A lot of people wonder if they actually need PRM or CRM. After all, time is always moving too fast and at times it may seem that there is always a new software tool that is constantly vying for attention. You also have the partnership ecosystem which is exploding right now, and all of it is showing absolutely no signs of slowing down. If you are a tech or a channel partner and you want to try and grow your program, then you will constantly be facing new challenges. Partner relationship management tools, or PRM tools for short, can help you to speed up your sales while boosting your overall operational efficiency. If the term PRM is bewildering you already, or if you just have no idea how to choose a platform, then this is the guide for you.
What is PRM?
PRM tools help those who work in channel marketing to automate and connect all of their processes together. It can be seen as a portal that is 100% dedicated to serving you and your channel partners. PRM tools are not to be confused with CRM tools, because although the abbreviations are very similar, they are not the same tools at all. Keeping everything in one tool means that partners can remove any redundancy or repetitiveness from their workflow and it also enables the automation of essential tasks. This can include lead registration or even education. Partner managers can achieve way more, in a shorter space of time as well. The end result? Happy and productive partners who contribute greatly to the growing ecosystem.
Features of a Good PRM Tool
Even though every single partner program out there certainly has its differences, a lot of PRM tools will include the same functionalities under the hood. They will enable you to automate your partners and it will also provide you with a central management portal. This should be easy to set up and manage. A good PRM tool will also allow you to share any enablement resources, simplify leads and allow for fast payments for any affiliate commissions. Some tools also give you the chance to forecast any channel sales so that you can analyse which partners are the most effective for you. Forrester Research has
What is the difference between CRM and PRM
estimated that 12 million users log in to their systems every day. In the next few years, it’s estimated that PRM tools are going to grow by 14.2% by the year 2023 as well. Salesforce has also backed up this claim, stating that companies that use a Sales Cloud PRM have seen a 46% rise in partner engagement.
How CRM Differs from PRM
In this day and age, so many businesses are using various software tools to try and help them to manage their company. If you are a provider of consulting services then you may focus on CRM, which stands for Customer Relationship Management, over PRM. The main difference is that CRM is primarily concerned with your company’s relationship with your customers. PRM on the other hand is focused on managing your relationship with any indirect sales teams you have and the customers of the partner. Both of them come with their distinct advantages, and the one you choose will most likely depend on your needs and your goals.
Using a PRM to Manage Channel Relationships
Selling through channel partners is a prominent method of distribution amongst manufacturers. This is especially the case for those who sell complex products. The digital age has changed how we interact with customers and what our expectations are from them. If you want to meet these expectations, then you need to adopt technology. What was once a Dealer Portal has now become a PRM. While every distribution channel is completely unique, there are a few challenges that every manufacturer faces. This can include, but is not limited to recruiting or onboarding new dealers, integrating systems, delivering incentive programs and measuring what matters. With the first step of any indirect channel being to recruit and onboard the right dealers, it’s safe to say that PRM can come in useful here. Recruiting new dealers can be an ongoing process, and your ideal dealer profile can help you to connect with the right kinds of business. This will help you to create new opportunities so you can go on to generate more revenue. The bulk of the onboarding process happens digitally, so documentation and video tutorials have to be available easily. When you have a PRM solution, you can speed up this process while also making everything accessible to everyone.
PRM VS CRM- Which One is the Better Solution?
CRM has become very popular over the years and a lot of businesses are now funneling huge portions of their expenditure into this discipline. What it ultimately boils down to is that CRM will give you a much higher level of visibility when it comes to the sales process, and PRM will make it easier for your manufacturer to do any kind of business with your reseller partners. If you want to truly benefit, it would in fact be wise for you to adopt both, so you can future-proof your system and your team.
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