Manufacturers: Are You Overpaying on Promotional Incentives?

New study from Forrester Consulting and Revitas shows the value of integrating contracts, pricing and compliance management

According to new findings this month, 37 percent of surveyed manufacturing and technology companies experienced estimated revenue losses of between 11 percent and 50 percent by overpaying on promotional incentives.

Commissioned by Revitas, Forrester Consulting’s study determines how the management of sales contracts, pricing incentives and promotions impacts the effectiveness of channel partner relationships in the manufacturing and technology industries.

“The Power of Three: The Benefits of an Integrated Approach to Contract, Revenue and Compliance Management,” study revealed that manufacturing and technology firms use promotional programs extensively but not always effectively. Some 51 percent of survey respondents use post-sales incentives in 50 percent or more of their channel sales deals. However, gaps in many companies’ underlying processes and systems have a significant financial impact. Furthermore, systems limitations prevent improvements to sales contracts and pricing incentive structures that would drive more revenue.

“I believe that the results of this study reinforce the power and value of Enterprise Revenue Dynamics in the manufacturing and technology industry,” said Al Smith, President and Chief Operating Officer at Revitas. “Within this competitive landscape, channel partner relationships are vital to profitability and growth. Yet companies increasingly struggle to manage the growing variety of rebates, rules and distribution channels. An enterprise solution that integrates sales contracts, post-sales incentives, and compliance enables organizations to drive incremental revenue, improve partner relationships and increase financial accuracy across key business processes.”

Revitas will host a Webinar with Forrester Consulting on June 13th to discuss the findings of the research study. For more details of the study or to register for the Webinar, visit

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