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Steven Wizzleteats

I quite like this document, the writing style is very refreshing, usually what I come across is quite dull. Great work! www.marketstar.com

reply08 / 20 / 2010
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