SAN MATEO, California –BUSINESS WIRE) – Model N, Inc. (NYSE: MODN), the leading provider of cloud revenue management solutions, today announced the results of a new research study on revenue management and channel strategy in high-tech manufacturing and B2B Known software company. Model N commissioned a study conducted by Forrester Consulting that surveyed 211 executives responsible for revenue management and channel strategy and their feedback on the status of channel processes and the actions companies are taking to to improve the effectiveness of their channel programs.
The survey found that it is difficult for companies to automate channel revenue processes across systems, although they see it as extremely valuable. More than 70% of the respondents stated that solution-based incentive management, automated channel data management and automated MDF management are very valuable in optimizing channel revenue processes. In addition, more than 65% of executives place the same value on automated discount management, channel partner portals and automated channel management. This shows that high-tech executives place great value on technology functions that can work together across data and organizational silos.
Revenue management concerns are prominent in the software and high-tech industries. The research identified the following barriers to optimizing sales decisions and profitability:
Short product life cycles (53%)
Lack of recognition / appreciation that the quality of sales data is an obstacle (52%)
Reliance on manual tools and / or processes (33%)
Lack of a unified view of sales data and channel activity (32%)
Technology silos (29%)
Inconsistent sales data entry (28%)
Poor data integration / merge capabilities (27%)
“These new study and survey results show that the sewer automation crisis is real. In many cases, data is isolated and there is a lack of general understanding of channel revenue processes, “said Chanan Greenberg, SVP and GM of High Tech at Model N.” Many high-tech and B2B software companies are due to isolated systems and processes literally blind. They leave money on the table because they don’t have the right tools to gather the timely, accurate, and actionable channel sales information that can make a big difference in protecting margins and revenue streams. ”
The business case for sewer automation
While modern channel software solutions exist, Forrester Consulting found that channel leaders are lagging behind when it comes to investing in and implementing channel tools that really work, and vendor-partner relationships are suffering. More than half of the companies (56%) rely on indigenous technology solutions to partially manage their channel revenue processes. Many of these in-house solutions suffer from overlapping functionality, resulting in separate data silos that are prone to duplicates, errors and inefficiencies.
In fact, the Forrester Consulting study states, “Organizations struggle to put a variety of channel tools and manual processes together, resulting in inferior channel data that doesn’t provide a clear and timely view of performance.”
However, executives see the value of end-to-end channel automation for uncovering high value opportunities and enhancing the partner experience. According to the study, “Decision makers place great value on solution functions that offer a more automated and uniform way of managing their channel processes and data from end to end.”
Jay McBain, principal analyst for channels, partnerships, and ecosystems at Forrester Research, given the current marketing environment, high-tech manufacturers and B2B software companies should try to create a holistic set of metrics and KPIs that accurately reflect channel effectiveness.
“Today’s increasingly complex channel environment means that once reliable partner performance measurements such as revenue levels, profit contributions, certifications and customer satisfaction surveys cannot correctly predict overall channel performance,” the report entitled “Unlocking the Performance of Partner Ecosystems” reads . “To be successful, B2B marketers and channel leaders must employ techniques that can measure the impact of growing ecosystems on the entire travel of the buyer, not just the transaction.”
The survey data confirms McBain’s claim. When asked if they could hypothetically improve the level of channel automation and integration, the responses were broadly positive. The specific improvements mentioned included:
Protect our margins from fraud (49%)
Improving the accuracy of our sales data (48%)
Protection of our margins from leaks (48%)
Strengthening / rewarding our best performing partners (44%)
Development of a unified view of sales data from sales channels (44%)
Improving the experience of our end customers (44%)
According to Greenberg, Model N’s revenue management platform was designed and built to automate channel revenue processes and drive sales and profitability success through more effective data management. “By integrating channel technologies and processes through automated, data-driven programs, brands can build more trust in their channel partners and generate more sales,” he said. “And research from Forrester Consulting shows that companies are ready to take advantage of channel automation – and now is the time to act.”
Learn more about the Forrester Consulting study
Channel Sales Data Drives Revenue and Profitability is a Forrester Opportunity Snapshot and Custom Study commissioned by Model N through Forrester Consulting. To produce the study, Forrester Consulting complemented existing Forrester Consulting research with a custom survey of 211 revenue and above decision makers and channel strategy makers. The custom surveys field started in October 2020 and was completed in November 2020. To learn more about how high-tech and B2B software companies can improve channel performance and generate a positive revenue impact, download the free Forrester Opportunity Snapshot here.
About model N.
Model N enables life sciences and high-tech companies to drive growth and market share, thereby minimizing lost revenue throughout the revenue lifecycle. With deep industry expertise and solutions designed specifically for these industries, Model N provides complete visibility, insight, and control over the complexities of business operations and regulatory compliance. Our integrated cloud solution has been proven to automate price, incentive and contract decisions in order to profitably scale the business and increase sales. Model N is trusted in more than 120 countries by the world’s leading pharmaceutical, medical, semiconductor, and high-tech companies including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and Microchip Technology. Further information is available at www.modeln.com.