Co-Marketing Made Simple

I have seen many Co-marketing programs with many different components, requirements, rules, and procedures. These programs, sometimes called “Co-op” or “Marketing Distribution Funds (MDF)", have become tablestakes in many industries. At a previous employer the co-marketing program became extremely complicated and frustrating for the channel partners. I don’t think that they need to be complicated and that by focusing on the Four R’s, you can build a compelling co-marketing program with your channels. The Four R’s are:

Recruitment
Return
Retention
Referral

While your channel relationships should be based on the four Relationship Principles, your tactical co-marketing goals should be structured to drive results with the Four R’s.

Recruitment is the goal supporting of your channels need to expand their customer base. Lead generation is almost universally included in co-marketing programs, but not always as effective as perceived. You must help drive demand for your products and services for the benefit of your channel partners.

The now new customer must Return. They have to have a great experience with the product and your channel partner. It is not enough to get the customer in the door through your recruitment efforts…you must get them to want to return.

You have recruited a new customer; they have had a great experience and have returned. Now you want to build life-time value with the customer. It is not enough for them to come back once. You want them as a loyal customer that looks to your channel as their first option. Retention is paramount to achieve sustained profitability.

Customers are your best sales force. Referrals will drive not only more business, but better business. Customers that volunteer support for you and your channel are incredibly valuable. You must support this community and enable them to tell your story in the market.

Simplify your co-marketing program by adhering to the Four R’s and you will drive new customers to eventually be your storytellers. Your message will become viral and you will forever have a committed channel partner community.