Why Use a PRM for Partner Transactions Instead of a CRM?

Why Use a PRM for Partner Transactions Instead of a CRM?

While both CRM and PRM systems manage relationships, they are built for different audiences and functions. A CRM (Customer Relationship Management) system is primarily designed for managing direct interactions with your customers from lead generation to customer service. In contrast, a PRM (Partner Relationship Management) platform is curated to manage the complexities of business partnerships.

Customer Relationship Management (CRM)

CRM systems are designed to manage a company's interactions with current and potential customers. Key features include:

• Contact Management: Maintaining comprehensive customer profiles.
• Sales Tracking: Monitoring sales activities and performance.
• Customer Support: Facilitating service and support processes.
• Marketing Automation: Streamlining marketing campaigns.

The primary goal of CRM is to enhance customer satisfaction, boost sales, and foster customer loyalty. By understanding customer needs and behaviors, businesses can tailor their strategies to meet expectations effectively.

Partner Relationship Management (PRM)

PRM systems focus on managing a company's relationships with business partners, such as distributors, resellers, and affiliates. Key features include:

• Partner Onboarding: Streamlining the process of bringing new partners on board.
• Training and Certification: Providing resources for partner education and accreditation.
• Joint Business Planning: Collaborating on strategies and goals.
• Performance Tracking: Monitoring partner sales and activities.

Here’s why a PRM is ideal for handling partner transactions:

1. Specialized Workflows for Partners

• Automated Workflows:
  PRM platforms are built with partner-specific workflows in mind. They handle tasks such as partner onboarding, training, commission tracking, and performance reporting. For example, while a CRM might simply track a sale, a PRM can also automatically generate commission reports and monitor whether a reseller has signed an NDA, completed onboarding modules, and achieved specific lead conversion milestones.
• Real-Time Example:
  Consider a cybersecurity SaaS provider that relies on a network of resellers. Using a PRM, the company can automatically track every lead referred by a partner, monitor the progress of each opportunity, and calculate commissions in real time. In a CRM, these processes would require custom integrations and manual workarounds, increasing the risk of errors and delays.

2. Enhanced Visibility and Reporting

• Holistic Partner Insights:
  PRM systems offer detailed dashboards that provide visibility into partner performance metrics, such as referral conversion rates, revenue contribution, and overall engagement. This level of detail helps businesses assess which partners are driving growth and which might need additional support.
• Real-Time Example:
  A marketing automation company using a PRM can view a consolidated report showing that one partner consistently generates high-quality leads that convert into sales. They can then reward this partner with higher commission tiers and targeted co-marketing initiatives. In a CRM, the same data would be scattered among multiple reports, making it difficult to gauge partner-specific performance.

3. Automated Commission & Transaction Management

• Streamlined Financial Processes:
  PRM platforms often include built-in tools for managing commissions and partner payments. This means when a partner from your network successfully refers a lead that converts, the system can automatically calculate the commission, initiate payment, and log the transaction for future reference.
• Real-Time Example:
  Imagine an e-commerce platform partnering with several affiliates. When an affiliate referral results in a sale, the PRM automatically triggers the commission calculation and updates the affiliate’s earnings dashboard. This automation reduces administrative overhead and ensures accuracy, a feature that is hard to replicate using a standard CRM system.

4. Dedicated Communication Channels

• Centralized Partner Engagement:
  PRM platforms provide dedicated channels (like in-app messaging or integrated group chats) to facilitate direct communication with your partners. This ensures that conversations about sales, marketing initiatives or support don’t get lost in a crowded CRM.
• Real-Time Example:
  A SaaS company may use a PRM to set up automatic Slack integrations where partners can receive timely updates and share feedback directly with your partnership team. These communication channels are optimized for partner-specific conversations, unlike the more general interactions in a CRM.

The PRM automates partner onboarding, assigns lead sharing workflows, and tracks commissions in real time.

Ex. Companies like HubSpot have used PRM systems to streamline partner onboarding and lead management, ensuring that each partner gets the right training and support to convert leads into paying customers.

In essence, while a CRM focuses on managing customer interactions, a PRM is built to handle the nuanced demands of managing a partner ecosystem. With specialized workflows, enhanced visibility, automated commission management and dedicated communication channels, a PRM like Sharkdom empowers companies to drive more effective and efficient partner transactions.