How to convince stakeholders to invest in PRM (Partner Relationship Management) solutions?

Paweł Oskory October 2, 2024

Investing in modern Partner Relationship Management (PRM) tools can bring many benefits to an organization that will ultimately translate into business success. How do you convince stakeholders to invest in this solution?

What are the benefits of implementing a PRM system?

Increased efficiency

PRM systems streamline the relationship management process, reducing the time and resources required. Real-time monitoring combined with analysis and reporting ensures a constant flow of information and response to potentially critical or business-critical situations.

Effective communication

PRM facilitates better communication with partners, leading to improved relationships and cooperation. Personalization of communications provides the opportunity to tailor communications to the individual needs of partners. This increases satisfaction and builds loyalty. It is also important to optimize the entire partner lifecycle from onboarding to joint sales.

PowerPRM platform

The PowerPRM platform provides partners with the tools and resources they need to support sales and increase revenue. Co-selling enables mutual access to each other’s customer base, so Partners expand their market reach, and organizations increase visibility of the product and the company itself and increase sales performance. The role of the PowerPRM platform is to support effective management of the co-selling process and oversee all operations.

Scalability

Modern cloud-based PRM systems allow companies to easily manage a growing number of partners as the company grows; Additional business value comes from the use of low-code architecture, which allows processes to be quickly and efficiently mapped and tailored to an organization’s needs.

Data-driven decisions

PRM is the source of valuable data needed to make informed decisions about partner relationships and strategies. Data is collected in one place, allowing for easy and quick analysis, generating customized reports. This element supports productivity and strengthens efficiency.

Process automation

PRM enables automation of many tasks, including handling Partner requests, tracking leads, or managing sales processes – such as supporting marketing campaigns.

Cost Reduction

PRM supports loss avoidance by detecting and eliminating inefficiencies and streamlining processes leading to lower operating costs.

Competitive advantage

Investing in PRM gives a company a competitive advantage and enables it to manage more effectively and make the most of partner relationships.

Alignment of the PRM system with business objectives

Automation of channel activities and communications is in line with the organization’s established strategic priorities. Integration of various systems and tools allow the creation of a coherent and effective operational strategy.

Ensuring ease of doing business for partners

The implementation of a centralized PRM platform supports partners’ daily work and contributes to their efficiency. The Self Service Portal, available within the PowerPRM platform, increases the efficiency of their daily work and engages them to jointly achieve business goals. This hub for instant communication with Partners indicates the activities and materials provided, necessary to achieve the goals and objectives set.

Business reviews

Audits are not a tool to control Partners, but to strengthen relationships. They allow to identify problems, monitor the quality of services provided by Partners’ business. In addition, they help identify and assess challenges to the cooperation and reduce expenses by optimizing processes.

What does this look like in numbers?

PRM tools are particularly used in front of organizations that are distinguished by an extensive network model (franchise model, partner network, retail networks) and whose key challenge is to improve collaboration with partners to increase sales and operational efficiency. This is referenced in the growing PRM market, which was valued at $54.8 billion in 2020 and estimated to grow at a 16.2% CAGR between 2021 and 2028. As a result, the PRM market could reach $180.01 billion by 2028, according to Grand View Research*. Fueling the growth is the increasing popularity of connected devices and IoT. An additional element is the need to focus on quality communication with partners and reduce the cost of managing sales channels.

The worldwide experience of organizations that have chosen to implement PRM (Partner Relationship Management) tools shows that they have achieved key and multi-faceted benefits from their investments:

Previous implementation cases indicate that investing in PRM tools can lead to over 30% revenue growth.
The return on investment (ROI) in PRM is typically achieved within approximately 18 months of implementation.
Efficient use of leads by automating operational activities and focusing on creating relationships with partners reduces administrative costs by up to 29%.
More than 70% of those using PRM say the tool has given them a competitive advantage.
26% of partners using PRM have improved their sales performance, resulting in an increase of more than 20% in revenue from partners.
The experience of using dedicated partner portals raised the increase in ability to recruit and deploy new partners.

Partner relationship management today is a well-thought-out strategy for modern organizations, which can be viewed as a technology solution and a business philosophy. These elements are united by a goal: to provide robust support with proven process flows that enable companies to better grow and manage their partner relationships. From initial implementation to optimization or dissolution of the partner relationship.

The essence of the power of PRM tools is explained by Harvard Business Review. The tool allows companies to dominate in their industries and focus on initiatives in other areas. For organizations operating in a partnership model, PRM is a clear step forward and one of the guarantors of business success. It influences and supports increased efficiency, processes for acquiring new partners and building strong business relationships with existing ones.

*Grand View Report,
Partner Relationship Management Market Size, Share & Trends Analysis Report By Component, By Service (Managed Service, Training & Consultation), By Deployment Type, By Organization Size, By Application, By Region, And Segment Forecasts, 2021 – 2028