High inflation, news of significant layoffs, and a crazy stock market are indicators of a financial downturn.
So at this point, every company is wondering what they can do to recession-proof their business. One element we know should be part of your strategy? Partnerships.
Partners have the power to elevate your clout, introduce you to new prospects, and convince clients your products and services are necessary to their success – even in a time of crisis. And big companies are already playing the game.
Microsoft reports that 95% of its revenue flows through its partners. Atlassian says that their 700 channel partners account for one-third of all business. And HubSpot generates 40% of its revenue from its B2B SaaS partnership program. So how can you reap those same benefits – in or out of a recession?
In this post, we’ll outline six different ways partners can be a life vest in a storm of uncertainty to serve as inspiration for your partner program.
6 Ways Partnerships Provide Better Outcomes During Economic Uncertainty
Partners are key to scaling your business effectively and are a vital component of a go-to-market strategy – especially during a financial decline. More specifically:
1. Partnerships lower your CAC
These days, customer acquisition costs are through the roof. Companies don’t want to spend the little budget they have on leads that may not even have a high chance of converting, let alone a high lifetime value. Partners can ensure that you’re in touch with the right leads at the right time. Leveraging their extended network can get you in front of warm leads that are already interested in your products and services. And if your products and services complement each other, you might even find opportunities to go to market together, lessening the strain on your marketing budgets and putting forth a more compelling reason for prospects to sign.
2. Partnerships allow you to gain market share in new industries or geographies
Not all markets experience the same amount of distress in economic downtimes. Partners can introduce you to customers who may have the capital to spend on products or services across the world. And since they already have a presence there, they can show you the ropes, giving you valuable advice about launching in that new market.
3. Partnerships convince prospects to take meetings with you
Gaining access to your partners’ customer bases is one of the most persuasive arguments for building a partner program. Suggest using overlap tools like Reveal and Crossbeam to surface mutual opportunities. Both parties can provide insights on new potential deals, delicately asking clients for more information or planting the seed for a new product or service. Once you’re both active in the sales cycle, you can help move each other’s deals along.
4. Partnerships assure their clients your product or services are worth it
Your partners foster close relationships with their customers just like you do. So when they make a recommendation, their clients listen. Partners also have context. They know which clients have tight budgets and are willing or not willing to spend on new products or services. If there’s even a little bit of wiggle room, having a partner’s seal of approval can help you take deals over the finish line.
5. Partnerships take you seriously as a thought leader
Associating your company with other well-established businesses can lend credibility and legitimacy that would’ve been difficult to create on your own. Co-hosting events or seminars can be a win-win, getting the word out about your company and theirs. But you don’t have to throw big parties to get big value. Co-creating valuable, insightful content can yield just as many leads and engagement if marketed properly.
6. Partnerships let you focus on your core business
If your partner program is humming along, you should be getting new deal registrations on a fairly consistent basis. Not only does this take a little pressure off of sales and marketing, it can also give you valuable product feedback.
Because partners have a stake in how your company performs and the value it provides to their customers, they’ll clue you into frequently asked questions, bugs, or features your competitors have, and you don’t. Taking this advice to heart and working on those issues or enhancements during a downturn can help you come out on top in the future.
Accelerate Your Partner Program
Growing a stable and reliable partner program is a must at any time, but especially when the economic outlook is uncertain. Great partners enable you to stay afloat, making the most out of your marketing and lead generation efforts. But saying you’re going to build a world-class partner program and actually doing it are two very different things.
Getting organized is one of the hardest parts, but luckily, Channeltivity can help. Channeltivity is a premier partner relationship management platform that empowers your team to take your partner program to the next level.
By integrating with CRMs like HubSpot and Salesforce, you can directly transfer partner referrals to your sales team. Channeltivity also has built-in co-branded collateral, marketing development fund, and partner email marketing features to boost your brand awareness and engage your partners. The best part is that it’s self-serve – partners can learn about and get certified in your product on their own time.
See for yourself by signing up for a free demo, or consider reading: