Case Study: A Landscaping Products and Services Company
Client finds proof that travel incentives grow sales.
Situation
For many years this Company had engaged Maritz to design and execute group travel incentive programs as part of their commitment to superior customer care, and recognition of their top sales performers. Over the past 10 years, distributor teams had competed for the chance to win luxury trips to destinations ranging from Munich to Australia to Kauai. In addition to reaching sales goals, top performers demonstrated improved product knowledge and customer satisfaction scores. Still, in reviewing overall costs, senior management raised questions about the impact of the travel incentive programs, wondering if the dollars spent were cost-effective.
Solution
The client engaged a third party post-graduate researcher to evaluate the effects that the Maritz incentive programs had had on their business. The research compared Divisional growth over the past 11 years, including both promotional and non-promotional years. It also tested the perception that the incentive programs led to abnormal loading effects on the final month of the program and the first month following the program end, as well as the quarters preceding and following the programs.
Results
The research clearly showed the positive impact of the group travel incentive programs.
-
Sales growth averaged 19% in promotion years vs. 12% in non-promotion years.
-
Increased gross profits (after program costs) amounted to millions of dollars over the 10-year period.
-
There was no negative effect on sales from loading or shifting volume between periods.
-
Winning distributors tended to have higher customer satisfaction scores.
