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Successfully Implementing a Partner Relationship Management (PRM) Solution
If indirect channels makeup a large portion of your overall sales strategy, meaning that you sell more than let’s say 30% of your goods and/or services through resellers, dealers, distributors, or retailers; then investing in a Partner Relationship Management (PRM) solution may make sense for your business. Most of us that have channel-related responsibilities know of, or have at least heard of, PRM. We know the value that these software packages are intended to provide include: reduced program administration costs, automation, greater program intelligence, tighter partner collaboration, accountability measurement, and channel investment-return calculation, just to name a few of the benefits that most PRM solutions tout.
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However, if these tools are truly realizing the intended benefits, then why are many manufacturers, vendors, and distributors abandoning their PRM systems?
The answer is simple. Many PRM systems are being abandoned because they are not being used, neglected not by you the vendor, but by your partners. After all, if the partners aren’t using the system, what’s the point? The common mistake that most PRM solutions make is to focus 100% on providing the vendor with all the capabilities an organization could possibly want. This commonly results in a cluttered Graphical User Interface (GUI) with features and functions that may seem impressive in a product demo during the tool selection process, but are less impressive to your partners when they finally gain access to them and find the system too difficult or time consuming to use. And herein lies the problem.
Rich features and functions are the heart of any software solution, no doubt. But how these capabilities are presented to the user, how the user is expected to interact with the system, and the value the system provides the users are most important in a PRM solution. Why is this so important? The majority of the users of the system exist outside of your enterprise. This means that you will have less control of tool usage compliance. Certainly any PRM solution that you may consider should have some level of compliance measurement built-in, but this will not completely solve your partner “technology adoption” issue if the following haven’t been considered.
Vendor Positioning and Rollout Strategy
Partners’ use of the PRM solution will initially rely on how effectively they are introduced to the technology. This means that the vendor strategy for implementation is critical. Here are common mistakes that are made in the rollout phase:
• Focusing on “partner control” features instead of partner value-add
• Not implementing the solution as a part of your business process
• Overlooking the effort required for complete buy-in within your own organization to support the solution
• Rushing to rollout too many functions or programs without proper “phasing”. Implement more than (2) new partner programs at once often lead to disasters.
• Lack of enforcement by other members of the Channel Team
• Lack of appropriate upfront tool training
• Lack of ongoing support
• Not designating a “tool administrator” or partner “go-to” person for tool questions
Choosing the Right PRM Solution for You AND Your Partners
The ultimate users of your PRM solution are the partners. So why is it that most PRM solution are chosen solely based on the capabilities that are provided to the vendor? Beyond satisfying your requirements as a vendor, the tool should also satisfy your partners’ requirements as well. The best way to achieve compliance with your partner community is to select a solution that provides the partners with value. Tool capabilities should add value to the partner’s business and better enable them to sell your goods and services, not just monitor their success selling your goods and services. The following are typical “partner requirements” and questions to consider when choosing a solution.
• Ease of use
־ Will partners need to be trained? By who? How?
־ How intuitive is the solution to use? What is the learning curve?
־ Can partners access the solution easily, 24x7, and from anywhere?
־ Is the partner required to search for new data at random or does the solution “push” or notify partners of new data?
־ How much of the partners’ time is required to manage the solution?
־ Does the system employ an “easy-on, easy-off” philosophy
־ Can the partner manage data locally?
• Value add to the partner
־ How is the solution helping my business partners grow their business?
־ Does the solution give partners greater access to my program information?
־ Does the solution give the partner a competitive advantage?
־ Does the solution improve current business processes for the partner?
• Integration
־ Is the solution “intrusive” and force the partner to displace other technologies that they are using?
־ How well does this solution work with other solutions that partners may already have in place?
• Flexibility
־ Can I implement the solution in phases or by partner program or do I have to roll out a broad solution with multiple partner programs at once?
־ Can I just implement (and pay for) only the functions I feel that I really need?
־ Can I complete implementing a new program in about 3 months (if it takes a year, watch out!)?
