For Australian SMEs building a reseller channel, knowing if your partners are truly contributing to growth is critical. It’s not enough to simply onboard resellers; we need to actively measure their success – and importantly, define what ‘success’ looks like from the outset. Creating clear partner success metrics isn’t about policing your partners, it’s about empowering them and ensuring a mutually beneficial relationship that drives revenue.
Many businesses fall into the trap of focusing solely on sales volume. While important, this is a lagging indicator. We advocate for a blend of leading and lagging metrics to get a holistic view. Here are a few key areas to consider:
- Partner Engagement Score: This is a composite metric reflecting partner activity. Think training completions, marketing asset utilisation (co-branded content, email templates), and participation in partner programs. A highly engaged partner is more likely to generate results.
- Qualified Lead Generation: How many viable leads are your resellers proactively sending your way? This demonstrates their commitment to finding new customers, not just servicing existing ones. We recommend defining ‘qualified’ very specifically – industry, company size, budget indication – to ensure lead quality.
- Deal Registration Rate: Encouraging partners to register deals before pursuing them protects both parties and provides valuable pipeline visibility. A low registration rate might indicate a lack of confidence in your product or program.
- Average Deal Size: Are partners selling the full value of your solution, or are they focused on smaller, easier wins? Tracking this helps identify training needs and opportunities to upsell or cross-sell.
- Customer Lifetime Value (CLTV) from Partner Sales: This is a crucial lagging indicator. Are customers acquired through resellers as valuable as those acquired through other channels? This validates the quality of the partner’s sales process and customer onboarding.
It’s vital to share these metrics transparently with your partners. Regular performance reviews, ideally quarterly, provide a forum for constructive feedback and collaborative improvement. Consider tiered incentives based on performance – rewarding partners who consistently exceed expectations. As your channel matures, you can refine these metrics and introduce new ones to reflect evolving business goals. Looking ahead, integrating these metrics into a dedicated Partner Relationship Management (PRM) system will become increasingly important for scalability.
Ultimately, well-defined partner success metrics transform your reseller channel from a cost centre into a powerful engine for growth. Your next step should be to workshop these metrics with a small group of your top-performing partners to ensure they are realistic, achievable, and aligned with their business objectives.
