Companies that have implemented partner channel management technology are out-performing non-adopters in key areas such as customer retention, lead acceptance rates and marketing contrition to revenue. According to a recent report by the Aberdeen Group, the impact on the bottom line is significant. Companies that report using partner channel technology improve overall revenue at a 48% greater rate than non-users. Their profit margins climb almost two-thirds faster than non-adopters.
Almost 60% of best-in-class businesses extend their sales and marketing capabilities with active partner channel programs, reported Aberdeen in its April 2017 report, Partner/Channel Efforts: No Longer Outcasts of Marketing and Sales. Of them, more than two-thirds support their channel programs with partner management technology.
The increased usage of partner management technology is one of the key reasons why the overall performance of all companies with channel programs is out-performing those without, Aberdeen concludes. While channel programs have more “moving parts” to manage, noted the report, modern partner management technology supports operational efficiency that drives enhanced performance.
Companies that use partner management technology report a higher customer retention rate — 73% versus 65% for non-users. The lead acceptance rate for plugged-in businesses was 37% versus 31%
The percentage of annual sales goal achieved was 70% for technology-empowered organizations, versus 59% for laggards. Total company revenue was up almost 12%, versus 8% for non-users. Profit margins jumped 6.13% at technology enabled companies. Non-users reported an average gain of just 3.73%.
Marketing’s contribution to revenue was up 7.75%, pushing it to 27% of total revenue at partner-tech powered companies. Companies without PRM solutions elevated marketing’s contributions to revenue 6.72%, raising it to 23%.
Ongoing innovation “of partner/channel technology is driving distinct value for its adopters,” concluded Aberdeen. “Moreover, as the technology can be applied to upticks in particular metrics, the deployment of partner/channel efforts can make marketing and sales operations more effective collectively.”
For more information, read the Aberdeen Group report here.