Partner Relationship Management (PRM) - An Introduction To the Concept, Enabling Technology and Benefits

Introductionensure that they devote energy to incubating or
Partner Relationship Management (PRM) is a systemnurturing high-potential partners amongst their existing
of methodologies, strategies, software, andbase before engaging in much more effective
web-based capabilities that help a manufacturer totargeted recruitment activities aimed at
organise and manage relationships with businesscomplementing their supplier or resale bases with
partners. PRM acknowledges the existence of thenew high quality partners.
“partner eco-system” – an often  Partner development, training and knowledge
complex network of inter-dependent entitiestransfer has been revolutionised by PRM. Systems
collaborating upstream of the end-customer. Thewith integrated e-learning tools manage training
general purpose of PRM is to enable companies tocurriculums and tailor them to the personal profile of
better manage their suppliers, alliances, distributionindividual sales, marketing and technical staff in the
partners and customers through the introduction ofpartner community. They deliver training in an
reliable systems, processes and procedures forinteresting, often entertaining way using multimedia
interacting with them.technology online, often provided via the partner
Historyportal or supplier extranet and facilitate online testing
The notion of employing a dedicated horizontalto automate the certification process. Such eLearning
software platform across your business for thetools can ensure accurate matching of test results to
specific purpose of managing and integratingthe qualification for training certificates and go on to
processes and systems used to operate yourmap these personal qualifications against company
partner relationship’s came in the mid to lateaccreditation for umbrella partner programs.
1990’s but was, to some extent ahead of itsAutomation through PRM ensures that the most
time. Industries with dedicated franchised distributionsuitable training programs are promoted, managed
networks such as automotive recognized the needand delivered to the most appropriate individuals
for such systems many years earlier. The informationwithin the partner community replacing costly and
and communication technology industry, with itstime consuming classroom training and managing the
rapidly evolving indirect channel model and readycomplex business processes and interdependencies
acceptance of software as a business processbetween testing, certification and accreditation.
automation enabler has followed in the last decade  Most manufacturer loyalty programs comprise the
but ironically, many companies within more establishedsame predictable collection of umbrella-branded
industry sectors; possessive of more mature partnerprogram deliverables, poorly administered and little
networks have chosen to ignore PRM preferring tovalued by partners. Not so with an effective partner
leverage existing legacy / enterprise applicationsrelationship management strategy. This will ensure
regardless of their suitability for purpose. Customerthat manufacturers align their partner-facing programs
Relationship Management (CRM) systems have oftenwith the needs of their partner community
been inappropriately used for this purpose producingimplementing only those deliverables that bring
typically poor results. But the business processes andtangible value to the partners and their customers.
indeed the very purpose of PRM is fundamentallyLoyalty programs should aim firstly to provide
different to those associated with CRM. Because ofpartners with the infrastructure, tools and resources
the limited mass-market adoption of PRM, fewto support their selling, marketing and
companies exist today who have both a detailedcustomer-supporting activities and then, once the
knowledge of and track record in the market, whofoundations for loyalty have been built, to reward
possess a technology designed specifically for the jobthat loyalty.
and who understand how to deploy the technology  Similarly, many manufacturer sales incentives tend
to bring the greatest value to both the manufacturerto be hastily crafted, poorly coordinated, tactical
and their partner. But as the global economic crisisprograms aimed at driving short term sales in
presents all businesses with enormous challenges,exchange for rewards. Timescales often fail to take
those companies who have come to depend uponinto consideration the duration of sales cycles,
partner networks are now seeking to improverewards are commonly poorly targeted and
partner performance throughout the supply and valuemanufacturers typically end up paying out for sales
chains whilst reducing operational costs and PRMthey would have made anyway. Manually
could offer the solution.administered programs are resource-hungry, time
Strategy Not Only Softwareconsuming and error-prone. PRM automation ensures
The term “partner relationship management”that incentives can be better planned and managed.
itself is meant to describe the whole businessMessaging, communication and reward delivery can
strategy oriented towards partner needs and throughbe better tailored to the participant to improve
them, the needs of your mutual customers. The main‘buy in’ and motivation remains high.
misconception of PRM is that it is only software. It isMeanwhile retrospective sales trend analysis makes
not. Indeed PRM is a whole business strategy and ofsure that they are awarded against incremental sales
course, in today's increasingly challenging andonly. PRM then ensures that tactical incentives and
competitive business environment, a successful PRMpromotions can be aligned and managed as a series
strategy cannot be implemented by simply installingof connected campaigns as part of a larger strategic
and integrating a software package. A holisticloyalty program in conjunction with other
approach to PRM is vital for an effective andadded-valued initiatives.
