Case Study: A Major Office Products Company

Client Expands Market Share by Improving the Performance of Mid-size Dealers

Situation

Following a successful merger this Company, asked Maritz to help spur growth at the dealer sales rep level. The resulting incentive program had quickly deliv­ered increased sales, but Maritz observed that further growth could be limited if dealers did not increase inventories and provide reps with the product lines they wanted to sell. They also focused on the opportunity to turn more mid-size dealers into top performers. The task was to strengthen the partnership between the Company and their 750 dealers.

Following a successful merger this Company, asked Maritz to help spur growth at the dealer sales rep level. The resulting incentive program had quickly deliv­ered increased sales, but Maritz observed that further growth could be limited if dealers did not increase inventories and provide reps with the product lines they wanted to sell. They also focused on the opportunity to turn more mid-size dealers into top performers. The task was to strengthen the partnership between the Company and their 750 dealers.

Solution

Maritz developed a program that gives every dealer the opportunity to earn rewards for helping the Company achieve their goal of becoming a tier one supplier. The dealer incentive program rewards dealers with opportunities to earn trade credit rebates and reward points for exceeding baseline plans. Dealers are assigned to one of five level designations depending on their annual purchase volume. Each of these designations has an assigned growth target and rewards schedule. Dealers are rewarded based on attainment of their purchase objectives. Additional bonus points are available to dealers who increase their purchases in an amount that would raise them to the next level designation. Dealers have the ability to use up to half of their reward points to fund locally run incentive programs at their dealership. This program allows dealers to really have control over what type of incentive is run within their local market, permitting them to focus on their own particular incentive needs. Points are loaded on an exclusively yours^® card that can be redeemed at more than 150 popular retail stores, restaurants, travel providers, websites and catalogs across the United States. Top performers will enjoy a luxury vacation at an exclusive travel destination.

Results

• Dealer purchases were up 15 percent in a flat market.
• Sales return on program investment was 580 percent.
• Middle size dealers grew at twice the rate of dealers over all.

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