Customer INNBATE - working example
The objective of the Customer INNBATE for Suppliers is to initiate a transactional relationship with new Buyers.
A Customer INNBATE is much as its name indicates; it relates to the savings your company achieves selling your products or services to ONE company (or Customer) in particular.
Say you have Corporation ABC:
- You have tried for years to get them as a client.
- How much would you spend in the next year trying to gain them as a client, maybe 15% of any order they may make?
- If you could save that 15%, wouldn’t it make sense to offer 5% to entice Corporation ABC to be a client?
- You would still be saving 10% on your cost of client acquisition.
NOTE: The Customer INNBATE is entirely optional and highly flexible for the Supplier.
A Supplier qualifies to respond to Buyer Requests posted on the Network only providing it has already posted a Volume INNBATE. The Supplier can identify Buyer Requests of interest and, at that time, decide for itself how attractive that Buyer is and whether or not to offer a Customer INNBATE as an additional incentive to initiate a transaction.
- A Customer INNBATE will apply to ALL sales through INNOVO between the Supplier and as it relates to the specific Buyer's request to which it is offered and is in addition to the Volume INNBATE (eg. a 5% Volume INNBATE and a 2% Customer INNBATE would total 7% in INNBATEs for that specific Buyer)
The share of cost savings a Supplier is willing to offer, for example to a blue-chip Company or a particular customer segment, can be different to what it offers for other Companies and can be decided on a case by case basis on response to a specific Buyer Request. A Supplier may choose to set the Customer INNBATE at 0% and retain all the cost savings for itself.
- The Buyer will receive the offer which will include the Volume INNBATE - which is generic to all Buyers, and the Customer INNBATE which is specific to that specific Buyer's request.
Remember that since INNOVO's Network is free to use for both Suppliers & Buyers, this is a share of the savings from the costs normally associated with acquiring customers, and will therefore always be a win-win scenario for both Suppliers & Buyers, and it is only shared once the Supplier experiences the benefit of the new Buyer sales.
To see how INNBATEs would effect you, try our INNBATE Simulation
Take the next steps in the INNBATE process and begin saving and sharing with INNOVO.