Average deal size (AKA average contract value or ACV)
Noun
[ave-ridge deel sye-z]
Average deal size is a metric used by SaaS companies that represents the average amount of money that customers spend on a solution. Another way to explain it is the average amount of money a business makes per deal they close.
Average deal size can be calculated by taking the total revenue earned in a given period and dividing it by the number of closed-won opportunities during that timeframe. ACV is often calculated on a monthly or quarterly basis and used as a key performance indicator (KPI) for the business. Average deal size can be a helpful metric to use when evaluating the performance of sales teams, and it can also be used to determine the price points that are most likely to see leads convert.
Example: Luca's company closed three deals in the last month, worth $5,200, $6,700, and $7,000, respectively. He added the value of each deal up to a total of $18,900, which he divided by three to find an average deal size of $6,300.
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The Ultimate Guide to Partnerships for Ecosystems in 2023
Noun
[app-li-cay-shun form]
Application forms consists of a series of questions that prospective partners have to answer before joining a partner program. While the questions on an application form will change depending on the program, they generally allow you to learn about a potential partner's fit for your program, including their goals, offerings, customer profile, and values.
The information found on an application form can help inform your decision to approve or decline partners that request to join your program.
Example: Beehive filled out the application form for the referral program at TechFront, and they were happy to find out TechFront approved them for the program based on their answers.
Noun
[ak-ti-vay-shin]
The process of enabling and mobilizing the partners you've recruited to perform valuable activities for your business (e.g. sharing a link, making a referral, or closing a deal.) Many programs will define partners as “active” as soon as they’ve made a single successful referral or sale, but this can vary by program, so it’s worth figuring out what determines whether a partner is truly active in your program. Common partner activation signals include first deal registration, first closed deal, or generating revenue for a set number of months.
Partner activation is different from partner onboarding. Activation requires the active participation of the partner in the program, so it normally occurs after a partner has successfully onboarded.
Example: The newest partner to join RayCorp's partner program achieved activation three months after they finished onboarding when they successfully closed their first deal.
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