efficient PRM strategy to succeed. This approach  PRM supports improved manufacturer and partner
includes a modification of business processes basedcollaboration too. One of the most important, yet
on the needs of partners, their suppliers and theirleast well-orchestrated collaborative approaches to
customers. It includes the training of your ownpartner management is through the provision of sales
employees to enable them to understand andleads. Lead management programs can help to
embrace the principles of PRM and inevitably, itensure that properly qualified leads are delivered
includes the adoption of relevant IT systems todirectly to those partner sales people who are best
enable the organisation or company to execute itsable and best placed to close them. They ensure that
PRM strategy. To be effective, the PRM strategysuch leads are supplied rapidly, as soon as they are
and associated processes and systems need to bequalified and that manufacturer and partner can work
integrated end-to-end throughout the supply-chaincollaboratively to progress them through the sales
and the value-chain; across marketing, sales andcycle. Automation through PRM ensures that the right
service.leads get to the right people in a timely fashion and
Business Benefitsfacilitate proactive two way communication between
The benefits of PRM for the manufacturer are verymanufacturer and partner to ensure that leads are
clear. A PRM strategy implemented with robustfollowed up and closed. What is more, PRM goes on
systems, processes and procedures enables them toto facilitate deal registration programs allowing
manage upstream and downstream partnerpartners to register their own opportunities with
relationships throughout the partner lifecycle.manufacturers – minimising channel conflict,
But what are the benefits to a partner in workingensuring sales, marketing and financial support and
with a manufacturer who has a well implementedbringing a variety of benefits and rewards for the
partner relationship strategy? The first concernsregistering partner.
comprehensive and accurate data. Putting information  Collaborative marketing programs and associated
at the heart of any partner relationship managementprocesses can be greatly enhanced through PRM
strategy is critical. Placing accurate partner data withinautomation. From the sharing of campaign strategies,
a single master data repository will provide theschedules, media plans, collateral and assets to online
manufacturer with the means to formulate acontent creation tools for brochures, so called
cohesive partner program that will fully leverage the“out of the box programs”, proposals and
capabilities of their partners and help them to deliverweb assets. PRM provides manufacturers and
on their business goals. Comprehensive partnerpartners with the means to develop and execute
“intelligence” or partner “intimacy”joint integrated marketing campaigns right to the
can facilitate dramatic improvements in the quality,point of sale.
suitability, relevance and timeliness of partner  PRM should provide partners with the very highest
communications and ensures that manufacturerquality and consistency of support tailored to their
messages are properly targeted at the most relevantpersonal needs. It should be available 24x7 and
partner personnel.provide manufacturers with a dual approach to the
  Manufacturer execution in downstream partnerreality of partner relationship management; a best
selection and segmentation has long been driven bypractice strategy supported by a sophisticated
supply volumes (upstream) and raw salesautomated solution for optimising the performance of
performance (downstream) and little else. Thistheir complex partner eco-systems.
perpetuates an environment in which partners  As the global economy experiences its worst
supplying large volumes of materials or generatingrecession for 60 years and manufacturers struggle
large revenues receive the greatest investment ofwith the dichotomy of maintaining or growing their
time, effort, resources and funding whilst somebusiness whilst lowering their costs, partner
smaller partners who may in fact offer greaterperformance optimisation will inevitably become a
strategic value can often be overlooked and starvedbusiness priority. Manufacturers will try, albeit with
of the support they need to grow. PRM enableslimited budgets to secure upstream supplier
manufacturers to analyse a partner’s true valueefficiencies and cost savings together with
based upon qualitative as well as quantitativedownstream partner loyalty and increased mindshare
measures. Applying automated analytical andwith new programmes. As before, channel partners
score-carding processes, a manufacturer can assesswill view these moves cynically. The manufacturers
which partners merit strategic partner status and thewho will emerge from these difficult times with a
degree of investment and support appropriate tostronger partner network will, in our view, be those
realise their potential. These same principles can bewho reengineer their processes, systems and
applied as effectively to suppliers as to distributorsprocedures and indeed their culture based upon a
and dealers and can be useful in ongoing partnercarefully thought out and well-executed holistic
performance management and optimisation.partner relationship management strategy.
  Armed with this analysis, manufacturers can firstly