The Company

ECMD is involved in manufacturing, importing, and distributing building materials, with a primary focus on wood products. These include interior trim items used around doors, cove ceilings, and baseboards in homes. The brand is well-respected in the southeastern US, where they’ve built a strong reputation for excellent customer service and high-quality products.  

ECMD distributes products through two main channels: a partnership with a prominent big box retail chain, and a dedicated sales team. The sales team operates predominantly in the southeastern United States, under the leadership of Steven Carlson, Vice President of Professional Dealer Sales. Known as Pro Dealer Sales, this division caters specifically to independent and national chain building material suppliers who primarily serve contractors and builders within the construction industry.

Becoming More Strategic and Targeted

Rebates programs are a standard industry practice. These programs allow ECMD to engage with their major customers and maintain their position in the industry.  

Carlson tells us, “We leverage rebates to ensure we have a competitive offering. Strategically, our goal is to identify opportunities within our customer base to utilize rebates for targeted growth in specific product categories and customer segments. Previously, this level of strategic targeting was challenging, but Enable has empowered us to be more precise and strategic in our customer engagements.”

He continues, “2024 marks a significant transition for us as we adopted the Enable platform. Looking ahead to 2025, the utility and flexibility of Enable will prompt us to reevaluate how we approach and launch our rebate programs, aiming for greater effectiveness and alignment with customer needs and market trends.”

Resetting Their Rebate Programs

When Carlson joined ECMD five years ago, they operated with essentially one blanket rebate program, treating every customer interaction uniformly. This approach, while competitive for some, proved inadequate as it failed to cater effectively to the diverse needs of our customer base. ECMD recognized that they were over-serving certain customers while inadvertently neglecting others.

Carlson explains, “The introduction of Enable's platform marked a pivotal change for us. It enabled us to break away from the one-size-fits-all rebate strategy and begin tailoring our programs to better suit specific customer segments and product categories. This shift in strategy has only recently begun to show its full potential, particularly over the past three months.”

He continues, “During this time, I've engaged with our sales teams and managers to emphasize the importance of designing more targeted rebate programs. Now, we're able to allocate different rebate amounts and structures to incentivize the behaviors and outcomes we desire from our customers. This level of specificity was previously impractical due to the complexities involved in managing such varied rebate strategies effectively.”

Enable has empowered ECMD to move beyond the limitations of their previous rebate program and adopt a more strategic approach that aligns with the diverse needs of their customer base. This evolution not only enhances customer satisfaction but also improves their ability to achieve meaningful growth in key market segments.

Kickstarting a Rebate Reset

Currently, ECMD is engaged in two key initiatives: an audit process aimed at reassessing their rebate programs and a subsequent analysis to evaluate the impact of the changes.  Carlson says, “At the beginning of this year, I made the decision to reset some of these programs by discontinuing rebates for certain customers. These were customers whose purchasing volume didn't justify the rebate or who weren't utilizing it strategically in their business operations. Essentially, if the rebate wasn't serving as a significant driver for their business, we opted not to offer it to them.”

He continues, “Our primary objective is to determine whether reducing the number of rebate programs has resulted in a decrease in rebate dollars spent as a percentage of sales. This reduction was a specific metric I set out to achieve. While we haven't yet completed this analysis, it remains a critical focus for us moving forward.”

The Challenge

Spreadsheets and Tribal Knowledge

Managing all rebate programs solely on spreadsheets was standard practice for ECMD. They had dedicated personnel handling these spreadsheets full-time, ensuring everything ran smoothly. Unfortunately, they encountered a significant setback when this person unexpectedly left the company. That person possessed extensive tribal knowledge about their rebate processes—for instance, which companies received quarterly versus annual payments—details that were crucial but not documented anywhere except in their head.

Carlson explains, “Losing this tribal knowledge created a substantial challenge for us. We struggled to reconstruct and understand the intricacies of our rebate operations without their insights. The reliance on spreadsheets compounded this issue, as critical information was not systematically recorded or easily accessible to others in the organization.”

Overpaying by $17K

At ECMD, managing rebate payments was a complex and time-consuming task. Each time they issued a rebate check, they had to include a detailed reconciliation explaining how they calculated the amount. For most customers, this reconciliation sufficed, and they accepted it without further inquiry. However, some customers would scrutinize the paperwork and raise discrepancies, leading ECMD to conduct deep dives into their records.

Complicating matters further, ECMD’s rebate structures varied, with different customers receiving different payments for different types of purchases. This inconsistency required meticulous tracking of invoices and careful reconciliation of payments against agreements.

One notable incident highlighted this challenge: a sales manager discovered that ECMD had overpaid a customer by $17,000. The team promptly conducted a thorough validation, confirmed the overpayment, and approached the customer transparently. ECMD was able to work with the customer to adjust the overpayment against future rebates, but not every customer is so agreeable.  

Carlson explains, “This incident raised concerns about the possibility of similar errors with other customers among our sizable base of 1,200. The lack of systematic oversight and the reliance on manual processes made it difficult to confidently ascertain whether we had consistently paid the correct amounts to all customers. Moving forward, the experience underscored the critical need for improved rebate management to ensure accuracy in payments.”

The Implementation and Support

Discovering Enable’s Impressive Functionalities

From the outset, the Enable team involved subject matter experts to address Carlson’s questions about the platform.  

