Partner Relationship Management for Enhanced Extended Enterprise Team Selling
Resellers feel flooded with information and can't easily separate the critical data from the inessential. Vendors have no way of knowing which of their promotions produce the best leads or how well resellers are following up on the leads vendors give them. Resellers who work with multiple vendors often lack sufficient access to up-to-date product information and in turn, fail to pass information about their success in converting leads to sales back to the vendors.
Partner Relationship Management (PRM) solves these communication difficulties. By using extranets password protected Web sites — to distribute and manage personalized information, PRM streamlines vendor/reseller communication in ways that improve teamwork and efficiency.
PRM makes current information available to resellers when needed, along with sales productivity tools such as competitive differentiation, sales scripts and quote generators. The same application enables vendors to build large-scale lead management systems capable of handling referrals of up to hundreds of thousands of leads to partners. The system tracks each lead from assignment through sale, ending the mysteries that plague inefficient channel relationships. The improved data flow with PRM results in increased revenues for both vendor and reseller.
Industry Trends in the Indirect Channel
Sales are Increasing in the Indirect Channel
In the high tech marketplace, over 50% of sales go through the indirect channel.
According to International Data Corporation (IDC) estimates, indirect sales
channels accounted for sales of $114.6 billion in 1997, almost 60% of the $195.6
billion national information technology market. Current research suggests that
these numbers will increase in the coming years.
Why Vendors Turn
to Indirect Channels
Why are indirect channels being used? Shortened product lifecycles leave vendors
less time to get products to market. The sooner a product enters the market
relative to its introduction, the more potential revenue the vendor will see
over the lifecycle of the product. To reduce their time to market, vendors rely
on their channels to provide instant access and distribution to customers. In
addition, the cost of supporting a direct sales force is an order of magnitude
larger than working with an indirect sales force. When vendors can depend on
their reseller partners, the cost per sale is minimized.
Challenges to Selling
with Partners
Increasing reseller specialization makes it difficult for vendors to target
the most appropriate resellers and achieve sufficient coverage across diverse
markets. One solution that vendors have applied to this problem is to maintain
and use clean profile databases. Cleansing and licensing partner profile information
for individuals at reseller organizations often costs vendors upwards of $150,000
a year. Vendors use the profiles to communicate with partners via fax, telephone,
e-mail, and mail. Each of these communication methods is costly, time consuming
and inefficient with the results often perceived as simply adding to the noise
regarding new products and programs that resellers are already trying to filter
through.
While the vendors struggle with channel program costs and competitive pressures, resellers focus on their own business issues and concerns. They work to keep up with training while product lifecycles shorten and technical skill requirements increase. Heightened vendor competition and bargain-priced online sales have pushed down revenue margins for the channel partners. Channel conflict is increasing, making it difficult for any individual reseller to succeed. Resellers who partner with several vendors receive so many faxes, e-mails, mailings, and phone calls that they find it impossible to sort out the important information from the trivial and the hot leads from the dead ones. Resellers need help from their vendor partners to increase their chances of success. To succeed in partnering with resellers, vendors need to make it easy to do business with them.
When vendors work collaboratively with their resellers, they benefit from the resulting loyalty. Channels are loyal to their top vendors: studies suggest 60-80% of channel revenues come from sales of the favored product in any category. Vendors require fast, effective partner communication to prevent the reduced revenues that accompany "second best" status. A tight partnership with targeted reseller partners will lead to additional revenue while setting up a considerable barrier to entry for competing vendors. Despite the benefits of effective teamwork, many vendors do not focus their channel programs on resellers' needs (see Figure 2.0). Vendors need to realize that they are competing on ease of business and communication as well as the virtues of their product. VARBusiness Magazine, which conducts annual surveys of various reseller organizations, reports vendors who ranked high in communication with partners also ranked high in product quality. Not surprisingly, resellers prefer to sell the products of companies that make it easy for resellers to work with them. To maintain and increase market share, vendors need strategies for increasing reseller loyalty.
