Powerful incentives lead to sales success for Volvo

What's the problem?

Volvo Car UK Limited identified a sales need to promote the SE LUX and Executive-level vehicles within their network. They found that, typically, a sales person would focus on the base entry model, and that fewer than 50% of Sales Executives were selling accessories. Their objectives were:

  • Increase sales of their higher end derivatives passenger cars by 25%
  • Increase sales of dealer fit accessories
Volvo image grid

What we did

The simplicity of the solution was embraced eagerly by the sales network – sell a car, and add some specific accessories, or up-sell to a higher specification model that included the same accessories but was less expensive than adding them to a lower specification vehicle.

Accessory sales were branded ‘Accessories Extra’ and managed by the Hub website on a claim-by-claim basis. Open to both sales persons and their dealer, sales were logged through the Hub website and stored ready for validation. This was updated fortnightly, earning each participant £50 for every validated accessory sale.

Apple products formed the basis of many rewards, illustrating the value of the reward and encouraging further sales. The vehicle sales element was branded the ‘Golden Apple’, where participants were offered a £70 reward for the sale of specific models. Each car sold represented a different Apple product available, escalating in price, with the pinnacle being a weekend away for two people to ‘the Big Apple’ – New York. Sales were tracked and validated by Volvo, and a regular file submission allowed the personal sales records to be updated.

In an unusual move, everyone could potentially receive the top reward of a weekend away to the Big Apple with their partner, rather than capping it for a core group of high achievers. Volvo offered the award to all participants on an individual basis, and all they had to do was hit the predetermined number of SE Lux and/or Executive car sales to win. This keeps the programme simple, easy to understand and accessible to everyone, ensuring as much buy-in and participation as possible.

Working with Sodexo

We were able to help Volvo achieve some amazing results. On average, over 80% of the 420 participants logged into The Hub website every single month. Volvo set us the target to increase the sales of SE Lux & Executive cars by 25%. By Q4, the programme had helped to achieve over 34% – that’s over double the previous years sales increase of 17%. The full year achieved a 27% increase, exceeding the target set by Volvo.

To put this into perspective, with The Hub incentive, there was a 35% increase in SE Lux and Executive sales from 2009 to 2010.  Accessory sales have also seen a huge leap – in 2009 less than 50% of the sales executives had sold accessories, while in 2010 82.5% of sales executives actively sold these products. The programme received a Silver award for the Best Sales Incentive Programme at the IPM Awards 2011.

The response from the participants has been overwhelming. At the start of the programme the reaction from sales personnel was that we cannot do this, but the proof is in the pudding! Where perhaps they sold one SE Lux or Executive per month they are now achieving twice that, and in some cases doing that weekly.

- Volvo Programme Manager

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