Avaya Partner Conference: ‘Driving Simplication’ in Incentive Programs

One of the things that it seems no vendor can get right, simply, is incentive programs. The myriad rebates, deal registrations, volume-based discounts and other incentives to channel partner behavior can quickly turn into a full-time job for partners to manage. Avaya recognizes that with such programs, less often can mean more, and has taken steps to streamline its Grow Right incentive program.

“What precipitated the changes to the program was partner feedback,” said Barat Dickman, senior director, Global Channel Programs and Go-To-Market Strategy at Avaya. “Moreover, we are on a path toward simplification, so we saw this time as an opportunity to simplify and incorporate the feedback.”

Dubbed Grow Right 2.0, the revamped program incorporates all the elements of the original Grow Right program—which rewards partners for selling networking, Radvision and other technologies beyond communications technology—but is opening it to a greater number of partners and changing the growth rates based on the technology sold, Dickman said.

“As Richard (Steranka, VP of Worldwide Partner Organization) said, the huge opportunity is in the midmarket, where have low penetration and opportunity to sell entire solution stack,” he noted. “Some partners have done a decent job selling the stack, but we are far from where we can be.”

Grow Right 2.0 is now open to all medaled partners, DMR partners, expert/specialized partners and new partners—pretty much anyone selling Avaya technology except those that are simply authorized and unbadged. What’s more, the program now runs quarter to quarter and uses year-over-year growth rates—changes that were requested by its partner base.

In addition, the program will have different growth rates, payout rates and maximum payouts per solution area, leveling the playing field for partners, Dickman said.

During its Avaya Executive Partner Forum 2013 in Cancun, Avaya also debuted the SME Solution Sale Incentive, a new program for SME Expert partners that rewards midmarket attach of video, networking, security, unified communications apps and services. Partners can earn as much as 14 percent in rebates by selling additional technologies beyond IP Office. Avaya recently launched the program in the United States and will expand it into other geographies in the coming months.

“From IP Office partners can stack so many things,” Dickman noted. “And the stack builds beyond just three or four things, including partners’ offerings such as service, maintenance and even financing.”

Avaya is serious about getting its partners to sell more networking, video and related technologies—“sell the stack” is the term company executives were throwing about at the conference—so much so that the company is investing 50 percent more in commission programs for FY14.

So why now? Avaya hasn’t had a strong message around its networking, security and other technologies, but it has been working to raise its profile through R&D and strategic investments.

“For security, we acquired Sipera in the last two years. The same with video—we acquired Radvision 18 months ago. And with networking, Avaya was not clear about our deep commitment to networking until the last few years,” Dickman said. “Partners couldn’t really sell the solution—either because we didn’t have it, or there was the newness of the technology or the issue of whether Avaya was even committed.”

Now, Dickman said, the lineup is much more solid, and the incentive programs are changing to address that.

“Channel partners that were traditional voice are moving into video and networking. For us, there is a re-invigoration and statement of conviction on networking and so partners are investing in those areas,” he noted. “A lot of MDF is being used to build practices in those two areas.”