What metrics can you use to identify partnership growth opportunities?

Look at how much it costs to get a new customer (CAC), how much that customer is worth over time (LTV), and how many people actually end up becoming customers through partnerships (conversion rates). Check if potential partners share a similar audience and if teaming up could improve your product. Keep an eye on where your website traffic is coming from, how engaged people are, and the money rolling in from these partnerships. These metrics will help you spot which collaborations are working well and where there's room to grow.

There are various structuring options here. A mixture of fixed and variable remuneration is a good option. Your partners will also have costs that arise from the partnership alone (personnel costs, travel expenses, etc.) In view of the fact that you yourself are probably not or hardly ever active in the areas managed by your partners, the revenue share should be attractive, rewarding and therefore motivating for your partners. ??Of course, these topics should also be reassessed at regular intervals.

Effective partnerships thrive on key metrics like revenue share percentage, total revenue, and CAC vs. LTV. Conversion rates, cross-sell/up-sell, and customer satisfaction gauge impact, while joint marketing ROI and financial audits ensure ongoing health. Strategically monitoring these metrics enables businesses to identify and capitalize on growth opportunities within partnerships.

Revenue share also depends on who is bringing in the customers/deals. One partner can play the role of bringing in more customers, while the other partner plays the role of servicing the customers. Standard revenue share in this case would be 70:30 (70 in favour of the servicing partner)

With partners, I always recommend a percentage of sales that is beneficial for both parties. If you're in a phase of acquiring new clients, I would add a fixed fee for new logos

In addition to the sales revenue generated, CAC is an important quantitative KPI for measuring the effectiveness of a partnership. Together with qualitative factors, the partnership should be evaluated on an ongoing basis or at regular intervals. It should be noted that the costs of various partnerships can differ as cost structures can be quite different (e.g. different marketing costs or different industry structures in different countries).

Customer Acquisition Cost (CAC) is a vital metric in identifying partnership growth opportunities. Calculate CAC by dividing total acquisition expenses by new customers gained. A lower CAC indicates efficiency. Collaborate with partners who can help reduce acquisition costs or broaden reach. Evaluate partnerships based on their potential to enhance efficiency, reduce CAC, and access new customer segments. Regularly monitor CAC trends to assess partnership impact and adjust strategies accordingly. This metric ensures strategic collaborations that optimize resources and drive sustainable customer growth.

CLV is the most important metric to look at when you are trying to build a healthy company. It’s much more expensive to acquire a totally new customer than extending the lifetime value of an existing one. Never stop talking to customers, listening to them, and trying to understand their needs. New marketing ideas might come out of those conversations. Or even better, a change in the customer journey that could impact your whole customer base and ensure your company ends up surviving and growing forever.

Probably one of the most important KPIs in sales. It helps you to focus your possibly limited resources on the most important customers (ABC). For the forecast, this KPI is more meaningful than the pure number of paying customers. Existing customers with identified further potential can be developed in a targeted and focused manner. The energy, time and costs that you would have to invest in reactivating customers who are no longer buying or in completely new customers would be much higher. But also consider criteria other than the purely monetary value of the customer. In every industry there are "lighthouse customers" whose sheer presence attracts other customers.

Leveraging Customer Lifetime Value (CLV) is key for identifying partnership growth. Analyze high-CLV customers, understand preferences, and collaborate with partners offering complementary solutions. Create tailored bundled offerings, aligning with partners that resonate with high-CLV segments. Use CLV insights to strategically guide partnership decisions for sustainable business growth. Regularly reassess strategies based on CLV data for continued success.

Make a clear commitment to your partners - they represent you in markets or sectors in which you yourself are not or only very weakly represented. Support partners as best you can to get the most out of the partnership. This applies to processes, agreements and support. For me, the optimal support of partners is the absolutely necessary extension of the above-mentioned monetary appreciation of the partnership. Only satisfied partners will make their optimum contribution to a partnership.

Partner satisfaction is a key metric for identifying partnership growth opportunities. Regularly assess your partners' contentment through surveys or feedback sessions. Identify pain points and address them promptly. Happy partners are more likely to collaborate, leading to mutual growth. Analyze satisfaction trends to spot areas for improvement, ensuring a proactive approach to partnership enhancement. Use this data-driven insight to tailor strategies, foster stronger relationships, and unlock untapped potential for both parties. Remember, satisfied partners are not just allies; they're catalysts for sustained, fruitful collaborations.

Satisfaction comes with a Voice. Do your partners have a Voice, if not, then know you are not doing well. Your partners should be able to advice and be given an opportunity to make certain decisions especially in a Grantee-Donor/Funder partnership. Accountability is the other aspect to satisfaction.

In addition to brand awareness, brand association and contribution to positioning can be at times more important than measurable ROI in the short term.

Brand awareness is a vital metric for identifying partnership growth opportunities. Start by assessing your current brand visibility through surveys, social media metrics, and online presence. Collaborate with brands that align with your values and target audience. Leverage joint marketing efforts to expand reach and tap into each other's audiences. Monitor brand sentiment and engagement to gauge the effectiveness of partnerships. Utilize metrics like website traffic, social media mentions, and customer feedback to measure the impact. Regularly evaluate and adjust strategies to ensure sustained brand growth and successful partnerships.

Evaluate your business's KPIs like revenue growth and market share. Examine potential partners' financial reports and market positioning. Seek collaborations with companies on upward trajectories that align with your goals. Monitor growth metrics regularly for dynamic, mutually beneficial partnerships that capitalize on emerging trends, ensuring sustained success.

We could also measure growth pontential through capacity built. You can assess your partners capacity growth interms of knowledge and skills. In partnerships, we tend to collaborate and invest in capacity building for both parties. This way, you provide room for teams to grow and learn from one another.

Churn rate and Net Revenue Retention are two extremely relevant metrics to partner program performance. On balance, customers acquired through partners should not only be a lower CAC but also churn at a lower rate than any other cohort. Additionally, those customers should be richer expand selling targets, resulting in higher NRR. If either of these things isn't true, exam your Ideal Partner Profile to ensure optimal alignment!

Partnerships are a fantastic way of penetrating markets that you would only be able to enter yourself with considerably more effort and risk. Withdrawing from a market that turns out to be unattractive is also easier than using your own human or material resources. Partnerships can also often achieve more in less time. However, it should be noted that for partnerships in new markets, your product or service should be fully developed and already working successfully " at the customer" in your core markets.??Unfinished products and unproven structures are a fundamental risk for a functioning partnership - regardless of the quality of your partners.

Me parece que algo basico para identificar oportunidades de crecimiento en una sociedad, es la evaluación previa del aporte de valor que esta asociación puede dar a la percepción de nuestra marca o productos en este nuevo mercado o segmento. Si esta orquestación o sinergia no hace mas valiosos para nuestros clientes , es mejor hacerlo solos o buscar otros socios que si aporten valor