PARTNER - RELATIONSHIP MANAGEMENT (PRM)

Model:

Summary:

Introduction

Effective Partner Relationship Management (PRM) is crucial for any business aiming to leverage strategic alliances to drive growth and success. The PRM Model above is a structured approach to managing partner relationships through best practice steps. These best practice steps cover all aspects of PRM, from partner recruitment and training to sales alignment and joint marketing efforts. The PRM Model breaks down the key elements of PRM providing a comprehensive overview of each section, ensuring a thorough understanding of the best practices in managing partner relationships.

Partner Selection Model (Left Side)

The Partner Selection Model on the left side of the PRM Model emphasizes the importance of identifying and selecting the right partners based on fit criteria.

1. Best Partner Profile: Creating the “best” partner profile involves defining the ideal characteristics of potential partners. This includes market expertise, technological capabilities, financial stability, and cultural alignment. A clear profile streamlines the recruitment process and ensures that the chosen channels and partners are most likely to succeed and contribute to mutual growth.
2. Market Alignment Fit: Assesses how well the partner's market strategy aligns with the company’s target markets. It involves analyzing the partner’s customer base, geographical reach, and market segments served. Aligning market strategies ensures both parties can leverage each other's strengths to penetrate new markets effectively and expand their customer base.
3. Market Making Fit: Evaluates the potential for collaborative efforts to create new market opportunities and drive innovation. By working together, partners can pool resources, knowledge, and capabilities to develop unique value propositions that differentiate them from competitors and capture new market opportunities.
4. Transactional Fit: Examines the operational compatibility between the company and its channels and partners, ensuring efficient and seamless transactions. This includes the ease of conducting transactions, supply chain interactions, and system integration, which are crucial for minimizing friction and reducing operational costs.
5. Reciprocity Fit: Ensures a balanced exchange of value between the partners. This involves evaluating the tangible and intangible benefits each partner brings to the table, fostering mutual respect and commitment. A reciprocal relationship builds sustainable partnerships that drive long-term success.

Partner Plan List (Middle)

The middle section of the diagram details the steps the company should follow to develop and agree a comprehensive channel and partner plan.

1. Ramp-Up: Involves creating an effective onboarding process for new partners. This includes providing training (both in-person and online), essential materials, and appointing dedicated personnel on both sides to ensure smooth and effective communication and collaboration.
2. Goals: Developing clear, joint business plans is critical for aligning efforts towards common objectives. This includes defining go-to-market strategies, developing competitive pricing models, utilizing Market Development Funds (MDF), and implementing incentive programs. These elements ensure that both partners are working towards mutual success with well-defined and agreed-upon targets.
3. Marketing: Joint marketing efforts are essential for boosting brand visibility and driving demand. This includes joint advertising campaigns, direct outbound marketing, Sales Development Representative (SDR) follow-ups, participation in joint conferences, and loyalty programs. These initiatives maximize the reach and impact of marketing activities, leveraging the strengths of both partners.
4. Joint Sales: Effective joint sales strategies involve executive alignments, account mapping, developing joint account penetration plans, and ensuring commitments and accountability from joint account managers. This fosters strategic coherence and ensures that both partners are aligned and committed to achieving shared sales targets.
5. Service: Providing exceptional pre-sales engineering support, deployment professional services, post-sales support, and customer success services ensures that partners can effectively close deals, deliver high-quality implementations, and retain satisfied customers. Comprehensive customer success programs drive retention and foster long-term relationships.

Partner Management Process (Right Side)

The Partner Management Model on the right side of the diagram represents the iterative process of partner management, emphasizing continuous improvement and strategic adjustments.

1. Execute: The execution phase involves implementing the partner plans and strategies developed during the planning stages. This includes carrying out joint marketing campaigns, sales initiatives, training programs, and other collaborative activities, ensuring that partnership goals are actively pursued.
2. Monitor/KPIs: Monitoring involves tracking performance using key performance indicators (KPIs) such as sales performance, lead generation rates, and customer satisfaction scores. Regular review of these metrics provides insights into the effectiveness of the channel in general and specific partnership activities and helps identify areas for improvement.
3. Analyze: This phase involves evaluating the data collected during the monitoring stage to identify trends, successes, and areas for improvement. Effective analysis helps in understanding the partnership dynamics and making informed decisions for future strategies.
4. Modify: Based on the analysis, necessary adjustments are made to the partner plans and strategies. This could include refining goals, updating marketing tactics, or reallocating resources. These modifications are then implemented in the next execution phase, creating a cycle of continuous improvement.

Summary

This comprehensive PRM Model offers a structured and dynamic approach to selecting, planning, managing, and evaluating the channel and partner relationships. The model integrates partner selection criteria, detailed planning, and an iterative management process to ensure that partnerships are effectively leveraged for mutual growth and success. By focusing on various aspects such as partner fit, training, goal setting, marketing, joint sales, and service, companies can build strong, productive, and sustainable partnerships. The continuous improvement cycle ensures that strategies are constantly refined and optimized to adapt to evolving market conditions, driving long-term success and fostering resilient partnerships.

Sources:

Building Successful Partner Channels - Hans Peter Bech

Tools:

Partner Relationship Checklist