This article provides an in-depth look at a value-based channel management model at Cisco Systems for managing the value-added reseller (VAR) channel. In March 2001, Cisco introduced a shift from a volume-based channel management model that had driven partner to a value-based model that tied rewards to channel specific channel value-add activities. Critical components of this new model are: identifying opportunities for value-add channel, architecting channel programs to ena … Read more »

This article provides an in-depth look at a value-based channel management model at Cisco Systems for managing the value-added reseller (VAR) channel. In March 2001, Cisco introduced a shift from a volume-based channel management model that had driven partner to a value-based model that tied rewards to channel specific channel value-add activities. Critical components of this new model are: identifying opportunities for channel value-add, architecting channel programs enable on channel value-add, tie financial rewards for value-add channel activities including a “holdback system,” and to manage A MATERIAL discipline field pressures for volume-based rewards and diluting certification requirements. It shows that VARs serve as a key distribution channel for profitably sell complex solutions for satisfied customers in the context of a value-added channel management framework. You can also explore opportunities demand that the incremental pull marketing itself as a strong brand Cisco. However, companies need to avoid exercise considerable discipline mixing volume-based rewards with a value-oriented framework.
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from
Kirthi Kalyanam,
Surinder Brar
Source: California Management Review
27 pages.
Release Date: 1 November 2009. Prod #: CMR442-PDF-ENG
From Volume to Value: Managing Value-Add Reseller Channel at Cisco Systems HBR case solution