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Case Study: A Global Office Equipment Company

Case Study: A Global Office Equipment Company

Move to non-cash rewards drives higher participation rates and improved ROI.

Situation

For many years, the Client had used sales incentive programs to help move product, increase dealer mind share, and reward desired behavior. Non-cash merchandise was the primary reward solution until the “cry for cash” caused it to move to a cash card that could be used virtually anywhere. Over time, channel structures and business strategies had become more complex. Disappointing sales caused the Client to take a closer look at its incentive programs. The Client asked Maritz to help them understand why the current programs were not driving the behaviors it needed.

Solution

Maritz believes that to achieve the maximum results of a sales incentive program, clients must understand the reward earner audience and what motivates them to change behavior.

Maritz began by analyzing how the cash card was being spent.

Research showed that, over time, participants had come to regard the cash card more as a form of compensation, than as a reward for specific behavior. The majority of the points earned were being redeemed for everyday retail, gas and grocery purchases. In some instances the cards were being used for purposes that did not complement the Client brand. Maritz’ experience has shown that the most successful incentives are the ones that involve guilt-free spending and provide a lasting memory. They recommended moving back to non-cash awards. The Client agreed to change the reward mix to a combination of merchandise and a filtered retail card. Program rules were changed before introducing the non-cash rewards. This included the ability to process claims more quickly. An expanded print campaign based on personal preferences was launched in anticipation of participant reluctance to move to non-cash.

Results

Increased participation by 42%
Improved productivity measured by average number of units claimed by Dealer Sales Reps from 1.4 to 2.2
Shifted product mix to 14% on new models
Delivered ROI of 17:1