Insanity is described as doing the same thing over and over again and expecting different results. Organizations who believe in doing things a certain way just because that’s the only way it has always been done may stand to lose when it comes to offers and promotions. We propose getting off the hamster wheel and thinking about it differently.

We know Incentives, Offers, and Promotions are some of the complex and time-consuming programs you create. So, we have identified the following situation and subsequent opportunity to reduce the paralysis by manual analysis:

The Situation

  • A highly manual environment that includes data feeds, excel spreadsheets, errors, rework followed by rework.
  • Lack of visibility in the process and reports that are manually generated
  • No intelligent process automation from start to finish.
  • Increased complexity due to the frequency and volume of Offers coupled with the increase Tiers and Terms for various Models

The Opportunity

If you could transform you organization, enabling it to set consistent spending guidelines and to adopt a data-driven decision-making process to optimize incentive campaigns
  • Steer Incentives based on facts, not just experience
  • Incentive spend structures to align with budget and sales objectives
  • Run automated analyses and intelligent reporting to support interventions
  • Build incentive spend management capabilities in target markets and shift the organization toward making this a signature element
  • Develop management visibility (low/medium/high levels) to the incentives offers and budget/planning process.
  • Optimize Incentive spend by eliminating error in incentive planning.
  • Be customer-centric in the way incentives are set – consider and understand the amount of dealer incentives passed on to the customer.

According to McKinsey – Center for Future Mobility, July 2018 “Boosting Car Incentive Effectiveness” a dynamic approach to incentive-spend management, based on these rules, can drive ~5 percent improvement, which translates to approximately $250 million to $500 million in yearly impact for a $50 billion automaker (with $5 billion to $10 billion incentive spend baseline).*

PEGA/EvonSys provides an opportunity for the OEM to increase employee satisfaction by limiting manual work, allowing for more focus on current market trends, thus optimizing spend, by model/trim/region, and allowing for increased productivity/profit.

 

Benefits:

  • Reduced time of planning and more time analyzing market data to optimize spend
  • Reduced time changing rates leveraging rules and quick updates
  • Full view of all key elements to design, plan, and adjust incentives
  • Match to offer PNUR and Total PNUR
  • Ability to use similar methodology for Lease, Cash, Captive Cash, Dealer Volume Bonuses, VPP, Military Cash, College Grad, etc.
  • Ability to export to excel for financial/accounting review
  • Ability to export to Tableau for PowerPoint
  • Ability to export to PowerPoint for premade slides
  • Ability to intake all data elements from Captive rates to current offers, to Historical data

 

Question to consider

How would you reallocate 2% of your Incentive Spend?

 

We believe that an intelligent process automation to promotions and offers (Incentives), supported by flawless technology and digital platforms, is the top strategic advantage in a highly competitive market. Together, EvonSys and Pega can help bridge organizational and functional gaps for better collaboration and more effective incentive management.

 

About the author : Ted Brumm

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