# Rebate program ROI: pricing metric definition, thresholds and response

> Incremental margin from growth against payout, by program and account. When to act, what a move may signal, and the Revomo templates that respond.

Source: https://revomo.ai/marketplace/metrics/program-roi/

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[Marketplace](https://revomo.ai/marketplace/)[Explore](https://revomo.ai/marketplace/)[Templates](https://revomo.ai/marketplace/templates/)[Metrics](https://revomo.ai/marketplace/metrics/)

Marketplace
- [Explore](https://revomo.ai/marketplace/)
- [Templates](https://revomo.ai/marketplace/templates/)
- [Metrics](https://revomo.ai/marketplace/metrics/)

Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
- [Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)
- [Quote & Deal Performance](https://revomo.ai/marketplace/collections/quote-deal-performance/)
- [Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)
- [Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)
- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Industry
- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
- [Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)
- [Building products](https://revomo.ai/marketplace/templates/?industry=building)
- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

Search Marketplace

- [Marketplace](https://revomo.ai/marketplace/)
- [Metrics](https://revomo.ai/marketplace/metrics/)
- [Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)
- Metric

## Rebate program ROI

Incremental margin from growth against payout, by program and account.
[See Rebate program ROI in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=program-roi&name=Rebate+program+ROI&collection=rebates-incentives)

### Why it matters

A rebate program should buy incremental margin, not reward the baseline. ROI by program and account says which programs to keep, redesign or retire.

### Act when

Below 1.0 on any program at quarter close

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Growth that would have come anyway.

### What to do

The templates that respond when this metric moves.
- [Rebate program effectiveness](https://revomo.ai/marketplace/templates/rebate-effectiveness/)*template*
- [Rebate tier optimization](https://revomo.ai/marketplace/templates/rebate-tier-optimization/)*template*
- [Customer growth responsiveness](https://revomo.ai/marketplace/templates/growth-responsiveness/)*template*

### How it’s defined

Formula
`'Incremental margin' / sum('Rebates paid')`

Required context
Rebate programs, Invoice lines, Model runs

Dimensions
Program, Account

Cadence
Reviewed quarterly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Against plan**: tracked against the target, with the bridge that says what moved it. **After a decision**: measured against what the model said the decision would deliver.

### Relevant industries

[Industrial distribution](https://revomo.ai/marketplace/metrics/?industry=distribution)[Building products](https://revomo.ai/marketplace/metrics/?industry=building)[Chemicals & materials](https://revomo.ai/marketplace/metrics/?industry=chemicals)

Type
Metric

Category
[Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)

Use in
Against plan · After a decision

Cadence
Quarterly

Industries
Industrial distribution, Building products, Chemicals & materials

Business need
[Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=program-roi&name=Rebate+program+ROI&collection=rebates-incentives) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Margin Leakage & Cost Recovery #### [Rebates paid](https://revomo.ai/marketplace/metrics/rebates-paid/) Rebates paid as a share of revenue, against accrual, by program. **Act when**A consistent rise over a quarter, or paid above accrued Alerts · Against plan
- Contracts, Rebates & Incentives #### [Rebate accrual variance](https://revomo.ai/marketplace/metrics/accrual-variance/) Paid against accrued by program at period close, and the tiers that were hit late. **Act when**Paid above accrued by x% at close Alerts · Against plan
- Revenue & Margin Performance #### [Customer wallet share](https://revomo.ai/marketplace/metrics/wallet-share/) Your share of an account’s spend in the categories you sell, where it is known. **Act when**A shift of x points either way Alerts · Against plan

### See Rebate program ROI on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=program-roi&name=Rebate+program+ROI&collection=rebates-incentives)[All metrics](https://revomo.ai/marketplace/metrics/)