In mid-July, HP announced its new partner program, HP Amplify. The new program addresses changes in the market caused by digital transformation and new customer purchasing behavior. Partners are still rewarded for hitting their volume and revenue marks, but the new program rewards strategic efforts throughout the sales process as well. The partner program is designed to allow HP and its partners to leverage data to make more data-driven decisions.
The importance of data
The HP Amplify puts a high value on data. Per HP, data informs the end-to-end journey that any customer takes with HP and defines how HP engages with customers, thinks about the product and services that they want to bring to market, and how to manage outcomes.
One plan, two tracks
Amplify will replace the existing HP Partner First Program, consolidating HP’s Managed Print/Managed Services, Online Marketplaces, Commercial Resellers (Platinum, Gold, Silver, and Business tiers), Retail, and Solutions Specialists programs into a single, two-tiered program.
Partners can choose one of two tracks: Synergy or Power. Each track has its own requirements for the program’s three pillars: performance (measures customer engagement from end-to-end), capabilities (basic, advanced, specialized), and collaboration (how much data partners will share with HP). While both tracks reward dealers in the same way, the amount of compensation they receive differs, as does the amount of attention they’ll receive from HP. The level of engagement between partners and HP will be proportionate — the more a partner is willing to put in, the more HP will, too.
Synergy: The Synergy track is a basic partner program built for the majority of HP’s partners — especially those built on a transactional model. This track requires minimal investment and isn’t very risky. Partners agree to buy and resell HP’s portfolio, meet some basic volume requirements, and participate in HP’s training and certification programs.
Power/Power Services: The Power track is much more involved, and is built for customers that are willing to invest and collaborate more with HP. This kind of partner would be an outcome-based dealer committed to building a strong online and marketplace presence. The risk on this track is higher, but so are the rewards and earning potential. Power track partners have access to all of HP’s services portfolio and delivery capabilities. HP will guide Power partners through their journey, leveraging data-driven insights to help them assess their business, develop joint business plans, invest in marketing, share customer and sales insights, and more.
Performance: HP will measure performance based on gross revenue and 14 other measurements across the entire sales journey, from beginning to end. Specifically, HP will look at the partner’s sales funnel, deal registration volume, sales conversion rates, pre-sales support utilization, attached sales rate, average sales value, average revenue per account, day sales outstanding, time to delivery, support utilization, service-level agreement compliance, account retention, account expansion, and customer satisfaction.
Collaboration: HP wants partners to share operating data like sales pipeline activity, sell-through data, services utilization, inventory levels, online mix, and marketing activities. With that data, HP says it can help the dealer identify product and service needs, spending habits and limitations, total cost of ownership estimates, and future buying potential on an account-by-account basis. HP can also help the dealer leverage data to optimize managed services (IT and print) and device-as-a-service businesses, enabling them to identify a problem — like if a part is going to break or if a consumable is running low — before it occurs, and identify new sales opportunities.
Capabilities: HP isn’t just rewarding partners for more than sales; it is incentivizing partners to invest in technical and operational skills. On the technical side, customers will be rewarded for investment in things like secure data collection, services, and specialties. On the operational side, partners are rewarded for their investments in their route to market — a stronger presence online and in marketplaces like Amazon.
The program will go live for commercial partners across the globe (except in China) starting November 1, 2020. The program will be extended to retail partners on May 1, 2021. HP said that most Partner First participants will qualify for the new HP Amplify partner program.