Partnership KPIs

Annual Contract Value represents the revenue a customer brings in within a year.

Annual Recurring Revenue. It is a measure of a company's yearly subscription revenue.

Average Revenue Per User. It signifies the value each user brings to the business. This is significant as there are costs associated with acquiring new users.

The number of months to earn back the CAC you spend to bring in new customer recurring revenue

Maximum amount of product or service that a company or organization can sell or deliver through a particular distribution channel or group of channels. The current capacity of your channel, considering the number of partners, level of onboarding and commitment, size of sales team, coverage and own resources.

The percentage rate at which SaaS customers cancel (churn), reduce (down-sell), or increase (up-sell) their recurring revenue subscriptions

The cost of acquiring a customer through a channel, including partner referral, compared to other channels.

The value of revenue / gross margin the customer will bring over the lifetime of their subscription

The number of new features added through technology partner. Estimated cost of development

Effectiveness of incentives program or marketing development fund (MDF). MDF is a fund provided by a company to its partners or affiliates to help them market and sell the company's products or services. Inventive programs are similar, but may involve financial incentives or rewards for achieving specific sales or marketing goals.

Performance and feedback of each integrations/App of technology partner

How many deals direct or indirect have been won in connection with a integration or feature/App brought by a technology partner

Usage of each integration/App

This is the LTV divided by CAC and is designed to show the multiple of return you will generate on acquiring SaaS customers

The measure of (additional) customer base you achieve through your channel. E.g. in geographic regions or market segments.

How much revenue is generated through the sales of marketplace Apps build by partners

Measure of a company's revenue from monthly subscriptions.

Rate at which the partnership department is acquiring new partners. It can be helpful in tracking the effectiveness of outreach efforts and identifying areas for improvement

Level of support and promotion partners provide for the company's products or services. A high level of partner advocacy can help drive customer acquisition and increase brand awareness. See Partner NPS

Percentage of affiliates made by partners that are converted into paying customers. It can help the partnership department track the effectiveness of its affiliate programs and identify opportunities for growth

Percentage of partners that complete case studies or other success stories that highlight the benefits of working with the company. A high completion rate can help the partnership department showcase the value of its partnerships and drive customer acquisition

Rate at which partners terminate their relationship with the company. A high churn rate may indicate that the partnership department is not effectively meeting the needs of its partners or that there are issues with the partnership itself

Level of engagement partners have with company-provided content, such as blog posts, videos, or webinars. A high level of engagement can help increase brand awareness and drive customer acquisition

Percentage of leads generated through partnerships that are converted into paying customers. It can help the partnership department track the effectiveness of its sales efforts and identify opportunities for improvement

Percentage of customers that are cross-sold additional products or services by partners. A high cross-sell rate can indicate that the partnership department is providing value to its partners and helping them drive business outcomes more effectively

Percentage of deals initiated by partners that are closed successfully. It can help the partnership department track the effectiveness of its sales efforts and identify opportunities for improvement

Value of deals in the pipeline for partners. A healthy pipeline can indicate that the partnership department is providing value to its partners and helping them drive business outcomes.

Average value of deals closed by partners. A higher deal size can indicate that the partnership department is providing value to its partners and helping them drive business outcomes more effectively

Level of Engagement partners have with the company, including the frequency and quality of communication, participation in training and support programs, and the use of company resources.

Number of partners that attend company events, such as conferences, webinars, or meetups. It can help the partnership department track the level of engagement and interest among its partners and identify opportunities for further collaboration

Rate at which partners are growing their businesses through their relationship with the company. It can be helpful in tracking the impact of partnerships on partner growth and identifying opportunities for further collaboration

Customer retention of customers using a feature or app from a technology partner. How does this compare to customers not using features of technology partners?

Partner-influenced revenue refers to business revenue where a partner plays a role in the customer decision-making process, but is not directly involved in sourcing the deal or closing the sale. The partner might have provided valuable input, services or products that helped to facilitate the deal (like technical support, consultation, or implementation services), but the sales initiation and closure are done by the company's sales team.

