Where's my ROI?

And other MDF conundrums

As a vendor with a channel model, you’re likely funding partners to promote your brand and drive sales, either through a formal Market Development Fund (MDF) programme or informal funding from sales and marketing budgets.

As a Distributor, you'll face the added complexities of managing multiple vendors and partner channels driven by the need to demonstrate value up and down the sales chain.

In either case, this strategy has been the foundation of channel enablement for decades, leveraging existing customer relationships to create new conversations with their customers and prospects.

However, today's changed buyer behaviours mean these models must adapt to achieve optimal ROI.

Managing expectations in our digital age

Each quarter, expectations run high with supercharged participants. But what about the data gathered from previous quarters by partners who contacted many more buyers than those who turned into leads? On the other hand, buyers now spend months researching products before engaging in conversations.  They control the pace of their engagement, not the salesperson.  Despite this, many vendors and distributors still fund partners using traditional methods which, only measure a snapshot in time. 

The need for adaptation

MDF programs cannot perform optimally without visibility over time and end-to-end reporting. Even though many vendors have invested in MarTech to gain visibility of their marketing demand generation, the majority of partners don't offer (or have the capability to offer) detailed reporting and statistics on an ongoing basis.

This is a vital limitation in any campaign, whether it culminates in a physical event, or not.

By not being able to access the significant data captured from engaged buyers  who are not yet ready to buy, this valuable source of information deteriorates in usefulness by the next time it's used.

Fixable challenges of MDF programmes

Planning and budget: Many channel teams don’t recognise MDF programs as strategic sales enablement tools, failing to plan for the long term or think beyond tactical activities.

Data quality: Relying on partners’ data, which is often outdated, impacts result quality. Regular deliverability reports are needed to ensure data quality and compliance with GDPR.

Partner motivation: Partners juggling multiple brands may lack the skills, resources, and budget to fully focus on each. Providing them with the right tools and support can significantly improve their performance.

MarTech stack: Many partners lack advanced MarTech environments, often using only basic tools. Investing in comprehensive technology and training is crucial for maximising MDF effectiveness.

Content delivery: Stop-start content delivery doesn’t build strong buyer relationships. Centralised content delivery programs can drive consistency and engagement. And you need to be in it for the long game.

Resource management: Depending on partner size, their skills and resources vary. Ensuring every step of the demand generation process is managed and reported daily is vital.

Lead management: Post-event or appointment activity often stops too soon. Centralised campaigns increase engagement and reduce waste.

Accountability: Responsibility for ROI and reporting is often fragmented. Unified systems can increase visibility and control.

Quick reality check

Answer "no" to any of these questions, and you could be getting better performance from your budget:

    • “I’m happy with the number and quality of attendees or appointments from every partner I fund.”
    • “I offer funding for digital marketing activity to support events and telemarketing.”
    • “All my stakeholders have visibility of sales engagement throughout the quarterly period and beyond.”
What now?

If you want a high-performing MDF programme that enables partners to deliver more leads, we will help reform your approach.

To learn more about how Market Activation contributes to a seamless sales and marketing growth strategy, get in touch.

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