Manufacturer: Building Loyalty
A Customer Loyalty Program Breaks the SPIF Mold and Increases Sales with Non-Cash Incentives.
The Client and Their Past State
The Client
A cabinet manufacturer serving markets east of the Mississippi
The Audience
Distributors in the channel.
The Objectives
- To more effectively foster long-term loyalty among distributors and cabinet designers.
- To grow brand awareness within their market.
- To distinguish the company from competition.
The Challenges
The client’s old sales performance incentive fund (SPIF) program had grown stale. There was not much to differentiate it from competitor’s programs and the audience had grown to expect the awards. Revitalizing the program and expectations for it would prove a difficult task.
The Client’s Current State and Key Results
Participation Boom
258% increase in participation from the selected audience, cabinet designers.
Increased Sales
Designers in the program were responsible for a 32% YoY sales increase.
Above All Others
Designers in the program sold 6 times as many cabinets than non-participating designer customers.
A Buffer Against a Bad Year
During a downturn for the industry, award-earning participants increased their sales by 67% on average.
Segmented Marketing
80% of participating designers provided information to be used in future marketing and segmentation efforts.
Saving On the Dollar
Total out-of-pocket cost was 20% lower than the SPIF program.
“Awesome idea! The program helped me remember [the Client] more frequently, and I chose them more often because of this program.”
“Great incentive! I have received very positive responses from designers and principals, and I was able to open new businesses because of this program.”
“The short-term cash SPIFs offered by our competitors have become increasingly less attractive to designers who now have a vested interest in selling our brand. The program’s ‘reach’ to the principles in our customer base is also much broader and has allowed us to reward many more customers for their growth.”
How They Got Here
Marketing
Program Design
HMI developed a long-term, non-cash solution that targeted 930 principals and designers across distributors, dealers, home centers, and remodelers. Principals in the program earned points for every dollar spent to be awarded once they exceeded their previous year’s sales by 15%. Upon reaching this goal, principals earned at an accelerated rate.
For designers, the program was based on units sold rather than dollar value, and each business location was given a monthly, minimum team goal to reach before their designers’ individual points were triggered.
Once the principals and designers had reached their sales goals, they were able to redeem their points for thousands of non-cash awards.
Supported by HMI’s program management team, the program also offered sales tracking and reporting and data & analytics on behaviors and sales.
Strategy & Implementation
For award opportunities, the participants of the programs were able to pick from…
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- Vacation Getaways
- Experiential Rewards
- Brand-Name Merchandise
Assisted by marketing and technology, the program offered…
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- A branded website, designed to fit the client’s needs
- Full-Color Print Brochures
- An extensive email campaign
- Program letters, written and personalized
- Monthly Reward Statements
