"The Entomo SmartHub®, is a mission-critical Channel Control and Revenue Management Solution (cCRM) for companies that sell through various distribution channels. It provides decision makers with key business intelligence to manage revenues and sales operations. It is typically deployed by companies who need to replace ad-hoc databases and spreadsheets with a robust, automated, auditable system that enables next generation revenue management and sales analysis."
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Infor mation Technology and Services
CxOs Choose Entomo cCRM to Boost Bottom Line
Background - The globalization of marketing and sales has demanded that companies utilize channel partners to extract the best market share and service possible. Channel partners could come in the form of distributors, VARs and retailers. It is common practice to incentivize these channels with financial and customer oriented programs to increase sales. The programs are known by different names: Rebates, Special Pricing Authorizations, Ship & Debit, Price Protection, Coop and MDF, and many more. These incentives are popular because they are effective in increasing revenues. However, there is a downside. When a company has more than a few channel partners, they run the risk of leaking revenues due to improper management and monitoring of these incentive programs. In some cases companies can lose 5% - 10% of channel revenues and be unaware of it.
The Situation - Multi-channel organizations also have multi-market channel incentive programs. While this increases sales, it is also one of the most complex and costly endeavors that a company can initiate. Revenue leakage through inaccurate raw data, overpayment of channel incentives, unqualified returns, timed promotion errors and out of stock issues, among others, can rapidly decrease profits. These losses are often not recognized due to lack of data integrity and data analysis. Typical issues with channel incentive management are policies, processes and systems that become fragmented, inconsistent, and highly manual. An example of detrimental revenue leakage is below. The table illustrates a typical revenue leakage scenario and the cumulative effect of leakage on the top line for a company with sales of $1billion.
The Solution - Entomo’s integrated SaaS solution collects, cleanses and enriches partner reported POS data, reconciles channel inventory, and validates incentive claims. Manual and error-prone activities are automated leading to quicker period-end incentive reconciliation, timely prevention of abuse and recapture of leaked revenues. Through these feature rich modules, companies can simplify and standardize their processes world-wide, and consolidate systems supporting the management of sales incentives to:
• Increase the internal efficiency of managing incentive expenditure over the entire investment lifecycle, reducing cost, cycle time, and error.
• Ensure regulatory compliance (SOX, SEC, etc.) by reducing the potential for program manipulation and errors
• Increase ease-of-doing business and customer satisfaction by simplifying the claims process, paying partners faster, and reducing the claim disputes
• Improve corporate visibility across the entire incentive program lifecycle to enable better decision making.
Summary- Active and automated management of incentive programs is required to eliminate revenue leakage and maximize profits. Entomo is the leader in fully integrated “out of the box” Channel Control and Revenue Management Solutions (cCRM). Decision-makers at global market leaders like Agilent Technologies, Dolby Laboratories, Kingston Technology, Targus International, TriQuint Semiconductor, and Zebra Technologies have chosen Entomo as their solution to boost channel performance. Please contact us if you would like to learn how we might be able to help you as well.