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Principia’s recently released research, Best Practices in Contractor Loyalty Programs 2015, draws upon interviews with over 1,100 contractors across five exterior building product categories. The results show that contractor loyalty programs provide tangible benefits to both product manufacturers as well as contractors. Specifically, well-executed programs results can be seen in:

  • Increased share of wallet: Manufacturers’ share of contractors’ wallet increases when contractors are enrolled in a manufacturer’s program. Contractors participating in only one loyalty program give 62% of their wallet to that program’s brand, compared to only 21% being captured for brands where no program participation exists. In addition, contractors are far more likely to recommend a manufacturer whose contractor loyalty program they are participating in.
  • Higher growth rates: Contractors participating in contractor loyalty programs have realized greater revenue growth than those not participating. This is a powerful incentive for manufacturers to market contractor loyalty programs to contractors.

Principia’s detailed analysis is the industry’s most in-depth look at contractor loyalty programs. The report provides building products manufacturers with a comprehensive breakdown for creating, implementing, promoting, and maintaining effective contractor loyalty programs.  In addition, Principia reveals the foundational building blocks of successful loyalty programs and recommended strategies for each including, 1) enrollment, 2) participation, 3) benefits offered, 4) marketing and communication and 5) technology. Each program element is needed and must be structured correctly to be successful.

“Building product manufacturers are creating or refining loyalty programs using Principia’s research as a ‘playbook’ to understand the critical elements to make their programs successful”, according to Rick Dunham, Research Manager at Principia. “Loyalty programs that follow these prescriptive guidelines will realize a higher return on investment by focusing on the aspects that contractors find most valuable, eliminating extraneous aspects or unused elements of the program.”

Best Practices in Contractor Loyalty Programs 2015 provides a vital baseline analysis for business planning among building product manufacturers, distributors, and specialty retailers. Using 2015 as its launch point, the report analyzes contractor loyalty programs, their impact on purchases, how they influence the behavior behind product and brand selection and what marketing and promotional activities for those programs resonate with contractors.

Subscribers to the program receive the 110-page report with corresponding figures and charts detailing specific program designs for maximum effectiveness. A private consultation with Principia’s project team is included with the subscription.

To purchase the report or learn more about the scope and content covered, please contact Brooke Cowell, VP of Marketing at