Win the Contractors, Win the Market

Contractors exert a powerful influence on product choice with homeowners across nearly all building products segments, and are successful at convincing their customers to switch materials or brands. Manufacturers recognize this influence and structure loyalty programs to reward contractors for repeatedly buying their products. Rewarding contractors in a meaningful way is critical in driving increased revenue. A well-managed contractor loyalty program serves two purposes:

  • Support in marketing the manufacturer’s product lines
    Loyal contractors are more likely to engage in brand discussions with homeowners. A strong loyalty program increases satisfaction, drawing contractors away from competitors, thereby increasing market share.
  • Identify usage trends and track spending
    A well-designed loyalty program helps track contractor buying habits and increases understanding of which products drive revenue in each sales cycle and marketing campaign. This allows manufacturers to develop effective sales and promotions for products during times when they are most in demand, determine which contractors to target, and how to best influence additional purchases in the future.The graph on the following page illustrates, by product category, how programs are structured. Contractors can act as field-level advocates for your business. However, to be effective, they need to see the program’s benefits and clearly understand how it works. Knowing the right mix of what to offer contractors in your loyalty program is absolutely necessary to attract and retain this influential group of customers.

The number of contractor loyalty programs is growing, but not all programs are successful nor do they lead to increased revenues. Best Practices in Contractor Loyalty Programs 2015 demonstrates what contractors are looking for in a loyalty program, why they participate (or don’t), and more important, what motivates them to sell more of a manufacturer’s product.

For example:
Loyal contractors are more likely to engage in brand discussions with homeowners. A strong loyalty program increases satisfaction, drawing contractors away from competitors, thereby increasing market share.

  • Are contractors incentivized more by free rewards, such as merchandise and trips, or business support tools, such as continuing education or lead generation?
  • Do contractors prefer sales support materials or a chance to earn free tools they use every day?
  • Or, are contractors looking for a combination of these benefits?

Report Scope 
The reports focus on contractor loyalty programs for exterior and interior building products in the United States.

Product Coverage Includes:

Report Format

  • Executive Summary – Summary of the current market size, trends and developments, keys for future success and outlook
  • Contractor Loyalty Program Structure – A summary of contractor loyalty program offerings within different building product categories, and their effectiveness in increasing contractor loyalty and spend
  • Contractor Loyalty Program Enrollment and Participation Criteria – A summary of contractor loyalty program enrollment and participation requirements by major building product category, and their effectiveness in encouraging or discouraging participation
  • Marketing and Promotion of Contractor Loyalty Programs – A summary of manufacturer and dealer / distributor strategy for marketing and promoting their
    contractor loyalty programs, including their effectiveness
  • Loyalty Programs Effectiveness Assessment – A realistic business assessment to help manufacturers and dealers create or improve the effectiveness of their contractor loyalty programs

Using the Report
Best Practices in Contractor Loyalty Programs 2015, for interior or exterior building products, provides a vital baseline analysis for business planning among building product manufacturers, distributors, and specialty retailers. The reports analyze contractor loyalty programs, their impact on purchase, how they influence the behavior behind product and brand selection and what marketing and promotion activities with those programs resonate with contractors.

Included Features

  • Voice of Customer research capturing responses from over 1,000 contractor interviews
  • Market model and forecast tool – interactive market model tool enabling subscribers to evaluate the market through whatever lens they choose

All subscribers to the full program are offered a private presentation by the Principia project team with an open discussion about the report and to address any company-specific issues. The consultation is included in the subscription price. Contact us to learn more at