Solutions for Improving Rolling Forecast Accuracy

Gain Full Visibility Into Your Past and Present Pipeline

Sales patterns established through past years’ performance can create a roadmap for the upcoming quarters. However, it’s crucial to have an in-depth understanding of factors that may no longer apply. Examples include:

•  The participation of a particularly strong sales partner who no longer promotes your products

•  A SPIFF campaign that motivated additional sales

•  The release of a new product targeted primarily towards existing users

•  A co-branded marketing campaign that reached new audiences 

Consider the context behind past years’ performance ebbs and flows rather than impulsively believing the upcoming months will follow similar patterns. 

The optimal way to bridge determinants and registrations is a partner portal that houses both data sets. It should automatically render reports that connect registrations to specific sales strategies, participating partners, and marketing campaign spending. 

Similarly, the portal should grant insights into your past and present pipeline and conversion trends. 

Does one type of partner tend to attract higher-converting prospects more than others? Does a particular product have an unusually long sales cycle? Such learnings can help you frame your current pipeline with increased accuracy. 

Enhance your understanding of your pipeline by reading 5 Partner Program Metrics to Measure Channel Performance.

Get on the Same Page as Your Partners 

A partner portal will grant you real-time visibility into individual partner pipelines for you to quantify. Still, it’s valuable to hear their qualitative perspective about the deals they registered. After all, one prospect may have been eager while another hesitant, and the two should not be weighted the same. 

When collecting a partner’s sales forecast, make sure that you two align on the following:

•  Quality standards for prospects – If a partner’s pipeline consistently has low conversion rates, it would benefit both you and them to clarify what type of audience qualifies for your products or services. 

•  Concrete measurements of a lead’s BANT (budget, authority, need, and timeline). Don’t assume that you and your partners automatically place the same emphasis on different measurements of lead quality. If your experience suggests that a Chief Technology Officer is more likely to convert than a Marketing Manager, share this with partners. 

Your partner portal should ideally offer sales playbooks targeted towards different verticals and points of contact. This won’t only help partners accurately measure the BANT of a lead, but also navigate conversations with greater confidence. 

•  What are the different stages of the sales journey and how to weigh them accordingly. The stages of a sales cycle are not universal and can be up to interpretation. Come to an agreement with your partners about how to classify ongoing opportunities and how each stage should be factored into the forecast. 

For example, if they generated 20 co-branded content downloads, what percentage of these early-stage prospects can you estimate will eventually convert? And by when? 

•  Don’t expect all partners to fully adhere to your internal definitions. If a company partners with ten different technologies, they won’t want to adopt ten different ways of forecasting sales. Therefore, use your partners’ definitions when possible. Also, make sure that you see the raw data that informs their calculations. 

For greater insights into sales cycles, read our post, The 4 Stages of B2B Buying Behavior. 

Err on the Side of Caution

Optimism is a powerful tool; it helps get us out of bed each morning, as well as face new challenges both inside and out of the workplace. However, it also leads to frequent overestimations of sales forecasts. To compensate for everyone’s natural instincts to overpromise and underdeliver, do the following: 

•  Consider the source when factoring in partner estimations. The hard truth is that most partners will overvalue their own performance. Therefore, consider reducing their projections when factoring them into your own. 

Compare the partners’ past projections against the outcomes. If they have a solid track record of delivering the results they promise, their forecast can hold more weight than a partner who repeatedly falls short. 

•  If testing a new marketing strategy, don’t factor resulting leads into your forecast. It’s better to regard the related sales as a bonus rather than set an overly ambitious standard for success without historic data to back it up.

Failed to Meet Your Last Forecast? Figure Out Why and Adjust Accordingly

Everyone falls short of their expectations on occasion. However, if you greatly missed the mark or see a clear pattern, put on your detective’s cap and figure out why. Possible causes include:

•  Inaccurate assessment of pipeline conversion rates

•  Diminished quality in leads

•  Modifications in marketing tactics or sales messaging

•  Product or pricing changes

•  Competitor activity

•  Shifts in market interests

Identifying the source of the problem can help you change your calculations. More importantly, it pinpoints new opportunities for improvement. For example, if the conversion rate after demo requests decreased compared to past years, it may be time to upgrade your presentation or product itself. If a quarterly sales competition has increasingly diminishing returns, it may be time to change tactics. 

Accurate Forecasting Comes Down to Partner Communication and Data 

Your good ideas aren’t helpful unless shared with partners. Your analysis isn’t helpful unless based on accurate measurements. Invest in a partner management solution that strengthens both communication and tracking to improve forecasting accuracy. 

