Why Invest in Partnerships?

Partner programs can be a powerful tool for businesses to grow globally or enter different customer segments and verticals. Through ongoing collaboration, companies can tap into new markets, shorten lead sales cycles and effectively co-sell with partners. Partner-sourced deals often close more quickly than direct sales deals, as partners have established relationships and credibility with potential customers. Additionally, partner-supported customers tend to be more satisfied, as partners can provide specialised (and often localised) support and expertise.

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What’s more, partner referrals are an extremely powerful lead generation strategy, as they come from trusted sources. By leveraging their networks, partners can introduce companies to qualified leads who are more likely to convert. But, keep in mind that partnerships are not for everyone - the success of a partner program is contingent upon a product or service that has successfully navigated the product-market fit stage. 

Here are the statistics:

• Companies with strong partner programs can expand their market reach by 30-50%
• Partner-sourced deals close 20-30% faster than direct sales deals
• Partner-supported customers are 15-25% more likely to stay
• Partner referrals can generate 20-30% more qualified leads than traditional channels
• Partner programs can deliver a 20-30% increase in annual revenue

      Source: journeybee.io

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CRM vs PRM: Understanding the Difference

While CRM systems have been effective for managing customer and partner relationships in the past, they lack the necessary capabilities to support the scale and complexity of modern partner ecosystems. A dedicated Partner Relationship Management (PRM) platform offers a more tailored solution, which ticks all the boxes when it comes to managing partners.

Let’s look at the core of each software: 

• CRM (Customer Relationship Management): Primarily focused on managing interactions with customers, CRM systems often lack the specific functionalities required to effectively manage complex partner relationships.

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“The core function of a CRM is to log first party data to manage customer relationships. "It is not purpose-built for navigating non-owned data channels. Although it can ingest some of this data the core function is focused on customer data, not partner data.”   - Will Taylor at BDPaths.com

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• PRM (Partner Relationship Management): Specifically designed to optimise partner relationships, PRM platforms offer features such as deal registration, co-marketing, and partner portals.

While CRM systems offer valuable tools for managing customer relationships, they often fall short when it comes to the complexities of partner management. 

Key limitations include:

• Lack of partner-specific features like deal registration, co-marketing, and partner portals.
• Limited visibility into partner performance, making it difficult to track key metrics and identify opportunities.
• Manual data entry and a lack of automation can result in process errors, often impacting productivity (time is money!)
• Poor Partner Experience: A lack of a dedicated partner portal can result in a subpar experience for partners, impeding cooperation by not supporting them with the right resources.

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“Although CRMs are customisable, not only do RevOps teams lack the competency to match the needs of partnerships teams, but the CRMs do not have the support or success knowledge base and/or competency either to support the use or the flexibility of CRM.” Will Taylor at BDPaths.com.

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While extending a CRM to accommodate partner management might seem like a cost-effective solution at the start, it can lead to significant hidden costs. For example, customising HubSpot or Salesforce to include partner-specific features can require significant development effort and ongoing maintenance. Expanding your partner program by adding more user seats onto your CRM can also significantly increase the overall costs. Additionally, hosting a separate domain for a partner portal can incur additional costs, such as domain registration and hosting fees. 

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A dedicated PRM platform, on the other hand, often includes these features (and more) as part of the core offering, eliminating the need for additional investments. Lastly, by providing a dedicated workspace, PRM platforms allow partner teams to focus on their core activities without the limitations of traditional CRM systems.

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“The time it takes to build anything close to what a PRM can achieve for managing the finances of a partner program far outweighs both simply doing it manually and investing in a PRM.” - Will Taylor at BDPaths.com

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Why a Dedicated PRM Platform?

