W. Edwards Deming was quoted as saying “A goal without a method is nonsense.”
If your 2017 revenue plan called for increase channel revenue by some percentage or dollar amount, you have a goal. Great.
But do you have a method?
We work with companies who rely on their channel partners for a significant portion of their revenue and have found there are 3 key metrics to optimize channel revenue. Yes, there are many other things that can (and should be) measured but start with these and you’ll see a significant lift in your channel performance.
1. Lead Contact Rate
Seems like this should be 100%, but unfortunately it is not. Sales leads are generated and handed off to channel partners and often fall into a black hole of inaction and neglect. As Woody Allen once said, “80% of success is showing up” and if your channel partners are not “showing up” to follow up on leads, you are definitely not being successful and missing out on revenue opportunities. If you don’t know this rate, time to find out.
2. Lead Feedback Rate
This is a measure of what percentage of leads that you share with channel partners you receive feedback on with regard to quality, fit, or interest. Most companies do not have a closed loop feedback process in place and continue to feed leads to channels partners that are unwanted, unqualified, or worse. Oh, and this is probably directly related to the lead follow up rate above being abysmal.
3. Conversion Rate
This is the measure of what percentage of opportunities converts to transactions (ie, someone buys). You don’t need more leads or more channel relationships, you need to increase the conversion rate on the existing throughput of leads and opportunities being created in your channel. Better training, online/immediate access to important product information, and simply increasing the quality of leads provided (see #1 and #2 above) will move the needle here.
LeadMethod customers and their channel partners have doubled their conversion rates by applying a method to reach their goal. That method includes these three core metrics and is the focal point of what we deliver.
If you’d like to learn more about these important metrics or learn more about how we can help you optimize your channel revenue, let us know!