Number of leads generated through partnerships, and it can help the partnership department track the effectiveness of its outreach efforts and identify areas for improvement

Partner Net Promoter Score (NPS) is a leading indicator of customer NPS, which is a leading indicator of customer retention. Then NPS is a measure of partner satisfaction that is used to assess the likelihood that a company's partners or affiliates will recommend its products or services to others. It is calculated based on a survey that asks partners to rate their likelihood of recommending the company on a scale of 0 to 10.

Percentage of new partners that complete the onboarding process and become fully integrated with the company's products or services. A high onboarding rate can indicate that the partnership department is effectively helping new partners get up to speed and start generating value.

Extent to which a company's online portal or platform for its partners or affiliates is effective in achieving its intended goals and objectives. This can be measured through metrics such as the number of visits, the time spent on the portal, and the level of engagement with the content or resources provided.

Percentage of referrals made by partners that are converted into paying customers. It can help the partnership department track the effectiveness of its referral programs and identify opportunities for growth

Percentage of new customers that are referred by a partners. It can help the partnership department track the effectiveness of its referral programs and identify opportunities for growth

Cost of retaining an active partner, including the cost of support, training, and other resources provided by the company. A lower retention cost can indicate that the partnership department is providing value to its partners and helping them succeed more efficiently

Percentage of partners that remain active and engaged with the company over time. A high retention rate is a sign that the partnership department is providing value to its partners and maintaining strong relationships

Amount of revenue generated from partners. It can help the partnership department track the financial performance of its partnerships and identify opportunities for growth.

Length of time it takes for partners to close sales with customers. A shorter sales cycle can indicate that the partnership department is providing value to its partners and helping them drive business outcomes more efficiently

Speed at which a company's partners or affiliates are able to sell its products or services. This can be measured in units sold, revenue generated, or other metrics, and is often used as a way to assess the effectiveness of a company's partner program or the overall health of its sales channels.

Level of satisfaction partners have with their relationship with the company. It can be helpful in identifying areas for improvement and ensuring that partnerships are meeting the needs of both parties.

Level of engagement partners have with the company on social media platforms, including the number of likes, comments, and shares. A high level of engagement can help increase brand awareness and drive customer acquisition

Partner-sourced leads are potential customer contacts or leads that have been identified and initiated by a partner. This typically involves the partner engaging in their own marketing efforts or leveraging their existing network to generate interest in your product or service.

Partner-sourced pipeline relates to potential sales (or sales pipeline) that have been initiated by a partner. The partner identifies the potential business opportunity, qualifies it and hands it over to the company. These are deals in progress that haven't yet turned into revenue.

Partner-sourced pipeline represents the revenue generated from leads/clients introduced by a partner or all partners. The partner may have identified the opportunity, engaged with the client, and been directly involved in negotiation and sales closure.

Level of satisfaction partners have with the support provided by the company. A high level of satisfaction can indicate that the partnership department is effectively meeting the needs of its partners and helping them succeed

Number of partners that provide positive feedback or testimonials about their experience working with the company. It can help the partnership department showcase the value of its partnerships and drive customer acquisition

Percentage of partners that complete training programs or other educational resources offered by the company. A high completion rate can indicate that the partnership department is providing valuable support to its partners and helping them succeed.

Average amount of time it takes for partners to complete training programs or other educational resources offered by the company. A shorter completion time can indicate that the partnership department is providing valuable support to its partners and helping them succeed

Percentage of customers that are upsold to higher-tier products or services by partners. A high upsell rate can indicate that the partnership department is providing value to its partners and helping them drive business outcomes more effectively

Percentage of partners that actively use the company's products or services. A high usage rate can indicate that the partnership department is providing value to its partners and helping them drive business outcomes

The profitability of your partnerships, calculated as the revenue minus the cost directly incurred by the partnership.

Program ROI, or Return on Investment, is a metric used to measure the efficiency or profitability of an investment. In the context of a partner program, it refers to the financial return obtained from the resources (money, time, effort, etc.) invested into the specific partner program.

Monthly / annual recurring revenue growth

Number or percentage of potential customers that a company or product is able to reach through its marketing and sales efforts. This can include both traditional and digital channels, such as advertising, direct mail, trade shows, and online marketing

Applicable on mature and well-defined channel segments

Total Contract Value represents the total monetary worth of a contract, encompassing both initial and recurring charges.