Partnerships NOW: A Year in Review

This year, we kicked off Partnerships NOW LinkedIn Newsletter for future-forward teams providing guidance, firsthand experiences, and foresight on partnerships and channel strategies from some of the top ecosystem leaders in the industry. Each month, every volume of Partnerships NOW covered various topics from economic challenges and operational processes to personalization and channel categorizations.

Partnerships NOW holds big ideas, stimulating perspectives, and intelligent advice from industry leading ecosystem and channel professionals. Think Google and Microsoft alongside incredible partnership professionals from JSG, AchieveUnite, and Spur Reply.

Thank you to our subscribers and readers for following along and to our trailblazing contributors. Let's take a look back at key highlights from the year to take with you into 2024.

“The most exciting thing on the horizon for partners, partnerships, and the business of channel overall is Artificial Intelligence (AI). The next inflection in our world will be centered around an AI-Driven Channel, what AI can do for partner success, and how partner teams enable success. The application of AI will change the way we do business and go to market with partners and channels. If you think things move fast now, just wait until AI drives the pace.” - Jessica Baker , AchieveUnite

In Volume 1, we asked contributors to share key areas to focus on and untapped opportunities worth exploring in partnerships today and into the year. In response to economic uncertainties, our contributors recommended that partnership leaders prioritize skills evolution, emphasizing the Know Your Partner (KYP) approach and the evolving role of Channel Account Managers (CAMs). A shift towards deeper, aligned partnerships challenges conventional portfolio broadening, focusing on stakeholder alignment and clear communication, while sectors with regulatory barriers explore partnership models for growth.

Despite industry layoffs, an optimistic outlook prevailed, driven by a Canalys poll showing 72% optimism among channel partners for revenue growth. Anticipated trends include the rise of Artificial Intelligence (AI) in partnerships and the expansion of marketplaces through partner-driven transactability.

“Throughout the partner journey, clear communication should be maintained, from onboarding to closed deals, to ensure partners feel the strength of the relationship without being overwhelmed. It's a fine line between providing an excellent partner experience and overwhelming them. Driving demand and celebrating closed wins takes all three functions: strong sales offers with clear campaign content, incentives that reward multiple activities leading to deal closure, and clear collaboration rules throughout the life of the deal. It's a true art and science to pull this off correctly.” – Kristine Stewart, Spur Reply

Volume 2 dove into the nitty-gritty of operational partner program processes. Building strategic partner teams involves prioritizing individuals gifted in strategy, with recommended roles including Partnership Development Managers for scaling small or mid-sized teams and Partner Executive Leaders, Technical Partner Managers, Partner Marketing Managers, and Partnership Operations Managers for enterprise settings.

Technology and automation should focus on operational functions such as partner marketing, incentives, and collaboration, with seamless integration into CRM considered crucial. Investing in Partner Relationship Management (PRM) platforms is advised based on program scale and complexity, while avoiding delays in pipeline management requires streamlined processes, automation, and strong support for partners.

"For strategic partners, the foundation is the development of joint business plans focused on the mutual success of the partnership and transparent, clear key results that can be monitored and used to fine-tune the plan based on the actual results.?A business plan should not be treated as a checkbox item for a program but as a living document that fosters the relationship and grows the mutual business." - Gina Batali-Brooks , Is Inspired

The third edition sheds light on partner onboarding, training, incentives, engagement, and collaboration. Best practices for partner onboarding and training involve clear communication and goal-setting, fostering a collaborative culture through transparency and ongoing support, and implementing easy-to-follow training programs.

Open lines of communication with partners should include communication plans, escalation processes, and the use of productivity tools like Microsoft Teams. According to expert Raegan Wilson, MBA , effective incentive programs focus on personalization, strategic planning, and proper timing, while measuring partner program metrics requires evaluating six key areas aligned with program goals: Contribution, Capability, Coverage, Commitment, Consumption, & Credibility.

