Rebate Re-Engineering

Challenge

Our client, a multi-national corporation, had an extremely complex customer rebate program. There was no standardization of the 150 separate programs. It was difficult and costly to administer internally and did not incentivize the right customer behaviors for profitable growth.

Engagement

We engineered a new customer rebate program that encouraged the right behaviors and discouraged the wrong behaviors from distribution customers. We modeled the financials and tracked the new proposed program versus the current program over a period of months to fully understand the impact on rebate expenditures as well as margins. We then crafted the story internally and externally and worked with the client to seamlessly transition from the old program to the new one.

Results

  • A standardized philosophy and methodology for customer rebates
  • A simplified and faster administration process for the client and its customers
  • A simple program that incentivized growth and mix improvements while discouraging defections
  • Reduced annual rebate expense by over $250,000