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The Hidden Benefit of Rebate Programs

by Stephen Zocchi , Product Marketing, Model N August 10, 2017

In an increasingly competitive business climate, being able to effectively segment and target end customers is critical to sales success. This becomes even more challenging for companies that rely on indirect sales through channel partners for a large portion of their business.

In a survey of manufacturing companies with indirect channels sales done by Model N, only 34% had good visibility into both end customers and end customer market segmentation. In addition, while the majority of respondents could identify who their partners were, they could not reliably identify what target markets their partners served.

When polled on how they collected data on channel partners and the markets they served, 74% relied on self description by their channel partners in identifying the markets that they served. Only 43% of companies did any analysis of their POS data to correlate channel partner segmentation with end-customer segments.

Rebates Fuel A Data Engine

While the typical focus for implementing a rebate program for channels partners centers around better control of pricing and discounts, adding tools to better manage inventory, and more effectively engaging the channel to increase market share, there is a hidden benefit to a well implemented rebate program. Rebates can deliver significant benefits for data collection and analysis.

Effective end-customer segmentation and channel strategies increasingly depend on data-driven insights. Rebate programs provide the flexibility to design incentives for particular end-customer and partner combinations, and backed by a modern, cloud-based rebate solution like Model N Rebates Management, provide near real-time visibility into program performance, channel partner strengths and sales growth within targeted end-customer segments.

This hidden benefit applies equally well to direct customer rebate programs, and the rebate program itself provides an additional avenue for engagement with the end-customer, helping sales to better understand customer buying patterns, customer business needs and what they want from your company. Rebate programs deliver data to sales that can not only help them drive revenue, but also build better relationships and loyalty with the end customer.

Still, for many companies today rebate programs are managed using spreadsheets and considerable manual effort – burning time and precious resources. Download our new eBook “Overcoming the 3 Challenges of Channel Rebate Programs” to learn how companies can drive better results from their rebates programs more quickly, at lower cost, and capitalize on the hidden benefit of better data as well.

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