Selecting Partners for Efficient Growth

Even if companies have abundant cash to throw at Sales & Marketing, these efforts are not generating 📉 the same growth as they did 5 years ago. Embracing partnerships is essential, according to BCG and Accel, who put Channel among 5 key growth pillars, on par with S&M, Pricing, Product & Eng, and AI.

💔 Boston Consulting Group (BCG) and Accel, the VC firm behind giants like Slack, Atlassian, CrowdStrike, and Etsy, see a growing disconnect between S&M (sales and marketing) spending and revenue growth in SaaS.

Their analysis of US public SaaS companies shows that:

🔺 Today, median S&M spend has roughly returned to pre-pandemic levels of 37-40% of revenue.

🔻 However, the median revenue growth dropped from 37% in 2018 to just 26% in 2022, even with the same spend.

One of the key takeaways from their "Lean Scaling: A SaaS Founder's Handbook" is that "a well-designed channel program is becoming inevitable to scale in a lean fashion."

🎯 Every great partner program starts with identifying the right partners

The right partners have the network, the regional presence, and the aptitude to engage with your target customers effectively. Learn more about key partner types in the included framework.

BCG and Accel data suggests that cloud marketplaces of hyperscalers are a good entry point. With over $250 billion in cloud commitments that clients can spend on third-party software, marketplaces are becoming an increasingly important way to scale, both for SMBs and enterprises.

📑 After identifying partners, make your organization partner-ready with this four-step checklist:

✔️ Clarify work scope

Partners need clarity. Defining which accounts they can approach and the services they can offer ensures mutual benefits and reduces overlaps.

✔️ Create a GTM plan

Have well-defined way to track partner leads, have transparent incentives for partners, and have ways to resolve channel conflicts.

✔️ Bring partnership talent or build a team

A dedicated partner person (or team if you're scaling) usually results in a significant uptick in revenue. It is important to have internal teams focusing on partner recruitment, onboarding, and ongoing support.

✔️ Stay top of mind of partners

Essential step, even if it sounds too simple. Start relationships by bringing leads first.

Create regular touchpoints to keep your product, sales and marketing in partners' sights. Share customer insights and plans on product developments to ensure alignment and build trust further.

Given this shift in the SaaS growth landscape, what is your go-to partner type that you're leveraging today?

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