CRM: Partner Management
Partner Management processes and systems support a variety of third-party reseller business models to achieve the goal of extending the business reach to a larger customer base. Business models range from very simple (lead generation or customer referral, for example) to extremely complex (where a partner would have access to register new customers and maintain 100% of the ongoing relationship without intervention from the parent entity).
A robust PRM solution can enable the partner to move through the monetization ecosystem seamlessly to capture leads and opportunities, quote, process orders and even manage renewals. Some PRM systems allow an additional level of capability to manage various aspects of customer service regarding the product being sold.
Partner channel business models that allow partners access to register and manage an ongoing customer base must have some level of system access to achieve this goal. In many cases these are somewhat restricted systems from the core selling business and should offer analytics suites for the partner to sufficiently report on their performance, as well as an overarching analytics suite that allows the parent entity to ensure system security, prevent fraudulent activity, and monitor the performance of the overall partner landscape in comparison to their core business and provide sufficient data to understand the overall business and drive future business decisions.
Additional comparisons can be made to the core business, comparisons between partners, and the success of the various products or services being sold by each partner. This data can provide insight for product development, marketing, and business intelligence for future business decisions.
Customer Relationship Management, or CRM, is perhaps the most consistently misused term in our industry. The ‘Customer Relationship’ that is being managed by a software category is an exceedingly broad term that must be narrowed in order to make sure we are comparing similar software. ATG breaks CRM into four distinct categories, based on the channel that is being used to manage the customer relationship. The categories are:
Sales Force Automation (SFA)
The tools used by Sales teams to managed sales people, prospects, and opportunities.
The tools used by a service provider’s customers to manage their own services or accounts.
Call Center | Customer Success
The tools used by Customer Service agents (historically in a Call Center environment) to manage customers.
Partner Relationship Management
Tools used by a service provider’s Partner to manage customers.
Partner Management Components
The sales process in Partner Channel generally fits into one of the following scenarios:
Partner refers the customer to the parent company and the parent entity owns the entire relationship moving forward.
Partner Registration/Parent Retains Customer
Customer moves through registration directly with the partner and the process is transparent to the customer that services are being purchased from a third party. The parent entity will own the customer relationship over the customer lifecycle with little to no involvement from the partner proceeding customer registration.
Partner Registration & Customer Retention
Customer moves through registration directly with the partner and the customer is aware that services are being purchased from a third party. The parent entity will have little to no involvement directly with the customer over the customer lifecycle.
Dual Customer Responsibility
The deal is a hybrid of the two above options, where the customer may or may not know they are purchasing from a third party and the customer management can be fully managed by both the partner and the parent entity, depending on the customer support channels that the end-customer initiates on a given interaction.
White Label Partner Selling
The selling process is completely re-branded, known as white-labeled, where the partner may be using the parent entities systems or selling the parent entities services. These offerings may be combined with additional services offered by the partner independent of the parent entity. The customer likely does not know the parent entity exists and the relationship is solely with the individual partner.
If systems are shared between the parent entity and the partner, leads may reside in the same source system and be assigned to a specific partner or the parent company depending on how the lead was generated or based on other factors such as customer geography.
In many cases, the partner channel may have their own sales support systems that live outside the purview of the parent entity and may only be visible to the parent entity after the order is placed.
Managing sales opportunities in a Partner Management business model can vary depending on the business model and the relationship between the customer, the partner, and the parent entity.
Below are some common scenarios for opportunity management and generation:
1. Partner generated opportunities are passed to the parent entity for the remainder of the sales process. The partner may get a commission or financial payout for generating the opportunity or may get financial incentive only if the deal is closed.
2. The opportunity is passed from the parent entity to the partner. This scenario could be common in areas where a certain partner has a physical presence (for example, in a certain region or with expertise and specific area).
3. The partner generates and manages all of their own opportunities and continues the sales process. Depending on the system architecture and design, the parent company may or may not have visibility to partner generated leads.
Quote / Order
Handling complex selling environments with complex quoting needs require systems that can support a complex structure. The more complex the quoting system is required to be, the more likely a quoting systems will be maintained by the parent entity, where the partner is given access to the system in order to manage the quoting process.
