Leading Automotive Aftermarket Manufacturer

The Scope

A leading automotive aftermarket transmission and driveline-related manufacturer, were looking to increase sales, effectively promote product upselling and improve customer loyalty amidst fierce competition, within their audience of transmission and auto shop owners.

The Challenge

The manufacturer was new to incentive programs and was unsure how best to use them to bolster their performance amidst a competitive environment. The key pain points included determining whether an incentive program could drive behavior change, and if so, which strategy would work best - a product-focused approach or an overarching incremental growth strategy. The goal was to change buying behaviors and ultimately achieve a boost in Return on Investment (ROI) through growth in sales and customer loyalty.

The Solution

HMI (now a part of 360insights) set out to address these challenges by designing and implementing two incentive solutions with differing earning structures. This approach was designed to test which would work best for the target audience. To track progress, personalized 6-month purchase goals were established based on a percentage of growth from the previous year's purchases for all customers.  
 
The pilot program ran for six months, offering two points earned per dollar for each $1 spent. Customized leaderboards were implemented to promote a competitive culture and increase engagement. An online reward platform, a dedicated incentive program management team, and an array of additional services were implemented to make the program successful. A/B testing was used for in-depth results analysis to identify the most effective structures.

The Results

The results were incredibly satisfactory. 56% of the eligible participants actively engaged in the program, and 47% of enrolled accounts hit their 6-month goal. Both Pilot A and B saw an increase in sales YOY, with a 584% ROI in the program. In addition, the program was honored with three IMA Excellence Awards in its first year. Clients reported much higher customer engagement than expected and positive feedback about the program's return on investment. The qualitative social proof combined with the data results underscored the program's effectiveness in accomplishing its KPIs.