Unfortunately, vendors have few resources available for improving communications with resellers. Keeping profiles up-to-date is costly and time-consuming. Neither vendors nor resellers can afford the time, cost, and lost revenues involved in depending on conferences or training sessions. Although internal resources, such as Customer Relationship Management (CRM) or Sales Force Automation (SFA) tools, offer many sales and marketing tools for the direct sales force, the indirect sales force lacks easy access to such systems. Vendors make do with spotty profile databases, blanketing resellers with fax blasts and mailings and hoping that resellers will find the right information.
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To maintain profit growth, sales and marketing executives face the challenge of growing sales with fewer investment resources.
Vendors face mounting costs for printing and mailing product and pricing information out to resellers. These items take weeks or months to generate and ship, and quickly become out-of-date. Updated pricing information arrives weekly, assaulting resellers with piles of inconsistent price lists and no way to organize them. This overload of program updates and company marketing, leaves resellers unprepared for sales calls and uninformed about the latest product innovations or marketing opportunities.
A Process in Need
of Fixing
The prevailing disorganization and inefficiency begins when a new reseller signs
up to work with a vendor. With few software products available to automate reseller
recruitment, vendors resort to paper forms and ad-hoc methods. Paperwork is
duplicated in sales and marketing, while resellers wait much too long for needed
sales tools to arrive. Once the sign-up process is completed, resellers still
need considerable training to get up-to-speed on the vendor products. Vendors
usually offer face-to-face training meetings or large reseller conferences,
forcing resellers to incur both travel and attendance costs and lost revenues
from time spent not selling.
To assist resellers, roughly 78% of vendors currently provide leads to their channel partners, according to VARBusiness Magazine. Vendors spend considerable marketing dollars generating qualified leads and passing them to resellers, only to never hear of those leads again. With the ad-hoc distribution methods to which most channel managers must resort, including fax, voice mail, and e-mail, it is doubtful whether many leads are even noticed, much less followed up. When they are followed up, the vendor still has little way of knowing which programs generated the best leads.
In-depth, accurate reseller profiles enable the vendor to target products and leads to the most applicable partner and to reach them quickly. High-performing resellers should get additional support and high value leads while low-performing resellers should be removed from the program. Ironically, many channel managers follow a reverse 80-20 rule and spend the bulk of their time working with their least productive partners. Maintaining records on thousands of resellers is not an easy task, requiring tedious, time-consuming administrative work. But according to the VARBusiness report, vendors with the oldest profile databases scored the lowest in reseller communication. Without a clean partner profile database, vendor/reseller relations break down.
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The limited number of high quality resellers can present a bottleneck in the process of getting new products to market. To gain access to end users, vendors must increase reseller mindshare by making it easier for resellers to work with them.
Clearly, the indirect channel represents a major source of revenues for vendors. Vendors need to secure reseller loyalty to best utilize the indirect channel and realize maximum revenues. Current methods of communication are costly, time-consuming, and largely ineffective. A better solution would streamline and automate business processes for the channel, supporting the goals of both vendor and reseller employees. A system using the latest Internet technology could centralize information management, decreasing time spent on administrative tasks while empowering resellers to work more efficiently. Partner Relationship Management (PRM) is that new solution.
A New Solution — Partner Relationship
Management
Partner Relationship Management (PRM) uses the Internet, both the World Wide
Web and e-mail, to provide integrated solutions to the challenges of vendor/partner
communication. An effective PRM system organizes leads, profiles, and documents
in a central repository that can be updated and viewed in real time over the
Internet.
PRM systems, like extranet systems, require a username and password for system access. Once logged in, the user is able to view information according to their specific characteristics each user sees only information appropriate for their permission level and interests. Information is targeted for the users, but secure from outside penetration. PRM systems provide resellers with instant, on-demand access to information and tools. Since resellers have self-service processes for answering their questions and doing their everyday work, the need for costly face-to-face meetings and direct mailings falls dramatically. A good PRM system allows companies to track usage and activity, giving vendors tighter control over communication. PRM systems engineer and standardize best practices for vendors and resellers alike.
