A BRM is a business software that connects companies with their sales partners, intermediaries, resellers and brokers in a digital way. It enables joint business planning, digital collaboration and follow-ups. It helps relationship managers aggregate and centralize relevant data from other tools and systems. You can describe this as a performance management and collaboration tool or partner software for channel sales.
BRM software is important for two types of companies:
•Companies selling their products or services through indirect sales channels such as intermediaries, resellers and brokers.
•Companies that need account management solutions because they sell their products or services through a set of recurring strategic accounts.
The following are examples of industries that use BRM software: financial services, IT companies, manufacturing companies, FMCG, construction material companies, retail, etc.
The benefits of BRM are threefold:
1. Increased productivity: Increased focus for account management teams due to segmentation and strategic alignment of sales plans and sales strategies.
2. Increased share of voice for sales partners: Established digital relationships provide more opportunities to improve partnerships with intermediaries, resellers or brokers and create more relevant touchpoints.
3. Increased commitment: Joint business planning leads to increased accountability, effective follow-ups and a better understanding of each other’s goals to help increase sales.
4. Segmentation: Classify partners, intermediaries, resellers or brokers to effectively implement your strategy and activities.
5. Business strategy based on OKR’s: Create activities and campaigns linked to your company goals and sales plan.
6. Partner strategy: Generate an automated account plan and customize your plan on segmentation and sales strategy.
7. Regular follow-ups: Get information to effectively evaluate partner activities with our partner software solution.
8. Performance management: Get instant insights on partner and account management performance.
9. Internal activity tracking: Measure how BRM is used by your account management team or relationship managers and get results.
CRM is an operational tool used to register data, centralize and aggregate data from various tools or platforms, and analyse data.
In contrast, BRM is a strategic business software focused on the commercial process of account management and collaboration. It connects with CRM systems to facilitate the two-way approach (push and pull) of relevant data.
While CRM systems are great tools that can enter all the data and provide a complete overview. Sales and account management teams only need 20% of the relevant data to generate 80% of its impact. Moreover, they don’t like to enter all the fields in the CRM system.
There are three main reasons:
• To connect with sales partners, intermediaries, resellers and brokers through digital means.
• To support account management teams and enable them to become strategic advisers of
their sales partners in order to increase sales.
• To aggregate relevant data and get an overview of the status of strategic accounts or sales
partners for a better sales plan and sales strategy.
Channel sales refers to the sale of a good or service by a third-party such as an indirect sales partner, reseller, broker or affiliate, rather than a company’s personnel.
The three common types of strategic alliances include:
• Non equity partnerships: Start with an informal or formal agreement between two parties. The partnership may be based on knowledge sharing, new product development, customer databases, fostering trust and credibility, and offering technological advancements.
• Equity partnerships: Parties involved contribute to the capital of the other company and vice versa.
• Joint venture: A formal or informal agreement with a cost component or profit and loss responsibility between stakeholders.
Strategic alliance examples:
• Example 1: A bank and telecom provider collaborating for cross-selling purposes to increase profits for a new product.
• Example 2: A manufacturer collaborating with a tech company to co-create IOT devices with a new pricing model.
• Example 3: A manufacturer and retailer teaming up to guarantee the production of high quality products.
PRM or “Partner Relationship Management” refers to partner tools often used by organizations that frequently collaborate with partners to sell products. With this tool, businesses can streamline deal registration, content marketing and strategy in an all-in-one platform.
The advantages of an indirect channel of distribution include the following:
•Tap into an existing customer base: Indirect sellers and brokers often have existing relationships with their current customers. As a partner, you can leverage the existing relationships within these indirect channels to promote your own products.
•Indirect sales is cost-efficient: Brokers, resellers and agents already have dedicated marketing, sales, account management teams, as well as industry connections. That is why indirect distribution is a cost-efficient way to get your goods in the market.
•Enter markets quickly: Entering new markets and global channel management can be quite a challenge. With indirect sales channels, you can instantly enter new markets at an affordable price with low risk to your business.
•Established logistics: Indirect sellers already have an established logistical infrastructure. Hence, you can streamline and scale your operations as fast as possible.