Partnerships Outperform Traditional Go-to-Market Models in Efficiency and Growth

The low-to-no interest era in the financial markets has ended. This development pushes VCs to do a double-take on the indicators of success and forces SaaS business to adjust their go-to-market strategy.

The valuation of SaaS companies now weighs heavier on their efficiency. For companies in the B2B sector, it means showcasing high performance and business growth with lower input. The overdue liberation from traditional go-to-market models, as Brent Adamson (coauthor of The Challenger Sale) suggests in his article “Traditional B2B Sales and Marketing Are Becoming Obsolete” (published in Harvard Business Review / hbr.org), does just that.

A partnerships strategy proves higher efficiency and scalability than traditional go-to-market models through leveraging digital ecosystems.

Increased revenue at lower costs 

Working with a channel partner expands the sales reach exponentially and often grants access to established customer relations. The higher quality of the generated pipeline and, consequently, higher conversion rates result in lower customer acquisition costs. Partnerships open new doors and release resources to invest in further growth.

Increased innovation and value creation 

Collaborating with technology and service partners allows companies to focus on their core activities, positively impacting customer adoption and retention. These integrations enhance the solution’s value through new features, offerings, and connectivity to the customer’s technology stack.

Increased exposure to market participants

Partnerships create exponential exposure in growing ecosystems and allow companies to connect to a bigger audience at a faster pace. Companies can benefit from the network effects phenomenon, which lifts the value and attractiveness of a product or service through the growing number and quality of the ecosystem participants.

Reduced risk through revenue diversification

Diversified revenue streams generate and accelerate growth through the concept of an “extended sales force”. Channel, technology, and marketing partners provide additional revenue streams beyond a company’s product and service portfolio making companies more attractive for investments. “A company with 50% partner-generated revenue is a safer investment than a company with 100% sales-generated revenue.” (according to Andreessen Horowitz’s Sarah Wang, Crossbeam Supernode 2022 onstage interview).

Collaborative working means a commitment to mutual growth. Partnerships set up the right way boost efficiency to another level and extend sales and product teams beyond one organization. It’s a win-win all around!