Distributor: Make Them Exclusive
A regional distribution company grows business and captures mind share through an exclusive incentive travel short-term promotion
The Client and Their Past State
A regional distributor of electrical, HVAC, and plumbing materials.
- To encourage contractors to grow their business with the client.
- To increase the client’s relative share of wallet for their contractors.
After losing business from a major partner, the client was concerned about keeping revenue up.
The Client’s Current State and Key Results
The program garnered $2.5 million in revenue for the client.
The target group boosted their sales by 39.2%.
The program achieved $350,000 gross profit dollar growth for the client
The success of the short-term promotion led the client to partner with HMI for a longer-term points program.
How They Got Here
A short-term promotion that encouraged channel partners to purchase exclusively from the client.
Participants were set a multilevel personalized purchase goal of 10% increase over the previous year’s total. Upon meeting their first tier “bronze” goal, they were rewarded with a 5-night, all-inclusive vacation package to the location of their choice.
Additional “silver” and “gold” purchase goals were set, offering the added rewards of additional nights in the vacation package. Finally, meeting the highest “platinum” purchase goal rewarded participants a luxury merchandise item.
Strategy & Implementation
For reward opportunities, the participants of the programs were able to pick from…
- All-inclusive Caribbean resort vacation
- Cruise to Alaska or Caribbean
- Fairmont Hotel stay in US, Mexico, Bermuda, Hawaii, or Europe
- Additional luxury prizes for meeting the “platinum” level, including a Nikon camera and Samsonite Luggage package