Incentive Publications PM40801507 - Manual (Page 14)

CANADIAN
IN
CENT
IVE
MAGAZINE
BUYERS’
GUIDE
2007 W W W . I M A C A N A D A . C A
14
W hen executives with
Boomerang
Tracking
Inc. were considering
implementing an incen-
tive
program, they
could have just reached in a hat and
tried any ol’ program.
Instead, they did their research,
took their time and the strategy paid
off with a significant jump in sales of
their stolen-vehicle tracking devices.
The company’s blueprint for success
was the food for thought at the Incen-
tive Marketing Association – Canada
Council’s Power Breakfast in May.
Marc Roth, Boomerang’s Canadian
marketing manager, outlined for guests
the steps the company took before,
during and after it developed its Boom-
Rewards incentive program for new-car
dealers who sell their devices.
“Going through every step and not
just jumping into a program is really
the key,” Roth says. “Did it take us a
little longer? Absolutely.
Could we
have launched it in a month versus six
months? Absolutely.
“But what I found was that first
understanding the market, understand-
ing who’s selling it and then going
through the process of designing a pro-
gram specifically to the market was
really worthwhile in the end for us.”
ON THE RIGHT TRACK
Boomerang Tracking Inc. started 12
years ago in Quebec and became the
leader in stolen-vehicle tracking tech-
nology in Quebec, B.C. and Ontario.
In 2004, the company was acquired
by LoJack Inc. The worldwide leader
in stolen-vehicle recovery devices has
offices in approximately 25 countries.
The devices, which use cellular or
radio frequency technology, are
installed covertly in new cars at
dealerships.
Before Boomerang launched its
incentive program in the spring of
2005, executives conducted direct-
market research to find out who was
selling the devices, what they liked
and disliked and whether it would be
useful to have an incentive program.
Surveys were sent to about 300
dealers in the greater Toronto area.
Results revealed a lot of competi-
tion at new-car dealerships in terms of
the number of goods and services
dealers could offer customers, some-
times up to 30 items in a “basket,”
Roth says.
Seventy-seven per cent of respon-
dents said having an incentive
attached to an item in that basket
would
influence their selling
approach, and 94 per cent said they
would be more likely to sell one of
those products if it offered them an
incentive, he says.
Because of the large number of
items in the basket, there was a need
to distinguish Boomerang’s products,
Roth asserts. “A greater amount of
their compensation package at that
level is coming from products like
ours, so the more compensation and
margin that we can give them as a
product the better.”
Communication and staying in the
minds of dealers was also crucial, and
one way to accomplish that was
through a rewards program that led to
extra contact.
Some competitors’ products also
had incentives, but it was a minority
and not many were customized to the
car-dealer channel.
“They’re kind of just out of the box
– you get $2 for this and $4 for this,”
Roth says. “Our program, when we
designed it, was tailor-made to the
way that we sell and what we sell and
what we want them to sell.”
The company sells two types of
units and each has five different ser-
vice terms, from one to five years. The
cost difference between the Level 1
and Level 2 units was $200. Service
terms were $170 for one year and
$600 for five years.
A decision then had to be made about
whether Boomerang would attach an
incentive to the sale of a unit, the ser-
vice term or both, Roth says.
Some factors considered included
margin flexibility, the sales drivers
and what behaviours the company
wanted its dealers to have.
It was decided dealers would get
300 points if they sold a Level 1 unit
FROM OBJECTIVE TO DELIVERY