Salesforce.com makes pitch to channel 5 July, 2006 By Dave Chappelle

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Available July 12, Salesforce Partner Edition is integrated with the vendor's established CRM solution, including a subset of Salesforce CRM functionality that is tailored for partners, and is intended to complement Salesforce core on-demand applications.

"We're bringing all of our strengths and competencies into PRM to help partners sell and drive not only their direct channels, but also their indirect channels," said Kendall Collins, vice president of product marketing, Salesforce.com.

"A lot of our customers serve the B2B space, and have been asking for this."

Although the concept of PRM is not new, it has been neither successful nor widely adopted.

"We're truly sitting at a point where partner relationship management hasn't done well," said Elay Cohen, product manager, Salesforce.com.

"The key problems have been the lack of integration. Sales and channels weren't using the systems. We're provided one on-demand system, and it's the first time both CRM and PRM have been integrated."

Salesforce is convinced it now has the right solution at the right time.

"Other vendors have failed because they weren't integrated with CRM," said Collins.

"Siebel had a lot of problems with the complexity of its software. Other software was difficult to tailor and unable to keep up with rapid change. We've been able to revolutionize CRM, and now we're doing it with PRM."

When developing the PRM solution, Salesforce recognized important features any PRM solution must have: comprehensive visibility; high adoption in the partner community; full lifecycle management for partners; and reduced channel conflict.

"The system we've developed is 100 per cent tailored to partners," said Cohen. "It's100 per cent customized, so partners don't need to learn a new application. They won't feel like they are accessing Salesforce."

To reduce channel conflict, the firm has introduced deal registration programs to provide key customer information, and to ensure partners that they have exclusivity of accounts.

"Partners continue to ask, What's in it for me?' and How can I make more money?'" said Cohen.

"Through common objectives, partners are able to submit business plans to get dollars and provide claims. If we look at the lifecycle of partner management, one benefit is incentives in marketing dollars. It allows channel managers to define budgets."

Full lifecycle management for partners helps then recruit, train, price services, sell, and measure results by giving access to analytics and reporting. This year Salesforce has $10 million allocated to partners.

"It's an objective-driven business building tool for partners," Cohen said.

"On the back end they'll be able to submit claims, similar to sales reps who submit expense reports. For example, if a partner is going to spend $5,000 on a campaign, they'll provide receipts, invoices, and a marketing plan to us. That's what's going to drive adoption and motivate partners to use this."

Salesforce is providing licenses on a partner basis; five users at the partner level. There are users selling on behalf of resellers, who train and enroll in the programs. They are accepting or declining leads that come from large vendors.

Resellers will also receive direct access to Salesforce.

"We now have one Salesforce in one direct pipeline across all channels," said Cohen. "In the past partners didn't get the 'A' leads because they sat in the Salesforce system."

The Salesforce ideal is that partners and vendors work together seamlessly through an integrated PRM-CRM offering that is accessible anywhere, anytime, over the Internet.

"If you think about CRM, leads, contacts, opportunities; why wouldn't you do that with your partners?" asked Collins.

"Now your partners are an integrated part of your core selling efforts. You have one sales force, one comprehensive view of everything that is going on. Before you had islands of data. Now everything is available to executives who can customize channel programs without the spending initiatives that traditional software requires."

All the way back to the demand chain and supply chain, users can make decisions based on supply and demand. Plans can be reviewed, status checked, and cash flow and bottom line reviewed and improved.

"End users get better served quality, better deals, up-to-date product info, a rep from the reseller who can ask the right questions and diagnose problems, and better distributed service," said Collins. "Customer relationship management is about forging better relationship, not just from the vendor perspective, but also from the customer's perspective."

In addition to a base subscription of Salesforce Enterprise Edition or Unlimited Edition, pricing for Salesforce Partner Edition will be $1,500 per partner, per year, and includes subscriptions for five partner employees.