What are the most important metrics to track when managing partner programs in the SaaS space?

I've found it helpful to think of partnerships like pies. Too often partnerships fail even when they initially appear to be a good fit. To be successful, each partner needs to buy into the whole pie. By that I mean their own vision and values need to align with your pie. Secondly, they need their own piece of the pie reflecting expertise and priorities that will contribute to a better pie. It’s also important that each partner gets a piece of the pie that focuses on something the other partners don't have and/or don't want. When that combination of ingredients are in place, the result is the best pie ever.

In the SaaS realm, tracking key metrics is paramount for effective partner program management. Customer acquisition and retention rates, revenue generated through partnerships, and conversion metrics are crucial. Monitoring partner engagement, satisfaction, and the impact on overall customer success are vital indicators. Additionally, keeping a close eye on churn rates and the efficiency of collaborative initiatives provides valuable insights. These metrics collectively offer a comprehensive understanding of the partnership landscape, enabling data-driven decisions and fostering the sustained success of SaaS partner programs

The stakeholders who hold the power to green-light a partner program will require a number of primary metrics to help them make that decision, and PAC will be near the top of their list. If they can prove that the cost of your partner program will be higher than your PLV, then it’s highly unlikely it will be adopted. In a new program it will be unavoidable, as there will be budgetary considerations ahead of launch. In this scenario, it’s important to be able to quantify the program via short, medium and long term growth plans and results.

A few things that have worked in my experience over the years, to uplift PAR: 1. Ensure a seamless onboarding process that clearly communicates the value prop and benefits of the partnership. 2. Regular Communication, could be newsletters, cadences, exec connects etc 3. Personalized Support to address individual partner needs 4. Great Incentive Programs could be a vital inclusion 5. Training and Resources- Well-equipped partners are more likely to be proactive and engaged 6. Establish a feedback loop where partners can provide input and suggestions, action as appropriate 7. Collaborate on marketing initiatives that highlight the joint value props 8. Gamification to make the partner program more enjoyable, yet competitive.

In SaaS, Sourced and Influence revenue are core metrics to track in terms of Partner Contribution. Together they form "Partner Impact". From there, it's key to look at the overall business in terms of deals with partners attached and deals without. Typically you should see over time that Partner Impacted deals convert better, close faster, are larger and churn less. This is a critical analysis to establish the value of partners to the business.

Based on my experience, partner contribution to any organization has to factor in the following, - Leads/ opportunities sourced by partners - Leads/ opportunities influenced by partners (they may, may not be fronting the deal) - Leads/ opportunities closed independently by partners - Co-sell with sales team - Referrals Depending on how a partner model/ partner types are defined by a company, these buckets would then help compute the PC and ROI.

Some of the metrics that could be the foundation to then measure partner contribution and give also indication of which part of the funnel might need tweaking are: - Partner attach: how many opportunities have a partner attached vs not having one - Partner generated opportunities - Partner influenced opportunities - Partner generated leads

Having worked extensively with varied partner kinds and with organizations solving various problems across industries, before we get to NPS, or PS- it is vital to outline that the partnership business should be well thought through and carefully crafted. There must be clear differentiation between partner types. For example, if you work with both ISVs (who embed your tech) versus GSIs/ RSIs- the PS scale may vary, so would the categorization of a partner. GSIs may become more inclined and have strong practices (resources/ headcounts) around a specific tech whilst ISVs may play lean, not scale to the same level as a GSI. A great start to measure PS is, Monthly Cadence to see what's working and what's not, quarterly reviews then surveys.

You bring up a great point, Shekharr, and that is the partner type. Not everyone can afford to go after all of them, and as you point out, each has their own GTM motions, which imply multiple partner programs, operations, Mktg, etc. Identifying the IPP (Ideal Partner Profile) is a big deal towards reducing the risks, ie cost structures, that multiple GTM motions bring.

True partner alignment starts with the value proposition your partnership brings to both sets of end-clients. If the partnership brings neutral or very little innovation or advantage to your customers, then it may be wise to pass on the opportunity. Next comes alignment of each partners vision, mission and core values. Ensuring these fundamentals match are of vital importance for the long-term success of any program. Interdepartmental and operational alignment are also key factors, as these are the groups who will be running and maintaining the program once launched. Alignment of key cross-partner personnel is also vital, as their relationship can have a measurable effect on the PX and CX.

Partner Enablement sessions at the early stages of the partnership can help both parties understand each other’s goals, expectations, values, and ICPs. Ideally, documenting all of it somewhere will also help new joiners at each company down the road. Tracking the KPIs on a monthly or quarterly basis should help the partners identify how successful the partnership is.

Consider adding a metric for Technological Alignment in SaaS partner programs. Assessing the compatibility and integration ease between partners' software solutions is vital. This metric evaluates the technical synergies, impact on product development, and the ability to create cohesive, integrated solutions, enhancing customer value and satisfaction. Such a metric not only ensures seamless operational collaboration but also drives innovative joint offerings in the SaaS ecosystem.

An essential, yet often overlooked, metric in SaaS partnerships is Market Expansion Effectiveness. This measures a partner's role in extending your market reach, either geographically or through new customer segments. It involves tracking the growth in new users, market share, or revenue in specific markets directly attributable to partners. This metric highlights the strategic value of partners in conquering new territories and diversifying the customer base, a critical factor for scaling in the SaaS domain.

Another good metric to track in SaaS, if you have implementation partners, is the # of resources they have trained on your solution. This can be a good indicator of how they view the market oppty and how relevant it is to their business. Track this metric over time to monitor trends. You can go even deeper and track proficiencies & experience in different product areas. Good idea to track # of projects & customer success stories Lastly, always plan to collaborate with your partner on what their success metrics are. The best relationships I've been involved in have always had a very clear understanding of our respective goals, reviewing and discussing them frequently. For a partnership to stand the test of time, both parties must succeed!

And now for something different! The lighthouse programs of the future are barely programs today. These ISVs have limited resources, funding, and often limited knowledge. In these cases the metrics are more simple: number of transacting partners, pipeline revenue, average deal size, time to close, and close rate. These metrics get the ISV an understanding of how effective and efficient their efforts are and most importantly, if this thing called Partners is actually working.

Expand partner program metrics to include Ecosystem Influence. In the SaaS sector, partners often contribute beyond direct revenue generation - they shape market perceptions and influence customer decisions. Quantifying this influence through social media impact, joint thought leadership initiatives, and customer referrals provides a more holistic view of a partner's value, driving strategic decisions and fostering a more collaborative, impactful partnership ecosystem.

Agree w Travis. I believe that job # 1 (and #2 & 3) should be to drive partner investment in the partnership, and we can create a partner journey based on the potential investments, and those usually come in the form of resources trained. If we do it right, we should be able to make a correlation between distance travelled in the journey and production. Makes for a good set of CAM activities that can be managed.