On this episode of the Unlearn podcast, hosts Asher Mathew and Kelly Sarabyn sit down with Ritu Khanna, Vice President of Partnerships at Shopify. Under Ritu's leadership, Shopify has unified previously segmented partner functions, generating new synergies that drive the company's continued hypergrowth.
With a proven track record in transforming traditional models to thrive amidst digital disruption, Ritu offers valuable insights into connecting ecosystems, embracing disruption, and guiding partners through an era of profound change. Tune in as we explore Ritu's firsthand perspectives on navigating partnership transformations in today's dynamic business landscape.
00:00 - Partnerships and product extensibility at Shopify.
06:24 - Partner types and their evolution in software companies.
10:53 - Partnerships and alignment in product development.
16:55 - Transforming Shopify's partner program to accommodate more complex market segments while still supporting SMB partners.
21:34 - Partnering with ISVs and ISPs to offer complementary products and services.
27:52 - Reselling and bundling software products on marketplaces.
33:13 - Leveraging partnerships for growth in the ecosystem.
40:55 - Partnering and leadership in a rapidly changing business landscape.
Ritu explains that product partnerships at Shopify include the app ecosystem and third-party integrations. She discusses the merging of app partnerships with go-to-market partnerships, highlighting opportunities for mutual benefits. Kelly adds her insights to the discussion.
Kelly discusses the evolution of partner types in large software companies, citing Azure and findings from partnership leaders' surveys. Asher and Ritu share their experiences with integrating partner functions to create a more collaborative and efficient team. Asher also provides insights on leadership and transformation initiatives, emphasizing his background in technology and management consulting.
Ritu shares insights on partner alignment in product development, emphasizing the importance of establishing a strong structure to maintain alignment over time. She advises organizations to determine their product stack approach, considering whether to build or partner for speed, scale, and global expansion. Ritu notes that Shopify's partnership ecosystem has grown alongside the company, aligning with its focus on mid-market SMBs.
A transformation of the partner channel strategy and infrastructure is underway. Ritu discusses the evolution of Shopify's partner program, emphasizing its focus on SMB partners. She plans to connect SMB partners with upmarket partners to enable mutual benefits. Kelly adds her insights to the conversation.
Ritu explains that partners build businesses around Shopify, with co-selling being the top priority. She highlights how ISVs offer app ecosystem partnerships, creating "better together" stories. Ritu also shares her struggle with balancing the sales of Shopify's own product and reselling partners' products. Kelly contributes additional insights to the discussion.
Asher notes that customers prefer bundled products over individual ones and explains the complexity of reselling products through marketplaces. He mentions that marketplaces are growing rapidly due to their low margins (2.9%) and high discoverability. Kelly adds that co-selling on marketplaces is crucial, as it enhances the joint value proposition and creates a more efficient buyer journey.
Ritu discusses partnerships with Avalara and shipping solutions to create fully functional stores, leveraging partners for efficient and cost-effective service delivery in the down-market space. She describes her evolution from product roles to go-to-market roles, focusing on commercial success through partnerships and customer segmentation. Ritu's product background gives her a commercial mindset for launching and commercializing products, addressing market needs, and working with partners. She has held various roles in banking, tech, and e-commerce, including product partnerships and commercial leadership. Ritu aims to build the best program with expected quarterly growth of 70-150% while navigating rapid change and P&L ownership.
Ritu discusses her strategy of connecting various partner types and segments to drive growth at Shopify. Kelly offers leadership advice on building partnerships while managing ongoing operations ("flying the plane"), emphasizing change management, progress, and recognizing team efforts. Ritu shares insights on her experience at Shopify, highlighting rapid growth and supportive leadership.
"I think some of the biggest opportunities lie in connecting dots across the different areas that exist in the world of partnerships, whether that's across different partner types or the same partner types serving different segments. The goal is to create a fully functional and operationally efficient engine. While there may not be 100% overlap, there's certainly a Venn diagram of creativity worth exploring that will deliver strong results." - Ritu Khanna
"The efficiency would be if another company's sales rep sells your product instead of your own. That's what most revenue leaders aim for. However, integrating Shopify with another product for resale can be quite complicated, as we discussed." - Asher Mathew
"I think ours is more focused on what I would call mid-market and on-market versus enterprise. But it is interesting listening to what you're saying, because that is a huge transformation. You still have all your SMB customers, right? And you still have all your SMB partners. So, is your program incredibly complex now because it accommodates these different partners for different customers? I assume they're still key to the Shopify portfolio as well." - Kelly Sarabyn
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