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Channel Partners: Case StudiesThe following case studies outline successful channel partner incentive programs. "Bach - Sounds of Success"The Bach Collection is sold through distributor showrooms and branches to builders and plumbers. This channel is extremely competitive. Distributors typically sell products from as many as twelve manufacturers and, at any given time, they may be exposed to 5-7 active promotions designed to capture their attention and time. To cut through the promotion clutter, Performance Plus Marketing recommended a high-impact sweepstakes structure for “The Sounds of Success.” ''Capture Your Share'' Generates 18% Sales GainMBM Corp.'s sales follow the 80/20 rule: 80% of all MBM purchases are made by 20% of the dealers that sell its line of paper shredders, cutters, and other office equipment. To motivate everyone in its network of 1,800 dealers in the U.S., Canada, and Puerto Rico, the company teamed up with USMotivation to create the "Capture Your Share" campaign. ''Mohawk Means Business'' Sparks 31% Sales RiseWhen Mohawk Industries, a $2-billion manufacturer of carpets and rugs, acquired several prestigious brands, it took considerable resources of time and money. The expansion and consolidation process inevitably affected some of the company's key residential dealers. ''Winner's Circle'' Builds Honda's Warrenty SalesThe "Winners' Circle" program logo and theme were designed around the popular motocross cross-country motorcycle race, and featured the No. 1 plate that is awarded to winners. Honda is a leader in production of off-road motocross bikes and a sponsor of the No. 1 team in the sport. Therefore, the logo and theme were a natural tie-in for use in printed material. A Mexican MosaicThe program’s theme was the inspiration for a “Mexican Mosaic Bingo” game that was designed to encourage dealerships to focus on the nine-targeted initiatives. In order to qualify for one trip, dealers had to meet the targets for the three main initiatives, represented by three boxes running diagonally left to right on the bingo card. Once those targets were reached, the dealership had the option to earn another trip by meeting the targets for two other initiatives, giving them another line of bingo running horizontally, diagonally or vertically. Dealers who filled in the entire bingo card by meeting all sales targets qualified for a third trip. The 2005 Mexican Mosaic Dealer Incentive Program achieved record-setting numbers. BigPond Points Program Drives Product Understanding and GrowthBigPond relies on a sales force of predominately male, tech savvy young people to sell their internet products to department and electronics stores, independent telecommunications retailers, and inbound and outbound call centers. They were challenged to motivate these GenYs to focus on their products, especially when competitors were undercutting on price. The “BigPoints” dealer incentive program, playing on the BigPond name, was developed online to build brand affinity and keep BigPond visible on the front line of selling. BMW Financial Services "10 Series"BMW Financial Services had experienced 6 years of success. Its biggest challenge for 2006 was to condense its programs into a unified Web portal for its dealers, sales managers, and sales representatives. The target group of sales professionals was predominantly male, between the ages of 30 and 45, and comprised of 1,458 individuals segmented into 66 distinct profiles, who were spread over 11 urban geographic locations. By creating a unique communications tool, BMW sought to make the BMW Financial Service “10 Series” web portal a daily working tool for its entire sales force and to make sales contest information easier to access and more efficient to provide. Compaq COMmunity and Gold RushIn addition to addressing regional challenges, Compaq was well aware that a soft economy and market speculation regarding the Compaq/HP merger could further impact sales. They needed an incentive program that would ensure that resellers would focus on the Compaq offering. Part of COMPAQ COMmunity, Gold Rush was launched as the 2001 fourth quarter sales incentive program, offering "instant rewards" to those who met their targets in a number of categories. To succeed, the Gold Rush program needed to generate sales without encouraging competition on price, keep the resellers’ attention for the quarter, provide obtainable targets, and offer an incentive that went "over and above" that of any of Compaq’s competitors. Compaq's Salespeople ''Reach for the Stars''Reseller sales reps earned reward points for sales of Deskpro computers and Proliant service. In addition, management was able to award supplemental points for such goals as increased knowledge retention, add-on sales, and attendance requirements. Cruise Builds Market Share, Brand LoyaltyJohn Deere agricultural dealers sell and service equipment and parts. Loans and leases through the company for these items generate profit and build brand loyalty. So it was logical that John Deere's first credit-related promotion would be designed to increase credit/lease acceptances, market share, and brand loyalty. Fast-Start Promo Grabs AttentionThe company's "Here's the Scoop" campaign was launched with an overnight Styrofoam package that was delivered to every Mazda parts manager. Inside was a 12-pack of gourmet Pfaelzer ice cream truffles. The ice cream treats were chosen to symbolize the freshness and quality of Interstate Batteries. A booklet detailed the promotion's objectives and awards: for every order placed for batteries during the month, the dealer was entered in a sweepstakes, with prizes ranging from Super Bowl tickets to National Football League (NFL) logo leather jackets and autographed footballs. A special incentive was available to district managers who achieved 80% or more participation. These awards included race jackets and tickets to the Brickyard 400 at the