Cost of Sales Terms
Terms and Incentives Analytics

Sales terms and incentive programs are powerful tools to aid-top line revenue growth, but are typically measured at a macro level like product category or customer segment. This approach often creates sub-optimal programs that generate disproportionate growth in your overall cost structure. To avoid profit leakage, you must do two things: establish a more granular view of the cost of sales terms and incentives within the business, and create a process to evaluate the downstream impact of those agreements.

ImpactECS provides the platform to calculate and align the cost of your terms and incentive programs with the individual customers and products that benefit from them. With this level of detail available, you can optimize terms and incentives to ensure that top-line growth does not come at the expense of bottom-line performance.

Get clarity on how terms and incentives affect your profits

  • Evaluate program effectiveness: Calculate and measure the operational cost impact of volume incentive programs
  • Close the incentive loop: Improve program profitability by auditing customer compliance with terms and incentive requirements prior to reimbursement
  • Empower sales, marketing, and product teams: Provide territory and category managers with detailed program cost answers to develop more targeted terms and incentive programs
  • Test program performance: Run what-if scenarios to assess the impact of planned incentive programs on both top and bottom line revenue performance

Resources

It Starts with Costs

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Cost Allocations: Gaining Actionable Insights

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Get Quick Insights and Best Practices

Visit the CostTalk Minute Video Library >

Costing in Changing Business Environments

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Costing and Analytics News for Finance Professionals

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Creating a Cost-Focused Culture

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