What is activation rate?
In partnerships, activation rate refers to the percentage of your partners who are actively engaged in selling or promoting your products or services. As a partner leader, you’ll define what “active” means in your ecosystem. It could be partners who have logged into your portal in the past six months or those who have registered a deal.
No matter how you define your activation rate, it’s a vital metric for understanding the effectiveness of your partner program. Think of it like this: if you’re a software company who is partnering with 100 value-added resellers (VARs), but only 20 are actively and regularly selling your product, your activation rate may only be 20%.
This information can help you identify which partners are truly engaged and which ones might need additional support or incentives. It can also help you better understand the health and effectiveness of your partner program.
To calculate partner activation rate, simply divide your number of active partners by the total number of partners and then multiply the result by 100 to get a percentage.
Partner activation rate calculation = (# of active partners/# of total partners) x 100
A higher activation rate is obviously a good thing. It means that a higher percentage of your partners are actively contributing to your indirect sales, which can lead to increased market reach and revenue growth.
Improving your activation rate will involve a number of strategies based on your initial definition, from offering better training and support to designing more valuable incentive programs. By monitoring and improving your activation rate, you can help ensure that your partnership program is robust, active, and beneficial for everyone involved.