Over the past 15 years, I have worked with many plumbing, HVAC and electrical distribution industry clients, helping them design effective performance based incentive programs. With all of these programs, the ultimate goal was capturing market share from competitive distributors. One important element to designing an effective growth oriented strategy, in which customers must achieve a certain growth benchmark before being rewarded, is knowing how high to set the bar. Obviously, if you set an unachievable goal, your intent to motivate a customer can quickly turn into a dis-incentive, creating “bad will” instead of “good will.”
Tue, Mar 06, 2012 @ 10:12 AM
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Tue, Feb 21, 2012 @ 11:00 AM
Do you know your customers well enough to be in a position to set appropriate goals for your annual incentive program?
Tue, Jan 10, 2012 @ 01:19 PM
These five simple yet shocking tips will help to increase loyalty and better engage your channel partners.
Fri, Dec 02, 2011 @ 08:52 AM
Not long ago, HMI took on a new client in the cabinetry manufacturing industry needing to increase sales and build greater channel loyalty among distributors, dealers, home centers, and remodelers. In the past, they had run short-term SPIFs during key times of the year, but were not seeing positive results as compared to their biggest competitors. After discussing their goals, budget, and other wants and needs, HMI recommended a two-pronged OnDemand Award Program approach with unique incentive rule structures and a centralized incentive program administration that accommodated both principals and designers.
Tue, Oct 04, 2011 @ 10:48 AM
The effectiveness of using sales incentives got a nice boost of awareness this week in the form of Andy Bernard, manager of the fictional TV show “The Office.” For those of you who have never seen the show, it revolves around the office life of the employees of Sabre, an office products company. On this week’s episode, management challenged the staff to double their sales, and their new manager Andy decided that incentives were the best way to motivate the sales team.
Tue, Sep 27, 2011 @ 10:00 AM
Recently, a manufacturer we have worked with for several years wanted to shake things up a little bit by changing their rewards program perspective. This manufacturer owns their distribution channel and wanted to close the 4th quarter strong with an exciting program to motivate their customers. Working with them, HMI helped create a customer specific program to award based on individual incremental sales and gross margins.
Thu, Sep 08, 2011 @ 12:42 PM
In previous posts, we have discussed how beneficial performance incentives can be for all types of companies, no matter what industry they are in or how big or small they are. To illustrate that point, we recently gathered information on one of our programs, a group travel incentive program that we administer for WinWholesale, a large supplier of domestic and industrial supplies and materials. While the program itself was company-wide, we thought this local company was a great example of the benefits of doing group travel incentives.