Measuring the return on investment for channel programs can be tough. There are a lot of moving parts and elements working behind the scenes to make programs successful, and ROI doesn’t always take a complete picture of performance. To really know how your investments are playing out for your business, it takes stronger, more dynamic metrics.
So, are your channels driving successful outcomes? Let’s look at the data you can collect to find out, starting with specific metrics for assessing program health and your partners’ overall performance.
Find out how taking a nuanced approach to measuring program success can maximize your use of these metrics.
Read our previous article, “The ROI Myth” here.
Dual Measurement Considerations
Your partners impact the trajectory of your program but the conditions in your program can also impact the trajectory of your partnerships. Since the two go hand in hand to define channel success, you’ll need to measure both.
Consider these two key measurement areas to ensure your channel incentive program is firing on all cylinders:
Program Health Metrics
These metrics focus on how well the program is functioning – whether it is designed properly, communicating effectively and motivating partners to participate.
Partner Performance Metrics
These metrics zoom into the actual behaviors of your channel partners and assess whether the program is driving the desired actions from them.
Measuring both aspects provides a holistic view: is the program working as intended (engagement), and is it achieving the desired business outcomes (performance)?
Program Health Metrics
When you’re under the weather, you probably have more than one symptom, right? The same is true of channel programs. Healthy performance isn’t defined by one factor alone, and you’ll need to look at several aspects of your program to know what’s working and what’s not.
With a range of metrics, you can gain a bird’s eye view of performance and have the needed range to hover over key activities, spot patterns, and pivot toward more effective solutions.
Program Health Metrics
Measure
Definition
Significance
Enrollment Rate
% of eligible partners who have signed up for the program
% of eligible partners who have signed up for the program
Retention
% of participants who enrolled/active at the beginning of a period & remained enrolled/active at the end of the period.
Strong indicator of how compelling the program value proposition is & how it is being received in the marketplace
% Active Participants
% of participants who are actively participating in the program (portal activity, claims, learning, promotion opt-in, point redemptions, etc.)
% of participants who enrolled/are active at the beginning of period & remained enrolled/active at the end of the pe
Participation in Co-Marketing Programs
# or % of partners who utilize your marketing development funds
% of participants who enrolled/are active at the beginning of period & remained enrolled/active at the end of the pe
Net Tier Migration/Year
% of participants in programs with status levels who move tiers within a program period (typically one year)
Suggest positive program growth & active partner engagement (note: numbers that are too high can mean it’s too easy to advance)
Claims/Participant
Total # of claims or total claim value by a participant (claims can be categorized by product/segment, participant level, earning value, division & region)
Strong measure of engagement & earnings (can also be useful as a leaderboard across participants)
Claims/Participant
Total # of claims or total claim value by a participant (claims can be categorized by product/segment, participant level, earning value, division & region)
Strong measure of engagement & earnings (can also be useful as a leaderboard across participants)
# of Enrolled Dealers AND # of Enrolled Participants/Dealers
Strong measure of engagement & earnings (can also be useful as a leaderboard across participants)
Total # of dealers/distributors enrolled in program & total # of participants enrolled in program within each dealer
% of Active Dealers AND % of Active Participants/Dealers
% of dealer population where reps are actively participating in the program AND % of participants at specifics dealers who are active in the program
Proxy for measuring program engagement
Claims/Dealers
Total # of claims or total value of claims by a dealer (claims can be futher categorize by product/segment, dealer level, earning value, division and region)
Strong measure of program engagement & earnings (can be useful as a leaderboard across dealers)
Partner Satisfaction Surveys
Strong measure of program engagement & earnings (can be useful as a leaderboard across dealers)
Measures overall satisfaction & approval of the program by partners, providing insights into areas of strength & opportunities for improvement
Partner Performance Metrics
Measuring sales is a given, but what else should we look at? Channel programs thrive when they acknowledge other actions and outcomes that are just as valuable as closing deals.
For example, think of the brand awareness that comes from partners continuously promoting your products in the market – even when it doesn’t result in a sale every time. Consider what receiving feedback from partners tells you, not just about your program but also about their current levels of engagement. Or how incremental steps throughout the partner journey – from onboarding to training to investing in products – can build momentum toward profitable outcomes.
There’s an entire spectrum of partner behaviors that drive program growth and profit your business – and they’re all worth tracking. Plus, it’s easier to recognize both intangible and tangible outcomes when broken down into measurable behaviors. Use these metrics to help quantify impactful partner activities for your program:
Partner Performance Metrics
Measure
Definition
Significance
Transactional
Actions that directly drive revenue & customer acquisition, focused on sales (number of deals closed, revenue generated, etc.)
Indicates the program’s effectiveness in driving sales & acquiring new customers through partner efforts
Marketing & Brand-Promoting
Activities that create awareness, generate leads, and build brand loyalty ( MDF usage, social media engagement, etc.)
Demonstrates the partners’ role in increasing brand visibility & generating potential leads (shows partner investment)
Program Engagement
Participation in programs, initiatives, and interacting with the brand (event attendance, portal logins, program opt-ins, etc.)
Shows the level of partner engagement & commitment to the program, reflecting their interest & active involvement
Learning
Development of knowledge & skills to improve capabilities (completion of training modules, certifications earned, etc.)
Enhances partners’ capabilities, making them more effective in their roles & better equipped to drive business results (shows partner investment)
Customer-Centric
Behaviors that prioritize customer satisfaction & build strong relationships (customer feedback scores)
Highlights the importance of customer satisfaction, strong partner-customer relationships & client focus beyond the sale
Operational
% of participants in programs with status levels who move tiers within a program period (typically one year)
Suggest positive program growth & active partner engagement (note: numbers that are too high can mean it’s too easy to advance)
Taking Control of Channel Program Performance
Channel programs are multi-faceted, and there’s not just one golden metric that can reveal all signs of success. To answer questions about your program’s effectiveness, you’ll need to pay attention to multiple KPIs that reveal positive momentum for your business beyond just tangible outcomes.
Many program managers find it helpful to collaborate with third-party experts who take a nuanced approach to data analysis. When you team up with Maritz, for instance, you gain wisdom in all aspects of performance, including your program’s strengths, partner trends and opportunities for improvement.
Regardless of how you define success and how you go about tracking it, giving these metrics attention will offer a lot of clarity about your program’s impact. Measure what matters, and you’ll be a step closer to maximizing the value of your investments.
Want more from your metrics? From balancing your budget with the right solutions to identifying must-watch metrics to optimize your program, we bring clarity to channel performance and help you drive repeatable results. Contact us to learn more.
