First let’s understand who OEMs are-
OEM (original equipment manufacturer) is defined as the company that manufactures equipment and sells them to another company, and that company resells those equipments under their own brand name. Basically, the business term for OEMs is “contract manufacturers”.
So, now the question is why an OEM or in general terms, why a business needs to offer discount?
Well the answer is – “Discount brings business”. Sounds strange?
Let’s dive deep down to understand this. Offering discount on equipment is a way to draw people attention towards your brand. Every time a customer got to know about discount, they are likely to visit your store. In OEM business, discount not only helps authorized dealers, but it helps OEM in improving their reputation, generate more revenue and bring success.
Offering discount is a business strategy and the ultimate goal is to steal market share and increase occupancy. It also provides OEMs with more cash flow during difficult economic times. While there are some more potential benefits of offering discount for OEMs which are described below, also there should be a proper channel to manage whole discount process automatically. First let’s look at some more advantages of offering discount:
- Discount Attracts New and Old Customers: People always look for the ways to save money, and they prefer to buy things on discount. Discount attracts more people to your store. If your discount is good, people are more likely to rush to your online/offline store. It will experience more traffic, OEM just need a smooth platform so that they can offer uninterrupted services continuously.
- Increase Sales: When OEM offer discount coupons, they will draw more people at their authorized dealerships or online store. Increase in number of customer will surely result in increased sales. This way customer will not only buy the discounted items, but they may also look at other items available in the store and may purchase them.
- Enhance Brand Awareness: Offering discounts is an effective way to increase brand awareness. Depending on the advertisement of discounts, people will get to know your brand. Although, it is not necessary that they all will come to store to make a purchase instantly, but it leave an impact on their mind and they may pay a visit in the future when they need any part for their vehicle.
Need Of Discount Management System (DMS)
Offering discounts is an age-old strategy for increasing customer base and sales. But with manual methods it is not possible. In this era of technology OEMs need smart and advanced software that can help OEMs to compete in market. That’s where discount management system comes in to play. This is fully automated tool designed according to OEMs needs and also OEMs can customize it according to their requirements. With proper planning, it can drive your business to new heights of success.
So that OEMs will gain an all-round picture of the process and can interact with each dealer individually. OEMs can also measure performance, thanks to comparability and transparency, and introduce optimizations selectively.
Slabs Under Discount Management System:
- Define Discount type: With the help of discount management system, automotive OEMs can define the type of discount they are offering on their spare parts. This will help dealer to choose the products better.
- Define Redemption type: The software also gives the option to OEMs, that they define the redemption type of coupon in backend. Like how a dealer can use the coupon or how many times the coupon is valid for single dealer identity.
- Monitoring Of Redemption: Through DMS portal OEMs can easily monitor the redemptions of discount coupons that how many times a particular coupon was used and which product is in demand. Module for the same is available in spare part catalog.
- Expiration date: OEMs can also set the expiration date of particular coupons on automated basis. This option is wonderful to get previous coupon out of the process without any internal interference.
- Build your own discount coupons: This is an ultimate feature introduced in dealer management system. Through this feature, OEMs can give authority to dealers so that they can introduce any coupon according to their choice.
- Define Upcoming Discount: Through the discount management portal, OEMs can also notify to their dealers about the upcoming discount and same thing dealers can convey to end customers. This will help to keep customers engaged with the brand and they will regularly check the portal or visit the physical store to know about upcoming discount.
- Works On Amount Limit: The software also has an option to work on amount limit, i.e. OEMs can set a specific amount. Under this tab dealers will only get discount after making purchase of specific amount.
Benefits:
- High flexibility for OEMs in rapidly changing markets
- Better administration opportunities
- East monitoring of customer demands and service experience
- Automated service helps in focusing on core business
- Seamless access to data in real-time
- Automated functions help improve revenue and utilization of resources
So, this is how a DMS can help OEMs in generating revenue and making their brand name strong in the market. The module is developed by Intellinet systems and can be integrated with existing software like illustrated part catalogue.
If you wish to experience a free demo of the software or have any query, connect now at www.intellinetsystem.com