How do you know if your new Licensing Relationship Management system is working? If you're scratching your head, don't worry. You're not alone.
Using a new LRM without setting measurable goals is like driving a car. At night. Without headlights.
It can be hard to spot the warning signs.
Luckily, Flowhaven is here to help.
Here are some clear indicators your LRM may not be working.
Adopting an LRM is an exciting adventure. When implemented correctly, the system can radically transform the way you work. LRM will prioritize your partner relationships and give you all of the tools you need to nurture licensing programs fans will love.
Because the benefits of LRM are so great, most people don't think of measuring their success until they encounter a problem.
If clear goalposts aren't set up from the start, you will never know if your LRM initiative truly met your business needs.
Setting up goals at the start of your LRM implementation can help you to do three things:
1. Help explain why you chose an LRM system
2. Communicate the goals you want to achieve company-wide
3. Know when to schedule regular check-ins and follow-ups
In this post, you'll learn how to:
We'll teach you how to establish clear baselines. Then, set goals to work toward. These goals will help you track the LRM project's success and see if you met the success markers you set for your team.
A baseline is like a bill of health for your licensing operations. It helps you understand where you are today with business goals and metrics and how you might need to improve.
Suppose your company is dedicated to growing its licensing partner base. In that case, you need to know how many new partners your company signed after adopting an LRM. Look at how your partner acquisitions have been over the last 3-5 years and compare the two numbers.
If you're more interested in improving partner retention, your baseline could be the number of partners your company lost in the last fiscal year. You can look at why you lost partners in the previous 3-5 years. Then split the numbers by partner category so you can see where you were most impacted.
You can also set baselines for the following:
• Sales activities
• Product approval activities
• Missed launch dates
• Partner satisfaction
• Partner recoupment rating
To help map your baselines and goals, we've developed a handy table:
If you don't see your role listed, feel free to copy the chart. We don't mind.
Goal: Increase revenues
Goal: Improve campaign response rates
Goal: Improve customer satisfaction
Business challenges vary from company to company. And every company has a different vision for their LRM.
One company's challenge could be centralizing licensing information and improving productivity. Another company's challenge could be to improve partner retention and increase overall efficiency.
Even departments have different goals. If you are in branding, your success measurements will be different from your brand assurance colleagues. The sales department might need to measure the number of open cases, closed agreements, activities completed per team member, etc. Meanwhile, the brand assurance department might need to measure the response time, how quickly requests are replied to or products fully approved, etc.
Think about the number of times you said you'd get fit after New Years'. Or finally, learn French. Setting a goal isn't enough. If you want to achieve success, you need to set measurable goals to track and progress toward them each day easily.
To make measuring your goals easy, try SMART goal setting. Specific. Measurable. Achievable. Relevant. Time-bound. This will help you set clear intentions, so you have a clear plan of action for achieving your goals. You'll also eliminate guesswork.
Now, let's break down SMART.
Specific: Your goals need to be specific. Your plan will feel much harder to complete and stick to if they aren't.
Measurable: Whether it's through analytical data, performance measures, or direct revenue, ensure your goal is quantifiable.
Achievable: Be honest with yourself- is the goal you laid out realistic? Consider the time and resources at your disposal and ask if what you want is possible.
Relevant: Why do you want to reach this goal? Make sure every objective supports your big picture goals and brings you closer to success.
Time-bound: For a project to matter, it needs an exact timeframe. Without it, you run the risk of wasting resources and money on a project that won't bring you any closer to your goals.
Some SMART goal examples:
Specific: I want to find a Fortune 500 licensing partner to elevate my brand licensing company portfolio.
Measurable: My team will increase the number of partners I reach out to every month by 12.
Attainable: To improve my work-life balance, my team will reduce the time they spend on easily automatable tasks.
Relevant: I want to expand into EMEA because customers have requested my brand's presence. We're currently excelling in digital marketing practices, and a full-scale licensing program would be a guaranteed success.
Timely: Within the next year, we will expand into two new retailers, hire a new agent, and scale.
Ninety-two percent of people fail to reach their goals. Your team doesn't have to be in that number. Reach your goals by setting targets and objectives alongside your team and discover just how successful you can be.
To kick things off, you might want to try to set a handful of goals today. Here are 4 that Flowhaven customers love and how LRM can help you meet them.
What you want: to keep partners coming back again and again.
What you need to focus on: The 'R' in LRM. Keeping your customers happy will guarantee they choose to do business again.
According to the Salesforce State of the Connected Customer study, 84% of business buyers are more likely to buy from a company that demonstrates an understanding of their business goals
You're invested in your partnerships. LRM helps you prove it. You can track their activity, keep records of conversations, and get to know them better — then strategize to encourage loyalty.
When customers feel heard and appreciated, they're more likely to hang around.
LRM gives you insight into your customer behavior from a bird's eye view. Look at any accounts who have churned in the past — ask what they have in common? Figuring out common pain points lets you proactively manage the relationship.
A SMART approach to this goal might look like the following:
A. Too many of my apparel manufacturers leave after one deal. Repeat partnerships improve our reputation and cut costs.
B. We will decrease partner churn by 40% by the end of the year and measure our progress with LRM.
C. To be successful, we will use our new LRM to communicate more effectively and share important partner information across our internal teams.
What you want: To meet and secure deals with the people who can drive your business forward.
What you need to focus on: Getting to know the right people and proving you're a good partner to work with.
In a perfect world, every time you made contact with a potential partner, they would want to strike a deal with you right away. Here on Earth, it's a bit more complicated.
Use your LRM software to figure out why your best partnerships worked.
- Age of company
- Audience (Age? Gender?)
- Price point
- Length of partnership
- Website visits
- Trade show meetings/ booth visits
- Brand awareness
- Payment speeds
These answers will help you set standards for measuring future leads. You'll assign value to certain characteristics and behaviors and know if a potential partner is a fit from the very first conversation.
Your Licensing Relationship Management software which opportunities your team should focus on. And which they shouldn't.
When your team can dedicate their attention to making deals with qualified leads, you'll form better quality partnerships faster. These leads are more likely to become loyal repeat partners. Your team can call on them to launch new licensing ventures in the future.
The SMART version of this goal might look like this:
In brand licensing, it's fairly common for brand owners to have outstanding invoices for royalties at any given time. Some royalties take longer to pay back. Some will never make it to the brand owner's desk.
What you want: To balance your bottom line.
What you need to focus on: Developing an error-proof system for calculating royalty rates and tracking the recoupment process from the first sale to the last.
Your LRM system can help you calculate and set royalty rates, send payment reminders, and validate incoming reports against sales and agreement data.
When you have a laser focus on tracking royalties, you minimize risk and keep partners accountable. Recouping your licensing royalties in full will help you accurately assess your brand's health and (if needed) give you additional capital to invest in your core brand.
Now, for the SMART version:
If you're a dreamer, thinking up LRM goals without investing in a system that can help you execute them is okay.
But if you want to turn those dreams into a reality, you need to start asking which LRM solution has all of the tools you need to go the distance.
How do you know if your team is fostering relationships with the right potential partners? Where do you keep information about your business relationships? How do you measure their success?
When you want clear information, you'll wish you had a centralized LRM suite that gave you the power to manage accounts, agreements, finances, and everything in between. You'll wish you could do it any time and from any device.
You'll need Flowhaven.