Cisco has announced a new channel programme and online Web tool
that will use customer satisfaction ratings to calculate
accreditation levels, resulting in improved margin discount.
Cisco's Partner Access on-Line (PAL) software will allow channel
partners to compare their customer satisfaction scores against
rivals and use especially high results to improve accreditation
levels.
Analysts have speculated that Cisco may allow customers to view a
league table of prospective channel partners but Cisco's Paul
Salmon, director of technical operations for EMEA channels said,
"None of the customer satisfaction scores will be available for
publication."
Cisco said it had hired an independent company to survey
end-customer experiences with its channel partners, ensuring an
objective customer satisfaction score. Cisco channel management
will then use the scores to measure the effectiveness of its
channel programmes.
"Previously [Cisco's] channel partners had to go through us to find
out customer satisfaction data. We are still testing out how to
make the technology available directly to our partners," said
spokeswoman Samantha Barrow.
The end-customer satisfaction data includes overall analysis of
partner account team performance, responsiveness, communications,
systems engineer availability and skill levels, and ability to
diagnose and resolve problems.
PAL data will be used to rate each company on a scale of one to
five and Cisco is hoping to make the data available to certified
channel partners by June.
"Partners will not receive additional margins for exceeding the
customer satisfaction target, as all certified partners at a given
level receive exactly the same margin," said Salmon. However, he
added: "If one of our partners does exceed the [regional] customer
satisfaction target, they may leverage the additional score as part
of the extra credit points required for Cisco's new channel partner
programme."
Cisco's partners who score additional points could potentially move
up from silver to gold status thus earning an increased
margin.
"Cisco have removed volume discounts and moved towards discounts
based on performance, which will ultimately benefit companies that
look after their customers," said Keith Humphreys, senior
consultant at analysts Eurolan. "The new scheme, we believe, is not
mandatory but the increased margins will make it attractive to all
of Cisco's partners."
Humphreys added: "Cisco really are pushing a lot more business
towards the channel but the new focus on customer satisfaction
means that partners that continually perform badly, in a worst case
scenario, could lose their accreditation."
The partner programme will offer specialist training courses in
seven areas including security and voice over Internet protocol,
which when successfully completed should lead to further discounts.
"We welcome the new partner programme," said Simon Boyle, marketing
manager at Dimension Data. "We need a way of differentiating
ourselves in the market. For far too long people have been able to
get quick certification, which has lead to abuses in the
past."
Lloyd Salvage, UK director of Getronic, agreed, "We can't afford to
let bad companies give our sector a bad name," he said.
"The new Cisco partner programme seems to favour companies that are
able to offer added value services and this is where we and most of
the industry are moving towards," said Salvage.
Eurolan's Humphreys added: "Even though the PAL programme is free,
there will be a massive cost to channel partners who will need to
upgrade their customer facing systems. Whether Cisco will help with
this transition is unclear."
Cisco's Salmon promised that channel partners had little to fear
from the new scheme. "If a Partner is unable to achieve their
target, Cisco will work together with the partner on a six-month
programme to help them achieve their target," he said.
Cisco would not clarify what would happen to a channel partner that
failed to improve at the end of the six-month period.
Will Garside