9/22/2010 4:52:00 PM
Vodafone's Peter Kelly on how the tiers will work
Vodafone has structured its indirect channel of 400 dealer partners into three tiers: 25 in Platinum; 75 in Gold; and 300 in Silver. Qualification for each tier is based on various criteria such as the value of revenue earned, number of connections, skills, capability, accreditation and certification and successfully meeting various KPIs.
Peter Kelly, enterprise director at Vodafone UK, told Mobile: ‘All 400 partners will receive support from our dedicated support unit Vodafone Partner Services in terms of people, commercial, marketing and incentives. But the higher up you are, the more significant the investment you get from Vodafone.’
Kelly explained that the change was about building a more agile and responsive partnership between Vodafone and its indirect partners. ‘We will be much more open and transparent with clear goals in terms of revenue, value and skills. We will also have a three-year plan and we will work together to deliver that plan. Historically we didn’t have that.’
Kelly said that Vodafone has simplified the commercial structure providing more transparency on the incentives and revenue share and being clearer about what Vodafone is trying to achieve commercially. He added that Vodafone has also listened to what it partners needed commercially, so that the operator and its partners are aligned in their goals.
Kelly continued: ‘Our partners want more revenue surety, so they know what they can afford to invest in. Their ability to do that used to be hindered by the lack of longevity in the relationships. We are now providing three-year deals, which allow our partners to invest in the future.
He added: ‘We will improve the commission process by providing detailed monthly reports and insights, so we will be very clear on their performance. They will get complete commission statements.’
But the new levels of support also come with a stick. ‘We will be very strict in enforcing targets and KPIs, as this is a big investment for us. We can’t provide incentives and not expect them to deliver,’ said Kelly.
‘We will have quarterly reviews against performance. There will be promotions and relegations from the tiers, but I would prefer to see the numbers in the Platinum and Gold tiers grow – it shows people are buying into our goals,’ he said.