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 fund utilisation, participation in webinars, and regular communication with your partner manager. A highly engaged partner is more likely to sell effectively.
- Qualified Lead Generation: How many viable opportunities are your partners bringing to the table? This demonstrates their proactive prospecting efforts and ability to identify potential customers. Don’t just count leads; qualify them based on pre-defined criteria.
- Average Deal Size: Are partners selling the full value of your solutions, or are they focused on smaller, quicker wins? A higher average deal size indicates a deeper understanding of your product and the ability to position it effectively.
- Sales Conversion Rate: This measures the percentage of leads provided by the partner that convert into paying customers. It highlights the partner’s sales skills and ability to close deals.
It’s also vital to segment your metrics. A new partner will naturally have different targets than an established one. Tiering your partner program based on performance allows you to provide tailored support and incentives. Regularly reviewing these metrics – quarterly is a good starting point – allows for proactive intervention and course correction. Don’t wait until the end of the year to discover a partner isn’t performing.
Finally, remember that metrics should be transparent and shared with your partners. This fosters trust and encourages collaboration. By focusing on these key performance indicators, we can build a thriving reseller channel that delivers sustainable growth for your business and your partners. Your next step should be to workshop these metrics with a small group of your top performing partners to ensure they are realistic and valuable.
