Last week a Move the Channel member started a discussion in the LNKD Group.  “I am looking for some best practices on measuring the ROI on MDF generated leads. Currently it’s quite a manual job checking it from one system to another. Any suggestions/recommendations?”

I’m sure that by asking the leading channel minds at Move the Channel, this member will be offered many good ideas and best practices on how to better track the dollars that are being provided to the channel partners.  Quite honestly, in this economic climate I’m surprised this isn’t a more popular topic amongst our group. 

This has been a challenge for a long time, but now more than ever vendors want the ability to link marketing activity & investment to their product sales.  Because the distributors have a hard time proving the link between monies they spend on marketing, and actual product sales, the Return On Investment is based, more often than not, on educated guess work.   

There is incredible pressure on non-channel marketing to provide an ROI for every penny spent.  We should probably expect the same weighty expectations for the channel pros this year more than ever, if we don’t already. 

So do I have a solution for this inevitable ROI problem?  No, not exactly.  But I can think of a couple of ideas.

1.)   CRM Capabilities: I know that many CRM systems are doing a much better job of tracking channel campaigns and events and linking them to and incorporating them into the sales cycle.  SalesForce.com is the one I have had experience with.  The key there has been to eliminate the divide between these two business development departments.  It’s why we are seeing more SVP of Channel Sales & Marketing. 

2.)   Implement “Trackable” Initiatives: If you don’t have a refined system in place, one way to improve measurement methods of your channel marketing investment is to include initiatives in your strategy that can be easily tracked.  Introducing and funding Distributor Performance Incentive programs that target the Reseller/Dealer customer can be an easy way to track ROI.  Only “reward” (fund) when key performance indicators (KPIs) are achieved. These KPIs might include incremental sales goals, product sales, training achievements, deal registrations, etc.  All the things that you know turn into revenue and a transaction. 

I know this doesn’t solve all the challenges with tracking marketing monies through the channel (especially end-user campaigns), but it’s a good place to start.  If you can show clear, positive ROI on your Channel Rewards Program, you might find yourself with greater leeway when it comes to your more creative–less “trackable”–initiatives.