How Does Your Partner Program Compare to Leading Practices?

Recruitment of Partners with Sales Capabilities

Regardless of partner program maturity, vendors primarily recruit partners that demonstrate commitment to the vendor. Mature partner programs value sales capabilities and customer satisfaction when recruiting new partners. Vendors with mature partner programs prefer to onboard partners that have strong pre-existing sales capabilities to drive required growth, rather than needing to also invest, onboard and ramp direct resources.

Conversely, nascent partner programs value customer satisfaction, but also familiarity with vendor’s products and industry. Emerging vendors want partners that are familiar with their products, value proposition and ideal customer to increase speed to market.

Differentiation of Partner Incentives by New vs. Renewal Business

Level of Partner’s Value During the Sales Process (e.g., Sourced vs. Influenced vs. Fulfillment)

Companies with mature partner programs largely differentiate partner incentives by new vs. renewal and by partner value (e.g., identify/sell vs. fulfill/implement). A critical enabler of differentiated incentives is having the infrastructure and systems in place – many vendors struggle with the operational capability to parse out new vs. expansion vs. renewal business.

Differentiating incentives by partner value is primarily facilitated through deal registration. By providing partners a platform to register opportunities, vendors can identify partner-sourced opportunities, which may be eligible for increased incentives.

Nascent companies tend to differentiate incentives by end customer segment, product and partner growth, which aligns with emerging companies typically needing to focus on covering specific end customers and driving strategic products.

Provision of Special Financial Benefits of Training, Certifications and Rebates to Drive Focus on New Business

Mature companies tend to provide more training and certifications for new business. This non-financial benefit credentializes partners to effectively represent the vendor’s new releases and latest and greatest features in the marketplace. Rebates are more commonly used by mature companies for new business than for retained business, which aligns to trend #5 in Alexander Group’s “Six Key Trends to Ensure Your Channel Partner Program is Profitable.” Additionally, mature partner programs have the highest use of market and partner development funds (MDF/PDF). Development funds signal to partners the joint financial investment vendors are making to mutually grow the vendor’s and partner’s businesses.

Differentiate Your Company with Mature Partner Program Practices

Our research indicates that top performing companies with mature partner programs yield >2x indirect channel revenue versus companies with nascent partner programs. Many companies that have evolved their partner programs have done so in a deliberate and thoughtful way to drive profitable revenue growth. What actions can your company take to increase the maturity of your partner programs?