9.11.12 | Muscatine, IA | For those in the business of selling, the use of incentive or loyalty programs is nothing new. But The HON Company, with a network of dealers across America who sell its workplace furnishings, has incorporated a game-changing component to its loyalty program that is designed to retain dealers for life.

Though it sounds like a gutsy proposition for resolving a perennially perplexing sales and marketing issue, it’s actually a scientific approach bearing successful results, as HON has discovered since working with Maritz Motivational Solutions to develop an additional sales channel initiative that in 2010 was layered into its tiered loyalty and rewards program. So effective in achieving objectives, it has led Maritz to apply for a patent (pending) for its “Channel Loyalty HD” solution, and earned both the agency and HON a prestigious Grand Motivation Master Award presented recently by Incentive Magazine. Among results of the initiative thus far: There has been a 10% enrollment increase in the company’s ongoing Dealer Sales Representatives (DSR) loyalty HONORS Program with more than 4,000 participants; 10% of the company DSRs moved up a tier; 13% more DSRs made a sale; sales of included products are up 12%; and, overall, The HON Company has experienced a sales growth that represents a 2.96 to 1 return on investment.

According to Shelley deSilva, The HON Company’s vice president of marketing, the original HON HONORS Program has always been based on three basic pillars: points for merchandise, travel and education. But it was a one-size-fits-all “do this, get that” strategy.
“Step one in reinvigorating HONORS to embrace the DSR for life strategy,” said deSilva, “was our acknowledgment that the DSR’s recommendation is the single-most important factor in office furniture purchasing decisions. And, we drilled deeper to include not just owners of dealerships but the frontline sales associates, as well. Moreover, we’re now carefully analyzing each DSR based on his/her Net Present Value plus that individual’s expected future contribution, or Lifetime Value (LTV) to The HON Company. This is a much more personalized versus mass approach, which also reflects the essence of the HON brand. We want to acknowledge, reward and celebrate the successes of each of our sales partners,” she said. 

This more studied analysis of the individual is based on fundamental human science:  Understand the DSRs as people first and strive to make their lives better. In turn, this will enable HON to equip and inspire them to more fiercely represent and defend the brand. The LTV calculations are yielding a clearer understanding of each sales representative’s attitudes, experiences and preferences, and the data is helping HON to design a “customized” approach to fully engage them as lifetime loyalists.

“I really feel a difference and that HON values me,” said Jeannie Moore, sales manager of BA Designs, Topeka, KS. “There’s an emotional connectivity that they’ve built and it helps me, in turn, create that with my customers.”

Moore continued, “They are sincerely caring and interested in what my firm is doing, what I’m doing,” she said. “We have many manufacturers to choose from for our jobs, but I’m inclined to offer up HON first whenever possible.”

Loyalty & Learning

Loyalty and incentive programs have been as vulnerable and susceptible to the recent recessionary economy as all other aspects of business and industry. According to the Incentive Research Foundation (IRF), per-person spending for incentive group travel fell for the third straight year from a 2009 average of $3,100 to $2,603 in 2011. Destinations have become less exotic and more domestic; trips have been shortened and “off season” bookings have become alternatives for savings. IRF also reported that merchandise programs have become leaner. In a 2011 survey conducted by the foundation jointly with Corporate Meetings and Incentives magazine, they found that as companies have cut back on incentive programs, they also have begun to leverage the motivating power of interpersonal recognition. And, as they adjust to doing more with less, they’ve focused on sales learning versus sales results, emphasizing selling skills and preparedness in a challenging economy.

The HON Company’s HONORS Program has not incurred cutbacks. It is investing in growth and improvements and clearly mirrors the trend cited by the IRF/CMI survey to focus on sales learning. Winning over the DSRs has been an ongoing process, and the new “DSR for Life” component is only a part of it. Arming sales reps thoroughly with the tools and ammunition that help to make the sale also has engendered their brand preference. On this front, The HON Company has made a decidedly strong push. In fact, there’s high praise among dealers, many who say HON is unmatched in how it so comprehensively prepares, informs and educates them. 

“The HON Company is head and shoulders above any other company with its online tutorials and webinars,” said Jacque Todd of Desks Inc of Utah. “The convenience of going to the HON Ready Portal for dealers helps me brush up on my knowledge before I head to a sales call. I’ve attended intensive training sessions they offer, as well, and gained tremendously from those.”

This year alone, according to deSilva, a total of 2,562 online classes have been completed and 63 webinar sessions have been offered with 1,000 participants.

Incomparable Customer Service & Responsive Online Resource

The HON Ready Portal that Todd referred to is where the company has consolidated all components of the HONORS Program. In addition to the educational offerings, it’s also where dealers find what’s labeled the “Collateral Builder”—content and assets for customizing their own sales and promotional materials for HON products. It’s where they can find new product updates and other vital information. And, it’s where they manage their HONORS account and the points they’ve accrued.

“The portal is extraordinary in what it offers and is heavily trafficked, making it the No. 1 tool for dealers,” said deSilva.

HON’s level of follow-through support also has wowed both Moore and Todd and won their loyalty for life.

Todd, who sells primarily to the government and education sectors, recalled one frantic situation when she needed help on a bid and her usual go-tos were unavailable. Out of desperation she called HON customer support, and the member who answered her call instantly rallied all of the right people at headquarters to put the numbers together for her.
Moore commented, “HON doesn’t shy away from issues or problems. They’re responsive and provide accurate information when you need it, find solutions and always have our backs.”

Both she and Todd have traveled on several of the HON HONORS trips, and they concurred that what HON serves up is first class style. “They spoil you,” said Todd. Moore was impressed by the full accessibility to top management on these excursions.

“We envision HONORS and our DSR for Life Programs to just keep progressively growing as we continue to incorporate new ways to drive further engagement,” said deSilva. She hinted that gameification—the use of gaming techniques—is due to be integrated into HONORS sometime this fall following a successful beta trial with 57 participants the past year. 

“Game-changing is really the perfect description for The HON Company HONORS Program and its ongoing evolution,” added deSilva. “For our dealers and network of 10,000 sales representatives, it is truly win-win and win.”

About The HON Company

Inspired by practicality and invested in understanding the needs of its customers, The HON Company strives to establish meaningful connections resulting in product solutions and customer support that exceed market demands. As a leading designer and manufacturer of workplace furniture including chairs, storage, panel systems, tables and desks, HON’s commitment to serving its customers is rooted in reliable performance and a member culture that is approachable, confident, smart, and ready to serve.  Headquartered in Muscatine, Iowa, The HON Company has numerous manufacturing facilities strategically located throughout the United States, and markets its products through a nationwide network of loyal dealers and retailers. The HON Company is an operating company of HNI Corporation. For more information, visit hon.com.