PRM software complements existing Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) software. ERP and CRM systems offer far greater functionality than resellers need, and are used to control sensitive data. These systems operate behind the firewall, as shown in Figure 3.0, and cannot be extended as-is to the resellers, who operate outside the firewall. Likewise, Sales Force Automation (SFA) systems, even with Web extensions, fail to meet the needs of the channel business model as they mistakenly assume that sales representatives are loyal to the products that the SFA system supports. CRM and ERP tools require significant customization to address profile management and reporting questions because they define a channel partner as a type of customer, not an active sales representative. For all of these reasons, PRM systems represent an elegant, cost-effective solution while complementing vendors' existing CRM and ERP systems. They include extensions of both systems while keeping sensitive data secure behind the firewall and providing a unified interface and centralized reporting to the resellers.
Reviewing the way PRM systems support relationships between resellers and vendors highlights the differences between PRM solutions and CRM and ERP systems. PRM's advantages fall into three broad categories Channel Program Management, Lead Management, and Sales Productivity Tools. Channel Program Management covers creation of the program, recruiting of partners into the program, and tracking the progress of partners in the program. Lead Management includes the process of assigning opportunities to partners and closing the loop on the results of each opportunity. Sales Productivity Tools help partners to increase their closure rates on opportunities on which they are working. The following sections discuss each area of functionality and present relevant features and benefits, for both vendor and reseller.
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PRM systems use the Web to extend information normally stored in CRM and ERP applications to business partners. By integrating multiple tools into a single system outside of the firewall, the partners are able to use a single interface to perform all of their business transactions.
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New partners are recruited into channel programs through multiple qualification stages. Once a new partner is recruited, they enter into the partner lifecycle. Each cycle begins with a partnership program and plan followed by activities where revenue is generated from opportunities.
Channel Program Management
Engineering the Partner Lifecycle
A productive vendor/reseller partnership begins with efficient reseller recruitment
and quick response to new reseller inquiries. PRM offers tools that standardize
and simplify this procedure in a cost-effective manner. As shown in Figure 4.0,
PRM includes a recruitment pipeline that enables vendors to narrow down the
universe of possible resellers to those most appropriate and then move only
those best prospects through the partnering cycle. That cycle involves training,
tracking, and periodic review for reseller renewal, upgrade, or termination.
Efficient channel program management ensures maximization of return on investment
in resellers.
An automatic sign-up procedure simplifies the resellers' introduction to channel programs. The PRM system allows limited "unauthorized" access for resellers who fill out an online qualifying form. These resellers can view details of available programs and experiment with some of the PRM tools on a trial basis. Interested resellers then apply online for program inclusion. Channel managers instantly receive these applications for review. The PRM system tracks the partner applications as they move through the pipeline, collecting additional qualification detail and assessing reseller ability. Upon approval, resellers receive e-mail notification of their username and password and can log in to the extranet to begin training. The system sets up a plan for each reseller, keeping the team on schedule and specifying next steps. This streamlined process reduces the administrative overhead usually involved in getting new resellers up-to-speed quickly.
Automating and standardizing program management throughout the indirect channel organization saves time while clarifying processes for resellers and managers. PRM systems provide a Web interface for setting up channel initiatives and planning channel programs based on popular channel planning methodologies such as CHAMP® (Channel and Alliance Management Process) by OnTarget or other custom methodologies. Managers use workflow tools to simplify record keeping, schedule joint tasks for the channel team, and specify individual objectives. The PRM system tracks progress towards end goals and maps out next steps. The centralized store of information allows the vendor to easily analyze the effectiveness of current programs, pinpointing bottlenecks and gaps in the process.