Additionally, measuring partner engagement can be streamlined by using tools like Sherpa 's Partner Assessment platform to analyze engagement and guide enablement programs.

"There is a major shift from 'feel good' metrics to partner value measurements like partner expertise and customer success. and partners are holding suppliers to higher standards focused on consistency, quality, and accuracy. Some of the new-age metrics are product replacement, warranty, invoicing, processes, delivery date, and lead times along with continuous improvement and innovation." - Meredith Caram, JSG

In the 4th Volume of Partnerships NOW, our contributors shared the latest strategies for measuring and optimizing partnership ROI.

Contributors shared metrics that matter like how executive leadership prioritize incremental revenue, profitability, visibility, predictability, and associated risks in revenue and profit, facing common challenges such as trust-building and defining relevant metrics. Qualitative factors, including customer and partner success, play a critical role in brand reputation, customer satisfaction, and market positioning.

"Partnering should always be personal. Whether over Zoom, email, or in a meeting room, consider not only how you deal with your partners in terms of their unique businesses but also the individuals within those businesses." - Diane Krakora, PartnerPath

Partnerships NOW newsletter Volume 5 emphasizes the critical role of partner personalization in the ever-evolving business landscape, offering insights from industry experts on strategies, challenges, and the impact of AI on enhancing tailored communication experiences for individual partners.

It's important to personalize engagement with individuals within partner companies, emphasizing the need for preparation, understanding partners' goals, and creating personas. The human aspect and workplace personalization, advocates for content differentiation, segmentation, and tailoring communication based on partners' needs and roles.

Our expert contributors recommend comprehensive partner profiling, measuring the impact of personalization efforts, categorizing partners, and address challenges in tailoring communication. Additionally, the impact of AI on partner communications is anticipated to enhance efficiency, improve personalization, introduce advanced analytics, and address language and privacy considerations.

"No longer are partners happy to be described by a three-letter acronym that comes with assumptions as to what services and value they offer customers; instead, the segmentation offered in modern partner programs reflects the business model of the partner and what they are experts at and in." - Amy Roberts , PartnerPath

The 6th edition explored the theme of Partner Types and Categorization in Channel Programs delving into the significance of categorization as a powerful tool to enhance collaboration, featuring expert insights on strategies for precise partner segmentation and empowerment, aligning categorization with program objectives, addressing challenges in partner classification, tailoring enablement strategies for diverse partner types, and leveraging PRM technology to automate processes and foster mutual success across different partner categories.

"It's time for the vendor to get beyond the traditional revenue-based metrics used to date to measure partner performance. Our EdisonAI product looks at 30-35 critical attributes of a partner relationship that can be measured regularly to guide activation and engagement." - Tom Perry , Sherpa

This edition delves into partner activation, a critical element in indirect sales, channel programs, and partner management. The focus is on effective strategies, emerging trends, and best practices for activating partners within partner programs or portals. The newsletter emphasizes the role of engaged and motivated partners in driving business growth and customer support.

Measuring partner activation involves crucial metrics like Onboarding Completion Rate, Opportunity/Lead/Referral Rate, Revenue Attainment, and Marketing Participation are key to understanding program efficiency.

Conversation guides, technology integration, and Partner Relationship Fostering (PRF) through automation are highlighted as effective strategies for partner reengagement and collaborative growth initiatives.

"Conflict considerations include: Updating your partner agreement, defining roles and responsibilities (across the ecosystem), setting territories and/or account lists, defining market segments & establishing a conflict resolution protocol. With the right tools and programs in place, ecosystem conflict can become a thing of the past." - Raegan Wilson, MBA , Spur Reply

Our Partnerships NOW newsletter Volume 8 focused on recognizing channel conflicts and understanding how to address them proactively.

Channel conflicts arise from factors such as overlapping territories, competing strategies, and misaligned incentives, with the current battleground focusing on lucrative services opportunities.

