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Manufactureranddistributorloyalty

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Are you a manufacturer or a distributor? Are you struggling to keep customers loyal? Do you want to attract #customerloyalty. Our incentive and or reward ideas are custom built to help you to grow your company.

Travel, merchandise, points, recognition all designed to help you grow

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Manufactureranddistributorloyalty

  1. 1. ProPrinters Customer Acquisition Customer Loyalty 609 807 8856
  2. 2. Business Purpose • Increase store traffic/generate face to face meetings • Increase purchase frequency • Promote goodwill of your company • Promote products • Motivate managers or employees to higher levels of performance
  3. 3. Expertise • Sales Performance Programs • Referral Marketing Programs • Product Promotions • Retail or Website Traffic Promotions • Loyalty Programs • Social Media Promotions • Employee Recognition and Safety • Trade Show Promotions • Website/Internet Promotions • In-On-Near Pack Promotions • Sweepstakes and Game Promotions • Character Marketing Promotions • Mobile Promotions
  4. 4. Services • Full Service Sales Promotion Agency • Creative Development • Copy Writing • Graphics Design • Legal • Print Production • ROI Analysis • Promotional Products/ Apparel • Awards, Trips and Premiums • Fulfillment • Administration • Measurement/Tracking
  5. 5. Partial List Industries • Banking/Credit Union • Financial Services • Sports Teams • C Store • Grocery • Quick Serve Restaurant • Non Profit • Mass Retailer • Technology • Manufacturing • Distribution • Education • Food Service • Vending
  6. 6. It Pays to Promote during a Recessionary Period
  7. 7. It Pays to Promote during a Recessionary Period  In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business Firms that Maintained or Increased their Promotion Expenditures during the 1981-1982 recession Averaged Significantly Higher Sales growth, both during the recession and for the following three years, than those that eliminated or decreased promoting. By 1985, sales of companies that were Aggressive Recession Promoting had Risen 256% over those that didn't keep up their promoting. In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that Promotion Aggressively during Recessions not only Increases Sales but Increases Profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.
  8. 8. Promotion is Less Risky than Discounts, Rebates or Free Goods If Your Present Gross Margin Is: 5% 10% 15% 20% 25% 30% 40% Cut Price You Need an Increase in Unit Sales Of … 1% 25.0% 11.1% 7.1% 5.3% 4.2% 3.4% 2.6% 5% 100.0% 50.0% 33.3% 25.0% 20.0% 14.3% 10% 200.0% 100.0% 66.7% 50.0% 33.3% 15% 300.0% 150.0% 100.0% 60.0% 20% 316.7% 172.7% 90.5%
  9. 9. Promotion versus Discounts or Rebates or Free Goods • Discounts and promotional allowances used repeatedly become ‘part of the price’, and appeal is lost. Hence, why many automobile companies have gone to a everyday price versus discounts or rebates • A true incentive provides not only an inducement, but adds excitement, interest, drama and a sense of urgency. • Discounts often mean ‘giving away’ the product and ‘doing this a new way’ each time develops into a vicious cycle. • Discounts simply cannot generate the appeal and motivation as can merchandise or travel awards. • A dealer or distributor accustomed to buying on the basis of discounts is vulnerable to your competitors’ inducements. • Discounts are often passed on to the end-user at a lower retail price. • Discounts can be easily matched by competitors • Non-cash incentives represent minimal investment because the program funding is accrued basically from increased sales or purchases. If cash/rebates/free goods/discounts are such a great motivators, why aren’t they selling more or buying more?
  10. 10. PPAI and ASI Studies Conclude • 84% of end-users can name the advertisers on the items they receive • 62% have done business with the advertiser AFTER receiving the item • End-users keep products for 7 months • The average cost-per-impression of a promotional product = $0.004 • The CPI for advertising specialties beats all forms of media (except billboards)
