Leading HVAC & Plumbing Distributor

The Scope

The primary objective of a major distributor of commercial and residential plumbing, waterworks, and HVAC supplies was to spur stronger sales and nab more discretionary business from an existing customer base, all while reducing price sensitivity.

The Challenge

Coming from a background unfamiliar with the incentive industry, the client found it challenging to establish clear program expectations and realistic goals for participants. Their aims were to create more vigorous sales, change seller behaviors, and achieve specific KPIs.

The Solution

HMI (now a part of 360insights), created a performance-based group incentive travel program that catered to top customers and provided ambitious goals rooted in the previous year's purchasing results. Over 200 of their most significant customers were identified and given attainable goals. The program incorporated an all-inclusive trip to the Hard Rock Hotel in Riviera Maya, Mexico as the reward for goal accomplishment. The plan also included branded premium item mailings, monthly eStatements, and in-depth sales tracking to measure ongoing program performance. The strategy leveraged Market Development Funds (MDF) to ensure returns were maximized.

The Results

The outcome of the program was a resounding success. Program participants achieved an astonishing $7.5 million in incremental sales growth, marking an 80% improvement from the previous year. Participant sales saw an increase of $2.6 million from the previous year, with 31.6% of participants meeting their initial sales goal. The cost of the trip was less than 15% of the projected incremental profit. With the success of the program, the client has continued its partnership with HMI to engage and motivate a wider audience to become loyal customers.