While CRM systems can be used to manage basic partner information and interactions, a dedicated PRM platform offers several advantages:

• A PRM platform provides a single source of truth for all partner data, eliminating data silos and ensuring consistency.
• Boosting collaboration between internal teams and external partners by providing specifically designed tool sets, such as collaboration cards or messaging Apps.
• PRM platforms offer a personalised partner portal, providing partners with easy access to resources, tools, and support.
• PRM platforms enable B2B companies to gather valuable insights into partner performance, identify opportunities, with the end goal of optimising their partner programs.
• As companies grow and evolve, a PRM platform can adapt to changing needs and scale to accommodate a growing partner ecosystem (whether that’s through automations or AI).

If you're serious about your partner program and want to reap the full benefits of indirect channels, a PRM platform is an essential tool. It provides partner managers with a suite of tools designed to streamline lead exchange, collaboration, messaging, data collection, and payout processes.

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When to Consider a PRM Platform

If your GTM model relies heavily on partnerships and faces the following challenges, a PRM platform may be the right solution:

• Managing multiple partner tiers, channels, and geographies.
• Focusing on bidirectional relationships between partners 
• Collaborating with partners on joint marketing initiatives and managing channel sales 
• Providing partners with training, certifications, and marketing materials.
• Measuring and analysing partner performance metrics.

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The Future of Partner Management

A purpose-built PRM platform is specifically tailored to address the unique challenges of partner relationships. PRM platforms provide a centralised hub for handling the diverse needs of various partner types, such as resellers, distributors, and technology partners. By consolidating partner information, tracking performance metrics, and automating workflows, PRM platforms can significantly improve productivity by shortening lead sales cycles and enabling you to close more deals - faster.

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To address the above mentioned limitations, companies can leverage the power of AI and automations within a PRM platform. AI-powered analytics can provide valuable insights into partner performance, identify trends, and predict future behavior. Automation can streamline workflows, such as deal registration and partner onboarding, saving time and reducing errors. In saying that, AI and automations can be easily integrated into your PRM to further enhance efficiency and reduce partner program costs. Experience the power of a purpose-built PRM platform and get in touch with the team at Journeybee to help you find the right solution for your partner ecosystem.

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About the Interviewee:

Will Taylor, is a seasoned go-to-market expert with a proven track record of success, including securing multi-million dollar partnerships and boosting partner engagement. Will now helps clients connect partner programs into RevOps for more predictability, scalability, and overall profitability. Follow Will Taylor on LinkedIn for more partner-related content and perspectives.

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FAQ: CRM vs. PRM

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1. What is CRM?

A: CRM stands for Customer Relationship Management. It's a strategy for managing all your company's relationships and interactions with customers and potential customers. The goal is to improve business relationships.  

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2. What is PRM?

A: PRM stands for Partner Relationship Management. It's a strategy for managing all your company's relationships and interactions with partners. The goal is to improve business relationships with partners, such as distributors, resellers, and agents.

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3. What are the Key Differences Between CRM and PRM?

A: While both CRM and PRM are focused on managing relationships, they have distinct differences:

• Focus: CRM is focused on end-customers, while PRM is focused on partners.
• Goals: CRM aims to increase customer satisfaction and loyalty, while PRM aims to increase partner engagement and sales.
• Metrics: CRM metrics might include customer satisfaction, retention rates, and net promoter score. PRM metrics might include partner sales, leads, activity, and many more.

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4. Why Do Companies Need Both CRM and PRM?

A: Many companies have both direct customers and indirect customers (who buy through partners). In such cases, a robust CRM system can help manage direct customer relationships, while a PRM system can help manage partner relationships. A well-integrated CRM and PRM system can provide a holistic view of the customer journey, from initial contact to post-sale support. This can lead to improved customer satisfaction, increased sales, and stronger partner relationships.

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5. How Can Companies Choose the Right CRM and PRM Solutions?

When selecting CRM and PRM solutions, consider the following factors:

• Scalability: Ensure the solution can grow with your business.
• Integration Capabilities: The solution should integrate seamlessly with other systems, like your ERP or marketing automation tools.
• User-Friendliness: The solution should be easy to use for both your team and your partners.
• Security: The solution should have robust security measures to protect sensitive customer and partner data.
• Cost: Consider the initial cost, ongoing maintenance costs, and potential ROI.

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