  11. 11. The Best Carrot! Case Study from Major Oil Company based out of Texas Contest consisted of five regions across North America. The result was that it took 6 times amount of cash to achieve the same results as normal merchandise incentives. Non-cash outperformed cash by 46% Non-cash: 37% increase in product mix ROI Cash: -20% Every $1 invested = an $0.80 return Non-cash: +31% Every $1 invested = a $1.31 return
  12. 12. The Best Carrot!  Some 65 percent of executives believe that incentive programs using travel and merchandise are more memorable than those using cash; 60 percent of executives believe that sources of merchandise and travel are more helpful in creating an incentive program than are sources of cash, and 57 percent of executives believe that bonus payments are often regarded by employees as something they are due, according to the most recent “Survey of Motivation and Incentive Applications” by the Incentive Federation.  Columbia University study dated May 3, 2005 by Ran Kivetz, Ph.D. found the following Hedonic, Luxuries are more Motivation than Cash and Cash Equivalents etc.  Motivational research has shown that people become income adjusted. They know how much cash is needed to maintain their desired lifestyle and work hard enough to keep at that level.
  13. 13. Auto Maker Incentives & Rebates Average size of rebates/incentives has grown 10% year-over-year since 2002 Only 30% of customers in 2004 cited an incentive/rebate as a reason for purchasing Down 10% from 2002 Source Martiz Inc.
  14. 14. The Best Carrot! Federated Insurance Case Study Although non-seasonal products sales dropped drastically every May. May had never reached 5% of their annual volume. A non-cash incentive program was run for the month of May. It was concepted well, promoted effectively and produced 16.4% of that years volume! Sales people responded to $200,000 in merchandise awards while earning $1,000,000 in additional commission that was there all the time!
  15. 15. The Best Carrot! Goodyear Case Study 900 dealers participated in the program Those dealers who received cash bonuses boosted their sales a successful 22% over the previous six months Those dealers who received non-cash awards boosted their sales 32% -- 46% greater than cash! For every dollar invested in the program, Goodyear got back 80 cents from the cash group and $1.31 from the non-cash group
  16. 16. The Best Carrot! Mazda Case Study Three month test on truck sales (two test groups) - 32 districts offered cash and 32 districts offered non-cash Non-cash districts @ 115.7% of goal (cash districts @ 102.1%) 21 of 32 non-cash districts exceeded goal (cash districts 15 of 32) All sizes of dealerships in non-cash groups outperformed cash groups
  17. 17. Budget Rules of Thumb Invest 1-3% of sales/purchases 3-10% of incremental sales/purchases The actual percentage would depend on your gross margin % and the importance of winning the new business now
  18. 18. Applications Objectives Gain Trial of a New Product Capture Greater Customer Share Lock Out Competition Move Inventory Target Audiences Dealer Parts Managers/Buyers B2B Buyers
  19. 19. Concept 1: “Great Play Challenge” • Offer: Meet with your sales rep face to face or at your facility to play the Hockey Challenge Game ( Feb-May 2011) • How To Play: Just pick the NHL US/Canadian Team game winner each week and earn points. C • Bonus Points For: Referring a Customer, Sign Up for E Newsletter or Text Promotions, Complete Product Knowledge Surveys etc. • Prizes: Trip for Two to the Stanley Cup, SportsWii’s, NHL Hockey Jackets etc. http://games.vancouversun.com/vancouversun/hkpickem10/promo http://games.senatorsextra.com/ottawacitizen/hkpickem10/promo
  20. 20. Concept 2: Millionaire Promotion • Offer: Meet with your sales rep face to face or at our facility to play the Millionaire Game ( Feb-May 2011) • How To Play: Each activity you sign up for gets you a chance to play the Millionaire Game • Activities: Referring a Customer, Sign Up for E Newsletter or Text Promotions, Complete Product Knowledge Surveys etc. • Prizes: $1 Million, Movie Passes, NHL Hockey Stuff etc.
