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  • Writer's pictureRichard Israel

Top 3 measures to drive partner success

Most folks typically think about the usual MRR, ARR, LTV:CAC, churn, metrics when evaluating their channel business because those are the same metrics used to manage the direct side of the business. However, these metrics do NOT begin to tell the real story of how your channel is performing as a business. Of course, you should be mindful of the above KPIs but leaving out the following will prevent you from evaluating partner success and giving you performance metrics to better manage your channels success.

1) Partner Recruitment: You’ve often heard me talk about the importance of the top of the funnel – well here is what you should be looking at.

i. Number of leads (by source/total)

ii. Number of calls/contacts by rep

iii. Number of appointments

iv. Number of partners recruited

v. Time from recruit to first sale

By measuring these five data points you will be able to better recruit because you will understand your conversion from lead source through to first sale and that will allow you to predict future revenues based on top of funnel success providing you with a benchmark to accelerate revenues at the bottom of the funnel.

2) Partner sales: The typical partner sales metrics focus on pipeline, what can close this month/quarter, and what can be done to ensure those opportunities are indeed closed. These are all important for running a successful partner sales team but it misses a key piece. If your partner team is experiencing the pareto principle (which most do) then you should be measuring your partners in TWO buckets.

Productive partners vs. Non-productive partners (80/20). Understanding what your productive partners are contributing and the effort and importantly resources it requires to drive a revenue increase from the productive segment vs. your non-productive segment makes all the difference in the world. Focusing 80% of your resources on those partners who are productive will pay dividends which is why you must separate the two. We will tackle how to improve non-productive partner productivity at a later date with a focus on measured resource allocation.

3) Partner satisfaction: Very few highly successful channel programs miss this one – it’s so important to short term growth and long term success. Think of it as your net promoter score for partners (NPS) tracking and measuring the health of your partners. You should be surveying your partners every 6 to 12 months to see how they are doing, to ask for their feedback and most importantly to understand how satisfied they are with your partner program. Trending over time will provide critical insights and key guideposts to making strategic decisions on your program as it grows and matures.

Failure to understand your partners health will eventually create small cracks that turn into gaps that fracture your partner program. If you would like or need help/advice on surveying your partners anonymously please reach out to RASA Consulting for a complimentary partner satisfaction discovery call.

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