How can you measure the ROI of your channel partner program?

2 Choose your key performance indicators (KPIs)

Once you have your goals and objectives, you need to select the key performance indicators (KPIs) that will help you measure how well you and your channel partners are achieving them. KPIs are quantifiable and relevant metrics that reflect the critical success factors of your channel partner program. For example, some common KPIs for channel partner programs are revenue, profit margin, customer acquisition cost, customer retention rate, customer lifetime value, and partner satisfaction. You should choose KPIs that are aligned with your goals, easy to measure, and meaningful for both you and your channel partners.

3 Collect and analyze data

After you have your KPIs, you need to collect and analyze the data that will show you how your channel partner program is performing. You can use various tools and methods to gather and process the data, such as surveys, interviews, reports, dashboards, and analytics platforms. You should collect data from both internal and external sources, such as your own sales and marketing systems, your channel partners' systems, and your customers' feedback. You should also analyze the data regularly and consistently, using the same criteria and benchmarks, to ensure accuracy and reliability.

4 Calculate your ROI

The next step is to calculate your ROI, which is the ratio of the benefits you gain from your channel partner program to the costs you incur. There are different ways to calculate ROI, depending on the type and scope of your channel partner program. However, a simple and common formula is:

ROI = (Benefits - Costs) / Costs x 100%

Benefits are the positive outcomes you get from your channel partner program, such as increased revenue, reduced expenses, or improved customer satisfaction. Costs are the negative outcomes or investments you make for your channel partner program, such as fees, commissions, incentives, training, or support. You should calculate your ROI for each channel partner, as well as for your overall channel partner program, to compare and contrast the results.

5 Evaluate and improve your channel partner program

The final step is to evaluate and improve your channel partner program based on the ROI analysis. You should review your goals, objectives, KPIs, data, and ROI calculations, and identify the strengths and weaknesses of your channel partner program. You should also communicate and collaborate with your channel partners, and solicit their feedback and suggestions. Based on your findings, you should make adjustments and improvements to your channel partner program, such as setting new goals, changing your KPIs, modifying your incentives, or providing more training or support. You should also monitor and measure the impact of your changes, and repeat the process as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?