A Fortune 500 financial institution was dealing with stagnant loan volume. After three years, the organisation’s leaders decided enough was enough and wanted help creating a comprehensive dealer incentive programme. The result? Tripled volume from enroled F&I Managers at auto, RV and marine dealerships.
Assessing the loan volume landscape
The F&I Managers at auto, RV and marine dealerships the client works with simply weren’t driving loan volume. The client relied too heavily on their top-performing dealers, and the current cash-for-contract incentive wasn’t seeing positive change. Leaders wanted to drive serious loan volume in their dealer channel.
Assessing dealer performance and programme data
To understand the trend of the flat loan rates, our team reviewed 36 months of historical loan volume data to identify performance successes and gaps. After assessing dealer impacts on loan production and uncovering the effects of seasonal sales cycles, we reached some important conclusions.
With approximately 18,000 dealers registered to do business with the financial institution, the already small audience was shrinking. In fact, 52% of the audience wasn’t doing any business with the institution. Even during the busiest months of the year, the average loan volume per dealer decreased over the course of three years.
While some dealers weren’t engaging at all, middle-performing dealers fell short of earning top-performer status by only one deal per month. Programme communication wasn’t resonating, and dealers didn’t seem motivated to participate in the organisation’s established programmes.
Setting new benchmarks for an incentive programme
The organisation wanted a programme to:
- Motivate under-performing and dormant dealers to increase loan production
- Maintain momentum among top-performing dealers
- Increase loyalty among all participating dealers and F&I Managers
Designing an impactful incentive programme
An integrated approach to communication, technology and awards would give the best possible results.
We segmented enroled dealerships into three earning tiers based on the previous year’s loan volume, ranging from already engaged, loyal dealers to those not using the brand in any capacity. All dealers received a goal-based earning opportunity reflective of their engagement tier, and participants received points for each loan made.
To make the programme as easy as possible to participate in, an intuitive client-branded platform shared programme-specific information, enticing the dealer audience to participate and track their progress.
Finally, we worked together to craft a performance guarantee that returned a portion of invested dollars to the client if enroled dealers didn’t achieve an average of at least 100% more loan volume than non-enroled dealers.
Customised communications inspired participation
The multimedia approach expanded the reach of the brand’s message, and custom communications fit each audience segment. By using the right combination of print and digital communication – at the right frequency – the programme gained powerful, long-lasting momentum.
The award-winning brand campaign introduced the programme, helped dealers fully understand the benefits of participating and generated excitement to enrol and start producing loans.
Flexible incentive platform drove engagement
One incentive platform served three different tiers. The platform accommodated varied messaging, goals and metrics for each tier, allowing for future growth. Dealers who achieved a certain dollar amount per month received game plays to drive continued engagement. The reward for dealers who reached their monthly goal for 12 months? Moving to the next programme tier, unlocking more points.
Personal, one-of-a-kind awards motivated dealers
Research ensured highly customised and relevant award options. The awards were a personal, powerful way to reward and reinforce best practices and winning behaviours. Plus, they proved to be a huge motivator for enroled dealers who enjoyed incentives like:
- Online merchandise catalogue
- Concierge travel experiences
- Charitable giving
- College tuition reimbursement
- Custom gifting options like a restored ’67 Mustang, rare dog breed or unique horse saddle