Turning goals into gains

An auto manufacturer designed three dealer incentive programs to increase sales and improve sales team retention.

automotive sales incentive program

Three dealer incentive programs. Zero guesswork. Big results.

An automotive manufacturer faced serious challenges: sluggish sales, stale inventory and dealers who weren’t feeling motivated or energised. Certain vehicle models sat far too long, and brand loyalty was at risk. Instead of launching a one-size-fits-all program, we consulted on the brand’s strategic rule structure that led to three distinct dealer incentive programs – each focused on specific business goals. The brand saw a major performance boost, and our ongoing program enhancements ensure alignment with evolving business goals.

Program 1

Designing sales incentives to boost performance

Disengaged dealers led to critically high inventory levels of the brand’s premium sedan. With a new release from another major manufacturer happening soon, they needed to make way for a new car model. Quickly. A tactical dealership sales incentive program could:

  • Encourage sales reps to increase their focus on selling this specific car model
  • Motivate sales managers through the brand’s corporate sponsorship of a major sporting event

Tiered program focuses on incremental sales goals

We designed the program around three levels of awards, each requiring a higher level of incremental performance. Earnings were based on a certain percentage achieved. Success hinged on sales rep engagement efforts, so we:

  • Amplified dealer marketing support through advertising, special promotions and consumer events
  • Encouraged all participants (not just top performers) to set realistic goals
  • Promoted an opportunity to earn a top-performer travel award to a prestigious sporting event
  • Included noncash runner-up awards

The program’s online incentive system featured:

  • Print, web-based, SMS and HTML communications
  • Online sales tracking
  • Performance feedback
  • Online rewards fulfilment

Results

100%

of dealerships actively participated in the program

>200%

of manufacturer baseline objective achieved, *double* the initially targeted result

>40%

of dealers achieved their chosen objective and earned rewards

Program 2

Launching a time-bound sales promotion 

Burdened by an oversupply of specific stock vehicles, the manufacturer needed to reduce inventory levels to prevent further discounting. The right incentive program would address this issue and help dealers maintain standard margins on all new vehicle sales

Synced communications spur sales

We designed, implemented and operated “Endless Summer Rewards,” creating a sense of immediacy during the earning period. The user-friendly platform focused on identifying, tracking and rewarding sales of specific stock vehicles, which earned sales reps motivational noncash rewards.

Linking a database tracking and performance feedback system to our online rewards catalogue and ordering system maximised engagement.

Earnings linked to performance

  • Top performers earned exciting grand prizes
  • Participants whose dealership achieved sales target earned reward points based on sales
  • Dealers redeemed points for prizes from the extensive rewards catalogue selection

Results

115%

of manufacturer baseline sales target achieved for the 3-month program period

>50%

of dealers achieved their sales target and earned rewards in the program

Lower inventory

stock inventories saw historic lows, exceeding all expectations

Program 3

Improving sales rep retention with rewards and recognition

Unhappy sales reps were leaving for other dealerships. To stop the turnover and improve front-line brand loyalty, dealer leaders needed to:

  • Retain sales reps during a period of promised growth
  • Clearly identify top and middle performers
  • Incentivise sales among middle performers
  • Support sporadic tactical sales program
  • Celebrate top performers during their “Dealer of the Year” recognition

Sales Guild initiates behaviour change

We designed and operated an exclusive Sales Guild, tracking unit sales, customer satisfaction and market share by individual sales rep. Because middle performers comprise the largest segment of sales reps, we focused the program around helping this core group make gains.

Outcomes from online quizzes pinpointed product knowledge weakness, which helped us adjust program education. We also recognised and rewarded top performers.

Our online program website enabled participants to:

  • Review program details
  • Complete selected product knowledge quizzes
  • Check their progress
  • Redeem motivational noncash rewards

Results

100%

of dealerships actively participated in the program

90%

of sales reps earned rewards at various levels

6%

sales increase during the first year of the program

10%

decrease in turnover among dealer sales reps