Multinational Industrial Manufacturing Company Increases Sales and Profitability with a Reward Program
Sales for active participants increased by
Increase in margin for active participants, year over year
- Newly implemented quotation system causing customer distress
- Increasing competition
- Sub-par customer loyalty
- Program reference guides and video demonstrations
- An abundance of exciting reward options
- Automated messaging notifying participants of earnings
- Customized program options for varying participant types, including training
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 company partnered with Incentive Solutions to design a rewards program that would encourage quotation activity within their shared distribution locations. Channel partner employees earn points by submitting any small project orders that contains at least one of the following configurable products:
- Assembled panelboards (lighting and power panels)
- Modular metering
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 the abundance of rewards available. The sales team then introduced the program to its distributors. At this point, each distributor received a welcome email to register for the program. Participants also receive automated messages each time they earn an award.
To increase mindshare with channel partner employees, additional reward programs were implemented as further ways to earn points. Reward program two was created so participants could learn about new products via online and video training and then reinforce their product knowledge by successfully completing quizzes for points. Reward program three provides printed certificates with a unique code that specify a point denomination, used by unannounced visiting company managers to award the salesperson who closed the last qualifying sale, prior to the visit.
By measuring the sales increase 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.
- Non-Participant: +8.5% Increase in sales
- Participant: +32% Increase in sales
*Participants are active in the reward program. Non-participants are not active in the reward program
- Non-Participant: +5% increase in margin year over year
- Participant:+20% increase in margin year over year