Generating $17M in Incremental Sales Through Incentive Program
At a Glance:
- $17M+ in incremental sales
- 11.75% sales growth over plan for participating suppliers
- Fully supplier-funded incentive model
Business Issue
Our medical supply distribution client wanted to drive incremental sales growth by engaging its preferred, non-competitive suppliers in a shared incentive initiative—one that would be entirely funded by supplier performance.
While the opportunity was clear, participating suppliers (typically 6–10 per year) were initially hesitant. Their concerns were due to a lack of confidence in their return on their investment. We knew we needed to overcome their skepticism.
Key challenges included:
- Securing supplier participation without guaranteed ROI visibility
- Creating an equitable structure across multiple, non-competing suppliers
- Demonstrating measurable sales lift tied directly to incentive investment
Our Solution
Motivation Excellence began with a two-year historical sales analysis, reviewing performance by sales representative and supplier. Using this data, we set individualized growth goals for each supplier, ensuring fairness and achievable performance expectations.
To emphasize transparency, we designed a custom tracking and reporting framework that allowed suppliers to clearly see incremental sales growth tied to the program.
The solution included:
- Supplier-specific growth goals based on historical performance
- A transparent ROI rule structure aligned to incremental sales
- An online portal where sales reps tracked performance and accumulated reward points in real time
This structure eliminated funding concerns, aligned incentives across stakeholders, and enabled multiple suppliers to participate equitably within the same program framework.
The Results
The program delivered strong, measurable outcomes:
Participating suppliers increased sales by 11.75% over plan. Volume was up more than $17M for selected suppliers.
At the end of the program, participants received a one-time reward points payout, redeemable for name-brand merchandise, travel options, or experiences from our expansive online award offerings.
Getting 6-10 different suppliers to work together in an equitable arrangement is the kind of data-driven, personalized work that sets Motivation Excellence apart.
