Case Study: A Building Products Company
Client builds loyalty and increases sales in shrinking sales channel.
Situation
A major manufacturer of building insulation was concerned that their sales and margins were being eroded by large corporate roll-ups of independent contractors. Lucrative cash buy-outs were shrinking their sales channel. The client needed a way to show independent contractors that they were committed to their success.
Solution
Through a joint planning process, Maritz and the client developed a strategy targeted at increasing sales and on-going loyalty with 200 independent contractors.
They implemented an annual points-based incentive program that rewards loyalty from dollar one, and offers an increased payout for incremental sales. A wide variety of awards allows all the contractors to have skin in the game. Points can be redeemed for merchandize from the Maritz Book of Awards (BOA), wearables and premiums from the Maritz-sourced client catalog, and trips to the annual Sales Conference.
Maritz handled all communications: announcement pieces, newsletters, and monthly statements. They also stocked and fulfilled all BOA merchandise ($1.6 million annually) and handled all aspects of the travel program
Results
- Sales increased 28%
- The number of independents selling off declined.
- Even non-independents use the program to increase sales.
- The program, which has been running for 6 years, has always been self-funding.
According to the client’s Manager of Programs, "This is the best all encompassing marketing program Johns Manville has ever done".
