Employee incentives that actually motivate action.
Opportunity:
Create an incentive program that drives customers (current and competitor) to their local Volvo dealer to increase parts sales. Also reward the parts employees, who had never been given an added incentive, to help drive sales.
Payback Solution:
JFG developed an online, interactive dealer platform to manage customer lists, enter sales and submit for corporate rebate. Volvo corporate can track and validate the invoices. Cash incentives are loaded onto participants' spend-anywhere debit cards. JFG also created a direct mail campaign - tied to the online program - with customer offers redeemable at local dealerships. Dealers have a direct cash incentive to reach more customers and sell more product.
Results:
- Tracked invoices totaling $34 million.
- Processed nearly $5 million in rebates - with dealer incentives over $650,000.
- Participation started at 18%; One month in: 96%.
- 2005: 13,000 mailers; 2010: 58,000 mailers.
- Initial mailing lists had almost 20% undeliverable; 2010: less than 2%.
- Named one of the top 10 Volvo dealer initiatives by the CEO of Volvo worldwide.
- Volvo now models all customer direct mail programs after Maximum Reload.