Build Revenue and ROI with Partner Relationship Management (PRM) and Channel Marketing
Companies want to create synergies by leveraging their network effect – the more people selling your product, the better it sells. Companies also want to maximize the value of their partner programs by getting all network members working toward the same goals in a coordinated manner.
Partner Relationship Management (PRM) and channel programs are generally easier to set up than direct sales. The benefits for partners include higher revenue, greater control over sales, less financial risk, and higher margins. Your customers also benefit from: more products to choose from, ease of shopping, the convenience of delivery, and assistance with support and services.
However, without proper implementation, these programs can leave companies with a negative return on their investments.
What Makes for a Successful PRM Program?
According to McKinsey, almost 70 percent of semiconductor companies categorized as "high growth" had implemented partner relationship management programs. The top three benefits of implementing PRMs cited by survey respondents were: Increase in new customers, Increase in revenue Increase in market share.
The key to success is developing mutually beneficial agreements with partners that encourage them to buy your product or service, incentivize them to sell it, fix bugs, and deliver enhancements – all within a framework that helps you control costs and maintain governance.
Figure out the ROI Potential of your (PRM) and channel marketing program
Why is it so essential to understand the ROI possibilities of a PRM and channel marketing program? Because this knowledge helps you make informed decisions about how best to spend your budget, allows you to communicate more effectively with leadership, and gives you a framework for managing and evaluating PRM and channel marketing initiatives.
Determine if these programs are:
- Strategic for your business
- Consistent with your company's objectives and goals
- A part of a larger channel marketing strategy
The answer to all three of these questions must be yes before you can move on to optimize ROI results.
Building PRM and channel marketing programs
The process of building a Partner Relationship Management entails identifying and developing mutually beneficial business partnerships that aid in the promotion, distribution, support, and sale of products or services. Creating a channel marketing program takes identifying and working with intermediaries called distributors or resellers for your product.
Siloed PRM and Channel Marketing strategies focus on short-term gains, which may be costly in the long run if the customers are not retained. But by integrating Partner Relationship Management (PRM) with channel marketing strategies, companies can meet their customer's needs while reducing their costs and the time it takes to hit revenue targets.
PRM and channel marketing can help you develop new revenue streams, reduce churn, increase profitability, and improve customer satisfaction when done right.
How to Achieve High Revenue Success with PRM and Channel Marketing
1. Choose the right partners
Before working with any suppliers, you need to evaluate their potential as channel partners. Please consider their market presence and your ability to scale up their offerings. Consider whether they already have existing relationships with clients similar to yours or can help you reach new customers. Your goal should be to find complementary suppliers who will be able to leverage each other's strengths to drive.
There are three keys to selecting good partners:
- Good fit for your business goals and strategies
- A track record of going above and beyond for customers
- The ability to work within your own organization's processes and procedures
2. Cultivate strong channel relations
Every business relationship requires nurturing, especially when it comes to working with channel partners. The partner may be a distributor, reseller, or affiliate marketer who helps a business reach new customers and increase sales.
A strong relationship can lead to a mutually beneficial partnership that increases revenue and strengthens brand recognition. To cultivate this relationship, businesses must make it easy for partners to do business with them by providing the necessary tools and support, and training on how to effectively communicate about the company's products.
3. Provide Knowledge
The most successful channel partner relationships involve more than just sending marketing materials. For example, have you ever had a distributor call you to ask for advice on how to sell your product? Or maybe they've called you looking for an answer to one of their customers' questions? If so, this is an excellent opportunity for you to demonstrate how knowledgeable you are about the product.
One of the most common mistakes businesses make is outsourcing their sales and distributions to channel partners who lack the expertise or capability to deliver the right solutions to customers at the right place at the right time. A single mistake can cost a company its competitive edge and its very existence in some cases.
4. Improve communication and synchronicity between partners
Once you are in a relationship, you want to be on the same page as your partner. You want to communicate with them effectively and without unnecessary arguments, and you also want your processes to be in sync with theirs.
In addition to supplying quality products and services, companies also must help and ensure that their partners do what they're supposed to do when they're supposed to do it — including timely payment for goods or services received. If you can achieve these things, then it will mean that your relationship is on the right path.
5. Invest in relevant technology
Your partners need valuable real-time data and insights. With the right Partner Relationship Management (PRM) technology, you can easily keep in contact with your partners and manage all aspects of your partnership from one place.
You get a central location to store partner information, manage projects, share documents and track communications. You can even set up automated reminders for annual contract renewals or upcoming project milestones. PRM saves you time and prevents conflict between partners by keeping everyone on the same page.
This has been an exploratory article to help you understand the critical points of a partnered approach to revenue generation with your PRM and channel marketing.
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