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The partner profile database is the heart of a PRM system. A clean database with a structure that simplifies tasks is the only way to automate business processes involving channel partners.
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To effectively report upon a national partner with multiple offices, PRM allows the reseller sales organization to be modeled in the partner profile database as a company, not just as individual users.
Channel Program Management also addresses the challenges of channel marketing. Resellers can log in to check the status and requirements for co-op and MDF (Marketing Development Fund) dollars within their program, and apply for funding online. The system pushes relevant news to partners in the program, including new program announcements, company press releases, or upcoming events. Instead of blanketing the general user base with every piece of news, channel marketing managers use the PRM partner profiles to target only the appropriate users. For example, channel marketing can now distribute program updates only to resellers of a certain level, or notify resellers who specialize in product "A" the benefits of adding product "B" to their line. Information is personalized for each reseller, reducing information overload and ensuring that truly relevant news receives proper attention.
Profile Management
At the heart of a PRM system is the profile database (see Figure 5.0). Accurate
reseller profiles control lead assignment, since profiles contain specialization,
training, and location details. This information is also used to filter distribution
of news and product updates. Access levels, such as Gold or Platinum, also allow
for customized presentation of important information. Profile management enables
secure user login and password protection of the entire extranet. Resellers
update their own profile online and are motivated to do so, since the profile
affects lead assignment. This dramatically improves the accuracy of reseller
profiles while easing administrative burdens and costs for the vendor. Members
of the vendor sales team can also update profiles and add private notes about
the resellers. The database facilitates tracking of reseller organizations,
as well as individuals, and maps out the hierarchy of reporting and responsibilities.
Profile management governs new reseller recruitment, automatically adding new
applicants to the system.
Many functions within PRM depend on the sales hierarchy in place at both the vendor and the reseller (see Figure 6.0). The system models the hierarchy and uses it to roll-up forecasts and lead progress reports. Escalation alert systems use the organizational hierarchy to deliver lead inactivity notifications appropriately. Thus, in addition to the detailed reseller profiles, other users are also included under the umbrella of profile management. The members of the sales department have different permissions and customized content based on position. Non-hierarchical relationships, such as users with dotted-line authority, are represented as well. The system ensures that sensitive information is protected and content is customized automatically. This creates a simple work environment for each user, providing all of them only the necessary functionality.
Lead Management
Lead management covers the process that each new lead goes through, from customer
to vendor to reseller to final result. A robust PRM system computes the best
way to handle each lead according to business logic and routes it through the
system to the proper user at each stage in the process. By following a managed
process, each lead gains higher probability of becoming a sale, thereby increasing
the business yield for both reseller and vendor. Figure 7.0 shows the path that
leads follow in an organization selling products through multiple channels.
The following discussion explains the possible steps that a lead management
system may take, as shown in the diagram.
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The partner profile database is the heart of a PRM system. A clean database with a structure that simplifies tasks is the only way to automate business processes involving channel partners.
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To effectively report upon a national partner with multiple offices, PRM allows the reseller sales organization to be modeled in the partner profile database as a company, not just as individual users.
Lead Consolidation
Lead consolidation involves standardizing, transforming, and cleansing leads
from various sources, including trade shows, customer service inquiries, and
the Web site. Before a PRM system can accurately process leads from all these
sources, it must standardize lead formats. This process involves automated data
transformation, which converts data from each source into the format used within
the PRM system (see Figure 8.0). At this point, the system may also cleanse
the leads and add additional business information, such as Dun & Bradstreet
data.
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Each channel model has different requirements for call center functionality. Many vendors have both internal call centers that use CRM tools and outsourced response management centers. PRM lead management systems must remain flexible to minimize call center costs.
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Customers may work with multiple people, including inside sales representatives, territory managers, and partner sales representatives, before purchasing products. PRM systems provide the tools to help them all to work as a team and to share communications with the customer. Reporting tools roll-up pipeline information to managers in both partner and vendor organizations.
