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The PPG applications also offer some telling statistics for the channel. In customer spending for attached services, this year 7.4 percent of vendors said their programs generated more than $10 in services for every dollar of product sold, up from 4.9 percent in 2011. At the other end of the spectrum, 31.9 percent of vendors reported that customers spent less than $1 on services for every dollar of product sold through their channel program this year, down from nearly 37 percent in 2011.
The applications also illustrate the rising fortunes of solution providers as the economy improves. Asked how much their channel partners' businesses have grown in the past 12 months, 20.2 percent of vendors said their partners experienced growth rates between 11 percent and 20 percent, while 19.7 percent of vendors said their partners grew between 20 percent and 30 percent. Those numbers represent significant increases from 2011.
The 5-Star Partner Program Guide is assembled by UBM Channel Research using a methodology it developed for assessing information provided in vendors' PPG applications. The objective criteria include vendor investments in program offerings, partner profitability, partner training, education and support, marketing programs and resources, sales support and communication.
The methodology enables the research team to generate a prioritized list of vendors based on scores from their responses to a series of questions in the PPG application. A proprietary weighting scheme is assigned to each section, question and response set. Vendor responses to each question included in the analysis determines a vendor's overall rank in the 5-Star scoring process. Each year the scoring threshold used to determine the 5-Star status is determined by the responses received and scores achieved by the entire PPG applicant pool.
To dig into the 2012 Partner Program Guide, visit our PPG database.