The competition is heating up
At a recent strategy session with key leaders at the world’s largest Heating, Ventilation, and Air Conditioning (HVAC) manufacturer, the client wanted to shift gears to come up with a big push to end their fiscal year by bringing in every dollar they could.
Impact
Despite a lofty goal, 84 winners earned the top level award, more than three times the number in previous programs. The client showed an 18.2:1 ROI on this program.
Industry
Manufacturing
Problem space
Sales team motivation
Services
Warehouse Windfall
Technology
GoalQuest®
Building trust
We have been a partner with the world’s largest HVAC manufacturer for more than a decade, providing multiple platforms that interface with their major audiences. Over the years, they had run many successful sales contests that their employees enjoyed.
At a recent strategy session with key leaders at this manufacturer, the client wanted to shift gears to come up with a big push to end their fiscal year by bringing in every dollar they could. We recommended a GoalQuest® program that culminated in a Warehouse Windfall.
Designing the right program
The GoalQuest® program was created to incentivize their branch managers (BMs), territory sales managers (TSMs) and regional parts managers (RPMs). The three-month promotion rewarded on three levels, pushing the managers out of their comfort zone and rewarding them for taking the risk. If they failed to achieve their goal, they received nothing. The idea is big risk, big reward.
Baseline projections were determined by the manufacturer’s planned growth numbers, which were 55% higher than the previous year for TSMs and 30% higher for BMs.
Extraordinary results
We had never run a GoalQuest® with a Warehouse Windfall as the reward, so we weren’t sure what kind of incremental impact this would have on the promotion. But the results were incredibly positive, with participating TSMs outperforming non-participants by $288,000, on average, or an aggregate sales differential of $53M. BMs had a similar performance, with participating BMs outperforming non-participants by $265,000, on average, or a combined total of $44.5M.
Despite the lofty goals, 64% of selectors chose the top-level award, surpassing the historical 39% selection from previous programs. A total of 84 winners earned a Warehouse Windfall run, more than three times the number of winners in their previous Warehouse Windfall.
An exception to the rule
This program was an exception to the norm with Warehouse Windfalls. The top award wording in the rules was carefully crafted to allow for an alternative award if more participants achieved compared to the projected 50 runners. This was needed to manage the pre-approved budget. However, the budget holder responded with an emphatic “Send them all!”
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