Unlock sales channel potential with incentive data
Most manufacturers do not lose any sleep wondering about their incentive program data. Among the list of competing priorities, the idea of administrating incentive programs can be viewed as a burden, especially when programs in the past were a burden. Maybe a manufacturer’s channel sales partners were either uninspired by incentive programs in the past or there was no measurable impact to the company’s bottom line but either way, incentives are typically not viewed as a point of leverage. According to a Contracting Business report, incentive program data has the ability to unlock sales and create significant profits for a manufacturer. By properly leveraging and managing their incentive claim data, manufacturers can effectively grow their business.
“Incentive claim data can grow a manufacturer’s business.”
Effective incentive claim data management
Regardless of the size, visibility or market penetration of the company, if relevant claim data for incentives is not collected along the way, it can create some false beliefs about success. For example, recently 360insights was contracted by a large global brand with a great and loyal consumer base, tremendous visibility and penetration in its target markets and a reputation for high quality and reliable products. But, the manufacturer had one false assumption about a primary contributing factor to its success: The company believed it had fully saturated distribution in the continental U.S. market, and had no remaining territories in which to expand. With its growth prospects in question, the company contemplated its next steps.
Without a proper incentive claim data management system in place, the company could not adequately test these beliefs. So they brought in 360insights to validate the data – and these beliefs.
Misconception: Saturated Distribution
We conducted testing of this belief by using data from random customer rebate claims from the manufacturer’s claims database. From there, we were able to construct a buyer profile for all of the company’s product lines based on factors such as installation addresses, purchased products and various buyer data.
With buyer profiles, we compared this data with income and home density information from the U.S. Census Bureau by zip codes. From there, we could build a “heat map” that identified the manufacturer’s prime seller locations.
We discovered that there were gaps in the company’s market penetration. Though certain channel sales partners were supposed to sell to multi-state areas, data revealed that they mainly sold to consumers within 50 miles of their home base. The result was that some states had substantially higher sales rates than others, despite having similar population densities.
We were then able to show the company that there were opportunities to open more doors in the underserved territories, which they once thought to be saturated. As a result, following the implementation of this new incentive program, the company was able to unlock sales of more than one percent within a two-year period from top-line producers.
This is just one example of the revenue growth opportunities that can be revealed from your company’s existing incentive claim data. Not only can it be leveraged to reward high performing channel sales partners, but it can provide accurate customer profiles and targeted areas for aggressive – and rapid – growth prospects.