Partnerships NOW: Maximizing Partner Value Propositions to Drive Engagement

In this edition, we explore the crucial role of partner value propositions in shaping effective partnership strategies. Value propositions are key to building strong, lasting relationships between vendors and their partners.

Recent studies highlight that businesses with well-defined channel partner value propositions experience higher partner engagement and loyalty, leading to increased market share and profitability. As the partnership landscape evolves, the need for clear and compelling value propositions becomes even more critical.

In this newsletter, dive into how these propositions align partner interests with organizational goals, ensuring mutual success in an interconnected market.

Read on for trusted insights and best practices from our partnership thought leaders, empowering partner managers and business leaders, like you, to drive growth and resilience in your ecosystems.

What are the best ways to effectively align a partner value proposition with the unique needs and expectations of different partner segments?

"To create compelling value propositions for partners, delve beyond surface-level details. Understand how partners deliver value to customers—whether through sales, service, or innovation. Define success metrics from their perspective. Is it revenue growth, customer satisfaction, or market share? Tailor your engagement and benefits by leveraging your segmentation in the partner program and portal. By doing so, you’ll motivate a diverse partner ecosystem and foster mutual success." - Amy Roberts , PartnerPath

"Understanding who your partners are is the first step in aligning your value proposition. You must start with the partner's go-to-market and value proposition and work backward from there. Once you segment your partners you can determine their needs and expectations, and from there, you can build a customized set of benefits that align with your partner's goals. With the partnering landscape continually changing, the value proposition should be reviewed and monitored as partner needs change. By implementing these strategies, you can create compelling and relevant value propositions that resonate with the unique needs and expectations of each partner segment, fostering stronger and more productive partnerships." - Raegan Wilson, MBA , Spur Reply

"At Sherpa, we analyzed 5,000 partners using EdisonAI and found that 70% of partners don’t align with vendors' marketing messaging. To maximize the impact of our marketing efforts, we need data and insights to inform which partners we should engage with. It's crucial to understand whether they are already in your program and ready to be activated, or if there's a gap that you need to recruit to fill. The data and insights from EdisonAI are crucial to this success, to make sure you're investing in the right partners that are going to effectively align and create value." - Tom Perry , Sherpa

How can technology and data analytics be leveraged to create a more impactful joint value proposition?

"Partner program data can be a gold mine when it comes to understanding your partners and their interaction with your program. Sales data, attach rates, upsell, retention rates, training completion, content usage, portal and tool usage, marketing interaction, client satisfaction, and surveys are just a few of the data points that can help you align your value proposition. The data will tell you what's working and what's not, across your partner segments. From there you can better align your program and partner experience to create a more tailored value proposition." - Raegan Wilson, MBA , Spur Reply

"At Sherpa, we developed EdisonAI to assess Partners' alignment with your messaging and their ability to execute marketing activities. Our analysis of 5,000 partners revealed that 45% lack the skills and alignment needed to generate value from digitally qualified leads. This type of data is vital for driving maximum impact from partner marketing, as it enables us to match the right partners with the right campaigns to deliver the most value." - Tom Perry , Sherpa

What are the key components of a strong partner value proposition that drives partner engagement?

"There are three primary areas of a value proposition that either encourage or discourage a partner from engaging.

First, the product needs to work as advertised. If you say your product slices and toasts bread, but it only slices it, your partners are going to have a tough time recommending the full solution to their customers. Be honest with the features and functionality of the product (or service).

Second, partners need a way to make money on, or around, your product. If it's the best bread slicer in the world but they can't make money through the sales and support lifecycle, they're not going to engage. Partners aren't a non-profit. They need to engage with solutions where they can make money.

Third, to fully engage, partners need to be able to get to the product or surrounding services. Be easy to do business with. Even with a good product and a way to make money, if you are difficult to work with (for example, competing with your partners on services), partners won't engage.

Bottom line, have a product/service that works like you say, ensure partners can make money on/around it, and be easy to engage with. Simple!" - Diane Krakora , PartnerPath

What are some best practices for maintaining a strong and consistent partner value proposition in a rapidly changing market?

"Frequent interactions and communications with partners are crucial to stay aligned with their needs and market trends. Modeling partner profitability for each partner type ensures tailored strategies that maximize mutual benefits. A thorough understanding of their service solutions allows for creating insertion points in your offerings, enabling them to showcase and generate revenue through their expertise. Integrating partners into your customer lifecycle selling framework fosters deeper collaboration and customer satisfaction. Regular meetings and business reviews keep partners engaged and loyal. Additionally, providing ongoing training, sharing market insights, and co-developing marketing strategies can further strengthen the partnership. Creating and regularly updating incentive programs that generate additional revenue for the partner and align with their goals is also essential for maintaining engagement and driving mutual success." - Kristine Stewart , Spur Reply

What are common pitfalls to avoid when crafting a partner value proposition, and how can these be mitigated?

"In the dynamic world of partnerships, a one-size-fits-all approach to value propositions falls short. Instead, consider a strategic segmentation based on the actions partners perform for customers (such as selling or servicing). Once you’ve established these segments, align value propositions with each partner’s unique business model and approach in mind. By allowing partners to engage across tracks in a program on their own terms, they can create a blended value proposition that reflects their distinct business outlook." - Amy Roberts , PartnerPath

What strategies are most effective in demonstrating the tangible ROI of your partner value proposition to stakeholders within your organization?

"Partner marketing is typically a data-poor environment, relying on lagging metrics like leads generated or pipeline. We built EdisonAI to provide leading metrics that predict future performance and outcomes. On average, we discover $70 million in opportunities within partner ecosystems. We need to highlight the 'missing middle' of partners, who often have huge potential. By predicting the ROI of a campaign, we can effectively communicate its value to stakeholders, securing investment and explaining why we are investing in certain partners." - Tom Perry , Sherpa