Key Channel Sales Metrics You Must Track
\u201cWhat you measure is what you get\u201d is a great business mantra. And when it comes to sales, it becomes much more than that: it\u2019s a practice that drives the future sustainability and growth of a company. To make an impact, metrics need to be applied across multiple business areas by deploying\xa0channel marketing automation, of course. For example, if you are managing sales operations through a channel partner network, you need to look beyond simple sales out. Failing to track\xa0critical channel sales\xa0metrics listed below could lead you down a blind alley where you end up not knowing what\u2019s going to hit you next.\nChannel success comes as a result of setting up realistic, if ambitious expectations with your channel sales force\xa0and partner network, but these mean nothing without the ability to monitor a core set of performance metrics. Output metrics are driven by a set of processes, programs and people directly linked to their related input metrics. These will provide you with essential insights into what is actually happening in your channel; however, you need to correlate input metrics to output metrics in order to understand the impact of each of these metrics on overall results. A best of breed channel marketing automation platform should enable you to track the metrics described below, as well as to use dynamic dashboard capabilities to run multiple analytics that will enable you to fine-tune your channel program for optimum results.\nHere is a brief overview of the 15 core input and output metrics, and how you can use the data to drive profitable sales growth.\n\nTotal and Average Revenue Per Partner \u2013\xa0This is almost equivalent to the commonly used revenue-per-employee metric. When you perform this analysis, you will see that productivity varies greatly across the top, medium and entry level partner tiers. Tracking revenues on a dynamic basis is a critical first step towards improving sales engagement.\nRevenue Mix Analysis \u2013\xa0This is predominantly undertaken by product line, geography and territory. Most companies use this data primarily for market share analysis, but if you directly correlate the data with other partner input and output metrics you can draw a more complete analysis of partner engagement and potential.\nPercent of Revenue Growth Rate of Partner Tiers\xa0\u2013 This is a high priority output metric that you need to track in order to see how your channel sales partners are growing across your different product lines. The variables include partner level, product type and geographical location. The resulting data enables you to make strategic resource changes to drive better results.\nGross Profit Per Tier - At the end of the day it is about more than revenue alone: the key lies in the absolute profit that you are able to generate via the channel sales force. Calculations of partner profitability vary greatly depending on how you are able to track your internal costs. These might include technical support, channel sales, channel marketing, programs, special events and more. You also need clarity about the relative levels of profit generated by the different partner tiers, e.g. how much is generated by your top 10%, 11-25%, 26-50% and so on, and what your relative level of investment was for each tier.\nPercent of Year over Year Increase In Channel Revenue and Productivity\xa0\u2013 This is your ultimate measure of progress on a year over year basis. In order to do this you will need to be able to calculate your revenue growth, which all companies do, but beyond this you will need to factor in the detailed cost infrastructure required to support your channel - which at times is a bit harder to achieve due to product and process complexities. However, efforts spent in this area are critical to drive a much more finely tuned approach towards metrics-driven channel sales management.\nPercent of Active Resellers\xa0- Most companies, whether they have a broad or a narrowly focused channel sales model,