by Martin McNally

Director of Product Management, CCI

Looking for a fresh perspective, I typed “PRM defined” into my search engine the other day. Its reply was “Did you mean: crm defined?” So much for a fresh perspective.

The assumption that CRM and PRM are one in the same may or not be accurate, depending upon your definition of PRM and your business needs for such a solution. The larger stretch and true misconception is believing that a PRM solution enables management of your partners. It does not. PRM significantly under serves those who run or participate in indirect sales programs.

The simple fact is that PRM does not encompass 100% of what’s needed to run your channel program. Regardless of definition, key functionality is missing from PRM software and reliance on these solutions results in an incomplete and ineffective channel program. As evidenced by the bundling of CRM and PRM by software companies and industry analysts alike, PRM is really focused on tracking and managing relationships, and solely from the vendor’s perspective. It does not address the sales and marketing activities endorsed by vendors and performed by channel partners. PRM does not afford the parties any means to bi-directionally communicate, plan, collaborate or execute. Nor does it provide financial controls necessary to administer complex reward or Co-op/MDF programs. But that’s not their fault; even the industry as a whole has a hard time defining what PRM is supposed to do.

The CRM/PRM big boys have a lot to offer, to be sure, but not for the channel. They are not specialists and do not offer functionality necessary to meet the business requirements of channel management. Beyond managing channel conflict and sharing sales tools, as enabled by PRM providers, vendors need to give their channel partners targeted vehicles for promoting and selling the vendor’s wares. Tracking opportunities and managing related incentives are key components of a successful and active channel program.

If you expect your PRM tool to do it all, you will be sorely disappointed. Without a more targeted solution to manage the breadth of your channel program, a vendor does not build partner mindshare and loyalty, both of which are required for the vendor itself to attain increased market share.

Until CRM stands for Channel Relationship Management and PRM includes Program, each with the focused capabilities to sand behind the claims, I will search elsewhere to find an accurate and comprehensive representation of channel management. Whether fresh or stale, CRM, and by extension PRM, is no substitute.