Smartsheet's partner value proposition extends beyond resale margins. The company strategically positions partner-led professional services (implementation, integration) as essential for its own success. These services drive customer adoption, which in turn leads to higher retention rates for Smartsheet's core software.
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For businesses with one-off projects like architecture, true revenue retention comes from "chunking up." Instead of focusing on the end customer, build a sales and retention motion around the referral partners who provide a consistent stream of new projects.
Historically, channel agents focused on front-end sales and were often blind to back-end customer churn. Sophisticated partners now use data analytics and AI to identify churn risks, pinpoint cross-sell opportunities, and actively manage their existing revenue base.
To prevent message degradation across the "layers of abstraction" inherent in channel sales, Smartsheet employs a unified strategy. It combines manager-led communication, a comprehensive partner portal with information parity to internal teams, and formal sales and technical certifications to ensure consistency and accuracy.
The most effective partner marketing strategy isn't about getting partners to resell your product. Zendesk's Amy Avalos argues it's about enabling them to sell their own unique value, with your technology as the engine. This positions them as trusted advisors and strengthens their brand.
Traditional revenue tiers (Gold, Silver, Bronze) are vendor-centric. A more effective approach is to classify partners by their business model. For example, an MSSP needs predictable upfront costs to build a service, while a value-added reseller may prefer volume-based rebates. Tailoring your program to their model, not just their size, is key.
“Partner Lifetime Value” reframes partnerships as long-term assets, not transactional wins. Companies committing to consistent, long-run partnerships achieve superior growth and profitability, creating a force multiplier effect far beyond standard customer lifetime value.
To truly meet partners where they are, align your internal team structure with your partner segmentation strategy. Create dedicated internal groups specializing in different partner types, such as one team for advisory MSSPs and another for high-volume resellers. This ensures partners interact with managers who deeply understand their specific business model and needs.
Managed Service Providers become indispensable to vendors like Microsoft and Google by adding $7-11 of high-value services for every dollar of product revenue they generate. This value creation gives them significant leverage and makes them a more respected and crucial part of the vendor's ecosystem.
Shift from a transactional view of partners to a long-term investment mindset. This "Partner Lifetime Value" approach, which treats partnerships like long-term assets, acts as a force multiplier for growth, leading to higher profitability and success.
VCs accustomed to scalable SaaS models often view professional services as a non-recurring drag on margins. For data businesses, however, these services are crucial for embedding data into customer workflows and preventing churn, especially when the internal champion leaves.
