Situation

AFC Cable, a division of Tyco and a large industrial manufacturer that makes cable and conduit connectors used in building construction, had set a goal of producing 10% or greater growth every year for five consecutive years. To meet this goal, the company needed to motivate and reward its distributors for increasing sales. It also had to entice new distributors who were familiar with their competitors. In 2005, after 5 years of running an offline channel sales incentive program using a printed catalogue, AFC wanted to transition to an online program and compete effectively with the incentives offered by competitors.

Solution

With All Star’s help, AFC created a dynamic web-based program that was convenient for their distributor participants to engage in. We customized an online solution, based on the Propel for Sales platform, to reflect the look and feel of AFC corporate branding. We created graphics and news stories on the site to highlight the features of the program, and constructed a customized opt-in registration site. The new awards site offered more than 1,500 brand name products, more than double of any previous program the company had previously run. Participants received 500 points for registering online and answering survey questions as they joined the program.

In 2006, the incentive program was modified to encompass AFC division Kaf-Tech’s electrical distributors, who purchase AFC and Kaf-Tech's Flexible Metal Conduit, Liquid-Tuff, Fixture Whips, AFC Temp Lites and AFC fittings products. Awards pages were co-branded with both companies’ logos, but separate landing pages were created for each brand, providing easy-to-follow, customized access for both sets of distributors.

Results

Within the first six months of launching the new online program, more than 1,200 participants opted in, two-thirds more than any previous program that AFC had offered. During the first 12 months, the company also experienced a 23% increase in sales. In addition, using information gathered from the opt-in registration form, AFC designed a new training process that was well received by its channel partners. During the 12+ year life of the rewards program, online and offline, AFC has seen an average annual sales increase of more than 8%, along with improved brand awareness and market share.