A well-structured channel partner program can be a powerful driver of revenue and business growth. However, to justify the investment in partner enablement, training, and support, you need to measure its return on investment (ROI) effectively. Understanding how your channel partners contribute to your bottom line requires tracking key performance indicators (KPIs) that align with your business goals.
This article explores five key metrics that provide valuable insights into the effectiveness of your channel partner program and help you optimise its ROI.
How to Measure Channel Partner Performance
The KPIs by which you monitor your channel partner performance should be unique to you and your partners, the goals you set out at the beginning of the partnership and the reasons for that partnership.
Here are key performance metrics that you can monitor to assess your channel partners’ effectiveness:
1. Profitability: Assessing Financial Performance
Revenue is a fundamental measure of partner program success, but profitability offers a more accurate view of ROI. Consider these financial KPIs:
Customer Acquisition Cost (CAC)
Compare the cost of acquiring customers through partners versus direct sales to assess cost efficiency.
Customer Retention Rates
Measure how well partners retain customers compared to direct sales efforts. If retention rates are lower for partner-acquired customers, additional training or support may be required.
Cross-Selling and Upselling Rates
Evaluate the average deal value and the frequency of additional product sales to determine partner effectiveness in maximizing revenue potential.
2. Partner Engagement with Training & Enablement
The training your partners receive (and engage with) can significantly impact performance. A well-trained partner is a high-performing partner. Measuring engagement with training materials and resources provides insights into how well partners are positioned to sell and support your products.
Tracking partner engagement with your training materials should include the following metrics:
Number of Partners Using the Provided Training, Sales or Marketing Materials
This could be measured by tracking the number of LMS (learning management system) or portal logins or downloads of training materials. If a high percentage of your channel partners are not engaging with training materials, ask why this may be the case. Are your training materials easily accessible? Are there any incentives in place for them to complete the training?
Training Course Completion Rate
If a high percentage of your channel partners are beginning your training courses but not finishing them, or if channel partners are engaging with your training materials but still underperforming in other areas, this could indicate a need to reassess and update the training you offer.
Your channel partners should be encouraged and even incentivised to finish your training. However, hold up your end of the bargain by making that training engaging, accessible and valuable. Having a training program that is available 24/7 can help with this, so training can fit into your partner’s schedule at a time that suits them.
Number of Partners Attending Optional Training Opportunities
If you offer optional training opportunities such as events, you can track how many partners participate to indicate their interest in and engagement with your brand. Partners shouldn’t be penalised for not attending optional events – but ensure the events are worth their time and your investment.
If attendance is low, but you know the experience is beneficial to your partners, investigate how you can make these events more enticing, either by moving them to a better time or offering an incentive, accreditation or certification for attendance.
3. Sales Performance & Lead Generation
Sales performance is a direct reflection of partner effectiveness, but it must be analysed holistically to measure ROI accurately.
The Number of Registered Deals from Partners
Compare partner deal registration rates to identify trends in performance across different regions and partner tiers.
For example, if sales are below expectations in certain regions but good in others, you may consider how that market is approached. Is different training required for your current partners, or do you need to recruit new partners with an existing reputation within that region?
Lead Generation & Conversion Rates
Evaluate how many leads partners generate and how effectively they convert them into sales.
As well as the number of partners who have registered a lead, consider how many leads, in total, each partner has registered. You may find new business opportunities are depleting in certain regions or industries, but there is untapped potential in others.
Sales Cycle Length
Compare the time it takes for partner-led deals to close versus direct sales to identify areas for efficiency improvement.
Required Task Completion
Alongside sales targets, outline the other tasks you expect your partners to regularly complete. These could encompass a range of activities, such as entering CRM data or carrying out product demonstrations for customers.
Whatever these activities are, your partners’ engagement with them (or lack of) can indicate how they prioritise them alongside their sales targets and how committed they are to being valuable, long-term channel partners.
Related resource: Developing Incentive Programs for Channel Partners To Maximise Performance
4. Customer Success & Satisfaction
The success of your channel program is tied to the customer experience your partners deliver. Monitoring customer feedback and retention provides critical insights into long-term ROI.
Customer Satisfaction Scores (CSAT)
Customer satisfaction surveys can be a valuable way to identify partner skills gaps and strengths. Conduct surveys to assess how well partners represent your brand and support customers.
The overall experience, how informative and helpful the staff were, satisfaction with the product, what aftercare has been provided, and how likely the customer is to purchase from that partner again are all useful questions to include.
Partner-Driven Net Promoter Score (NPS)
Use this metric to Gauge how likely customers are to recommend your brand based on their experience with channel partners.
Customer Churn Rate
Identify whether customers acquired through partners are staying engaged or switching to competitors.
Partner Churn Rate
If you are seeing a high churn rate of partners then this likely indicates that your partners are dissatisfied or not seeing the ROI of the partnership.
Channel partnerships don’t produce significant ROI straight away, but your partners need to see the potential benefits of their continued commitment. Assess your partner program and ensure it delivers in all areas.
Defining Channel Partner Performance
You can break down the performance of your partners into four main areas – revenue opportunities, strategic advantage, operational performance, and relationship health.
Revenue opportunities – Your partners should be producing enough revenue to be worth your investment in their training and onboarding. The direct sales they make as well as the potential value of new leads they secure should be considered to assess the partnership’s financial viability.
Strategic advantage – Your partners should not just be additional salespeople, they should open up new opportunities for you, such as by helping you to break into new markets or ensure customer loyalty.
Operational performance – The number of staff within your channel partner’s business who have been trained and certified for both sales positioning and implementation can be tracked to assess whether operational milestones are being met.
Relationship health – It is difficult to put a quantifiable metric on the health of your relationship with your channel partners, but it is an important factor nonetheless. The stronger your relationship is with your partners, the easier it will be to ensure engagement with training materials, maintain open communication, and work together towards mutual goals, even when these change.
Maximising ROI Through Data-Driven Improvements
Measuring ROI is not just about tracking numbers—it’s about using data to drive actionable improvements. If partners are underperforming, assess whether additional training, incentives, or structural changes are needed. Investing in a learning management system (LMS) with built-in analytics can provide real-time insights into partner engagement and effectiveness, allowing you to make informed decisions that optimize your channel partner program.
By focusing on these five key metrics, you can ensure your channel partner program delivers strong, sustainable ROI and contributes to long-term business growth.
Want to see how data-driven training can enhance your channel program? Read this case study about how we helped one of our client’s partner programs propel their revenue by 750%
