Hi Anjali,
Partner relationship management (PRM) is a combination of the software, processes and strategies companies use to streamline business processes with partners who sell their products. PRM systems are often web- or cloud-based and typically include a partner portal, customer database, and other tools that allow companies and partners to manage leads, revenues, opportunities and sales metrics. Partner relationship management systems also track inventory, pricing, discounting and operations. Benefits of PRM Many companies rely on partner companies to sell products on their behalf as part of a channel strategy, in addition to or instead of using a direct distribution channel. Those indirect channels may include value-added resellers (VARs), retailers, consultants, managed service providers (MSPs), systems integrators (SIs), original equipment manufacturers (OEMs) or independent software vendors (ISVs). Having a partner relationship management system in place helps channel managers streamline all of their partner sales processes and minimize duplication within the business. Differences between CRM and PRM PRM is similar to customer relationship management (CRM) in that companies use CRM systems to monitor the marketing, sales and service process of customer relationships. When working directly with a customer, a sales rep can target the consumer and work one-to-one with that potential customer. While CRM does help with the relationship between a business and a customer, it's much more focused on the C and M of CRM -- once it converts a lead into a customer, it's about managing that next purchase. When working with partners, companies need to put more emphasis on the relationship aspect, as it's the goal of both the partner and the managing company to profit from the relationship. To effectively do that requires a different type of management and thinking, including more negotiation in the selling process. PRM best practices A successful PRM implementation creates collaboration between the dealers, vendors and channels and allows for a profitable relationship that continues on healthily. It's important to invest in software that works within your existing stack and to provide the necessary support and training as you would with any CRM implementation.