Multinational Industrial Manufacturing Company Increases Sales and Profitability with a Reward Program
32%
Increase in sales for active participants
+20%
Increase in margin for active participants, year over year
The Program Purpose
A global powerhouse, focusing on the areas of electrification, automation and digitalization, this company is one of the world’s largest producers of energy-efficient, resource-saving technologies. They are a leading supplier of systems for power generation and transmission as well as medical diagnosis. With roughly 385,000 employees in more than 200 countries with generated revenues of €86.85 billion from continuing operations.
The company transitioned to a new quotation system and was seeking to limit any customer uneasiness until the transition was complete. In addition, the company aimed to increase brand awareness by taking back market-share from competition, and maintain current business as a way to drive profitability.
The Action Plan
The company partnered with Incentive Solutions to design a rewards program that would encourage quotation activity within their shared distribution locations. Channel partner employees earned points by submitting orders that contained items off a list of specific products the company wanted to promote.
To ensure a high adoption rate, the program was first introduced internally, to engage the company’s sales team and generate buy-in. The company prepared quick reference guides and video demonstrations to show how the program worked and highlight the abundance of rewards available. The sales team then introduced the program to its distributors.
The company utilized a variety of incentive technology modules to encourage participation, track orders, and automate the reward process.
The Advanced Communication Module sent each distributor a wlecome email to register for the program, along with automated messages each time they earned an award.
The Learn and Earn Module encouraged participants to learn about new products via online and video training and reinforce their product knowledge by successfully completing quizzes for points.
The Quick Points Module provided visiting company managers with the ability to reward program points to their regional salespeople instantanewously via printed certificates, helping keep their teams engaged in. theprogram and motivated to sell with the idea of “anytime” recognition.
The Benefits
By measuring the sales increase and profitability results of non- participant vs. participant distributors, the company was able to determine that participants active in their incentive program contributed to a larger increase in sales, driving more revenue year over year.
Participant:
+32% Increase in sales
+20% increase in margin year over year
Non-Participant:
+8.5% Increase in sales
+5% increase in margin year over year
*Participants are active in the reward program. Non-participants are not active in the reward program