Building solid partnerships is crucial for success in today's competitive business landscape. Many organizations rely on partner relationship management (PRM) platforms to streamline and optimize their partner programs. By implementing PRM as the central hub for partner programs, businesses can generate a substantial and quantifiable return on investment (ROI). However, to truly unlock the full potential of PRM, it’s essential to view it as a profit center rather than a cost center.
How do I know this is the case? Impartner recently commissioned Forrester Consulting to conduct a Total Economic Impact™ study to examine the cost savings and benefits companies can expect with Impartner.
In this study, PRM wasn’t a cost center. It was a driver of ROI. Forrester found that a composite organization based on Impartner customers achieved a 296% return on investment over three years and up to 50% increase in partner-sourced deals. Learn more about these results here.
With these best practices, let’s dig into how you can leverage your PRM as a profit center.
1. Establish the foundation for profitability
To position PRM as a profit center, laying a solid foundation for partner programs is essential. This includes setting clear objectives, defining partner success metrics, and aligning partner strategies with overall business goals.
By clearly articulating the value proposition for partners and aligning incentives, organizations can motivate partners to drive revenue growth and actively contribute to profitability.
2. Empower partners with a unified PRM
PRM is a comprehensive platform that empowers partners, providing them with the tools, resources, and support to thrive.
By utilizing PRM as a driver for partner programs, businesses can enhance partner enablement, training, and communication. This results in improved collaboration, increased efficiency, and accelerated time-to-market for joint offerings. Furthermore, PRM enables seamless deal registration, lead management, and pipeline visibility, empowering partners to effectively identify and close revenue opportunities.
Learn more in our full guide on how to create a revenue-focused partner experience.
3. Leverage data and analytics
PRM platforms offer robust reporting and analytics capabilities that organizations can leverage to measure the impact of partner programs.
Businesses can gain valuable insights into program effectiveness by analyzing key performance indicators (KPIs), such as partner-generated revenue, deal conversion rates, and customer satisfaction. These insights enable data-driven decision-making, optimization of partner resources, identification of high-performing partners, and development of replicable behaviors to drive more engagement from all partners.
4. Embrace automation and streamline processes
A great PRM is built to drive automation and streamline partner-related processes, saving time, reducing costs, and increasing efficiency. Tasks such as partner onboarding, training, and certification can be automated, freeing up valuable resources for strategic initiatives.
Additionally, automated deal registration, lead distribution, and commission management processes ensure accuracy, fairness, and transparency, fostering stronger partner relationships and driving revenue growth.
A fundamental tenet of a great partner experience (PX) is the reduction of friction. Everyone says they want to be the easiest to do business with (a worthy goal), but most rarely are. A streamlined, automated, self-service experience is what partners are looking for.
5. Focus on continuous engagement and relationship building
PRM serves as a vital channel for ongoing partner engagement and relationship building. Organizations can actively engage partners, encourage knowledge sharing, and facilitate joint marketing and sales initiatives by fostering a collaborative ecosystem.
PRM platforms can facilitate partner-to-partner collaboration, co-selling, and co-marketing activities, resulting in expanded market reach, increased brand visibility, and accelerated revenue growth.
Let’s maximize your partners’ ROI
To drive profitability and achieve substantial ROI, organizations must recognize PRM as a profit center rather than a cost center. Businesses can empower partners, streamline processes, and foster collaboration by building out partner programs correctly and leveraging PRM as the central hub.
With the ability to measure and optimize performance using data and analytics, organizations can make informed decisions to maximize the effectiveness of their partner programs. By embracing PRM as a profit center, you can unlock the potential for long-term success, sustained revenue growth, and a thriving partner ecosystem.
If your PRM is not driving quantifiable results, connect with me, and let’s discuss what best-of-breed companies do to grow their channel through their PRM system.