Lead Scoring
The system scores each lead according to business rules. These rules are configured
to reflect a company's business process. The score determines whether a lead
is ready to be sent out to a sales representative or reseller partner, or if
it requires additional qualification by the call center, response management
company, or in-house team. Leads requiring immediate attention, such as those
where the prospective customer requested a specific reseller or a call back,
are flagged by the system and instantly distributed to partners, rather than
languishing in the database. Effective lead classification and scoring at this
stage often proves critical for later stages in the sales process.
Call Center Integration
Sending unqualified leads to partners makes it more difficult for them to work
with vendors. Lead management systems integrate with call centers to improve
the quality of leads sent to partners. The call center follows up on the leads,
asking for additional information to classify the lead as an opportunity or
to suppress it from further qualification (see Figure 9.0). When enough information
is available, high-quality leads are returned to the system for routing. Others
remain at the call center for additional follow-up or are made available for
literature mailings. By considering call centers as modules that plug into PRM
applications, vendors have multiple options for handling lead qualifications,
including outsource models and inside sales groups.
Lead Assignment
Lead assignment selects the best sales representative or reseller to handle
each lead. This is a challenging process, as resellers may overlap in both specialty
and territory. PRM systems meet the challenge by offering multiple options for
lead assignment.
In the simplest case, assignment involves no more than a reseller locator. In more complex situations, businesses can choose to have large opportunities directed to sales representatives for manual reseller assignment, and small opportunities assigned directly to resellers. With manual assignment, the sales representative logs into the PRM system, reviews new unassigned leads, and selects an appropriate reseller for each lead. As channel management is not always simple, sales representatives may choose to keep the leads and manage the sale themselves and find a partner to deliver the system after the sale is 95% complete. Or, the system can be programmed with customized business logic to consider customer need, product interest, location, and order history and choose the best-fit reseller automatically.
Previous reseller performance should also be used in the decision process, rewarding high performing resellers with additional leads. A $40 million marketing program may generate 100,000 leads. Every hour spent by channel managers processing these leads costs money, and every lead that is not investigated and assigned effectively wastes marketing dollars. A good lead assignment system strikes a balance between cost and coverage to maximize total revenue from campaigns.
Lead Distribution
Once a lead is assigned, the next step is distribution. The assigned reseller
(or sales representative) needs to become aware of the new lead and have access
to the detailed lead information. PRM systems use a combination of Web and e-mail
notification to accomplish this. A reseller assigned a lead receives instant
e-mail notification that includes brief lead information and instructions for
retrieving the full lead. This way, resellers do not need to worry about missing
a lead when not logged into the PRM system. Upon notification, the reseller
logs into the extranet to view detailed information about the lead. An electronic
distribution process greatly reduces the time and cost of lead distribution.
The speed of the Internet has made it more and more critical for companies that
rely upon indirect channels to provide "instant" responses to their prospects.
An end-to-end partner lead management system is the quickest way to collect,
assign, and distribute a lead from the Web to a partner for action (see Figure
10.0).
Benefits of Lead
Management
Closing the sales lead loop eliminates the "black hole" problem as PRM makes
lead status updates automatic and essential. By holding resellers accountable
for individual leads, companies see dramatic increases in lead follow-up rates.
When leads are followed up quickly and arrive at the reseller with complete
background information, more leads get turned into sales. Reseller loyalty increases
as resellers receive better leads in an organized manner and have tools available
for working on those leads.
Traditionally, a marketing department has been able to measure which lead campaigns generated the most leads. However, one campaign can generate many leads that do not turn into sales while another generates only a few leads that all turn into large sales. The latter campaign may be a better use of marketing dollars, but without reseller feedback about leads, the marketing department can never learn or prove this fact. Feedback from the direct sales force (if used) provides only a partial picture. By analyzing reported lead progress, PRM supplies marketing with accurate figures on cost per lead and return on investment. Future campaigns can then be targeted to the most receptive audiences, leading to increased sales. Analysis of performance enables measurements that were impossible to make before. For example the relative effectiveness of different channels VARs (Value-Added Resellers), Solutions Integrators, and ISVs (Independent Software Vendors) can be viewed analytically to determine how to spend money to best support each channel.
