Distributor: Connecting Dreams
A group incentive travel program generates stronger sales from an existing customer base
The Client and Their Past State
The Client
A leading distributor of commercial and residential plumbing, waterworks, and HVAC supplies
The Audience
Contractors in the channel.
The Objective
To generate stronger sales and capture more discretionary business from an existing customer base while reducing sensitivity to price.
The Challenge
New to the incentive industry, the client struggled with defining program expectations and setting realistic goals for program participants.
The Client’s Current State and Key Results
Proven Improvement
Trip earners achieved $7.5 million in incremental sales growth, an 80% improvement from the previous year.
Increased Sales
The program achieved a $2.6 million increase in overall sales from participants from the previous year.
Meeting Their Goals
31.6% of participants met their initial sales goal.
Jet Setters
With 100 trips earned, the program saw 50% engagement among potential participants.
Saving on the Dollar
The cost of the trip was less than 15% of the projected incremental profit.
Future Partnerships
As affirmation of the program’s success, the client has continued working with HMI to engage and motivate broader audiences to become loyal customers.
“The promotion created a great deal of excitement with our customers and the ROI results truly made it a win-win for all parties. HMI worked closely with us to design the program structure and then executed the communications campaign for us throughout the year. I was very impressed with HMI’s expertise, responsiveness, and professionalism. I heard nothing but glowing reviews from my internal team as well as from our customers about HMI’s dedicated and highly experienced travel staff.”
How They Got Here
Marketing
Program Design
HMI created a performance-based group incentive travel program that targeted top customers and provided “stretch” goals based on the previous year’s purchasing results. Utilizing extensive industry expertise, HMI helped the client identify attainable goals for over 200 of their most important customers.
The program included:
- An offer for achieving the assigned goal: an all-inclusive trip to the Hard Rock Hotel in Riviera Maya, Mexico
- Branded premium item mailings designed and sent to attract the attention of customers and their spouses
- Monthly eStatements to keep customers updated on their progress towards their individual goals
Goals assigned based on individual purchase results from the previous year allowed the client to easily determine program success based on incremental profit. Based on customer demographics, it was decided that a group travel solution should maximize customer motivation for the program.
Strategy & Implementation
- In-depth sales tracking to assist with ongoing program reporting and analysis
- Monthly “check-up” recommendations for the client to improve any areas of engagement that were lagging behind expectations
- Maximized returns: a significant portion of the client’s investment was sponsored by vendors through Market Development Funds (MDF)
