Multi-Prong Strategy Success Story
Electrical Supplier’s Multi-Prong Approach Sparks Creativity…and Sales (Approach)
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A mid-sized electrical distributor with a multi-state market wanted an incentive marketing program that would help them keep pace with (and distinguish them from) the competition while providing their company with an umbrella marketing strategy.
Enter HMI, with a solution that incorporated a variety of marketing activities, the linchpin being an annual group travel event. In its first year, the trip award improved participant sales by nearly 30 percent; more than 300 companies enrolled in the program, and 140 were rewarded with a cruise. But this was just the beginning.
The Solution
In subsequent years, the client’s performance incentive initiative shifted focus. The program was designed to capture market share in a more concentrated time period while supporting the opening of a new branch where prospective customers could pre-enroll in the program.
Entitled “Royal Treatment,” the program was a nine-month, two-tiered initiative. It rewarded top-performing customers with a trip to London prior to Christmas, while simultaneously rewarding the next tier of performing customers with up to six trips on a four day/three night cruise. Once the first trip was earned, customers had the option to buy in for partial or additional trips.
In addition, the client’s sales force was included in the overall program and rewarded for:
- Registering customers;
- Ensuring that customers met their projected quarterly performance; and
- Maximizing the customer’s trip earnings.
The program got off to a fast start with a comprehensive customer awareness campaign involving direct mailings, fax broadcasts, in-person sales calls and a rotating "message on hold.” Marketing communication and premiums were mailed to the participants' homes to keep awareness and involvement high. Additionally, sales-tracking and hardcopy statements provided monthly progress reminders.
The Success
The program proved effective in a number of ways. Sales increased more than 22 percent from the participant pool alone. Thirty-six percent of the client's customer base enrolled in the program, which sent 30 participants to London and more than 300 on the cruise. Some top performers opted to give all six trips to their employees, helping to broaden relationships with owners, project managers and estimators. Pleased with the program's success, the client turned its pilot initiative into an ongoing effort, and continues to partner with HMI on creative ways to market and grow their company.
“HMI’s group travel program has really helped us drive growth. Additionally, HMI has supported us with quality communications, creative materials and flawless travel planning and execution. They make running a program very easy for us.”
