The Scope
As a renowned distributor of fuel, the client faced the challenge of building sustained relationships with their fuel dealers whose loyalty frequently fell to the distributors offering the lowest prices. The client sought a solution that could help them counteract this pattern and boost their sales.
The Challenge
Operating within a competitive industry where price often determined loyalty, the client wanted a revolutionary approach to strengthen relationships with their dealers and fuel sales growth. Their ambition was to change the behavior of their dealers, evaluating the business outcomes through improved Key Performance Indicators (KPIs).
The Solution
HMI (now a part of 360insights) devised a multifaceted incentive program tailored to the client’s needs within a fixed budget. Central to the solution was a sales competition designed to incite enthusiasm and drive performance, with an exclusive grand prize: an all-inclusive group trip to Puerto Vallarta, Mexico for top performers. This highly desirable reward spurred dealers to elevate their efforts. To ensure fair competition, dealers were divided into two groups based on size and market, allowing both large and small dealers equal opportunities to excel.
An online leaderboard was established to maintain transparency and foster a competitive spirit. This feature allowed participants to monitor their progress in real-time, generating continuous excitement and urgency. Additionally, quarterly merchandise rewards were introduced to keep engagement levels high throughout the year. These rewards served as frequent touchpoints, ensuring that even those not in contention for the grand prize remained motivated and valued.
Supporting the competition was a robust marketing communications component. Dealers were regularly informed about their standings, upcoming milestones, and potential rewards, keeping momentum alive and participation high. This comprehensive approach, combining competition with continuous engagement and clear communication, transformed purchasing behavior from price-centric to value-focused. By fostering a competitive environment and recognizing achievements at multiple levels, we successfully enabled the client to build stronger relationships, increase sales, and meet its business objectives.
The Results
The incentive program had a profound positive impact on the relationships between the dealers and the client, with all respondents affirming this influence. By generating heightened competition, the program not only strengthened relationships but also led to increased sales, thereby fulfilling the client's business objectives. The initiative was particularly successful in generating substantial revenue, bringing in $3 million after costs.
Throughout the program, participants experienced significant sales growth, with year-over-year sales jumping from 160 million gallons to 453 million gallons. The success did not stop there; the number of Year Two goal earners skyrocketed by 237%, while overall program participation saw a 72% increase year-over-year. Furthermore, those who met their goals exceeded them by an average of 19%, showcasing the program's effectiveness in driving dealer motivation and performance.
