Why Dealer Co-Op Programs Fail and How to Fix Them

In this episode, Brian Cole sits down with Steven Hileman, Vice President of Client Solutions at Element Three, to unpack why dealer co-op programs underperform and what OEM leaders can do about it.

Steven explains how misaligned incentives push dealers toward short-term behavior rather than the manufacturer's broader strategy. He also explores how program rules can steer spending toward stronger dealer execution, while turnkey support can close the gap for locations without dedicated marketing resources.

For OEM and B2B2X leaders managing dealer networks, channel marketing, and co-op budgets, this conversation offers a practical way to make dealer funding more useful, measurable, and tied to long-term growth.

You’ll learn:

• Compare fund usage with dealer sales results to see which activities are actually supporting growth
• Require priorities like sales training before dealers unlock broader reimbursement options
• Match reimbursement and turnkey support to each dealer's market, capabilities, and ability to execute

Things to listen for:

(00:00) Building dealer programs that turn co-op dollars into sustainable growth

(00:30) Diagnosing why co-op funds go unused

(01:21) Steering dealer spend toward activities that support growth

(03:19) When sales incentives undermine long-term growth

(05:43) Using performance gates to unlock co-op funds

(07:26) Balancing reimbursement with turnkey dealer support

(08:25) Connecting OEM data to the dealer buyer journey

(11:14) Designing programs for different dealers and markets

(13:53) Learning what dealers really think about OEM programs

(14:41) What to do when your co-op program is underperforming

(16:06) Asking dealers which competitor programs they value