Indianapolis Motor Speedway, a natural tie-in because Interstate Batteries was sponsoring one of the racers. GE FocusGE Lighting Systems, a division of General Electric Lighting, designs, manufactures and markets a complete line of lighting fixtures for illuminating streets and highways, industrial and hazardous location facilities, parking lots, building facades, parks, and sporting facilities. HunterDouglas Promo Strengthens Distribution NetworkThe campaign would have to increase brand reach, frequency, and sales; allow fabricators to maintain their own identity; and accommodate a range of retailers from individual designers to multistore chains. For its "Windows to the World" campaign, travel rewards were selected as the most effective motivator. Retailers would have a choice of six travel destinations based on product purchases. John Deere's Incentive Program Boosts Aftermarket SalesTo create a better synergy between those who choose suppliers (a dealer's parts department) and those who specify the product (the service department), the Aftermarket Division developed the "After Market Achievers" incentive program in conjunction with MotivAction, the Minneapolis-based full-service marketing company. The campaign rewarded parts and service managers, dealership employees, and field representatives for achieving specific goals. LJ Hooker Achievers Program Drives Referrals Through Brand EngagementLJ Hooker Financial Services was established in December 2003 to provide a mortgage broking service to real estate vendors and customers. LJ Hooker had informal relationships with 5000 agents and associated staff in Australia and another 1200 in New Zealand. Across the industry, the relationship between mortgage brokers and their referral contacts was largely based on cash transactions and varied widely in terms of process and value. Cash offers were vulnerable to competitive offers and ad hoc and different cash commission structures meant working with multiple managers and administrators without the benefit of a cohesive strategy or transparent management overview. LJ Hooker required a more structured platform to deploy their strategy to align real estate and finance broking to maximum effect. Moen Hits Home Run With ''Bases Loaded'' PromotionThe program was built around a point system. Wholesaler showroom personnel earned one point for every two sales; counterpersons received a point for every six sales. Points were redeemable for merchandise from an "MVP Awards Extravaganza" catalog. Mulitpronged Strategy Bolsters Ford's Market ShareTo assist dealers in meeting goals, Ford implemented a multipronged strategy that included launching new models, realigning prices for key models, increasing management support, re-evaluating advertising and promotion, and introducing "The Chairman's Challenge" incentive campaign. Play With Your FoodThis consumer promotion used a baseball tie-in and in-store events to boost sales of Oreo Cookies Rome MMIVThe Rome MMIV program marked the first time dealers were able to access status statements online, so quarterly printed statements were mailed to each dealer to reinforce the online statements. To help the dealers stay focused on their year-end goal, benchmark goals were established for January, April, and July. Waterford crystal awards with Romanstyle etching border designs were selected to mark these achievements. Multiple communications touch points and ongoing performance feedback kept the John Deere dealers engaged throughout the campaign. Selva Sierra Litoral/Peru 2002SSL’s goal was to plan a trip that would shatter people’s preconceptions and remain in their clients’ conversations for a long time to come. They wanted a destination that included pristine nature, unique archaeology and local culture, history, traditions, motivating and energetic places and extremely friendly people as well as comfort and relaxation. Peru was chosen as the “high impact destination” and Condor Travel was chosen as the destination management company. The Braun Rewards, The Winning Edge programThe Braun Corporation, a manufacturer of vehicle wheel chair lifts, leveraged their involvement as a Bush series NASCAR sponsor to create an exciting incentive program for their US based dealer network. In addition to increasing sales, The Braun Rewards, The Winning Edge program was designed to increase dealer knowledge of Braun’s specialized products and to create a “programmed learning environment” that facilitated dealer training and education. The Genuine AdvantageThe new program needed to capture audience interest with easy-to-understand rules and desirable awards that targeted the needs of various demographic groups. With personalization and flexibility key success factors, the main reward option, American Express PersonaSelect debit cards fit the bill. Winners were able to redeem awards of their choosing within a range of businesses selected by Saab. The communications campaign used graphics to stimulate winners’ imaginations of awards ranging from golf clubs and electronics to jewelry or cooking gear. Top-Tier Travel Builds IBM's Bond with Resellers, DistributorsWorldspan International, a Swiss incentive house, was given the assignment of providing a first-class travel award that overcame cultural and language barriers, time and budgetary restraints, and featured no more than a four-night stay in an exotic destination. The site: Cape Town, South Africa. Toyota Sales Society Boosts Sales and Service QualityManaged by Synchro since 2002, the Toyota Sales Society 2007 program encompassed all customer-facing Vehicle Sales and AfterSales (accessories, parts, service) staff in TMC Australia’s 224 dealerships. This includes 3,539 retail and fleet sales managers, retail and fleet sales consultants, parts managers, parts sales representatives, parts interpreters, service managers, service advisors; and used vehicle managers from every state in Australia. |
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