How to make education programs pay dividends - CMP's Channel Advocate Program

Folio: The Magazine for Magazine Management, Nov 15, 1994 by Suzanne Zelkowitz

Total absence of communication. That's what gave birth to CMP's Channel Advocate Program. Resellers and vendors just weren't on the same wavelength. First and foremost, there was a real dearth of knowledge on the part of vendors relative to what resellers were looking for in the way of support and service programs in order to sell product successfully. In addition, vendors didn't fully grasp the complexities of selling in the channels, nor did they understand the mindset of the reseller. We saw this as a chance to serve as a conduit between the two groups by providing opportunities for an exchange of ideas.

First, we created a medallion--a readily identifiable logo--to bolster these ties. The medallion steers resellers to those vendors that support the channels, and differentiates Channel Advocate vendors by showing resellers that these manufacturers are already in their corner.

Not every vendor can be a Channel Advocate. If you've put your reputation on the line by granting endorsements, you've got to make sure that your program has teeth. When our publication group created the Channel Advocate Program in April 1993, we knew we'd have to disappoint some advertisers, but wanted our medallion to acquire the same cachet as the United Laboratories or Good Housekeeping seals of approval.

From a magazine publisher's perspective, you've got to say no to some people who also happen to be your customers. In some cases, we've had advertisers who've been upset that they don't qualify. But on the positive side, it draws awareness to the holes in their reseller programs. CMP can help them map out new programs through our consulting business or third-party consulting companies with whom we're affiliated.

We started with 286 charter vendor members. These manufacturers had to meet and maintain minimum standards and participate actively in the program by serving on various committees, attending workshops and providing services to resellers. They are also required to reapply for certification annually.

With reader input, we came up with 10 principles that became the basis for the program: We met in focus groups and one-on-one with the heads of several billion-dollar distributors and national reselling chains, as well as with a number of value-added resellers and systems integrators to develop the qualifying criteria: These include selling at least 80 percent of product through resellers; assuring technical, sales and training support; ensuring product availability and avoiding vaporware; instituting flexible programs tailored to each channel's requirements; and implementing equitable allocation policies.

We produced a brochure attached to a tear-off, postage-paid application form outlining the program's principles. This contained a qualifying questionnaire and a company profile that covers things like the year the company was founded, number of employees, annual gross revenue, types of products manufactured/sold, and types of organizations reselling the company's goods. Our marketing director determines each company's eligibility; and one marketing services coordinator is dedicated to taking care of the paperwork.

To help manufacturers build business through the channel, we offer education programs and services that enhance channel relationships. For example, a recent workshop series featured Channel Advocate roundtable discussions providing solutions for targeting the retail channel. Attendance was free of charge for up to five people per company.

We also give Advocates 10 percent off the regular attendance fee at CMP conferences and seminars. Our Friday fax service, free for up to three people per company, gives Advocate members a jump on the news with a sneak peek at the following week's top stories in the magazines. It also includes the latest developments in Channel Advocate programs, research and activities. We also undertake special studies available to Advocate members only and give them advance receipt of results of regular research at no cost. In turn, we have sometimes asked members to provide input into Channel Group research studies.

Channel Advocates are entitled to priority access at a 10 percent discount to our company's value-added services. The Channel Consulting Group offers help in customizing marketing and selling into and through the channels; the Technology Research Center prepares proprietary research studies to help maximize manufacturers' marketing efforts; and CMP helps Channel Advocates screen our in-house directmail lists for their best rental prospects.

In a full-court attempt to heighten visibility, we market the program in our publications and on MAX, our CD-ROM product, use direct mail, and also run the medallion alongside our mastheads and on all Channel Group business cards. Member vendors can get promotional ads that deliver reseller testimonial endorsements at a discounted fee that includes creative production and placement in all four products.

Free trade show traffic-builders include special promotions for all major trade shows, pre-show advertising in CMP Channel Group publications, contest displays, entry forms, as well as a database of qualified leads. The Channel Advocate Program coordinates all the details--from display setup down to the prize drawing.