Hopefully, what you have taken away from this article it that it’s equally important to consider your partner requirements when choosing a PRM as it is to make sure that your requirements are met. The strategy of implementing PRM solutions for the sole purpose of partner control has failed. Focusing on solutions that improve the vendor-partner relationship and add revenue to the vendors and partners’ bottom lines are the solutions that are succeeding. Should you embark on the journey of selecting a PRM solution, don’t be impressed just by the customer list from past purchases. Be impressed by the number of clients that they are able to add value to and retain as clients for more than one year.
The answer is simple. Many PRM systems are being abandoned because they are not being used, neglected not by you the vendor, but by your partners. After all, if the partners aren’t using the system, what’s the point? The common mistake that most PRM solutions make is to focus 100% on providing the vendor with all the capabilities an organization could possibly want. This commonly results in a cluttered Graphical User Interface (GUI) with features and functions that may seem impressive in a product demo during the tool selection process, but are less impressive to your partners when they finally gain access to them and find the system too difficult or time consuming to use. And herein lies the problem.
Rich features and functions are the heart of any software solution, no doubt. But how these capabilities are presented to the user, how the user is expected to interact with the system, and the value the system provides the users are most important in a PRM solution. Why is this so important? The majority of the users of the system exist outside of your enterprise. This means that you will have less control of tool usage compliance. Certainly any PRM solution that you may consider should have some level of compliance measurement built-in, but this will not completely solve your partner “technology adoption” issue if the following haven’t been considered.
Vendor Positioning and Rollout Strategy
Partners’ use of the PRM solution will initially rely on how effectively they are introduced to the technology. This means that the vendor strategy for implementation is critical. Here are common mistakes that are made in the rollout phase:
• Focusing on “partner control” features instead of partner value-add
• Not implementing the solution as a part of your business process
• Overlooking the effort required for complete buy-in within your own organization to support the solution
• Rushing to rollout too many functions or programs without proper “phasing”. Implement more than (2) new partner programs at once often lead to disasters.
• Lack of enforcement by other members of the Channel Team
• Lack of appropriate upfront tool training
• Lack of ongoing support
• Not designating a “tool administrator” or partner “go-to” person for tool questions
Choosing the Right PRM Solution for You AND Your Partners
The ultimate users of your PRM solution are the partners. So why is it that most PRM solution are chosen solely based on the capabilities that are provided to the vendor? Beyond satisfying your requirements as a vendor, the tool should also satisfy your partners’ requirements as well. The best way to achieve compliance with your partner community is to select a solution that provides the partners with value. Tool capabilities should add value to the partner’s business and better enable them to sell your goods and services, not just monitor their success selling your goods and services. The following are typical “partner requirements” and questions to consider when choosing a solution.
• Ease of use
־ Will partners need to be trained? By who? How?
־ How intuitive is the solution to use? What is the learning curve?
־ Can partners access the solution easily, 24x7, and from anywhere?
־ Is the partner required to search for new data at random or does the solution “push” or notify partners of new data?
־ How much of the partners’ time is required to manage the solution?
־ Does the system employ an “easy-on, easy-off” philosophy
־ Can the partner manage data locally?
• Value add to the partner
־ How is the solution helping my business partners grow their business?
־ Does the solution give partners greater access to my program information?
־ Does the solution give the partner a competitive advantage?
־ Does the solution improve current business processes for the partner?
• Integration
־ Is the solution “intrusive” and force the partner to displace other technologies that they are using?
־ How well does this solution work with other solutions that partners may already have in place?
• Flexibility
־ Can I implement the solution in phases or by partner program or do I have to roll out a broad solution with multiple partner programs at once?
־ Can I just implement (and pay for) only the functions I feel that I really need?
־ Can I complete implementing a new program in about 3 months (if it takes a year, watch out!)?
Hopefully, what you have taken away from this article it that it’s equally important to consider your partner requirements when choosing a PRM as it is to make sure that your requirements are met. The strategy of implementing PRM solutions for the sole purpose of partner control has failed. Focusing on solutions that improve the vendor-partner relationship and add revenue to the vendors and partners’ bottom lines are the solutions that are succeeding. Should you embark on the journey of selecting a PRM solution, don’t be impressed just by the customer list from past purchases. Be impressed by the number of clients that they are able to add value to and retain as clients for more than one year.
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