PRM software like Allbound consolidates the many elements of the partner sales pipeline for enhanced performance tracking and information-sharing. 

Request a Demo to find out how Allbound can improve your channel forecasting efficiency and accuracy while improving the bottom line. 

A Boost to Channel Programs: Allbound’s $43 Million Growth Equity Investment from Invictus Growth Partners

When building technology stacks, Sales and Marketing actively avoid tools with capabilities that heavily overlap in order to limit spending. This leads to a very common question: can I use my existing CRM platform to manage channel partners? 

The short answer? It’s not recommended to rely upon your CRM for partner relationship management (PRM). This is because it’s not equipped with specialized features that speak directly to channel partners’ needs, such as content co-branding, onboarding, and automated content curation based on group types. The lack of comprehensive yet targeted PRM functionality will force you to rely upon multiple tools in addition to your CRM, complicating processes and erecting barriers to scalable operations.

Contrastingly, a PRM is a centralized hub intended solely to help companies enable partners through a variety of features and automations triggered by user actions and customizable settings. What’s more, PRMs are increasingly essential to staying ahead of the curve, as Forrester predicts the PRM market will grow to $679M by 2023 across all industries. 

Still on the fence? Consider that PRM technology is relatively new and specifically designed to address CRMs’ insufficient abilities to service partners. 

 In this article, we’ll help you understand key differences between CRMs vs. PRMs and how to best integrate the two platforms. 

What is PRM? 

Partner relationship management software provides businesses with tools to track reseller and referral sales while also giving partners support, resources, and a portal to communicate with your business. The power of PRM comes from a personalized portal for partners where they can access documents, marketing content, market development funds (MDF), opportunities, and track deals. 

PRM is considered the 3rd evolution of SaaS tools, the first being CRM and then marketing automation. When the market started changing, PRM stepped up to fill in the gaps. 

What do PRMs offer in comparison to CRMs?

PRM software provides businesses with tools to track reseller and referral sales while also giving partners support, resources, and a portal in which to communicate with your business. When comparing it against CRM, PRM technology’s power can best be summarized by three points: 

• It centralizes most functions and content within a partner-friendly interface - Content is housed in a library with a search bar. Features like market development funds (MDF) requests, deal registration, and prospect pages are all within a single platform. This allows both partners and your management team to be more organized, as well as to identify relationships between different portal activities and subsequent conversions. 
• It grants partners controlled freedom - Partners can engage with training and quizzes when most convenient, co-brand select materials as needed, and find quick solutions using the portal’s search function. This results in partners having the autonomy necessary to be productive and achieve success on a mass scale.
• It utilizes automation to improve the partner experience - The portal micromanages partners on your behalf based on commands you set up prior to deployment. This means that you can gate some features and content from defined partner groups and map out content recommendations based on users’ past responses.

Another advantage of utilizing a specialized PRM is that it shows your partners that you invest in their success. You’re willing to spend to accommodate their needs rather than asking them to fit their square bodies into your CRM’s round hole. 

Case in point, Serko, a technology solutions provider in the travel and expenses industry, uses Allbound to support their partners who manage over 6,000 customers globally. Channel sales managers at Serko were able to showcase a world-class partner program and portal in which each partner was provided with the right sales and marketing content for their needs. Serko now has 100% partner adoption, which you can read about here.

It’s not “PRM vs. CRM”, as you will need both

Your company’s CRM is not intended for managing your partner ecosystem. However, there are CRM capabilities that are indispensable to Sales and Customer Service that a PRM simply cannot provide. 

The Value Your CRM Brings to Your Partner Program

Remember, CRM is an acronym for customer relationship management, meaning that it helps businesses track prospective and existing customers within a single system of record, regardless of whether they came from Direct or Indirect. Advantages of a CRM (in conjunction with a PRM) include:

• The ability for Customer Service to pull client information to better serve their needs
• Customer base data for easier analysis, enabling companies to create and test retention strategies
• The option to schedule emails to customers through the CRM and collect related open-rate data 
• Comprehensive pipeline views and sales forecasting, achieved by pulling data from both your CRM and PRM into a single view
• Customer segmentation for intelligent automation and more in-depth analysis

In short, your CRM is essential to keeping all the won leads your PRM helped generate. Additionally, it grants long-term insights into the quality of partners’ leads. For example, if a particular partner group consistently generates customers with high abandonment rates, this could indicate that they’re pursuing the wrong audiences or are setting false expectations, both which modified training practices can fix.

