What do VARs and resellers think of back-end processes? | compris-cm.com

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What do VARs and resellers think of back-end processes?

Our May publication of the Channel Facts

  • What do VARs and resellers think of back-end processes?

 

 


 

 

 

Partner compensation payments are a very important part of the channel management process. COMPRiS has analysed the compensation process made by IT vendors. What experience do the technology solution providers and resellers have of compensation payments? What is especially important when it comes to compensations and how are these funds invested later on? COMPRiS has surveyed 487 IT solution providers and resellers in order to gain insight.


The partners who participated in the survey receive compensation as a part of their partner programme from the following IT vendors: IBM, Microsoft, HP, Fujitsu, Adobe, LG, Sony, Lenovo, Cisco, Citrix, VM Ware and Samsung.

 

What are negative experiences of VARs with back-end processes?

When asked about negative experiences in the compensation process, 40% of the technology solution providers pointed out that it takes too long for payments to be processed and the funds paid out to them. 30% of respondents are dissatisfied with how compensation funds are calculated. They mainly criticize the sales that are either not taken into account or are incorrectly calculated. Furthermore, they find the processes to be overly complex and cumbersome.

 

24% of respondents find the invoicing process to be too complicated, 15% find it difficult to provide the right proof and a further 14% are not able to understand the calculation. 13% of the technology solution providers and resellers have reported that they have already been paid incorrect amounts. In each case 1% expressed negative feelings about the high expectations of growth and the fact that wrong product groups were used for the calculation.

 

5% of respondents didn’t have any negative experiences.

© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers
© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers

 

What are the most important components of partner compensation programmes offered by IT vendors?

19% of the respondents consider ease of handling of the transaction to be vitally important when it comes to a compensation programme. 17% expect the funds to be paid out quickly, 16% expect a realistic target. For 13% of technology solution providers and resellers a simple calculation is key, as is an increase in sales that is based on a simple calculation for 12%. Furthermore, the following components were considered important: target agreements (7%), ROI analysis of campaigns (6%), customer acquisition of new customers (4%) and transparency of the compensation programme (2%). For each of the following, namely leads, attractive purchase prices, and timely revenue updates, 1% of those surveyed consider them to be important.

© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers
© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers

 

What else would you find beneficial around your partner compensation programme?

The partners were also asked to name other factors that might benefit their compensation programmes. They mentioned a transfer of the money rather than being credited to distribution, better end user leads, automated processes, long-term compensation programmes and better prices.

© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers
© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers

 

How do you invest the backend payments in your company?

Compensation money is invested very differently. 18% of respondents add those payments to their company's profits; for 17% the money serves to improve product margins. 16% of technology solution providers use them to reduce their price offering. 9% re-invest the funds in their business. 7% spend the funds on employee incentives, another 7% pay the funds directly to employees. 5% of the respondents invest the money to finance their marketing campaigns and 1% spend it on their in-house events.

© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers
© COMPRiS GmbH, April 2012, surveyed 487 VARs and resellers

 

Conclusion

The survey results show that simple handling of compensation payments is the most important criterion for IT solution providers and resellers. According to the partners the entire process has to be simple and transparent. This could be a distinct added value of an IT vendor. COMPRiS provides with ‘compensation programmes’ a transparent, simple and quick service that meets the needs of the partners.

 

The use of the funds to improve the margin or the offered prices may adversely affect the prevailing market price. Under these circumstances the alternative investments are to recommend so that the prices are kept stable. This could be e.g. incentives for the employees, lead generation or marketing campaigns.