Cost of Terms + Incentives
Terms and Incentives Analytics

The terms and conditions offered to customers should drive top line growth and contribute to bottom line. Most companies end up with policies that achieve the first objective at the expense of the second, meaning their revenue gains are offset or exceeded by a loss in profitability. This result happens when the terms and conditions designed as sales incentives have little or no regard for their cost or the inefficient customer behavior they incentivize. Avoiding this scenario requires companies to identify the customer behaviors that drive cost and then develop terms and conditions that incentivize efficiency to lower costs. Yield benefits from terms and incentives cost management by establishing conditions that customers expect while simultaneously attaching them to specific behaviors that drive cost efficiency and bottom-line performance.