Partner performance refers to the measurement and analysis of a business partner's effectiveness in contributing to shared objectives and goals.
Example: In a B2B partnership between a manufacturer and a distributor, partner performance can be evaluated by looking at the distributor's efficiency in selling and distributing the manufacturer's products. A key measure might be the distributor's ability to meet sales targets, maintain inventory levels, and effectively market the products to end customers, which directly impacts the manufacturer's revenue and market share.
Understanding partner performance helps businesses optimize their partnership strategies, make informed decisions about continuing or altering partnerships, and ultimately achieve better outcomes from their collaborative efforts.