The Downfall of the PRM Dinosaur

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Traditional PRM platforms were built for one-size-fits-all channel programs. Most PRMs out there offer quite basic functionalities, such as:

Content libraries

Static repositories of marketing materials, often outdated and irrelevant to specific partner needs.

Lead management

A one-way street where leads were tossed over the fence to partners, fostering a transactional rather than collaborative approach.

Basic reporting

Limited insights that didn't paint a holistic picture of partner performance, as the whole rule engine was built one-sided.

Payments

Often offered as an additional tool on top of the PRM with another level of complexity. These payment processors relied on legacy systems that haven't been updated for user-friendliness. With clunky, outdated interfaces and lack of usability principles, partner payments have been overburring for partners and finance departments.

In essence, this ‘one-sided’ software creates a system where partners feel like they're just fulfilling orders, not building meaningful robust relationships. 

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These limitations lead to several issues:

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#1 Poor Partner Experience (PX)

PRMs became glorified password-protected brochureware, failing to engage partners or incentivise them to actively promote your solutions. These partner programs run through legacy PRMs often treat partners as recipients of information, not collaborators. Static content libraries and limited interaction create a sense of detachment. Partners feel like cogs in a machine, not valued members of an ecosystem.

Do you remember the times of outdated CRMs and their impact on sales teams? 

The same applies to partners. A frustrating PRM filled with limited functionalities, and a lack of engagement features demotivates partners. This translates into less effort put into promoting your solutions, leading to fewer sales.

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#2 Fragmented Data

One of the most critical downsides of one-sided PRM software is its limited data integration. This creates a situation where you, as the vendor, lack a clear view of your partner ecosystem, ultimately hindering your ability to understand partner performance. What’s more, partner information often resides in silos, making it difficult to gain a clear view of the entire ecosystem.

Imagine flying an aeroplane blindfolded, that's what managing partners feels like without proper data integration. A legacy PRM can’t capture metrics like:

• Lead conversion rates - are partners effectively closing leads you provide?
• Sales cycle length - how quickly are partners converting leads into sales?
• Deal size and profitability - what kind of revenue are partners generating for you?
• Marketing campaign engagement - are partners actively participating in your co-marketing efforts?

This lack of insight makes it difficult to optimise your partner strategy and maximise sales opportunities. Identifying top performers, partners who need support, or other areas for improvement is crucial in building strong partnerships.

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#3 Limited Scalability

Traditional PRMs struggled to adapt to growing and diversifying partner networks. Onboarding new partners, adding new partner types, or integrating complex co-selling motions becomes a cumbersome manual process, hindering your ability to expand your network and reach. For instance, a program built for resellers might not be suitable for complex co-selling motions with system integrators (SI).

Another issue with scalability is how PRMs are built, often closed out-of-the-box solutions where integrations just bring headaches. Connecting legacy PRMs with other business systems like CRM or marketing automation platforms can be a nightmare. This lack of integration creates data silos preventing you from a holistic view of your ecosystem. 

Keep in mind that while you can run things as they are (you can manage these systems simultaneously), the inability to scale efficiently translates to missed opportunities. 

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#4 Lack of Strategic Alignment

Traditional PRMs suffer from a critical case of short-sightedness by focusing on transactions instead of long-term relationships. They focus on the immediate gratification of transactions – pushing out leads and counting closed deals. This leads to partnerships becoming purely about immediate sales figures, not building a foundation for long-term success.

What happens when you lack strategic alignment? Partners might rush to close deals without properly onboarding customers or ensuring a good fit. 

A transactional PRM doesn't provide the tools or resources partners need to develop their skills and expertise in selling your solutions. Partners are left on their own to navigate complex product features and differentiators. A transactional approach stifles creativity and collaboration. Partners become focused on fulfilling sales quotas rather than brainstorming new ways to improve your solutions or develop innovative go-to-market strategies together. 

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#5 Disengagement and Inactivity

Imagine a classroom where the teacher simply lectures and throws tests at students, expecting them to learn passively. That's the essence of the problem with one-way communication and a lack of engagement tools in traditional PRMs. Partners become passive participants, simply downloading brochures and waiting for leads to be tossed their way. This lack of engagement ultimately hinders their motivation to actively promote your solutions.

One-way communication means partners rely solely on the information you provide, often through static content libraries. This can lead to outdated product knowledge, inaccurate selling points, and an inability to address customer questions effectively. Without access to ongoing training or interactive resources, partners struggle to stay up-to-date and confident in promoting your solutions.
One-way communication hinders the exchange of collaborative efforts. Partners can't easily share best practices, co-create content, or brainstorm targeted marketing campaigns with your team. This missed opportunity for collaboration limits their ability to develop a deeper understanding of your solutions and tailor their sales approach for maximum impact.

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The Rise of the Partner Collaboration

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The demise of PRM isn't about abandoning partner management; it's about embracing a more holistic approach, where two-way communication is enabled. The new era of PCPs, where your partner program is built around flexible solutions, which can be seamlessly integrated with your tech stack. 

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1. Everyone Gets Involved

Imagine a rock band, a successful band doesn't just have talented musicians; they need to play in sync. Similarly, in a partner ecosystem, all teams need to be aligned on the value proposition, messaging, and overall strategy. Disparate approaches from different teams can confuse partners and ultimately customers. 

PCPs put your partner, sales and marketing teams at the heart of your partnerships:

• Partner Teams - are equipped with the knowledge and resources (e.g., sales collateral, training materials) to accurately represent your brand and solutions.

• Sales Teams - work collaboratively with partners to identify sales opportunities, co-create proposals, and ensure a seamless customer experience.

• Marketing Teams - develop targeted campaigns that resonate with both your direct audience and the partner network, ensuring consistent messaging across all channels.

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2. Data-Driven Ecosystem Optimisation

Engaging all teams allows for a unified view of partner activity across the entire sales and marketing funnel. This data can be used to identify areas for improvement, incentivise desired behaviours, and optimise partner programs for maximum impact.

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3. Two-Way Collaboration Breaks Down Silos

Partners actively participate in shaping marketing campaigns, co-creating content, and sharing best practices. This synergy unlocks a wealth of combined expertise, leading to more effective strategies and ultimately, more sales. Partners feel valued as strategic allies, leading to increased engagement and a higher level of commitment to your success. This trust is the bedrock of long-term partnerships that drive sustainable growth.

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