How do you select key performance indicators for partner performance measurement?

This requires a strategic approach that aligns with your overall business objectives. Start by identifying the specific goals of the partnership, e.g. revenue growth, market expansion or customer acquisition, to ensure the KPIs are directly relevant. Choose measurable, quantifiable indicators that provide clear insight into the partnership's effectiveness and progress towards these goals. It's important to include leading indicators and involve your partners in the KPI selection process, creating a sense of ownership and alignment of expectations. Regularly review and adjust these KPIs as the partnership evolves and business objectives change, ensuring they remain relevant and focused on driving mutual success.

It's all too easy to make assumptions about your partners, their goals, and why they're working with you. However, to really understand their motivations, you need to make the effort of asking and comprehending them deeply. Instead of defaulting to a "one size fits all" approach, work collaboratively to create a joint value proposition and better together story to base your partnership on.

In my experience keeping a common minimum goal and then extending it as per the JV or Partnerships requirements plays a key role in managing and measuring success of a partnerships. The ideal intervals should be a fortnightly call and in person meets in a quarter.

When picking KPIs, focus on metrics that truly matter for your goals. The SMART model helps create solid KPIs. Some examples: Grow customers via co-marketing: New sign-ups from joint campaigns Improve customer satisfaction with new services: Net Promoter Score from surveys Cut costs by sharing resources: Percent drop in relevant overhead Speed up product development through knowledge sharing: X% faster time-to-market The key is to identify numbers that clearly tie back to your specific goals. Tracking SMART KPIs shows what's working and where to adjust. Agreeing upfront with your partner on the key metrics and regular check-ins is crucial.

Agree to keeping it simple, the key indicators I’d consider are: - Deals in pipeline (both generated by the partner and that we generated for the partner); - Sourced and influenced revenue (again, both sides) - % of Partner Sales Team / Customer success engaged

Your partner metrics should be easy to track and keep up-to-date in a reporting or dashboard system. You should leverage this dashboard for regular cadence calls, QBR’s, and annual review and planning sessions. Establishing and tracking your KPI‘s in some form of document becomes cumbersome and difficult to maintain.

My baseline go-to’s are: ♦ Signup rates - How many new partner signups do you get per week, per month, per year? ♦ Rate of conversions - How many partnership discussions VS how many actually sign up to the program? ♦ Sources - what kind of sources are you receiving from your partners? ♦ Active partners - as a % who is still active and who is not? ♦ Inactive partners - track who is inactive, why, timelines and amount ♦ Types - who are the go-to partners and what does this tell us about new market penetration possibilities? ♦ Commissions - monthly paid commissions VS total turnover? ♦ Lead quantity and quality - How many leads are being past across, how often and are they high-value leads?