Key Growth Strategies Identified
Vendavo’s research uncovers the primary growth drivers for manufacturers and distributors in North America and Europe. The study indicates that these sectors are enhancing their channel/partner programs (60%), implementing rebate/incentive programs (56%), optimizing prices (54%), and utilizing advanced sales processes and tools, also known as revenue operations (RevOps) (54%).
Eric Carrasquilla, CEO of Vendavo, notes that the current volatile global economic climate is prompting these sectors to shift their financial strategies. He emphasizes the importance of unifying pricing, selling, and rebate strategies for growth.
Challenges and Opportunities in Implementing Growth Strategies
Despite the effectiveness of rebate programs, with increased revenues reported by 86% of North American respondents and 78% in Europe, these initiatives are also seen as costly and operationally challenging. More than half of the respondents (51%) still rely on in-house applications or manual processes to manage rebates, despite the benefits of purpose-built automation.
Price optimization is another crucial growth driver. Manufacturers and distributors employ various pricing approaches, with a value-based pricing approach most commonly used by manufacturers (23%), while 23% of distributors rely most on a market-based technique.
The implementation of AI is seen as a significant challenge, with 18% of finance teams considering it their primary challenge in the next 12 months. However, progress in AI could assist manufacturers and distributors in understanding customer expectations, their second biggest challenge (14%).
Vendavo’s study sheds light on the key growth strategies and challenges faced by the manufacturing and distribution sectors in North America and Europe. By embracing channel enhancement, rebate programs, price optimization, and advanced sales tools, businesses in these sectors can effectively navigate the changing economic landscape and achieve sustainable growth in the coming years.
