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Company: Whirlpool
Corporation, KitchenAid Division
Programs:
Sales
Program Types: Merchandise
Objective:
The KitchenAid Round Up is a clear example of how a company can use an incentive
program to manage a mix of products as well as gain an overall increase in
sales, which is precisely what KitchenAid wanted to do with their fourth-quarter
sales incentive. To maximize participation in the program, KitchenAid designed
the "Round Up" campaign to capture the participants' attention with a
"call to action." Also key to the program's success was its clear
structure and easy-to-understand rules.
The audience KitchenAid targeted for this promotion included sales associates at
retail appliance stores and KitchenAid account managers. Choosing the right
incentive to appeal to this diverse group was a challenge. To reinforce the
Western theme of "rounding up" sales, the awards included a choice of
Omaha Steaks and a variety of "leather" products--shoes, luggage,
briefcases, watches with leather bands, coats, etc.
The Round Up campaign kicked off with an e-mail that announced the program.
Realizing that sales associates had limited access to computers at work, the
program rules, qualifications, and colorful images of the incentives were
featured in a brochure that was sent to all potential participants. The brochure
included a form to track sales and the redemption order form.
Points, awarded for sales of KitchenAid appliances, were redeemed for the
featured incentives. KitchenAid targeted specific products that they needed to
push by giving them additional point value. Overall sales were maintained
because points were awarded for sales of all items in the KitchenAid line.
Receiving the brochure at the onset of the program enabled the participants to
"aim high" and "earn big!" Associates set personal goals to
earn specific awards featured in the brochure. A push-through component allowed
Regional Managers to earn a merchandise bonus based on their region's sales
volume, ensuring that they would encourage the participation of their sales
force.
Supplier: Design Incentives/Promotivators (Livonia, MI)
Results: 97% of the trade partners (retailers) answered the call to Round
Up sales during the promotion period of October 1 through November 30. During
that time, KitchenAid sold the desired mix of appliances and overall sales
increased by 16% over the same period the prior year. The participants were very
enthusiastic about the premiums offered as evidenced by the fact that award
redemption was 25% higher than the previous year's program.
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