[Exclusive research] Drive more purchases with a contractor loyalty program that works

New research examines what contractors look for in loyalty programs

In our commissioned study with Channel Marketing Group, 57% of contractors reported they’ll make purchasing decisions based on rewards they’ll earn, and yet half of all contractors aren’t enrolled in a program. There’s great opportunity for brands with comprehensive loyalty programs to grow their market share by offering contractors an enticing program. Our data-backed insights, based on the research findings and our combined years of incentives experience, explore ways to use this direct feedback to build a loyalty program that gets results.

Key insights from the research

How to differentiate your contractor loyalty program in a crowded market
What incentives and rewards motivate contractors and what they want to see in a program
Areas where you can maximize your current (or future) loyalty program to improve its perceived value and, ultimately, drive more purchases

Who is this research for?

Building material manufacturers and wholesale distributors looking to better understand their contractors/customers and influence their purchasing decisions
Sales and marketing leaders striving to drive repeat purchases and foster stronger customer relationships
C-suite leaders aiming to grow market share with a loyalty program that adds value to customers and differentiates them from competition

Understanding the current contractor loyalty program landscape

Given how crowded the construction market is, manufacturers and distributors face increasing pressure to differentiate their products and build stronger relationships with contractors. Contractor loyalty programs have proven to be a successful way to drive measurable sales growth, improve customer retention and capture valuable market insights.

Surveyed contractors were split 50/50, with half currently enrolled in a program and half not
Many contractors who weren’t enrolled said if they were in a loyalty program it would likely influence their purchases
Most contractors who weren’t enrolled were willing to join a program if it was offered to them, showing they see their value

Driving purchasing decisions to benefit your brand

The research found that loyalty programs motivated contractors’ purchasing decisions in two key ways: frequency and volume.

49% of contractors said joining a brand’s loyalty program increased their decision to purchase from that brand over others.
39% felt that joining the loyalty program increased the volume of products they purchased from that brand.

Ensuring your rewards resonate with different contractor audiences

Impactful loyalty programs come from offering the right rewards to the right contractors at the right times. The research revealed that contractors largely prefer practical rewards.

Contractor size contributed to which rewards were preferred: smaller contractor companies favor rewards that improve profitability and their business, while larger ones seek personal rewards and points.
Customizing rewards to reach multiple audiences and encouraging low and middle performers will help your program reach its full motivational potential.

Providing a better program experience for contractor participants

A successful contractor loyalty program needs to be simple to use to keep contractors engaged. Adding a user-friendly online portal for status updates, program rules, special promotions and new product information will create the program experience that contractors want.

Loyalty programs in the construction industry can start to feel identical due to product and service similarity—a participant experience that makes contractors feel cared for and appreciated helps you stand out.
Common challenges to the participant experience, such as difficulty understanding the program rules, can be overcome by simplifying program mechanics with the help of incentives experts.

Improving contractor loyalty programs begins with knowing what contractors want

Contractors were clear in their responses that a well-designed loyalty program—one that addresses both their wants and needs—is of great value to them in making their purchasing decisions.

A better contractor loyalty experience is at the center of driving engagement, increasing sales and enhancing brand perception.