If the partner is managing the order process, there must be sufficient system access for this process to be initiated with as little friction as possible, while also ensuring sufficient system access controls are in place to ensure the order meets the defined business rules for selling services. Ensuring the business rules are satisfied is generally handled by the configuration and access of various systems, though may also include manual review of orders being processed for verification of the ordering process prior to the provisioning of the service to the end-customer.
Cases are created when an action is needed based on an end-customer or lead-initiated interaction. Cases can be created from very early in the sales process to indicate sales leads or other sales-related processes. They can also be created to support ongoing customer support related inquiries.
Depending on the specific business model, supporting system’s capability, and the relationship between the customer, the partner, and the legal entity, cases created on behalf of end-customers could be worked through by either the partner or the parent entity. Based on the structure, the case was created, cases may only be visible and in the queue of either the partner of the parent entity, in a shared queue that could change hands throughout the lifecycle of the case, or could be routed based on predefined criteria.
When customers are registered through a partner channel, the customer service will be driven based on the business model and relationship between the end-customer, partner, and the parent entity.
Below are some common scenarios of customer service models when a partner sells the service to the end customer:
1. The customer must contact the parent entity for all ongoing customer service. This is common when the customer is unaware they purchased services from a third party or when the partner is truly just a reseller, but the customer knows they are receiving services from the parent entity.
2. The customer has the ability to contact either the parent entity or the partner for customer service. Systems must be in place to give some level of access to the partner to be able to provide the level of service needed to handle customer inquiries. In many cases, the partner may only have system access to handle simple customer inquiries and may refer the customer to the parent entity in more complex scenarios.
3. The customer must contact the partner for all customer service. The customer may not know the parent entity exists or relationship is such that the end-customer will only deal with one person throughout their entire lifecycle. These high-touch business models are usually B2B low-volume, high-revenue environments.
Sales and marketing efforts in a partner channel can vary depending on the business model and the partner structure.
Below are some common scenarios:
1. The parent entity provides 100% of the marketing effort in a business as usual manner without any specific reference to the partner. The partner will naturally receive leads from this process.
2. The parent entity provides 100% of the marketing effort in a business as usual manner and the partner will naturally receive leads from this process.
3. The parent entity may be very brand conscious and require the partner only use the parent entity marketing collateral for all customer communication. In this case, the contact information may include partner information, but the message and experience from the marketing campaign will be consistent.
4. The partner drives 100% of their own marketing campaign efforts with their own collateral. Depending on the business model, there is a possibility that the parent entity may provide access to content that can be used in the partner collateral.
When a customer is approaching the end of their contract and due for a renewal, the partner must be actively engaged to ensure the customer is retained while also attempting to increase the revenue from this particular customer to drive up Customer Lifetime Value (LTV).
Below are some possible renewal scenarios present in a Partner Management landscape:
1. The partner has 100% ownership over the renewal effort and the parent entity may or may not have any marketing communication with the customer.
2. The parent entity has 100% ownership over the renewal effort and there may or may not be any financial commission passed on to the original partner who registered the initial customer.
3. The customer may be available for either the partner or the parent entity for renewal. There may be additional rules on timing of customer engagement that the parent entity will follow prior to actively pursuing the lead.
Detailed: People | Process | Technology
The Sales and IT Organizations carry the load in overseeing processes and tasks in the Partner Relationship Management (PRM) domain. The Marketing and Customer Service teams also are involved.
ATG maintains a set of more than 75 key business processes to support management of Customers and Revenue for Service Providers. Sixteen of these processes originate, or are impacted by the Partner Management domain. Below are the key processes that are touched in PRM, categorized by the Organizational Unit that owns the process:
Customer Service Organization
Knowledge Management – The ability of a business to identify, create, and distribute information quickly across their customer base and the entire organization.
Order Entry – Creating a new service for a customer, including capturing the necessary information to provision and bill for the service effectively.
Opportunity Management – Prioritizing, tracking, and managing of sales opportunities.
Partner Management – Management and integration of any of third-party resellers/partner business models and oversight.
Partner Transaction Management – Management and integration of any of third-party resellers/partner transactions including selling, licensing, and billing.
Quote: Product Configuration – Configuration of feature and attributes of products and services prior to a sale.
Quote: Product/Service Discount – Configuration of product and service discounts relating to certain criteria (e.g. volume discounts, geography).
Quote: Product/Service Pricing – Configuration of product and service prices available through quoting tool.
