Small Company Group Incentive Trip Success Story
Setting Sale: How Travel Incentives Helped One Company Get Ahead (Incentive Programs)
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A small plumbing distributor found itself in a challenging situation: a soft market made for less work — and more competition. Hence a growing need for a creative marketing strategy to help penetrate existing customers and capture a greater portion of industry sales. Looking to attract the discretionary business of contractors who work with multiple distributors, the company turned to HMI for a performance incentive program with proven results.
The Solution
Made possible through the small company’s affiliation with a large national chain that partnered with HMI, a group incentive travel program let local distributors like this one provide a compelling, cost-effective way to get and grow their business. Contractors were assigned individual goals, each resulting in a trip for two.
The program was powered by a marketing effort that enabled the client to communicate the program regularly and strategically; mailings were directed to home addresses, for example, as a way of engaging spouses in the program. Monthly performance statements maintained interest and incentive.
The Success
Expectations were met — and then some. In a down market, the client registered 73 plumbing contractors in the program. Sales from those registrants grew 26.7 percent, representing $1.7 million dollars and almost $450,000 in gross profit — and a 400 percent return on investment.
Fifty-six percent of program registrants exceeded their prior year’s purchases, with more than half of those participants earning at least one travel award. Five distribution executives and salespeople joined their contractors on the trip. These 26 couples — including five company executives and salespeople and their guests — joined more than 125 couples from the national organization for five social and fun-filled days in Puerto Vallarta.
“With a declining economy, we knew we had to do something different to build the business. HMI’s program was key to our growth. This trip opportunity enabled us to offer our customers something special. The time we spent with our customers in Puerto Vallarta was priceless: we solidified relationships and made many more friends. Going into this year, I am confident that we’ll be able to build on this initiative and continue to grow. We’re looking forward to spending time with our customers on our next trip.”
