If you are a business operating with rebates, then rebate management is a must have. The best rebate management software helps you to increase revenue opportunities, manage administrative processes, and even promote better relationships with customers.
In this article, we will look at both customer rebate management software and vendor rebate management software to see how they help streamline the rebate management process.
Rebates are retrospective financial incentives that are based on actual sales. Rebates are used to boost sales growth without having to touch the contract price.
There are different types of rebates, such as those used to reward customer loyalty or those used to promote increasing trade with a specific partner.
Rebates impact a company’s profit margin and affect the bottom line since they are recorded as revenue. That’s why it is of utmost importance to track and maintain rebates accurately. Doing so manually can quickly become overwhelming, complicated, and error-prone. That’s why so many organisations leverage the aid of rebate management software to automate the processes involved.
Rebate management entails the process of recording rebate agreements, tracking sales with rebates, managing accruals, and paying out rebate claims per the agreements. Regardless of the number of sales, rebate management can quickly get out of hand within businesses. This could be due to having broken and inefficient processes in place, legacy systems that are disconnected, and teams who already have too much on their plate to manage.
When rebate management is operating smoothly, small businesses are likely to notice a massive impact on their bottom line. For large businesses, an increase in efficiency will also be noticeable because a small change could actually affect thousands or millions of dollar’s worth of sales.
Depending on your company size, available systems, and processes in place, rebate management can spur different types of challenges.
With that being said, let’s check out these three common challenges that most companies will expect to face when managing rebates. Then, we will get to how to overcome the challenges using rebate management software.
Not every customer will be incentivized by the same rebate program. It’s useful to segment customers along different stages of the sales funnel to address their desires using a rebate program. This way, you can maximise the effectiveness of rebates.
For example, a customer who purchases often may prefer a volume rebate incentive over one that is geared towards boosting brand loyalty (since they are already loyal).
Regardless of how many different rebates that are currently being offered, companies that manage rebates using spreadsheets will fail to standardise the process. Having multiple non-standard documents will affect how your organisation passes rebates onto customers and is likely to cause issues down the line.
It’s a priority to track and reconcile rebates using sales invoices against the rebates being offered. Manually, this is a heavily time-consuming process that can lead to customer dissatisfaction when inevitable errors are made.
Along with customer dissatisfaction, your employees may feel unmotivated and overwhelmed with tracking and reconciling manually due to the intensive and tedious nature of the process.
Rebate management software is a connected digital solution that handles rebate management. Rebate management software can collect data from various business systems, model and monitor deals, and provide real-time information for each department that needs it.
Rebate management software automates management. The software will record the agreement type, track purchases and sales against said agreements, produce reports, and allow for forecasting, to name a few features.
Rebate management software is equipped to manage both vendor rebate agreements and customer rebate agreements. Using the tool of your choice, you can specify rebate agreements accordingly for tracking and payment purposes.
Rebate management software eliminates the challenges associated with rebate management. That’s because rebate management software automates the rebate relationship between business and customer or vendor and business.
The software helps to facilitate agreements, negotiations, pricing, and tracking. With the streamlined processes, rebate software results in time savings, accuracy, quicker service for customers (which leads to satisfaction), and analysis.
When you perform rebate management manually, there’s a lot that can go wrong. Think about this scenario: you have one employee only in your accounting team responsible for all rebate-related sales invoices from various sales teams in the region.
The accounting professional manually tracks and reconciles invoices using a spreadsheet. The chances are high that some data is misplaced or recorded incorrectly as it is. But, imagine the day that said employee calls in sick and the sales team is still selling.
Now, you have a backlog based on this key person dependency. If someone else can step in, they may have trouble locating the spreadsheets and data they need to keep the records running accordingly.
Rebate management software eliminates the need for spreadsheets, as well as key person dependencies. With an automation solution like SolveXia, all data is securely collected, stored, and maintained in a central repository with access controls.
You no longer will have to spend time locating data, tracking sales, transferring spreadsheets, or looking for errors. Instead, your team can spend their time on high-level accounting responsibilities and strategy.
Additionally, the rebate management software provided analysis and forecasts so your accounting team can rather work alongside sales and marketing to devise optimal rebate agreements based on historical and predictive future sales.
Rebate management software benefits multiple departments within an organisation that has rebate agreements.
Finance teams that use rebate management software get to free up their time from manual work, can fulfill rebates with greater certainty, keep track of agreements, and manage rebates in real-time.
Executives gain peace of mind knowing that the rebate management processes are running smoothly and are fully compliant. They can also get a bird’s eye view of how sales are performing and whether or not the rebate program is working as expected.
Distributors benefit from being able to take control of income from suppliers that happen after the point of sale due to rebates. Accounts receivables become easier to manage.
Manufacturers get to maximise the return on rebates and develop optimal rebate agreements using customer segmentation best practices.
Sales and marketing teams use rebate management software to track their progress and negotiate the best rebate deals.
It’s hopefully clear as to why you’d want to use rebate management software. And, if you’re reading this, you’re likely already on your journey of finding the best rebate management software to fulfill your business’ needs.
To help you on that journey, here’s a brief description of some of the best performing and most popular rebate management software tools:
SolveXia is an agile, cloud-based, no-code/low-code rebate management software solution. SolveXia automates rebate calculations, reconciliation, and the reporting of rebates. The solution is easy-to-use and easy-to-understand, no matter how much technical acumen you possess. Many organisations use SolveXia to manage their rebates, with a critical benefit being significant (10x) gains in team productivity.
What sets SolveXia apart is its extensibility, along with the ability to be designed, managed and maintained by subject matter experts (SMEs). This includes supporting the most problematic and taxing data in-gestation, management, reconciliation, workflow, and reporting challenges found within complex rebate and commission processes.
Along with the rebate management solution, SolveXia also offers non-rebate finance automation across various finance functions so you get more bang for your buck. With SolveXia, teams work faster and enhance collaboration and approval workflows across internal and external stakeholders.
You can request a free SolveXia demo and get a customised quote to meet your business needs.
Enable’s collaborative process can be used to calculate, accrue, and allocate rebates. With analysis, modelling, and forecasting tools, Enable helps buyers and sellers review the impact of their rebates. The performance dashboard also makes performance metrics quickly accessible to anyone who needs to check them.
Flintfox is another rebate management software that automates rebate claims, payments, and deductions. The software can be used to structure complex trade agreements. Some of Flintfox’s prominent features include its ability to integrate with ERP systems, as well as its price engine. The price engine shows instant calculations to help oversee and adjust nuanced pricing, promotions, and rebates.
Salesforce’s rebate management software helps multiple departments who use it, but the system is geared towards sales teams. It allows for salespeople to view their incentive attainment progress, historical payments, and account activity within the CRM. At the same time, business leaders gain access to program performance in real-time.
The best rebate management software has the power to eliminate the challenges that come along with rebate management. For any business that deals with rebates, automating the process results in increased performance, happier customers, time and money savings, and greater visibility.
Along with the management aspect, they allow for forecasting and analysis to devise and implement rebate programs that can maximise your bottom line and drive more sales.
These streamlined and consolidated processes produce and validate calculations for each customer, and allow staff to focus their precious time on strategic initiatives over manual, often spreadsheet-based, data entry, calculations and reporting.
Rebate software like SolveXia provides a robust financial automation solution that helps finance and accounting teams maintain and automate the calculation, reconciliation and reporting of rebates for vendors and customers.
It helps you get on top of your most complex, non-standard rebate programs giving you better accuracy, improved business performance and the ability to better manage disputes.
Interested in seeing how you can simply deploy rebate management software in your organisation? Request a demo with SolveXia’s team today!
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