Automotive Industry Loyalty Program Success Story
Automotive Program Enhances Sales Volume — and Company Loyalty
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To increase share and hold rates, a Big Three automotive company wanted an incentive strategy that would engender greater loyalty from dealer Finance & Insurance (F&I) managers and salespeople through an educational and frequent seller approach.
The Solution
With HMI’s VacationMiles® platform, the client developed a loyalty/incentive program targeting 2,000 F&I managers, sales associates and managers at 400 dealerships. Among the program’s features:
- Proprietary program web site
- Weekly data uploads
- Monthly performance statements mailed to homes
- Periodic bonus offers
- Segmentation of divisions and product lines
- Merchandise, travel and custom award redemption options
Program participants earn one-quarter percent of each financed dollar. For every contract funded, 75 percent of earned “miles” are allocated to the dealer’s sales department, with the remaining 25 percent distributed to the dealer’s F&I Department. Dealer department managers then allocate the miles to appropriate individuals within their department at their discretion. Allocation forms are then completed, approved by the client and submitted to program headquarters.
The Success
Due to the popularity of the program over the years, other divisions of the company have joined the program, thereby increasing the value of the program to the participants. For instance, one division rewards salespeople for selling truck axles; this adds synergy to the program due to the non-competitive interest within the same target group. Divisions have different criteria for allocating “miles,” but all participants may combine their total “miles” earned for redemption. Participants who achieve specific performance levels are recognized for their success.
The number of applications increased by 100 percent and sales volume increased almost 300 percent in the first two yeas of the program alone. And HMI’s program continues to exceed expectations.
“Heritage Marketing & Incentives is far more than a fulfillment house; we view them as a valued partner in our success. The VacationMiles® Program has been our most successful initiative to date in reaching through to the Sales/Finance & Insurance level of our U.S. dealerships. The feedback we’ve received on HMI’s program, awards and customer service from our District Finance Managers and participants has been tremendous. Most of all, the program has enabled us to meet and exceed our very ambitious sales growth goals year after year. I recommend HMI to any company (large or small) looking for a performance improvement/loyalty partner. HMI delivers every time!” 
