Why Partner Performance Measurement Matters

Effective partner performance measurement goes beyond simply tracking activity or engagement. It provides invaluable insights that can empower you to make better decisions in order to optimise your channel program for maximum return on investment (ROI). While implementing a robust KPI tracking system requires ongoing effort, it serves as the linchpin for optimising partnerships.

The absence of such data limits your performance evaluation - you lose the ability to identify improvement opportunities for individual partners. Yet, so often we see partnership teams struggling with setting up KPIs just because they lack the tools to measure the impact of their activities. 

Measurable KPIs allow your organisation to track the performance of partnership efforts and as a result also raise (internally) the budget for any partner activities, including budget for new team hires, software, and tools needed to streamline operations. 

KPIs provide your company with invaluable insights on the health of your partner ecosystem, including but not limited to:

Identifying top-performers - by leveraging data to pinpoint partners who consistently excel in key areas like revenue generation, deal closure efficiency, and program goal achievement. 

Pinpoint areas for improvement - this could include gaps in partner enablement, marketing efforts, or support structures.

Incentivise partners - data-driven insights can inform the development of targeted programs designed to motivate and incentivise partners (e.g. to re-energise inactive partners, or reward top performers).

Predict future performance - historical performance data can be used to forecast future trends (e.g you can determine how to optimise resource allocation within your channel program).

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What are the 5 key metrics to measure partner performance

We'll explore five key metrics that will help you grow, measure and reiterate your efforts:

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1. Revenue and pipeline creation

#1. Active pipeline per partner - this metric doesn't just show how busy your partners are, it reveals a number of potential deals. By tracking the volume of active deals each partner is nurturing, you can identify opportunities or provide support just in time to close the deal (e.g maybe Partner A needs a nudge with a particularly complex proposal, or Partner B could benefit from an introduction to a high-value prospect). 

This metric provides a great operational insight into your partner’s pipeline. 

#2. Sales opportunities created by each partner - as we move along your sales pipeline, identifying which leads moved into an opportunity stage is a valuable metric to assess your partner’s performance and how much value it brings to the table (this often allows you to measure the time and budget spent vs what you’re gaining from it). It also helps identify partners excelling at lead qualification and allows you to offer targeted support to those struggling with conversion rates. 

#3. Pipeline value - encompassing deal registrations, applications, or quote requests, is like a crystal ball revealing the potential revenue associated with your partnership efforts. Knowing the total value of your active deals allows you to forecast future growth, allocate resources efficiently, and celebrate milestones along the way. 

#4. Partner-sourced revenue - this is a fundamental metric that tracks the direct revenue generated through your partners' sales efforts. Monitor the total revenue and track it against your partnership goals vs time and budget spent.

#5. Partner-influenced revenue - beyond direct sales, partners can influence customer journeys at various touchpoints. Track revenue generated from leads nurtured or deals influenced by partner interactions.

#6. Customer acquisition cost (CAC) by Partner -  analyse how much it costs to acquire a customer through each partner channel. This helps identify cost-effective partnerships and potential areas for improvement.

“The CAC is one of the most important metrics to keep track of in general from a partnership perspective. You need to know what activities lead to the best results and what partners lead to the best result. So knowing every partner's CAC will help you prioritise correctly and help improve mandate with the rest of the organisation”

Fredrik Mellander, Co-Founder at Journeybee.io

#7. Customer lifetime value (CLTV) by partner segment: understanding the lifetime value of customers acquired through different partner segments helps assess long-term partnership value.

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#2. Partner Activity 

Partner enablement metrics are crucial in ensuring your partners have the knowledge, skills, and resources to effectively sell your products or services. Monitor partner engagement through:

#8. Partner portal activity - track login frequency to gauge partner access and utilisation of resources.

#9. Training completion rates - measure partner knowledge acquisition through training modules and certifications to identify upskilling opportunities.

#10. Marketing material engagement - monitor downloads and usage of sales and marketing assets (newsletter open rate) to assess their effectiveness in lead generation and deal conversion.

#11. Communication effectiveness - track open rates, click-through rates, and overall engagement with partner communications to optimise content and delivery methods.

