8 CRM system KPIs to Track Channel Partner Management
Channel partnership, a process in which one party manufactures the product while the other markets it, is common these days. Here, we get a chance to boost sales while the partner also earns revenue. There is no need to hire employees, train them, or monitor individual employee performance. However, evaluating channel partnership management looks difficult.
Since it requires a hefty investment, using quantified metrics is essential. Thankfully, we have CRM system KPIs for this evaluation. Use these performance indicators to decide if your partnership is on the right path. So, read below:
1. Average Deal Size
It is the amount that a client spends on your product or service. To calculate this amount, you need to divide the total amount received by the clients with the total number of deals within that time.
For instance, a company has closed 2 deals in the last fifteen days. The cost of each deal is $200 and $400. So, the average deal size is $300.
Analyzing this model is important for business growth. If we want to increase the average deal size, we can bring some changes that can augment the average revenue generated from each customer. For this, we can ask the sales partners to focus on the company's value, highlight distinctive advantages, and understand the pain points.
However, if the average deal size is increasing with time, your sales partner are performing well. They are earning more commissions, and your business is generating more revenue.
2. Deal Count
Deal count refers to the number of deals closed by the team at a certain time. A high deal count is a dream of every business owner. But, the value generated from these deals is even more important. This deal count plays a key role in channel partner enablement. For instance, a high deal count will enable the business owner to spend more on sales software, communication tools, marketing channels, etc. Consequently, partners will find ease in performing their role.
3. Opportunity Pipeline
Another KPI is the opportunity pipeline. As the name suggests, it tells us about the opportunities that the business can convert. But, there is a certain time for it. Once the opportunity is switched to the competitor, we lose it.
It is ideal for estimating where the sales teams are currently standing. Have they achieved their targets? What changes have they made since last month?
One best way to monitor the opportunity pipeline is to activate the ERP and CRM on all current leads. I use CRM for real estate to get insights into my opportunity pipeline in the real estate business.
4. Marketing Channels
Evaluation of different segments in a marketing channel strategy provides great insights. For instance, a marketing team divides its efforts into various segments like paid, earned, and owned channels. Analysis of each channel helps us understand where we currently stand. Besides this, it helps in designing future strategies.
Consider a company that is not achieving results in paid media as compared to earned and owned. Now, there is no need to invest more in this channel. Likewise, we can focus on third-party relations if the earned media is not providing desired results.
5. Close Rate
Close rate is an important indicator that tells us the number of leads that went to the final purchase out of all prospects. But, this KPI alone cannot determine the overall performance of the team. There are multiple factors responsible for the Close rate. These include location, season, trend, etc.
For instance, the close rate of ice cream many increases during the high-selling summer season and remains low during winters.
But, this KPI tells us many other things. We can determine the sales team's performance as well as the impact of the new strategies.
6. Deal Velocity
As the name suggests, it tells us the speed of making revenue. Yes, through this KPI, we get to know the time frame of making sales. If we are going with a great velocity, our business is running at high speed. In other terms, if the deal velocity is high, we will be able to close more deals in less time. Thus, we can save time for other deals.
Here, channel partners can play a great role. Their efforts can directly impact this velocity. If they market the products in the best possible manner, people will start purchasing without fewer negotiations.
7. Quality Score
The quality score tells us about the total deals we have won and the total amount generated through them. This is a great indicator for comparing performance with the past. Additionally, if we have multiple partners, it gives us a better analysis among them. Thus, we can closely monitor the partner's performance, suggest ideas, and plan for the future.
For instance, if partner A has a high-quality score as compared to partner B, we will consider partner A. It shows that partner A has generated more revenue for the company as compared to B.
8. Deal Success
Lastly, the best partner is the one that successfully identifies the ideal opportunities and converts them into sales. With this KPI, we can get to know how efficient the partner is in understanding the leads. If the deal's success is low, the partner is showing commendable performance.
Apart from KPIs, the deal success tells us the skills and expertise of the partner. In case if the result is low, the partner is missing out on many opportunities. It highlights the need for a good replacement.
Wrapping It Up
In short, channel partnership plays a big role in our business success. However, monitoring the partner's performance and managing the relationship is important. Today, we have CRM system KPIs for evaluating performance easily. KPIs like deal size, opportunity pipeline, deal count, and marketing channel provide us with great insights. Besides this, close rate, deal velocity, and deal success are some other essential KPIs.
KPI CRM metrics shows the degree of productivity of the company and all its elements. KPI also makes it possible to evaluate the work of employees at different levels: for a particular employee, department or unit. In essence, this is an opportunity to analyze activities and draw up a recommendation plan for the future.
Which KPI do you prefer for tracking partnership management? How is your experience with it, and what would you suggest? Share some views with us!
Frequently Asked Questions
- How can tracking the right CRM KPIs improve channel partner relationships and business outcomes?
- Tracking the right CRM KPIs helps in identifying and addressing issues in partner management, enhancing collaboration, and optimizing mutual benefits.
