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Relayware Partner Relationship Management

Metrics You Might Miss: Partner Profitability-to-Certification Correlation

Posted on April 7, 2014 by Chris Bucholtz

Gauging the effectiveness of your training efforts is sometimes thought to be a simple thing. If your partners aren’t clamoring for additional training resources, and your end customers aren’t complaining about what your partners are doing, your partners must be good enough to get the job done, right?

Sadly, it’s rarely that black-or-white – there are degrees of partner effectiveness, and those can be directly influenced by how well you’re training your partners.

One high-level metric that can reveal how well you’re training partners is to discover the correlation between their profitability and the rate of certifications they’ve earned. If you’re doing things right, there should be a significant delta between the partners who have dug in to your training materials and earned certifications and the partners who are coasting along doing the bare minimum.

Pure revenue numbers can be misleading; a very large partner that hasn’t earned many certifications or accreditations may bring in bigger gross numbers than smaller partners who have earned the full suite of certifications. That’s why profitability is an important metric – it demonstrates how well partners are doing in the context of their businesses’ sizes.

If there’s no delta, it shows that your certifications are having little impact on your partners’ ability to sell and support your product. That’s a problem you’ll need to address by investigating the content of your training.

But if the delta is present – and significant – it means two good things. It means that earning those certificates makes a real difference to your partners’ success. It also means you now have statistical evidence with which to convince partners who aren’t performing as well to take training and certifications seriously. Your numbers will show that there’s money in it for them.

As has been stated often, the greatest opportunity for revenue growth is not in your top performers (who, by their nature, are generally the partners who are most keen to earn certifications and accreditations) – it’s that next tier of partners who need a little extra push. Coming to them armed with data about the value of certifications is a push that could make a difference for them – and it’s easily discovered within your PRM application. Download our latest Whitepapr to learn more about Indirect Channel Enablement and Training !

 

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