Ongoing conflicts are fueled by sales team structure, compensation issues, and a lack of partnering acumen, necessitating a strategic approach aligned with partner value along the customer sales journey.

Best practices in communication, aligning compensation structures, and adaptable conflict resolution strategies, including clear guidance for sales teams, are emphasized to prevent and address conflicts effectively.

"Partnerships will continue to be rooted in mutual trust, respect, and commitment between partners to drive joint value to shared customers. Commercial marketplaces will allow partnerships to reach more customers, simplify sales, and unlock opportunities to grow. Marketplaces will continue to be prevalent in how a partner can sell directly to the partnership customers, selling through the partner ecosystem and expanding co-sell with joint selling. Generative AI will also continue to play a big role, streamlining productivity for the products/services of partnerships but also how new partnerships form based on the possibilities and opportunities of AI. Copilots will also surface to help automate productivity tasks including how partners may engage based on the data in partner relationship management solutions." - Brian Galicia, Microsoft

The most recent volume of Partnerships NOW newsletter, explores the trends and innovations shaping the partnerships industry in 2024. It provides insights from industry experts on emerging technologies, evolving partnership roles, and strategies to succeed in the dynamic landscape.

Key Points:

1. Evolution of Partnerships in 2024:Partnerships will remain rooted in mutual trust, respect, and commitment to delivering joint value to shared customers. Commercial marketplaces and generative AI will play significant roles in simplifying sales, expanding co-selling, and automating productivity tasks.
2. Hyper-Focus in 2024:The year is characterized by "hyper-focus" for both vendors and partners, emphasizing strategic relationships and resource efficiency. Trust and relationships become crucial currency, requiring vendors to invest in trusted partner relationships and empower their teams.
3. Digital Transformation and Emerging Technologies:The concept of a metaverse is gaining relevance, with immersive technologies influencing digital collaboration. AI is expected to play a substantial role in driving the 'AI-Driven Channel' and transforming partner relationships.
4. Changing Landscape of B2B Partnerships:The shift towards subscription-based services, app stores, and XaaS offerings is transforming the landscape. Go-To-Market (GTM) strategies need realignment with customer preferences, emphasizing strategic partnerships and agility.
5. Adapting to Evolving Customer Preferences:The buyer journey has become non-linear, with customers expecting business outcomes and complex solutions from partners. Channel partners are now more influential, with digital interactions defining relationships.
6. Top Three Success Metrics in 2024:Measuring partner contribution, partner experience, and partner profitability are key success metrics in 2024. Partners' influence throughout the customer journey and their overall experience with vendors are critical.
7. Ensuring Financial Viability:Amid economic uncertainties, leaders must back partner initiatives with data showcasing positive financial impacts. Financial metrics should demonstrate revenue generated, cost savings, and efficiency improvements from partnerships.

Thank you to all contributors for their valuable insights and expertise in our 2023 round up of newsletters:

Brian Galicia , Senior Director, Strategic Global ISV Partnerships, 微软

Raegan Wilson, MBA , VP of Partner Ecosystems, Spur Reply

Jessica Baker , Chief Program Officer, AchieveUnite

Meredith Caram , President, JSG

Peter O'Neill , Reserach Director, Research In Action

Kristine Stewart , Senior Partner Evangelist, Spur Reply

Diane Krakora , CEO and Founder, PartnerPath

Gina Batali-Brooks , CEO and Founder, Is Inspired

Amy Roberts , EMEA Principal, PartnerPath

John Lojek , Strategic Partnerships Leader, 谷歌

Patricia Rush , President and CEO, Rush To Channel

Donagh Kiernan , CEO, Tenego Partnering

Sam Valme , Senior Director, Global Partner Experience, AvePoint

Tom Perry , CEO, Sherpa

Thank you all for your valuable contributions to the discussion on partnerships, trends, and insights. To our readers, thank you for following along! Stay tuned for more topics, trends, and insights in 2024.