  21. 21. On Line Game Example Objective Increase sales in commercial vending channel Solution Create an online game with a chance to win $1 million. To play you had to get the freshness code off the package Results Sales grew from 12 million to 16 million units during the 9 month promotion period
  22. 22. On Line Football Game Example •Purchase Parts/ Equipment •Receive Game Code •Enter Code and Pick 6 Footballs •Behind each Football is Yardage •Based on Yardage Gained = Prize Won •5 Ways to Win Prizes •Big Prize insured to cover risk
  23. 23. Concept 3: MobiDecoder Game Traffic Builder Short Code Keyword SMS Msg. Consumer clicks link, MobiDecoder™ message is delivered
  24. 24. Concept 4: Conditional Rebate Insurance: If XX Team Win the Cup and You Pick Game Winning Goal Your Purchases are FREE ( Feb-May 2011)
  25. 25. Concept 5: Customer Loyalty Program • How It Works o Earn Rewards with Purchases from BW o Every $100 Purchase Earn Points ( ½ cent per point)(% of Sales TBD) o Point bonus on specific product emphasis and/or vendor funding, referrals etc • Reward Options: o Merchandise, Travel, Entertainment and Events Website: https://taz.valuesme.com Username: salesdemo Password: demo o Fuel or Gift Cards
  26. 26. Case Study – 3M Dental
  27. 27. Case Study – “3M Dental” Objective: 3M wanted to increase sales of new teeth molding products long term Creative Platform: Art of Dentistry Theme: Famous Impressions Plan: Offer gifts with purchase over a 6 month period to gain trial and repeat purchase Dental Assistants would accumulate invoices and mail in to redeem for gifts Gifts were items for the dental office Promotion Materials: Brochure, Order form, letterhead, T-shirts Result: Sales exceed expectations and the program ran for several years with various 3M products being promoted
  28. 28. NFL NBA NHL NASCAR Collectable Rewards
  29. 29. Best Buy, Buy.com Travel Events Entertainment Rewards
  30. 30. Case Study –Sandoz Nutrition
  31. 31. Case Study – Sandoz Nutrition Objective: Sandoz wanted to take share from a competitor for two key brands Creative Platform: Travel Theme: Taste for Travel Plan: Offer gifts with purchase over a 6 month period to gain trial and repeat purchase Food Service buyers would accumulate invoices and mail in to redeem for gifts Gifts were items for personal or office Promotion Materials: Brochure, Order form, letterhead Result: Sales exceed expectations and the program ran for several years with various Sandoz products being promoted
  32. 32. Concepts 1, 2, 3, 4 & 5: Communication Plan • Customers: Communication Plan By Customer Value o Tier One: Continuity Direct Mail Campaign Candy Program o Tier Two: One Source Button o Tier Three: Postcard Mailer or Post it Note Mailer o Copy Slant: How great plays effected the teams ability to win the game. Just like our great products, team of experts and one source effects your ability to get the job done right, on time & on budget • Targeted Prospects o Purchase a listed of prospects from associations and get names from sales reps o 1-5 Postcard mailings to generate response then put into Tier 1-3 mailings based on Customer Potential Value o Run Radio Spots, Website, Newsletters, Invoice Stuffers and Facebook Key Word ADs to generate response then put into Tier 1-3 mailings based on Customer Potential Value
  33. 33. Candy Program Example Objective Gain 1-2 New Retail Accounts valued at $500,000 to several million per win Strategy DDM Campaign to multiple Contacts with each Retailer and investment of $200 per contact Results 5 New Accounts were Won
  34. 34. Creative Direct Mail Examples Sound Pocket Folder Sound Tube Mailer Student Easy Button Sound Flat Mailers
  35. 35. FEDEX Style Envelope or Personalized Post-It Note Letter Mailer Personalized Gets Immediate Attention Letter Self Mailer
  36. 36. Build Traffic to Website Place your WebDecoder here! Place your WebDecoder here! Everyone is a winner! Contact information, feedback on their last experience with Alitalia

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