Channel Marketing Strategy – Measuring & Analyzing Results
- Articles, Blog

Channel Marketing Strategy – Measuring & Analyzing Results


Hi, I thank you for joining us today to
talk about channel marketing strategy measuring and analyzing channel marketing
results. This is part of a series we have on channel marketing strategy. What we’re
going do today is we are going to dive deep into analyzing results from four sample
partners and talking about what we may learn from the numbers and where the
number may mislead us for each of these examples. So let’s jump in to it.
Alright partner number one. This will be first partner we’re going to look at. The first two
numbers of this partner that we’ll look at are marketing oriented pipeline and
marketing oriented revenue. So this example the partners generating fifty
times the investments, so 50x that you invested in them in pipeline. So you gave
them a dollar, they generated $50 of pipeline and then in revenue you gave them a dollar,
they generated $10 in revenue back to you. At first glance we look at this and say wow! This is great, lets invest as much as we can in this partner There’re generating revenue, they’re generating
pipeline, let’s keep going. Like with everything in marketing a little knowledge is a dangerous
though okay, so we want to dive a bit deeper into this number. The next thing we want to add on, that we
think these first two metrics are very important don’t get me wrong. We want to
keep these metrics, we always want to analyze them and channel marketing.
But, we want to add in total revenue growth of the partner. The total businesses that they’re
doing with you. And, in this case partner one actually decline their revenue with you by
15%. You might say “well how is that possible”. They’re doing great in a channel marketing
perspective, but they’re declining in revenue. What could be the cause of that?
There may be several things that we would want to dive into
and find out if these could be the root causes. First they may be losing customers after they sign up at an alarming rate and they may need better support, post sales support. That’s certainly a possibility. A second possibility is that they’re
just really good at coding. So, some partners are bad coding and some partners are really good at it. They’ve got the system’s down to ensure that everything they touch gets coded
correctly into the system. So they might be really good at that. A third could be that
they’re actually marketing to their existing customers. Which you would
expect to have very high rate and if they were for example maybe they’re taking customer’s to a ballgame or event. They bring in the existing customers, the customer subsequently buys more product,
they were probably already were going to buy, not that the event wasn’t useful. But, that they were going to buy and they get the revenue this way. That may be actually then be a bad number, that may not be a great number
for install based marketing. That might be to low. Whereas net new it looks really high. Those are some possible scenarios. Now let’s take a look at partner number two. Alright partner two, this
partner is only generating thirty times pipeline which isn’t about number, but in
comparison to this one at 50, is much lower. They’re generating five times the revenue, much lower then this partnership. So if we looked at just those two, we might think to ourselves, you know what let invest all our dollars with this partner, or more here and less here. When we add in the total revenue
growth we see this partner is actually growing at 30%, where this one is declining at 15%.
So we ask ourselves how’s that possible. If we’re generating less closed business here, how it possible we are generating more revenue? Well let’s dig deep and figure out what are the different scenarios
that could cause that. First scenario might be that this particular customer is really bad coding.
Meaning their sales team is generating lots of pipeline and there’s lots of revenue
out there, but we’re not necessarily coding it back to marketing activities.
So, that’s one possible scenario. Another more likely scenario is that
this particular partner is going after net new customers. Which we would
expect to have a lower marketing close rate. And, in aggregate it’s working really well.
Because they’ve been generating net new customers year over year, they’re going back,
their expanding accounts. That feels great. A more negative way to interpret that
could be that maybe there’s a lot of channel shift. So, if we are not generating the number through
marketing where’s the revenue coming from? Well in some cases business can be moved from
your Direct team, over to your channel team. And you’re not increasing anything, you’re
just moving it from one channel to another. That might boost that number up there. So, that’s
something we want to look at as well. Okay, now let’s look at partner number 3.
Partner 3 the numbers are the same as partner 2. Our revenue is lower so we think in comparison of these two, we want to invest more in partner 2 then partner 3. The growth rate is the same
right, so we’ve taken that out. The only thing that’s different so far is the revenues so lets invest
more partner 2. But then we go into product mix and many of us have multiple products
and services with different margin amounts. Partner 3 is selling higher margin, in theory
higher value offerings then partner 2. And this two times margin at the same growth
rate, on the same sales is much more profit for you. So it will indicate that partner 3 of the
3 is actually the best one to invest in. In terms of where you’re going to
get the financial results from. So that’s one of the other ways in which we’re
going to dive a little bit deeper into the numbers. Finally let’s take a look at
partner 4. Partner 4 is one where all the numbers line of really nice. We’ve got decent pipeline at 40x, we’ve got good revenue at 10x, we’ve got a 30% growth rate and we’ve
got to 2y margin. So two times what the standard partners is doing. So everything looks good, but where could we go wrong in this partner, we’re can we miss interpret the results from this partner? Well what if this entire number was
coming from install base marketing and this entire number was coming channel shift? That’s a scenario that I
have seen exist where you’re going to get a installed base number here and a channel shift
number here, everyone things we’re doing great. But in aggregate we’re not growing, your not growing your business, your partner’s numbers look great, your marketing numbers look great, but the numbers when they roll up end up having a bad scenario. Okay, so we dove deep into a few partners
here, there are three key takeaways that we want you to leave this video with. Number 1
make sure your team dives deep into the numbers. Don’t get a incorrect conclusion
by look at simplistic numbers like pipeline and revenue. These are very
important, but we want to dive a lot deeper just those two numbers though. Number 2
we want understand the marketing and channel marketing has a strong ability to
impact the entire business, not just generate marketing oriented revenue. We can do
things for marketing perspective to help grow revenue. As an example maybe we’re building great awareness in accounts that our sales team is already trying to
progress. Maybe we are providing great materials that help enable the sales
team to progress and close deals. Those are examples of things that we can do to help impact total revenue growth, that may not necessarily tie revenue to a campaign. And then 3rd and finally, is we want to make sure you pay close attention to lifetime value of a customer. So in this scenario
if we are going after some net new customers
and let’s say we’re offering cloud or a SaaS
offering, or something that needs to be regularly upgraded or added to. Then that first customer
may end up having a lot bigger value down the road then these numbers would even indicate on their own. We hope you enjoyed our session
today on channel marketing strategy measuring and analyzing results. And, we look forward to talking to you and our next video. Thanks.

About Ralph Robinson

Read All Posts By Ralph Robinson

Leave a Reply

Your email address will not be published. Required fields are marked *