How and Why to Integrate Your PRM and CRM 

Your PRM and CRM should share real-time data with one another through integration. This will grant you:

• The ability to block duplicate deals across both platforms - when Direct Sales and a partner both lay claim to a lead, the results are messy. Avoid channel conflict by enlisting data-sharing between your PRM and CRM so both platforms will immediately notify users that the deal already exists within the sales ecosystem. 
• A fuller understanding of your pipeline and sales forecasting - Your PRM and CRM should generate reports that give you an overview of today’s (and future) performance. However, why look at two separate reports when you can dive deeper into one? 
• For data comparisons between direct and indirect sales performance - By enabling your CRM to pull data directly from your PRM, you can do side-by-side comparisons of how different audiences react to various strategies. This enables you to create better-informed hypotheses and have the sales channels learn from one another. 

Allbound’s PRM technology has standard integrations with a number of CRM solutions, such as Salesforce, Pipedrive, SugarCRM, and Hubspot. We also can do custom integrations in order to accommodate new customers’ existing technology stacks. In order to have the process go as smoothly as possible, designated integration specialists will sync up our PRM with your choice of CRM (as well as with other technologies). The end result is seamless interactions between the two software with minimal maintenance required. 

What About CRMs That Say They Offer PRM Capabilities? 

Because of the rapidly accelerating interest in channel partners, the Sales world is abuzz about PRM technology. It’s only natural that some related software companies would want to capitalize on this interest by laying claim to the PRM title, even if their products don’t quite meet the definitions. 

Remember, a true PRM acts as a centralized hub for partner management and sales prospect interactions. Read Automate, Scale, Integrate – PRM System Criteria for a fuller understanding of what features to expect, and remember that a tool that offers only a fraction cannot call itself a real PRM solution.

The Bottom Line About CRM vs. PRM 

The market has already started moving to a comprehensive partner management approach. In fact, 65% of high-tech companies have already adopted PRM tools that deliver a significant amount of company revenue. Companies that continue to manage partners in traditional ways via CRM or spreadsheets are not only missing out on new end customer sales, but also valuable insight from the data provided by channel partners. Consider creating a great partner experience to see big returns on your bottom line.

To learn more about choosing a PRM that fulfills your program’s needs, we recommend reading Partner Portal Best Practices and Design Checklist.

How does PRM work within a complex partner ecosystem? 

Channel partners are your company’s selling allies, an extension of your sales team. PRM tools give you the functionality to support a variety of partners and their end customers. 

PRM tools automatically gather and analyze performance data and metrics, with a clear focus on revenue and activity metrics. Rewarding your most profitable partners with MDFs for hitting revenue targets, or training completions, ensures that you see ROI from your investment.

PRM and tracking revenue

The revenue metrics for partner programs are unique to the indirect sales model, which is why PRM tools have extensive features to track leads and revenue including:

•  Partner portal software for easy communication and data exchange

•  Access to relevant parts of the customer database

•  Dashboards for tracking leads, deal progression, deal registration, and sales KPIs

•  Data about which partners perform well and which individuals fail to generate or convert leads

•  Integrations with contract, scheduling, expense, and content tools 

What are the benefits of PRM? 

Overseeing a partner program has traditionally involved complex spreadsheets and manual correspondence for every deal, which required switching between a CRM and other tools to fill in the gaps. This is a huge competitive disadvantage and makes it almost impossible to correlate partner activity and training to closed business. That’s why PRMs provide partner management specific features like: 

•  Business intelligence, automation, and template-based workflows

•  Visibility on the impact of 3rd parties on reaching new buyers

•  Partner segmentation for targeted experiences

•  Partner channel avoidance through clear registration processes and pipeline integrations

•  Planning, recruitment, onboarding, enablement, co-selling and co-marketing, and incentives

•  Overview that channel managers can use to track how well training and content is performing in relation to deal registrations 

Integrating your partner tool with your CRM

For a complete view of your entire revenue org, both indirect and direct, integrate your PRM with your CRM tool. Look for a PRM vendor that helps you get your integrations in order. 

Allbound let’s users bring their existing sales tools with them into the partner management process. You can pass information between your PRM and CRM to create a consolidated pipeline that is your single source of truth and stays relevant with real time updates on deal registrations. Syncing your data also avoids duplicate deal registrations, making partner conflict resolution much simpler. 

Conclusion

Guide to Implementing a Channel Loyalty Program