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channel-incentives-management

Problems We Solve

Channel Incentive Programs

B2B firms distributing their products through partners rely on channel incentive programs and promotions to support and grow revenue. These tend to fall into 3 major categories:

  1. Rebates, SPIFFs and co-op / MDF programs;
  2. Pricing compliance programs like Ship & Debit, Special Pricing; and
  3. Quoting or inventory programs such as ‘rights of return’ and price protection.

Managing, implementing and ensuring compliance for channel incentive programs is a complex and time consuming task, and the financial downsides are significant. It is virtually impossible to effectively promote, manage, and measure the success of channel incentive programs via manual processes and ad hoc systems. The lack of streamlined and automated processes can lead to incorrect overpayment of claims, costing millions each year. Incorrect channel incentive management can also lead to incorrect revenue recognition and sales commission payments.

While incentives can be very effective for boosting sales, they can also be expensive exercises that generate more buzz than real return on investment.

“Our partners are pushing our products more aggressively. We’ve cut approval cycles from weeks to days and shortened time-to-pay partners by 70%.”

- Bob Harrah, Program Manager, Sales Operations, TriQuint Semiconductor (now Qorvo)

How are you tracking program ROI?

Unless you have the right information tools in place for tracking the front-line activity generated by channel incentive programs—and then correlating it with real outcomes such as sales revenues, gross margin, product mix objectives, market share goals, etc.—you really can’t evaluate the payback.

In the best case, some of your incentive programs will produce improved sales, but you still won’t know the real impact on your profitability and overall business goals. Worse yet, incentive programs can actually cost you more than they contribute and erode both your channel effectiveness and bottom line.

The lack of an automated and unified channel management system can lead to overpayments and underperformance of incentives, with risks of revenue leaks, partner frustration and even some partners gaming the system to reap incentive rewards that don’t align with your goals.

Entomo's channel incentives management solutions

Entomo’s integrated channel management solutions enable companies to streamline and automate the entire request-approve-claim-validate-authorize-payment cycle for incentive programs. This gives channel marketers the ability to holistically manage end-to-end incentive processes and also see all of the details with tight correlation to your intended goals.

Reduce your channel incentive overpayments and improve performance with these Entomo SmartHub modules:

  1. Channel Data Management (CDM) Suite
    Your first step to better forecasting. Realtime POS and inventory data are captured, cleansed, normalized and enriched for consistency and "one system of truth."
  2. Pricing Compliance
    Entomo supports worldwide quote creation and compliance, Distributor Price Adjustment (DPAs), Ship & Debit programs, Special Pricing Authorizations (SPAs) and Price Exception (PE) requests, and other compliance programs.
  3. Channel Incentive Programs
    Co-op, MDFrebates, SPIFF and other channel incentive programs can be created, approved, verified and managed while automatically feeding into finance for revenue recognition.
  4. Inventory Programs
    Channel-centric companies often employ inventory protection programs to partners rather than allow unlimited rights of return. Manage, approve and reconcile stock rotation, price protection and other inventory programs. 

 

Key benefits include:

  • Reduced overpayments due to invalid claims
  • Accelerated rebate payments
  • Real-time analytics and ROI on channel marketing campaigns
  • Improved program effectiveness
  • Higher partner satisfaction

By tying the process together with closed-loop feedback mechanisms, you can simultaneously avoid partner frustration with payment issues and also make sure that all players in the channel are getting exactly what they deserve.

Entomo not only helps improve the effectiveness and ROI of each channel incentive program, but also makes your whole channel marketing process more agile and responsive to shifts in market dynamics. Companies that actually know what is working and why are better positioned to quickly spot and take advantage of new opportunities for growth and market expansion.

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