Channel Ecosystem Evolution: Unveiling Future-Ready Channel Partner Analytics

The rapid stride of technological advancements is ushering in a slew of advantages across diverse industries.

Consumers are swiftly embracing novel products and services, making it a challenge to track their adoption and engagement rates. Are AI-based services truly driving revenue, or are they merely a freemium-based novelty under exploration?

In contrast, businesses adopt new trends more cautiously due to strategic evaluations of their value chain contributions. Despite marketing teams adopting AI services, financial departments might miss warning signs of increased late payments within specific market segments or product lines.

The disruptive nature of tech trends is reshaping business goals and performance evaluation, extending beyond the traditional focus on "increasing ARR."

Channel partners hold a substantial share of global business sales, contributing a remarkable 75% of total revenue.

As core technologies like cloud computing providers enhance value delivery through total revenue metrics, Total Customer Lifetime Value (TCLV) follows suit.

Let's delve into the key metrics channel partner ecosystems employ to gauge program participants' effectiveness:

1. Lead Management KPIs: Channel partners are evaluated based on new business volume, gauged through conversion rates and the number of leads contributed to the sales funnel.
2. Total Revenue: Similar trends extend to revenue metrics for hardware and software, with channel partners tasked to meet predefined goals, boosting brands' total revenue.
3. Lower Churn: Implicitly, channel partners are expected to sustain and grow existing accounts, ensuring exemplary service delivery and minimal churn rates.
4. Sales Expansion and Cross-Selling: Aggressive sales strategies demand channel partners to adeptly cross-sell various product lines from a single brand.

These metrics serve as just a glimpse of the parameters channel partners use to measure their performance. The landscape is evolving, ushering in changes in evaluation methods.

Let's explore how diverse channel partner models offer value:

1. Resellers: Beyond volume and market share, Reseller Partners embrace AI-based inventory management and supply chain optimization. This new profile includes advanced parcel tracking tools, last-mile delivery solutions, and deployment services.
2. Value Added Resellers and System Integrators: VARs and SIs stand as the ecosystem's champions, delivering comprehensive solutions. Forward-moving VARs and SIs innovate by crafting niche solutions, excelling in RPA for systems' integration, AI-driven pricing, negotiation, and customer training.

These examples highlight the evolving roles of channel partners, infusing fresh performance assets into partnerships. This evolution prompts brands to adopt dynamic metrics for gauging channel partner success.

Considerations arise:

• Do channel partners offer "templated" resources for accelerated customer adoption?
• What's the value of channel partners providing staff augmentation services to ensure optimal product performance?
• Are channel partners bolstering partnerships through vital financial support in challenging markets?

Leaders in the channel partner domain must ponder these questions, transcending conventional conversion rates and total revenue metrics as they chart their partnership journey.