Carlson says, “During subsequent discussions, Enable consistently responded affirmatively to my queries, demonstrating their software's capabilities. I requested a demo to validate their claims, and they promptly showcased how their solution would address our requirements. Each question I posed was met with a confident demonstration of their capabilities, including features to manage tiered rebates, which were crucial for our operations. My confidence in Enable's ability to meet our needs grew rapidly throughout these interactions.”

He continues, “The turning point came when I approached our CFO, Tom, informing him of a recent $17,000 overpayment incident. Recognizing the urgency and seeing Enable's potential, Tom swiftly approved the decision to proceed with Enable's solution. He involved our IT team for a quick verification process, which further solidified our decision. From our initial contact to signing the contract, less than 90 days had elapsed, which is a remarkably swift process for us. This efficiency underscored Enable's responsiveness and the alignment of their solution with our urgent business needs.”

The Best Support Team

Carlson shared with us, “Having implemented enterprise software across various companies, I've seen various levels of response and ongoing support. Enable's support stands out as the best I've ever experienced. The customer success team is exceptional—they respect our time, come prepared with valuable insights to every meeting, and always have a structured agenda. It's not a casual 'what do you want to discuss?' approach; they proactively inform me and my administrator, Karen, about important topics and areas we need to focus on."

He continued, "Just today, I spoke with our head of IT, and he echoed my sentiments, saying it's the best implementation support he's encountered in his extensive career, which spans numerous companies. It's simply unparalleled."

Intuitive Training

Carlson says, “The training provided by Enable was excellent overall. Enable's support and training have been effective in empowering our team to effectively manage and utilize the platform for our business needs. I appreciate how patient they have been with us throughout this learning process. My administrator, Karen, who manages and oversees everything within the platform, has become quite adept with the platform. There's very little now that I could give her that she wouldn't be able to handle.”

The Software

Reducing Error Rates to Zero

Carlson tells us, “Recognizing the importance of accuracy, we embarked on a mission to streamline and refine our rebate procedures. Central to our rebate strategy was the desire to reduce errors to zero. This ambition encompassed not only eliminating mistakes but also optimizing our workforce by reducing unnecessary headcount. By implementing more efficient systems and workflows, we aimed to mitigate errors proactively rather than reactively.”

Robust Reporting

One of the key objectives at ECMD was to establish a robust reporting system capable of real-time monitoring, a capability they previously lacked. Their aim is to achieve three critical outcomes: visibility into expenditure, timely communication with customers, and proactive management of growth tiers.

Carlson says, “In the past, we faced challenges where customers missed crucial growth thresholds by small margins, resulting in significant financial consequences. Many of our rebate structures are retroactive, meaning even a slight oversight can lead to substantial losses.  

Negotiating a $10M Rebate Program

Carlson is currently negotiating a significant deal, potentially worth $10 million over the next 36 months, with a client interested in an exclusive partnership with ECMD. They are considering funneling all their purchases through them, which allows Carlson to strategically focus on high-margin product categories. For example, stair parts such as treads, railings, and fixtures offer exceptional margins compared to more commoditized products.

Carlson comments, “With this opportunity, I can tailor a program specifically for stair parts that is highly attractive to the client. This strategic approach not only enhances our competitiveness but also prompts customers to reconsider why they wouldn't consolidate their business with ECMD. Enable allows us to assign specific rebates based on the profitability of the products or categories.  This targeted sales strategy is bolstered by our ability to automate the rebate process, ensuring efficiency and accuracy in our pricing and incentives. In essence, this deal exemplifies how we can strategically leverage our strengths to win over key clients and solidify our position in the market through tailored, competitive offerings.”

Informed Discussions with Senior Stakeholders

Carlson tells us, “Enable allows me to have more informed and credible discussions with my boss regarding our rebate strategies. With millions of dollars allocated annually to customer rebates, by using Enable I can meticulously document where these funds are allocated, evaluate the effectiveness of our rebate programs both from our perspective and from the customer's viewpoint.”

Single Source of Truth

Carlson explains, “As a single source of truth, Enable provides me with the oversight needed to centralize all rebate information. I've communicated to our sales teams that if a rebate agreement isn't documented in Enable with a proper contract, it doesn't officially exist. This approach ensures accountability: if a rebate isn't entered into the system by January 1st, it won't be honored.”

He continues, “Bringing all rebate programs under the Enable platform has significantly streamlined our operations and improved transparency across the board. Now, everyone involved understands the importance of timely and accurate rebate management, ensuring that all commitments are met and documented appropriately.”

Gaining Back Time Through Reduced Personnel

Under their previous system, Karen, the rebate administrator, juggled numerous responsibilities. Rebates were managed through a convoluted process involving multiple departments. Each department seemed to play a role: from controllers to rebate administrators, and even accounts payable and finance teams were involved in the arduous task of reconciling and processing the rebate checks. This multi-layered approach meant that six to eight different individuals and functions were often required to handle the issuance of a single rebate check along with its reconciliation.

Carlson comments, “While I can't quantify the exact amount of time saved, I can attest that since transitioning to Enable, the process has streamlined significantly. Now, Karen and the finance team collectively handle all aspects of rebate management efficiently. This consolidation has consolidated our efforts, allowing us to manage rebates more effectively with fewer resources and less complexity.”