Resellers can also reap rewards from improved lead management. They receive qualified leads quickly, kick-starting the sales process and giving resellers the early advantage when competing for a complex account. Leads arrive with contextual information, preparing the reseller for each sales call. The standard lead format makes it easy to quickly distill needed information and ensures that leads do not arrive in an unusable or unqualified state. Successful resellers see immediate increases in the number and quality of leads they receive, motivating them to concentrate more on the particular vendor's leads. With an interactive notes system, the reseller can leave questions for the vendor sales representative attached to an individual lead, enabling the reseller and vendor seller representative to function as a team. The greatest benefit comes in the form of increased revenues as effective resellers have more opportunities to sell to qualified prospects.
Sales Productivity Tools
The category of sales productivity tools covers a range of functions, from product
and program information, to quote and proposal generation. These tools help
resellers close more sales by educating them before a call is made or stepping
them through a sales process. Resellers are able to approach sales calls properly
informed so that they have answers ready for customer questions. PRM also includes
tools that increase the vendor's productivity through improved information from
resellers
Forecasting
When a large percentage of revenues generated in the indirect channel, forecast
reliability greatly depends on collecting and processing accurate information
from reseller and distributor partners. In rapidly evolving markets, forecasting
can be critical to fiscal success. When companies have insufficient inventory
to meet market demand for new products, competitors can rapidly net reseller
mindshare by meeting their shortage-induced needs. Without appropriate forecast
information, vendors can also suffer overstocking problems. When resellers order
stock through distributors, the indirect channel can become "stuffed" with inventory,
causing distributor orders from the vendor to drop suddenly and remain reduced
for months. Since more accurate information for forecasting has significant
financial implications and influence on Wall Street's evaluation of the vendor,
a PRM system offers far-reaching value for vendors.
PRM's forecasting tools replace traditional spreadsheet methods, which suffered from cumbersome manual roll-up. Sales representatives can quickly add new items, including reseller opportunities, to the forecast. Depending on the business model, forecasts can be based on leads, quotes, or sales methodologies. The system compiles forecasted opportunities for the sales representative, covering all included opportunities. Forecasts from sales representatives are automatically grouped into a territory forecast, and territory forecasts are compiled into a comprehensive forecast for the VP of Sales. Any member of the vendor sales hierarchy can instantly view an up-to-date forecast for all opportunities under their supervision. The reports pinpoint where additional resources are needed, allowing the vendor to quickly re-engineer their business when necessary. While sales uses forecasts to measure sales potential, manufacturing can view product forecasts to aid in building or stocking inventory.
Selling Procedures
and Methodologies
PRM standardizes sales processes throughout the extended enterprise. Vendors
can implement a system that supports their pipeline and forecasting based on
methodologies such as Target Account Selling ® or Miller HeimanTM.
Resellers and vendor employees alike use these strategic tools to identify strengths
and weaknesses in their accounts. "Web-enabled" versions of these methodologies
eliminate the paperwork that was required in the past, reducing confusion and
also helping the entire organization become more effective in selling. Companies
using individually designed sales methodologies can also distribute these methodologies
over the Web to resellers. The vendor can optimize the selling methodology for
each individual product with customized scripts.
Publishing and Personalization
The Internet organizes and distributes information at high efficiency and almost
no cost. A basic extranet displays information and has a clear navigation system
to enable fast self-service access. Vendors publish documents as soon as they
are finished, without the weeks-long wait required by printing and mailing.
Resellers can find needed data immediately on the Web rather than searching
through files of paper. Many Internet publishing solutions are adequate for
building partner Web sites, but because each partner has different needs, partner
sites need the additional functions supplied by PRM.
