If your organization has built a patched-up partner management system by adding applications (or objects) to your existing CRM infrastructure, then it’s likely you are investing enormous resources to answer basic business questions. This is where a purpose-built partner relationship management (PRM) platform can significantly improve your business performance while reducing cost. How does it work? That’s what we will explore in this article.
Until recently, most companies selling through the channel relied on automating their partner management workflow by using their existing CRM infrastructure instead of deploying partner relationship management (PRM) automation. However, when you try to manage certain program-related activities—things like marketing, lead management, incentives management, training and so on—with this kind of patched-up infrastructure, you will encounter three main problems.
Lack of data flow – When you use an object-based (i.e., application-based) approach to expand your current CRM system as a PRM platform, it makes the flow of records—and therefore business intelligence—very hard to develop. This, in fact, is the fundamental reason you are not realizing your business performance, because your infrastructure is failing to give you the right information at the right time.
Enormous maintenance costs – Every time you want to make any addition or change to a part of the platform, you have to worry about what components you will end up breaking. Also, limited IT resources prevent you from making the changes you need to keep moving forward as your channel evolves and changes are required. This can quickly make your organization’s channel infrastructure obsolete.
Poor partner experience – If you have six different applications (yes, we have seen it) patched to an existing CRM infrastructure, it is highly likely that each of these applications have their own business logic flow and therefore different user interfaces. It becomes a nightmare for a partner to learn all these different apps.
If you are reading this, nodding your head and saying, “Yes that's us, but we can never get out of this mess”—well, the reality is that you can get past the mess, provided you have courage, vision and true commitment. But how?
Courage – To truly get out of the tangled web that you have woven over the years, you first need to muster organizational courage. Yes, I know. It's not easy, but the best approach is to engage multiple executive sponsors (cross-functional) and have this conversation. Lay out examples of poor partner experience, IT costs and change-management issues, but most importantly explain how these issues are affecting the organization’s ability to make the right decisions and perform at an optimal level.
Vision – Once you have been able to muster executive support to start an evaluation process of what the end state could be, reach out to vendors like ZINFI and analyst firms to build a vision of what your PRM infrastructure should look like. Focus the discussion on key business questions you need to answer on a dynamic basis and the objectives you need to satisfy. Don’t get carried away looking at PRM features. Instead, begin by prioritizing key processes that are ripe for automation.
Commitment – This is where a fully funded plan can make your vision a reality. When you have cultivated executive sponsorship, and you have created a vision of the end state and how it can drive profitable growth and a much better partner experience, now you need to focus on how to get there step by step. Your CRM didn’t get tangled up overnight; likewise, you can’t expect to untangle it in a quarter. Have a clear four-to-six-quarter implementation plan and then go at it in a focused manner.
Once you have a migration plan to transition from your existing patched-up CRM system to a unified partner management framework using PRM, then you will need to focus on a few additional details regarding the sequ...