April 6, 2021 – G2Crowd, the world’s leading business solutions review website, released its Spring 2021 Report on Partner Relationship Management (PRM) Software. Allbound continues to be recognized by G2Crowd Grid Reports due to the responses of real users for each...
There was a time not so long ago when just having enough partners on your roster was enough to chalk up a channel program as a success, place it to the side, and let it manage itself while you directed your focus on other things. But that’s not how it works anymore. As prominent companies with robust channel programs can attest to, the number of partners associated with your channel is hardly the performance indicator it once was. The industry has changed—and your metrics should too.
Two of the most important key performance indicators (KPIs) you need to be tracking on your KPI dashboard are ROI and recurring revenue. So let’s drill down into why monitoring these two KPIs is so critical, how new technology allows you to get a clear perspective on them, and how measuring these metrics and basing your actions on them can keep your channel zeroed in on optimizing your ROI.
Knowing Your Partners, Knowing ROI
Getting a full picture of the ROI you’re getting out of your channel program is important for two reasons: to determine whether you are deploying your resources in the best way possible and how you can tweak your program to make your investment more valuable.
The way to do this is know your partners—and know exactly what they are doing for you.
By implementing the right partner sales acceleration tool, you can have a solid stream of data coming in all the time that tells you what your partners—and even individual members of your staff—are doing. You can see, all in one place, the revenue their deals are generating and the number of deals they’re registering, right down to how much they’re making use of your training resources and marketing materials. With this information at your disposal, you can determine how much you’re getting out of each partner balanced against the resources you’re investing—and the return you’re getting from the program as a whole.
That’s where the tweaking comes in. Monitoring these metrics in the interest of determining ROI also lets you note pain points and establish accountability on the partner end. That means you can incentivize and reward the behaviors you want out of your partners on a level as granular as the actions of an individual staff member with a client, and if you’re not seeing what you want, you know exactly what needs to change.
The Revenue Source That Never Stops
Being able to track recurring revenue correctly is fundamental to understanding how much revenue you’re actually generating, especially for subscription-based businesses. Part and parcel to knowing this figure is knowing where that revenue is coming from.
Being able to see which partners are more successful in bringing in recurring revenue from their clients can determine a whole range of moves on your end. Whether it’s rolling out a new product to potentially double your number of subscriptions or changing your brand position to devote all your resources to the client base you’re most successful with, identifying where your recurring revenue is coming from is the first step.
Track, Measure, and Drive Success
As we’ve seen, tracking ROI and recurring revenue as KPIs is key to finding out how healthy your channel is and how you can make it healthier. A partner sales acceleration solution that lets you gather as much vital data as possible about what your partners are doing puts you in the driver’s seat of your channel program. It allows you to react dynamically on every level to support your partners’ success, promote their good work, and drop the dead weight of partnerships that aren’t getting the results you need.
So start tracking these metrics to take the first step of establishing real control over your channel and achieving the real success that comes with it.