The Power of Partnerships for SaaS with Jo Wright | The Six Sessions

In today's rapidly evolving business landscape, partnerships have become increasingly crucial for driving revenue and business growth. In the world of Software as a Service (SaaS), sales partnerships play a significant role in helping companies expand their customer base, acquire new customers, and increase revenue.

In this episode of The Six Sessions, Host Richard Wood is joined by Jo Wright, Director of Partnerships at 6Sense EMEA. 

Last week, Rich and Jo discussed the importance of partnerships in driving growth and success for companies like 6Sense. They share their experiences and insights on forming and maintaining partnerships, as well as the challenges and benefits that come with it.

Addressing The Challenges in Acquiring Customers in 2023

Acquiring customers in today's highly competitive market poses one of the greatest challenges for SaaS companies. Pre-empting a customer's purchasing decision with a striking first impression remains critical. 

As cited by a Forrester study, the majority of purchase decisions are reached before a customer engages in direct communication with the company. However, only 2.7% of Marketing Qualified Leads (MQLs) qualify as part of the pipeline while 50% of companies targeted by a product are not a suitable fit, according to Chili Piper and Hubspot data. That's not all. An alarming 97% of website visitors exist as unfamiliar entities, as noted by 6sense. 

These staggering statistics stand evidence of the need for alternative methods to reach decision-makers in their buyer's journey.

The Role of Partnerships in Revenue Growth

Partnerships have been proven to contribute to a considerable portion of revenue for SaaS businesses. In fact, partnerships can drive anywhere from 25% to 40% of a company's total revenue, depending on the region. 

This stands in contrast to the belief held by many SaaS businesses that partnerships are not effective revenue drivers. 

Partnerships have become even more critical as buying teams continue to grow. By collaborating with trusted partners, SaaS businesses can effectively reach decision-makers, build relationships, and increase their chances of closing deals. Investing in the partner function and aligning it with the overall go-to-market strategy can yield significant results.

Rethinking Partnership Metrics

There is often a disconnect between sales and marketing teams when it comes to partnership metrics. While sales teams focus on closed-won revenue, partnership teams tend to prioritise softer, fluffy Key Performance Indicators (KPIs). Jo highlights the importance of aligning partnership metrics with closed-won revenue, ensuring that the focus remains on driving actual revenue and closing high-quality deals with higher Average Contract Values (ACV). This helps in setting up partnerships for success by using the right target metrics.

How to building Successful Partnerships

Qualifying potential partners is a crucial step in building successful partnerships. Jo suggests using a checklist that includes factors such as

1. Selling into the right people
2. Doing something different
3. Adding value to customers
4. Having a genuine need for collaboration.

Overcoming Challenges and Embracing Potential

Partnership programs often face challenges, such as a lack of industry knowledge and understanding, a lack of executive buy-in, and the potential impact of letting go of competent partner managers. However, the potential for business impact and the opportunity to have fun while working on partnerships outweigh these challenges. Building positive relationships with agencies and focusing on co-selling opportunities rather than transactional relationships can further enhance the success of partnerships.

The Role of Data in Successful Partner Programs

Successful partner programs rely heavily on understanding and utilising data. Data helps determine effective strategies, educate executive teams, and tell a compelling story about the value of partnerships to internal and external stakeholders. Furthermore, focusing on messaging and education around the value proposition of tech partnerships is crucial. The best programs are organised and prioritise partners who drive results, rather than partners who are simply enjoyable to work with.

The Potential of Generative AI in Partnerships

Jo and Rich also touched upon the potential impact of generative AI on the partnership landscape. While there may be hype surrounding this technology, its true impact may not be fully realised for at least a year. However, tech companies and agencies may leverage generative AI to create more opportunities for partnerships, particularly in areas such as testing and content creation.

Partnerships play a significant role in driving revenue growth for SaaS businesses. As evidenced by the insightful conversation between Rich and Jo, prioritising successful partnerships involves understanding the importance of aligning partnership metrics with closed-won revenue, qualifying potential partners effectively, embracing data-driven strategies, and embracing the ever-evolving landscape of the SaaS industry. By leveraging these key insights and building strong, collaborative partnerships, SaaS businesses can achieve remarkable growth, reach new customers, and drive revenue impact.