How can you measure the impact of your BRM program on revenue?

1 Define your value metrics

Before you can measure the impact of your BRM program on revenue, you need to define what value means for your organization and your business partners. Value metrics are the specific indicators that reflect how your BRM program contributes to the business outcomes and objectives of your partners. For example, value metrics could include customer satisfaction, retention, loyalty, market share, innovation, quality, efficiency, or profitability. You should select value metrics that are relevant, measurable, achievable, and aligned with your partner's expectations and needs.

2 Collect and analyze data

Once you have defined your value metrics, you need to collect and analyze data that shows how your BRM program influences them. Data collection can be done through various sources, such as surveys, interviews, feedback, reports, dashboards, or analytics tools. Data analysis can be done using various methods, such as descriptive, predictive, or prescriptive analytics, depending on the level of insight and actionability you want to achieve. You should aim to collect and analyze data that is accurate, reliable, timely, and consistent.

3 Calculate your return on value

One way to measure the impact of your BRM program on revenue is to calculate your return on value (ROV), which is the ratio of the value created by your BRM program to the cost of delivering it. ROV can help you demonstrate the financial benefits of your BRM program to your stakeholders and justify your investments and resources. To calculate ROV, you need to estimate the monetary value of your value metrics and the total cost of your BRM program, including direct and indirect costs. Then, you can use the formula: ROV = (Value - Cost) / Cost.

4 Communicate your value story

Another way to measure the impact of your BRM program on revenue is to communicate your value story, which is the narrative that explains how your BRM program creates and delivers value to your business partners and the organization. Your value story should include the following elements: your value proposition, which is the unique value that your BRM program offers to your partners; your value drivers, which are the activities and capabilities that enable your BRM program to create value; your value evidence, which are the data and metrics that support your value claims; and your value impact, which are the outcomes and benefits that your BRM program generates for your partners and the organization.

5 Monitor and improve your value performance

Finally, to measure the impact of your BRM program on revenue, you need to monitor and improve your value performance, which is the extent to which your BRM program meets or exceeds your value metrics and expectations. You should establish a regular process of reviewing and reporting on your value performance, using tools such as scorecards, dashboards, or balanced scorecards. You should also identify and implement opportunities for improvement, using techniques such as gap analysis, root cause analysis, or benchmarking. You should involve your business partners in the monitoring and improvement process, to ensure their feedback and satisfaction.