Value, Measure, Communicate, Reward (VMCR)℠ Process

The Value, Measure, Communicate and Reward (VMCR) framework is the core method Frank Lynn & Associates uses to design channel compensation programs for its clients.

As shown below, we first work with clients to understand what functions or behaviors their respective teams (marketing, sales, finance, operations, etc.) value from channel partners. Typically, this will generate an overly-long list of attributes. We ask the client teams to rate and rank each requirement as one way to whittle down the list. Another way takes place in the second step, where we determine which attributes can objectively and easily be measured and tracked. In the “Communicate” step, we develop a two-way process of insuring that our clients understand channel capabilities and concerns and that the channels clearly understand the functions which the supplier values and is willing to pay for. Lastly, we design the actual reward structure – the tiers, metrics and compensation structure.

Value

  • Loyalty
  • Growth
  • Competence
  • Marketing Activity
  • Sales Activity
  • Logistics
  • On-time Payment
  • Other

Measure

  • POS
  • ERP, PRM, Other IT reports
  • Audits
  • Customer Satisfaction Surveys
  • Third-party Attestments
  • Certification Results
  • Other

Communicate

  • Program Documentation
  • Executive Presentations
  • Channel Manager Interaction
  • Partner Portal
  • Partner Awards
  • Other

Reward

  • Discounts
  • Quarterly Rebates
  • Annual Rebates
  • Marketing Funds, Fees
  • Commissions
  • SPIFs
  • Non-Monetary Compensation
  • Other