Award Winning Author and Entrepreneur Andrew R. Thomas, Ph.D, Discusses the Effectiveness of Channel Incentives for Dealers, Resellers, Distributors, and Other Partners
Cleveland, OH – December 16, 2015 – In an article published yesterday by Industry Week, author Andrew Thomas writes, “Historically, the belief is that by enticing channel partners with tangible financial rewards, attention by those same partners will be refocused on a specific product or line… (but) when we dig deeper into the effectiveness of channel incentives, we find a huge hole exists when it comes to billions of dollars that are simply unaccounted for.”
The complete article is published here: http://goo.gl/ouLM2v
Thomas cites an analysis by Zyme, the pioneering developer of cloud-based channel data management solutions, showing that of the approximately $1 trillion of sales in the tech sector, around 20% is paid back through performance incentives to channel partners through rebates, discounts, and sales incentives. The total of the incentives, Thomas writes, is close to $200 billion, and 10% of that amount is either over-claimed or paid to the wrong entity.
As Thomas notes, this adds up to a neighborhood of $20 billion in misallocated funds for tech companies and, “If we assume, for a moment, that the numbers from the high-tech sector are somewhat applicable to the industrial side, we are somewhere – conservatively - around $50 billion in the misallocation of channel incentives and loss in inventory value.”
About Andrew R. Thomas
Andrew R, Thomas, Ph.D, serves on the faculty of the University of Akron, and has seen international success as an author and entrepreneur. His recent book, “The Customer Trap: How to avoid the Biggest Mistake in Business,” was a highly anticipated sequel to his award-winning “The Distribution Trap: Keeping Your Innovations from Becoming Commodities” with co-author Timothy Wilkinson, both of which have sold to stellar reviews on Amazon.
IndustryWeek, based in Cleveland, OH, focuses on manufacturing and industrial companies, trends, technologies, lean leadership, workforce best practices, and production processes. IndustryWeek is published by Penton, headquartered in New York, NY, an information services company that drives performance for nearly 20 million professionals every day. For more information, visit http://www.industryweek.com/supply-chain/how-lose-50-billion
Zyme is the global leader in the emerging channel data management (CDM) space, empowering the New Smart Channel™, a proven approach to creating visibility to actionable knowledge that manufacturers need to accelerate partner sales and optimize marketing program ROI. Zyme's flexible, cloud-based offerings facilitate enterprise-grade decisions by responding to real-time, granular channel intelligence. Benefits include better-targeted MDF, co-op, and rebate programs, plus improved segmentation. Zyme replaces outdated, ad-hoc systems with a state-of-the-art, cloud-based platform, data steward services, and a worldwide channel directory of more than one million partners for guaranteed database quality, support for a wider range of formats, and best practices that enhance reporting compliance. Industry leaders like Dell, Microsoft, VMware, Fujitsu, Plantronics, Honeywell, Xerox, Symantec, Lenovo, GoPro, Armstrong World Industries, and Seagate rely on Zyme. Headquartered in Redwood Shores, CA, Zyme has offices in Texas, China, India, and the UK. For more information, visit www.Zyme.com
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MediaBridge Public Relations®
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