SalesTech Star

Model N Study: Improved Channel Data Optimizes Sales and Profitability for High-Tech and B2B Software Companies

Many Firms Lag in Implementing Technologies That Protect Revenue Streams and Margins, According to Research Commissioned by Cloud Revenue Management Leader Model N

Model N, the leader in cloud revenue management solutions, announced findings from a new research study covering revenue management and channel strategy within high-tech manufacturing and B2B software companies. Model N commissioned a study conducted by Forrester Consulting, which polled 211 senior leaders responsible for revenue management and channel strategy and obtained their feedback on the state of channel processes as well as what actions companies are taking to extend the effectiveness of their channel programs.

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“Today’s increasingly complex channel environment means once-reliable partner performance measurements such as revenue tiers, profit contribution, certifications, and customer satisfaction surveys fail to properly predict overall channel performance”

The survey found that automating channel revenue processes across systems is difficult for firms to accomplish even though they see it as extremely valuable. Greater than 70% of respondents stated that solution based incentive management, automated channel data management, and automated MDF management would be very valuable when optimizing channel revenue processes. Additionally, greater than 65% of leaders place the same value on automated rebate management, channel partner portals, and automated channel management, making it clear that high tech executives place a high value on technology features that can interoperate across data and organizational silos.

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Revenue management concerns feature prominently across the software and high-tech sectors. The research revealed the following obstacles when it comes to optimizing sales decisions and profitability:

  • Short product lifecycles (53%)
  • Lack of recognition/appreciation that sales data quality is an obstacle (52%)
  • Reliance on manual tools and/or processes (33%)
  • Lack of a unified view of channel sales data and activities (32%)
  • Technology silos (29%)
  • Inconsistent sales data entry (28%)
  • Poor data integration/merging capabilities (27%)

“This new study and survey findings show that the crisis in channel automation is real. In many cases data is siloed, and a lack of common understanding around channel revenue processes exists,” said Model N’s SVP and GM of High Tech, Chanan Greenberg. “Numerous high-tech and B2B software companies are literally flying blind due to siloed systems and processes. They’re leaving money on the table, because they don’t possess the proper tools to gather the timely, accurate and actionable channel sales information which can make a big difference when it comes to protecting margins and revenue streams.”

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