by Kamil Kłosiewicz on April 17, 2023 You read:
Five reasons to choose PRM
For many companies with a network model, effectively managing partners can be a significant challenge. The dispersion of partner points introduces the risk that they may not meet sales or branding expectations. Fortunately, the hours spent in spreadsheets and manual control of all processes are a thing of the past. A specially designed PRM (Partner Relationship Management) system assists in efficient partner network management.
What is PRM?
PRM (Partner Relationship Management) is a comprehensive solution for companies operating in a network model, used for managing partners and designing the customer journey. It includes aspects such as acquisition and onboarding, goal and KPI definition, communication and collaboration tools, data analysis and Business Intelligence reports, as well as goal tracking and sales monitoring. Additional functionalities, such as surveys and gamification mechanisms, contribute to increased partner engagement.
PRM vs. CRM
Both CRM (Customer Relationship Management) and PRM (Partner Relationship Management) solutions deal with managing business relationships. How do these two systems differ?
CRM focuses on customers, with the primary goal of establishing long-term relationships with them. CRM enables efficient communication with customers and managing their satisfaction by collecting and analyzing information about their preferences. Based on this data, companies can develop appropriate sales and after-sales strategies that align with customer requirements.
On the other hand, PRM is used for managing relationships with business partners, such as distributors or resellers, whose job is to reach end customers on behalf of the franchisor. In companies with a partner and franchise model, partners enhance the brand’s potential—they present products to end customers, thereby increasing the company’s reach. The PRM system is key the to the success of effective partnerships, as it helps build partner engagement transparently, resulting in increased sales.
Below, we have prepared five compelling arguments for implementing a PRM solution in your organization.
Modularity
For many months, we have been working on our proprietary PowerPRM platform, which enables full integration of partners or sales-service points. Each of its modules supports a different area of network management, from acquisition to the verification of new point potential and sales maximization.
As noted by Kamil Kłosiewicz, Solution Architect at PowerPRM, modularity is the reason why an increasing number of companies operating in a network model are interested in this solution.
Thanks to the modular structure of the PowerPRM platform, organizations can focus their attention on specific modules that are maximally tailored to the client’s business needs. This construction allows each client to create a platform that fully meets their expectations, states the expert.
The individual functionalities comprising PowerPRM, such as efficient onboarding of new partners or real-time process control with minimal actions and clicks, free up employees’ time.
Real-time Control of Processes in the Partner Sales Channel
PRM is an easily scalable technology, which, when goals are well defined, allows for real-time assessment of the effectiveness of activities within the partner sales channel. According to Kłosiewicz, by introducing specific metrics and evaluation criteria for partners into the system, it becomes simple to create a ranking of partners achieving the best results.
Moreover, the platform enables the identification of potential risk factors within the partner sales channel and suggests actions to help weaker partners achieve better results, adds the expert.
Increased partner engagement
According to Kamil Kłosiewicz, a measure of the success for a PRM (Partner Relationship Management) system is the increase in partner engagement.
Generally, the more engaged a partner is, the more likely they are to commit to a long-term collaboration and bring tangible benefits to each organization – emphasizes the expert.
There are several indicators that can be used to measure the activity of partners. Factors that influence their engagement include the number of trained or certified team members, participation in partner events, or the login rate to the portal. For example, if the login frequency increases immediately after a meeting with a partner but then decreases in the following weeks, it may indicate that the partner is not actively involved in sales processes.
Effective revenue control
Revenue is one of the most important indicators that companies operating in a partner and franchise model focus on. The PRM system analyzes the company’s sales fluctuations, taking into account factors such as seasonality. The tool helps determine the contribution of partners to network development and their potential. PRM can, for example, indicate the average value of transactions made by partners or calculate the costs associated with acquiring new customers.
According to Kamil Kłosiewicz, the PowerPRM system is a universal and generic solution with many practical applications. – The tool allows for defining goals and KPIs and monitoring them in relation to a specific partner, as well as dedicated joint projects or sales projects – emphasizes the expert.
Improving the quality of partner relationships
Managing relationships with business partners requires constant monitoring and maintaining contact with them. PRM systems allow for automatic reminders of important dates for partners or sending relevant messages at the right time. As a result, the company can build better relationships with business partners, which translates into longer and more efficient cooperation.
The PRM system includes a dedicated module called a partner portal. It is a place where employees and partners of the company can log in from any location using a web browser. They have there access to all their related projects, tasks, documents, as well as dashboards informing them about goal achievement and key performance indicators (KPIs). It is also a central communication hub between the partner and the headquarters, facilitating messaging, surveys, and task management through a kanban board. In short, the portal serves as the hub that partners need, eliminating the need to decide on the type of communication to use, whether it’s email or phone, to connect with the headquarters, provide feedback, add notes, or verify the status of their cases.
In business, building strong partner relationships is the key to success. Therefore, PRM solution providers are constantly working on new functionalities to ensure that the system you implement is best suited to companies with a partner and franchise model. It is crucial to precisely specify mutual expectations and maintain clear communication, as these two factors are essential for the success of any collaboration.
Contact us, and PowerPRM experts will help you choose the package that best suits your organization’s needs.
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