Case Studies
A Manufacturer of Performance Motorcycles & Recreational Vehicles
About the Client
This leading manufacturer of performance motorcycles and recreational vehicles continues to make significant, ongoing investments in both sales incentive programs for their network of independent distributors and sellers, as well as promotional programs for professional and amateur “racing” drivers.
Challenge
As the company grew, its incentive and promotional initiatives became more frequent in occurrence, more complex to manage and more expensive to operate. Their legacy system lacked the functional depth and sophistication to keep up with their increased activity. It needed a partner who could turn what had become complicated on the back-end into something that was simple to manage on the front.
Solution
Madison launched a new incentive application that allowed participants, no matter what their category status, to access all of their information—current and historical—in one easy location. Based on pre-established eligibility settings, it streamlined every participant’s interaction with the system, giving them a manageable entry to racing incentive plans, sales incentive programs, or any other supplementary incentive programs involving them. It also gave the sponsoring manufacturer a new modernized tool to implement, roll out, administer, and track all of its promotional activity.
The first phase of the program addressed professional and amateur riders within the manufacturer’s racing programs. It categorized historical data and updated current functionality. It allowed the manufacturer’s support staff to directly input results and deposit race winnings based on complicated earning scenarios on location and in real time. Between the two audience classifications this represented about 2,000 participants.
It’s worth noting here that many of their professional racers are less than 13 years of age, making any of the professional or amateur racing sites they interact with subject to the Children’s Online Privacy Protection Act (COPPA). Madison quickly identified a partner who is at the forefront of COPPA-compliance software and has Safe Harbor status from the FTC (meaning users are indemnified against suits alleging violations, as the system). We incorporated their technology in that area of our site. The result continues to be a seamless and secure incentive experience for this unique demographic of underage participants.
We then rolled out the Sales Rewards program on the same platform to another 8,000 participants and synced-in the company’s learning and certification content. This allowed specific product line sponsors the flexibility to position training accreditation hurdles as qualifiers to some participants (those who may have been new or were underperforming) before they could earn points. In addition, other components, such as a dealer discretionary award module was introduced to support localized incentives. This new reports module captured, itemized and/or consolidated all program transactions and delivered data to authorized users in a number of formats depending on the view chosen.
Results
This manufacturer’s web based incentive portal incorporates their complete portfolio of sales incentives and rider promotions in one easy to access location. It manages the presentation of offers based on the participant’s demographic eligibility. It tracks and aggregates results based on the programs they are involved in. In addition, it helps manufacturer management across product lines and geographic territories isolate revenue results while tracking and comparing their total sales numbers.
Since inception our solution has:
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Reduced sales incentive and driver promotion administration costs across all brands by 55%.
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Has increased the firm’s product promotion efficiency ratio (specific product line revenues attributed to any promotion divided by costs) by 23%.
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Solidified COPPA compliance processing and tracking. All underage drivers are now 100% compliant. The firm has had 0 complaints filed. They estimate that this has saved them over $185,000 annually in legal management services.
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Has helped this manufacturer out pace all rivals in market growth across all relevant product categories by an average of 4.7%.
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Maintained high levels of dealers’ satisfaction, with the manufacturer satisfaction scores hovering in the high 97% range.