Lead Management – The process of identifying and nurturing potential customers.
Maintenance and Oversight of Monetization Ecosystem – processes around ensuring that all touch points and connections within the ecosystem are optimized to their fullest potential.
Vendor Management of Monetization Ecosystem – oversight and communication duties of ecosystem software components and their vendors, including management of vendor road map and change logs and general relationship nurturing.
Monitoring & Testing of Vendor Functional Releases – as ecosystem components release updates and patches, each is checked and tested to confirm all systems are working together as required by the business’ requirements.
Cross-Training of Monetization Ecosystem Components – process for training organizational resources on the appropriate software systems.
Security Oversight of Monetization Ecosystem – process for maintaining and controlling access and permissions to ecosystem components.
Data Stewardship Across Monetization Ecosystem – process of assigning ownership and sources of truth for data within the organization.
Daily, Periodic, or Ad Hoc Reporting (Extraction, Load, Report, Dashboard) – movement of data between domains to create single source of truth for reporting and dash boarding.
When a company has focus on the partner channel as a key contributor of revenue and customers, often partner relationship software is used. Sometimes, companies will just extend their CRM functionality to include partner activity, but work-arounds are typically required.
PRM Key Vendors
HQ: San Francisco, CA
Company Type: Public
Salesforce Communities is powered by advanced online community software that allows businesses of all sizes to connect to partners, customers, employees, and business processes. The Community Cloud is built on the Salesforce platform, so any third party system or data can connect directly with Communities. Communities allows businesses to:
- Build communities to gain deeper relationships with customers or provide better service by enabling customers to find information and assist each other online
- Connect external channel partners, agents, or brokers to reduce friction and accelerate deals
- Empower employees to connect and collaborate wherever business takes them
Salesforce Communities markets toward companies of any size that have a strong need for customer, partner, and employee engagement. Businesses that rely on dynamic customer relationships benefit most from Communities’ ability to connect directly with resellers, distributors, and partners to increase sales
Health Leads – a service provider enabling health systems to create models for integrating patient social needs into care
Brown-Forman Corporation – one of the largest American-owned companies in the spirits and wine industry
Toyota – automotive production and sales
GE Capital – provides commercial lending and leasing, as well as a range of financial services for health care, media, communications, entertainment, consumers, real estate, and aviation
HQ: Redwood Shores, CA
Company Type: Privately held
Relayware is a B2B, SaaS, Partnering Automation solution provider. At the core of its solution competency is the Partner Cloud, a ubiquitous platform for driving partner performance and productivity. This product enables companies to develop and connect partner-centric business related applications, which operate around a shared data source, CRM, business rules engine, business intelligence, and multi-channel communications center. The Relayware Partner Cloud solution is comprised of the following:
- Partner System of Record
- Enterprise Integration
- Content Management System
- Business Intelligence
- Business Rules Engine
- Multi-Channel Communications
Relayware targets companies of all sizes and in any industry that are looking for cloud-based Partnering Automation (PA) and Partner Relationship Management (PRM) solutions.
Kaspersky Lab – Enterprise and consumer-level anti-malware software developer
Lenovo – Global computer hardware manufacturer
Avid – Digital media distribution solutions provider
Adaptive Insights – Cloud corporate performance management solution provider
NETGEAR – Global networking company
HQ: South Jordan, UT
Company Type: Privately held
Impartner, formerly known as TreeHouse Interactive, specializes in SaaS-based Partner Relationship Management (PRM) and Marketing Automation Platform solutions. Impartner has been profitable every quarter since its founding in 1997 because of their focus on multi-tiered PRM solutions supported by turnkey on boarding. Impartner’s PRM solutions delivers functionality in several areas:
• Partner Management and Onboarding
• Deal Registration
• Lead Distribution
• Market Development Funds (MDF)
• Co-Branded Marketing
In addition to its features, Impartner’s PRM solution delivers integration with major CRM systems including Salesforce, Microsoft Dynamics, and Oracle.
Impartner tends to target high tech, data storage, and cloud-based companies that range from small and mid-sized businesses to global enterprises.
Rackspace – hosting, data management, web services, development, high tech consulting
National Instruments – data acquisition/storage, automated testing, high tech hardware
Commvault – data migration, business technology consulting
Quantum – digital asset storage, archiving, and protection
Sungard – consulting, managed, and professional services