Overview
UI discovered during a sales analysis that a client had a significant number of dealers that were not included in the traditional reward-for-performance incentive programs because these dealers' purchase volumes were not high enough to qualify. However, this audience did represent many millions of dollars of incremental opportunity.
Action
We created a gateway program that rewarded dealers for incremental sales with merchandise, gift cards, travel certificates, as well as company advertising materials and displays. Dealers were able to view and redeem merchandise through a dedicated website that also offered a platform for additional marketing messages and branding.
What Happened
From the first year, it yielded the lowest cost of sale and highest rate of incremental sales and purchases. It substantially reduced our client's outstanding receivables since rewards were shipped only when our online dealer reward review program was approved by the Purchasing department, and brought a new brand community to the forefront of our client's awareness. These dealers were then encouraged to step up their performance to participate in other client incentive programs. In years when the category flattened, this audience's incremental purchases continued to grow.