‘Knowing what a thing is worth is knowing how much to spend on it’
HORSEHEADS, NY – May 15, 2017 – According to Nielsen, 59% of trade spend and marketing programs in the United States, Canada, and Europe do not break even. The failure rate is highest for Consumer Packaged Goods (CPG) companies in the USA, where 72% do not break even.
“CPG companies spend enormous sums on programs that don’t pay back,” says Salient Management Company’s CEO, Guy Amisano. “That’s because facts recorded on transactions aren’t tied directly to off-invoice spending, so calculation of the true profitability of customers and/or product SKUs is typically too hard to find and takes too long to be actionable, particularly in today’s fast-paced CPG marketplace.”
“We saw a real need for CPG companies to get instant and persistent visibility of actual value added by trade spending: knowledge of where every red cent is spent, how much profit and growth is created in return, and who or what is responsible for the result.”
“That’s why we created Trade Spend Allocations Advanced. It is a revolutionary new suite of software tools to recommend, authorize, and track trade program spending down to the individual customer and product SKU,” Amisano explains.
Here’s how it works:
- Managers near to the point of trade use an easy, web-based tool to suggest a program
- The suggested program will then be reviewed by the appropriate authority
- Approved programs will be integrated with data collected by transaction accounting systems and made available for continuous monitoring and interactive analysis of actual net value added by both trade spending and transaction level discounting.
“Now everyone in the management chain can put all the facts together on the fly,” says Amisano. “They can find the outliers, observe the evolution of value from one program to the next, and take the most appropriate action in time to maximize trade spending effectiveness. In other words, knowing what a thing is worth is knowing how much to spend on it.”
Take a glimpse of Trade Spend Allocations Advanced at salient.com/technology/allocations-advanced/
Salient Management Company makes decision support and performance management software for a broad range of business and public sector enterprises, and we proudly serve customers in 61 countries.
For more information or to request an interview with Guy Amisano, please contact:
Director of Marketing
Salient Management Company
+1 607-739-5228, ext. 228