How to Build an Effective Partner Strategy for Accelerated Sales Growth

Building an effective partner strategy for sales growth

The right partner strategy can make all the difference. It’s not just about signing up partners but executing your business strategy and working with partners to create customer value.

However, what is a successful partner strategy, and where should you start?

Let's Start with the 'Why': Why Do You Need a Partner Strategy?

Partners can help B2B companies grow faster by:

1. Reaching More Customers: Partners can open doors to new markets in new geographical regions and customer segments, e.g., specific industries where they are established.

2. Saving Time and Money: Working with partners reduces the need for incremental internal sales and specialist teams. A partner model helps to scale faster at a lower cost if done right.

3. Getting Closer to Customers: Partners with strong relationships and market knowledge can help win complex, relationship-driven sales cycles.

4. Reducing Risk: Using multiple go-to-market channels protects against market changes.

Partners can serve various roles depending on your goals.

Here’s an overview:

Sales Partners focus on selling your product or service to customers. They often have strong relationships in target markets and can accelerate your sales efforts by leveraging their networks and expertise.

Service Partners provide your products' implementation, support, and consulting services. They ensure a seamless customer experience and can maximize the value of your offerings.

Technology Partner's products or services integrate and enhance with or enhance your own. For example, an IT software company might partner with a hardware provider or API platform for seamless solutions.

Marketing Partners help amplify your brand and reach. They can co-host events, run joint marketing campaigns, or offer affiliate marketing services.

Distribution Partners deliver your product through their networks. This includes resellers, distributors, and value-added resellers (VARs).

Content Partners create and distribute educational or promotional content, such as webinars, eBooks, or blogs, to build thought leadership and attract leads.

Training and Certification Partners provide education about your products and services to their own audiences, ensuring a knowledgeable network.

Financial Partners, such as venture funds or banking institutions, provide capital or share the cost of expansion efforts.

Strategic Alliance Partners for long-term collaborations aimed at mutual growth. For example, two companies entering a new region might share market insights or resources.

Each type of partner can address different business needs, so your partner strategy's goals must be clearly defined.

1. Define what you want from your partner strategy.

   For example, you might want to:

   • Increase sales growth

   • Enter new markets

   • Lower customer acquisition costs

     
     

2. Find the Right Partners

Choosing the right partners is the foundation of a successful strategy. Start by ensuring the partnership benefits both sides—this creates mutual value. Look for partners whose strengths match your needs. For instance, prioritize partners with strong technical teams if your product requires technical support. Each partner has different goals—some aim for revenue growth, while others want to expand into new markets. Align their goals with your value proposition. For example, consider joint marketing campaigns if a partner values brand recognition.

Choose partners that fit your needs, e.g.:

• Market Access: Can they reach your target customers?

• Resources and Skills: Do they have the expertise to sell and support your product?

• Alignment: Do they share your company values?

• Growth Potential: Are they willing to invest in the partnership? 

  Note:

  Forging partnerships can be time and resource-consuming, with no guaranteed return. Therefore, asking for contractual and some financial contributions before making single-sided investments of time and resources is advisable.

  
  

3. Train and Support Partners: 

Help partners succeed by:

• Offering access to products and training

• Sharing marketing resources like ads and email templates

• Providing a dedicated support contact

• Creating incentive programs that reward performance

4. Stay Engaged and Measure Success:

   • Holding regular check-ins

   • Sharing updates about your products and market trends

   • Asking for feedback and using it to improve Partner sales numbers

   • Track key metrics like:

     • New leads generated

     • Number and value of new signed customers

     • Customer satisfaction ratings

       
       

Avoiding Common Mistakes

1. Don’t Overload Partners: Giving partners too many products to sell can distract their focus. Start small and grow gradually.

2. Don’t Skip Training: Partners need the right tools and knowledge to succeed. Invest in their training.

3. Listen to Feedback: Treat partners as collaborators. Use their input to make your strategy better.

4. Communicate Regularly: Poor communication leads to misunderstandings. Be clear and consistent.

5. Align Incentives: Ensure rewards encourage desired behaviours, like focusing on key products or customer retention.

Building a partner strategy takes effort, but it’s worth it. By creating value for your partners, choosing the right ones, and supporting them well, you can grow your business, reach more customers, and reduce risks.

Strong partnerships lead to satisfied customers and shared success faster at lower individual costs.

I help CEOs and Sales Leaders achieve consistent sales pipeline and revenue #growth through integrated #sales #marketing and #businessdevelopment #strategy

Written by Thomas List, T.L. Advisory