If you sell or service your products through channel partners, you may have looked into Partner Relationship Management (PRM) software as a solution. If so, you could be operating on mis-information because of the following myths, which we shall now work to clear up.
Myth: It’s a one-time investment.
Many companies make the mistake of thinking that PRM is some kind of turnkey solution you only have to deal with once. They believe you simply outline a strategy or buy the right software and that’s the end of it. Going forward, this automated solution will handle everything else for you.
Fact: You need to invest in PRM everyday. The truth is that PRM software is an ongoing investment.
Like most technology solutions, PRM is easy to implement and effectively maintained if you have taken the time to map out your objectives.. For example: A good PRM software will provide you with a dashboard to help you monitor progress and KPIs, but this data won’t do anyone any good if you’re not checking it regularly. Simply putting good content out there for your partners is typically not effective without a plan for letting them know what they can expect to receive as a result.
Myth: It has to be expensive.
There have never been more strategies and technologies for a company to considert han the countless solutions we see today. Unfortunately, it often seems like the best options are also the most expensive. One barrier that may be keeping you from implementing a sound partner relationship management strategy is the fear that your budget can’t handle the investment.
Fact: It’s not as expensive as you think. Actually, PRM can be very affordable. There are a number of online resources can help guide you in directing your strategy and will do so for free. Don’t know where to start? You can begin by clicking here for free resources, tips, and best practice information.
When you start looking into software to help with your partner relationship management needs, you will realize that the costs are far from exorbitant compared to the ROI they can provide. You can usually get the software setup for less than $3,000 and even have a flat rate of $500 per month. Longer term contracts are usually available that can further reduce your monthly expenses. When you opt for a month-to-month contract, scalability is never an issue and you can always transition if the software doesn’t live up to your expectations.
Myth: The more partners, the better.
If having two partners allows your business to build larger profits, then it seems like it would naturally follow that having four would put even more money in your company’s lap. While there are some grains of truth to be extracted here, it’s a bit more complicated than that.
Fact: More partners can mean more problems. The first question to ask yourself when considering bringing on new partners is do you have the proper plans and partner application processes in place to help ensure a meaningful partnership. When these are neglected, you will probably end up with too many ineffective partners occupying too much of your time. Are you managing your current channel partners effectively? This is another important place to start when considering how to drive profits.
Increasing mindshare among your current channel partners is one way to boost revenue. If there are channel conflicts that have yet to be resolved or communication is lacking, these relationships, and your profits can suffer. Implementing a Partner Relationship Management software that will allow you to give your partners the tools they need to succeed is one way to begin improving your current partner relationships, and as a result, improving sales as well.
Hopefully, the above facts have helped clear up the myths that preceded them. Managing relationships with your partners is too important to let false information get in the way of beneficial results.