Highmark Homes: Improving Sales and Payout Efficiency with Locorum

Highlights

• 200% Increase in Program Engagement: Leveraging Locorum's rewards tools,
  Highmark doubled engagement in the first two weeks from launch, significantly
  enhancing sales opportunities.
• 4.25 Hours Saved Per Payout: The automation of incentive payouts represented a
  substantial reduction in administrative overhead, quantified in over 4 hours of time
  savings for the manager per inbound referral lead.
• Streamlined Incentive Payouts: Transition from manual e-transfers and physical
  prepaid cards to efficient, 2-click digital payouts on a professional prepaid Mastercard.

Introduction

In a challenging market environment, Highmark Homes, a market leader in Toronto, identified an opportunity to accelerate sales and enhance partner engagement through a tiered incentive program. By partnering with Locorum, they could quickly set up a bonus incentive program for their broker partners, contributing to the success of their 346-unit high-rise condo development.

Strategy Implementation

• Broker Incentive Program: Highmark introduced a $5,000 bonus incentive per deal for
  partner brokers aimed at boosting sales velocity and warm introductions to potential
  buyers in a down market.
• Efficiency in Payouts: Replacing the typical manual payout methods with Locorum’s
  streamlined and professional digital solution, Highmark managed their incentive payouts more effectively, saving significant administrative time.
• Program Positioning: The rewards cards were handed out personally by the Highmark
  team to partners when deals would close. The program was verbally communicated and this conveyed a sense of connection and exclusivity with their partners, fostering better partner relations.
• Increased Engagement and Trust: Highmark encouraged warm introductions to their
  sales team from partner brokers instead of an impersonal passover. This referral-type
  introduction improved trust and close rates.

Outcomes:

1. Over Four Hours Saved Per Lead

   The simplification of the incentive payout process saved Highmark Homes considerable time each week. Highmark quantified this as over 4 hours in time savings for their manager per referral lead.
   
   

2. 200% Engagement Increase

   The introduction and promotion of the incentive program resulted in a 200% increase in engagement from brokers within the first month of launch. Highmark reported that although it’s early to analyze data, they recognized a noticeable increase in their interest in the program directly related to the improved ease of the reward process.
   
   

3. Error Reduction

   Enhanced accounting reporting features provide real-time insights into financial transactions, enabling proactive decision-making and streamlined payout processes. The tracking system ensures payouts are on-time as well as eliminating errors or discrepancies.
   
   

4. Improved Partner Relations

   Highmark reported improved partner relations, “the verbal communication of the program during the card handout process cultivates stronger partner relations, fostering a collaborative and supportive environment.”
   
   

5. Improved Brand Reputation

   Highmark also reported an improvement in brand reputation amongst partners and within the industry. Specifically noting the ease of the digital program and professionalism of the card product as a reward mechanism set them apart from competitors.

Future Directions

• Building on the success of the broker incentive program, Highmark is expanding their
  strategy to include a client-to-client referral program, aiming to harness the "network
  effect" for future developments.
• This initiative is expected to further expedite sales by leveraging the power of established networks and the higher conversion rates of referred clients.
• Highmark intends to extend the same brand reputation improvements realized in the
  partner network to their client-to-client referral program.

Conclusion

Highmark Homes' strategic use of Locorum to innovate their incentive program has yielded impressive results, from enhanced sales velocity to operational efficiencies in payout processes.This case study exemplifies how technological solutions can transform traditional marketing strategies, driving significant business outcomes even in challenging market conditions.

Highmark's forward-looking approach in expanding their referral program not only sets a
benchmark for leveraging network effects in real estate development but also further cements their status as a market leader and innovator in the building space. By pioneering this type of innovative loyalty strategy, Highmark Homes distinguishes itself in a competitive market, showcasing a commitment to efficiency, trust-building, and the strategic use of technology to foster growth and enhance partner and client relationships.