Regional Electrical, HVAC, and Plumbing Materials Distributor

The Scope

A regional distributor of electrical, HVAC, and Plumbing materials was looking for ways to incentivize their electrical contractors to grow their business with them. A short-term incentive travel program was devised as the solution.

The Challenge

After losing business from a major partner, the client was concerned about keeping revenue up. They started looking for ways to grow their business with current contractors, in particular hoping to increase their relative share of wallet for their contractors.

The Solution

HMI (now part of 360insights) helped the client design a short-term promotion that encouraged channel partners to purchase exclusively from the client. Participants were set a multilevel personalized purchase goal of 10% increase over the previous year’s goal. Upon meeting their first tier “bronze” goal, they were rewarded with a 5-night, all-inclusive travel trip to the location of their choice. Additional “silver” and “gold” purchase goals were set, offering the added rewards of more nights in the vacation package. Finally, meeting the highest “platinum” purchase goal rewarded participants with a luxury merchandise item as a bonus.

The Results

The program garnered $2.5 million in revenue for the client, with the target group boosting their sales by 39.2%. Finally, the program achieved $350,000 gross profit dollar growth for the client. The short-term promotion was so successful, in fact, that the client decided to build out a longer-term points program to motivate further growth from contractors.