Web sites using PRM systems provide personalization and content management tools for vendors to organize the distribution of information to partners. For example, a partner that is certified for selling a complex product can gain access to specific sales scripts and qualification questions to help sell the product. The channel marketing or product manager can enter instructional information, such as competitive differentiation and sales scripts, through the PRM system without needing the assistance of a webmaster. The channel marketing manager also creates the "access permissions" for the information. In this case, the access permissions would be partners certified on the product. When the partner visits the Web site, the link is personalized on their home page so that they can quickly find the information they are seeking. This system of publishing is similar to the needs of public Web sites. An effective PRM system leverages the content management and personalization capabilities of off-the-shelf products such as Microsoft's Site Server and provides the templates and interface to reduce the work for the channel management team.
Literature Fulfillment
Often, resellers do not have the time or tools to fulfill end-user requests
for literature or demonstration units. If vendors want prospects to be informed
about their products, they need to provide resellers with simple tools for automating
these requests. Interactive forms within PRM systems allow resellers to request
additional literature for a customer or an evaluation unit for themselves. The
request is forwarded immediately to the appropriate party (literature fulfillment
coordinator or manufacturing) without involving the sales representative as
a middleman. By further automating this through integration with response management
companies, the cost and time consumed by this activity can be minimized. Automatic
routing of literature requests increases sales by making sure these needs are
met promptly.
Pricing and Quoting
Most companies distribute hard copies of their price books. Price updates are
difficult to manage with hard copy lists, since either the whole list must be
reprinted, or updates must be pasted into the book. After a few updates, accurate
prices become indistinguishable from outdated ones. With PRM, price book management
occurs instantly online. The vendor updates prices on the server, eliminating
confusion. The electronic system also uses partner profiles to customize price
lists for specific reseller qualifications or levels. Vendors using PRM pricing
management systems are not limited by their ERP systems in determining how to
price their products for different channels.
Online quoting tools use these custom price lists to dynamically generate accurate quotes, printable specification sheets, and proposals. Resellers can add and remove parts as customers detail their needs, and the quote generator tallies the price. Additional rules-based checks can be implemented for products where part incompatibility is a frequent issue. The quoting tool generates quotes that can be printed and sent to customers or saved for later reference. Vendor-supplied proposal boilerplates lend a consistent look and feel to the proposals as well as providing quality content that saves the reseller time.
For companies where resellers order products directly from vendors, integration with e-commerce software enables quotes to be turned into orders quickly. Once an order is placed, integration of PRM with the ERP system enables resellers to check order status through the PRM system. In two-tiered distribution schemas, the vendor's site can be seamlessly linked to a distributor so that purchases occur without time lags.
Conclusion
Benefits of Partner Sales Productivity Tools
By using PRM to distribute sales tools and standardize business operations,
vendors can reduce costs and focus channel management and partner sales time
to selling rather than administrative activities. Internet distribution is cost-effective
when compared to old methods of long distance phone-tag, bulky mailings, and
fax blasts. Resellers can use the same sales tools as the direct sales force,
reinforcing business processes and allowing resellers and vendors to function
as a team. With up-to-date, targeted information, resellers are better informed
going into and during sales calls. Vendors can confidently migrate complex sales
to lower-cost channel partners. Better-informed partners can satisfy the high
price-point, high-touch customers that previously required the attention of
the direct sales force.
The most effective solution
Partner Relationship Management offers the most effective solution for maximizing
indirect sales processes. PRM solutions implement team selling for vendors and
resellers, and enable a collaborative selling environment. By managing information
and offering a secure distribution method for that information, PRM simplifies
and expands vendor/reseller communication. The problems hindering successful partner
relations are evident in today's competitive marketplace. While no application
can solve all problems, PRM addresses the most business critical issues facing
vendors and resellers. Forward-thinking companies have the opportunity to implement
PRM and increase sales while the competition is still wondering where their leads
went.
