Wrapping your arms around where VIP40 Changes can Impact your bottom line

Hello Cisco Partners,

As we continue with our Blog around “VIP Rebates Simplified”, the topic today is on what has changed with the transition from VIP39 to VIP40. Here are some questions that immediately popped into our mind:

• What are the VIP39 to VIP40 changes?
• How do I leverage them to optimize incentives?
• Are there long-term trends I should pay attention to?

Now that VIP39 has ended, we once again looked at the questions, reviewed the data and prepared a report; “The Netformx VIP40 Index Report”. The report provides near term and long-term observations based on the Netformx VIP Index (NVI) value we calculated by looking at the last six VIP periods and comparing them to VIP40.

We took into consideration the number of eligible SKUs and percentage of payout. This approach provides clear insight as to where Cisco is targeting their rebate payouts. While the program is SKU driven, the NVI is organized by subtrack and provides a relative Index number that makes it easy to answer the top questions at hand. The higher the index number; the better potential for a higher rebate payout.

Through this method the Netformx VIP Index Report (NVI) provides insight into the key changes that partners need to know.

Key questions for your selling motions

• What Cisco Subtracks are you selling today versus what you need to sell tomorrow to continue to maximize rebates with VIP40?
• VIP Rewards continue to change especially for VIP 40:
  • Do you know what subtracks will get you the highest reward %?
  • Do you know what SKU’s will reap the most rewards?
  • Are you evolving your sales strategy to align with Cisco strategy?
  • What are you doing to maximize your VIP rebates in the new period?

The changes with Cisco VIP40

The VIP40 changes continue to echo Cisco’s strategic direction to align the VIP program with their desired migration from Architecture to more Annuity rebates. Though Lifecycle Incentive rewards seem to have more momentum from Cisco than VIP, there is still plenty of opportunity for VIP rebates to benefit your bottom line. Anyone doing business with Cisco is interested in how to adjust their selling motions for VIP40.
Cisco Partners can request a copy of the “Netformx VIP Index Report*” through the Netformx website or by contacting their account manager or reaching out to sales@netformx.com.
*This report is only available to Cisco Partners.

The Netformx VIP40 Index Report – Insights on VIP program trending

Netformx leverages years of experience with the Cisco VIP program to apply logic to automated data from Cisco and Distributors. This provides insights to the partners business, how they are investing their energies in Cisco’s programs, and their success at earning rebates or if they left money on the table.

We hope you will find value from the observations we gathered. If you are a current Netformx customer, after you have reviewed the report, we can work with you to look at your company’s previous VIP payouts to try to determine if there are specific adjustments that may help to maximize rebates in the new period.

If you have any further questions, I am happy to help. Just let me know at mike.johnson@netformx.com.