News provided byVendavo
Aug 07, 2024, 09:06 ET
Channel/partner programs, rebate management, price optimization, and RevOps are leading strategies; implementing AI is the biggest challenge
DENVER, Aug. 7, 2024 /PRNewswire/ — CFOs in manufacturing and distribution report using a mix of financial strategies to drive growth and profitability, according to new research from Vendavo, the global leader in B2B pricing, selling, and rebate solutions. The 2024-2025 Top Growth Drivers Report for Manufacturing and Distribution reveals top strategies and their implications.
Vendavo’s research found manufacturers and distributors in North America and Europe are driving growth today and into 2025 by enhancing channel/partner programs (60%), implementing a rebate/incentive program (56%), optimizing prices (54%), and using advanced sales processes and tools, or revenue operations (RevOps) (54%).
“Unifying pricing, selling, and rebate strategies is key to growth,” said Eric Carrasquilla, CEO, Vendavo.Post this
“A volatile global economic economy is causing manufacturers and distributors to shift their financial strategies out of the status quo and into a mix of strong partnerships, smart pricing, and advanced sales and incentive initiatives,” said Eric Carrasquilla, CEO, Vendavo. “Unifying pricing, selling, and rebate strategies is key to growth.”
Customer behaviors and sentiments are evolving with economic conditions. Carrasquilla noted that a detailed understanding of market expectations paired with a quick response is the goal, because there’s no such thing as an effective one-size-fits-all response anymore. Manufacturers and distributors report they have ramped up their systems and processes enough to respond to change – 100% are confident they can do so. However, their challenge is how quickly they can react, with 94% reporting they have concerns about the speed at which they can adapt.
The report reveals the efficacy of these strategies and examines the data and collaboration they require:
- Manufacturers and distributors report rebate programs are widely effective but challenging. Increased revenues from these initiatives were reported by 86% of respondents in North America and 78% in Europe, and 85% say their customers love the programs. While these programs incentivize more purchases and increase revenue, 60% in North America and 70% in Europe say they are also costly and operationally challenging.
- Rebate automation is key. More than half (51%) of respondents report they rely on an in-house application or manual processes like spreadsheets and email to manage rebates, even though purpose-built automation eases the administrative burden and lowers compliance risk.
- Price optimization is part of the growth equation. Manufacturers and distributors rely on various approaches to price products and services, and often multiple simultaneously. A value-based pricing approach was most commonly used by manufacturers (23%), while 23% of distributors say they rely most on a market-based technique.
- Implementing AI is challenge number one. AI can bring a new level of intelligence to pricing, selling, and rebate strategies, but 18% of finance teams consider implementing it their primary challenge in the next 12 months. Making progress with AI could help manufacturers and distributors with their second biggest challenge, understanding customer expectations (14%).
Download Vendavo’s 2024-2025 Top Growth Drivers Report for Manufacturing and Distribution here.
About Vendavo
Vendavo empowers global manufacturers and distributors to accelerate growth and profitability with leading pricing, selling, and rebate management solutions. Companies like Emerson, Medtronic, and GAF rely on Vendavo to manage, optimize, and digitize their end-to-end commercial processes. Vendavo’s solutions, a team of pricing and selling experts, and proven process accelerates value and outcomes that are not only predictable but unrivaled. With Vendavo, the world’s most ambitious B2B organizations can develop dynamic customer insights and execute optimal pricing strategies that maximize margin, boost sales effectiveness, and improve the customer experience.
Vendavo is headquartered in Denver with offices in Czech Republic, India, and Sweden. For more information, visit http://www.vendavo.com.
SOURCE Vendavo