#12. Partner satisfaction scores - regularly monitor partner satisfaction through surveys and feedback mechanisms. A happy and engaged partner is more likely to invest effort in promoting your product or service.

#13. Training and Certification Completion Rates - track the percentage of partners completing training and certification programs (e.g. high completion rates indicate successful partner enablement and a well-equipped force promoting your offerings.

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#3. Partner Engagement

Effective partner management, like any successful collaboration, hinges on active engagement. By monitoring partner activity data, you gain valuable insights into their level of commitment, as well as identify areas where additional support or resources might be needed.

#14. Conversion rates - analyse how effectively partners convert leads into sales opportunities and ultimately closed deals. High conversion rates indicate partners are adept at nurturing leads and closing deals.

#15. Partner portal activity - a regular portal usage is a strong indicator of active participation and a commitment to success. A high portal engagement frequency suggests partners are actively seeking resources and information to optimise their performance.

#16. Deal registrations - track the number of deal registrations submitted by partners. A consistent flow indicates strong selling efforts and a promising future.

#17. Partner program abandonment rates - this can reveal potential issues like a complex onboarding process or lack of value proposition for certain partners. Analysing why partners leave allows for reduced churn and improvements.

#18. Frictionless onboarding - aim for a streamlined enrollment process that minimises friction and expedites partner onboarding. Getting partners started quickly allows them to generate revenue faster. 

#19. Content consumption - Track how partners utilise your marketing materials (downloads, views). High engagement suggests the resources are valuable and resonate with partners' needs. This information can help you tailor future marketing materials to be even more effective.

Remember, a thriving partner ecosystem is a two-way street – by understanding your partner's needs and activity levels, you can foster long-term collaboration.

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#4. Sales and Customer Success Metrics

Sales data provides invaluable insights, revealing the performance and profitability of your channel program. By analysing these metrics, you can identify trends and make data-driven decisions to drive your best performing activities:

#20. Customer satisfaction (retention rates) - track these metrics for customers acquired through partners compared to those acquired through internal channels. It’s a great way to identify any discrepancies and work with partners to ensure a positive customer experience.

#21. Net Promoter Score (NPS) by partner segments - this measures customer loyalty and likelihood to recommend. Analysing NPS by partner segment helps identify which partnerships contribute most to customer advocacy.

#22. Partner Sales - track the average deal size generated by partners. This metric reveals the revenue potential associated with each partner sale and helps identify high-performing partners.

#23. Incentives - measure partner engagement with incentive programs designed to motivate desired behaviours. High participation rates indicate a well-designed program that effectively encourages partners to achieve program goals.

#24. Partner profitability - this helps you identify high-value partners and potential areas for optimising partner margins. By focusing resources on the most profitable partnerships, you can maximise your program's return on investment (ROI).

#25. Product adoption - track partner success in driving product adoption among their customer base. High adoption rates signify that partners are effectively positioning your product's value proposition and driving customer engagement.

#26. Retention - analyse customer churn rates managed by partners. Identify areas for improvement in partner support and service delivery to ensure customer satisfaction and loyalty.

#27. Speed of service -  monitor how quickly partners resolve customer issues. Efficient resolution times ensure customer satisfaction and minimise potential churn.

#28. Closing speed - measure the time-to-close deals facilitated by partners. Identifying bottlenecks within the sales cycle allows you to streamline the process and accelerate deal velocity.

#29. Upselling and cross-selling - track partner success in upselling and cross-selling your product portfolio to their clients. This reveals partners who are adept at identifying additional customer needs and maximising revenue opportunities.

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#5. Partnership Health and Efficiency

#30. New partner onboarding - track the time it takes to onboard new partners from initial contact to fully operational status. Aim to streamline the onboarding process to reduce partner churn.

#31. Partner renewal rates - monitor the percentage of partners renewing their agreements. Low renewal rates could indicate dissatisfaction with the partnership.

#32. Number of partner-generated support tickets - analyse the volume of support tickets generated by customers acquired through partners. High numbers could point towards gaps in partner training or communication.

#33. Resolution time for partner inquiries - track the average time it takes to resolve inquiries or issues raised by partners. Aim for efficient resolution times to maintain positive relationships.