Like many industries, HVAC is facing a future of uncertainty and the potential of an economic downturn. Can incentive programs help HVAC brands brace for this future? Jeff Cagle tackles this question in Industry Today magazine.
The key to maximizing the benefits of incentive programs is to invest in them when times are good, which is now, when the industry’s annual growth rate is expected to be 5.6% until 2030! By investing in an incentive program before an economic downturn strikes, brands can accomplish the following:
- Increase the brand’s personal value and equity. Rewards attach personal value to your brand and participants will value a program they’ve been participating in. This equity helps solidify customer loyalty that will help your brand survive tough economic conditions.
- Invest in existing customers. According to Bain & Company, increasing customer retention by 5% produces a 25% increase in profit. How do you increase customer retention? Investing in a customer loyalty program is one way to do it!
- Acquire sales data. An incentive program doesn’t have to focus solely on motivating sales. Although increasing sales is a great goal when times are good, salespeople may be up against conditions outside their control during economic upsets. With an incentive program they’ve invested equity in, an effective use of the incentive program can reward training efforts and data submission. This will help you develop better, more laser-focused sales and marketing strategies.
For more information and insights, check out Jeff’s full article in Industry Today!