With the Summer Olympics in full swing, we have our eyes on Paris and we’ve been thinking about what loyalty means. Sure, everyone’s particularly loyal to his or her home country… and that’s especially true during the Olympics. But as an organization dedicated to building materials marketing, we often concern ourselves with what it takes to build and maintain loyalty to brands and products.
One of the most important ways we accomplish that is through loyalty programs. In the last three years, builder products manufacturers have undertaken significant changes to improve their loyalty programs to better resonate with renovation and remodeling contractors. These programs – transformed by digitalization and expanded beyond conventional rewards-based transactions – are becoming true platforms that drive manufacturers’ next wave of innovation and sales growth.
By analyzing the best practices of leaders in the exterior building products category, five critical characteristics emerge below… as essential for designing first-in-class contractor loyalty programs.
Exclusivity Over Volume
Exclusivity in loyalty programs is more impactful than sheer size. Programs that focus on a smaller, highly engaged group of contractors yield more significant results… compared to larger, less committed groups. This exclusive approach fosters a sense of importance and belonging among contractors. Helping to make them feel valued and integral to the brand’s success. For example, CertainTeed’s Master Craftsman program limits membership to those meeting rigorous standards… ensuring high engagement and commitment from its participants.
Storytelling as a Sales Driver
Effective loyalty programs align with the goal of increasing manufacturers’ sales by transforming contractors into brand ambassadors. Contractors typically are eager to share a brand’s narrative… whether it involves new products, superior quality, or unique services. James Hardie’s Contractor Alliance Program celebrates this trend by providing contractors with tools and stories to effectively communicate the benefits of their products to homeowners. This alignment ensures contractors not only sell products – but also convey the brand’s value proposition – driving sales and enhancing brand visibility.
Ease of Engagement
Top-tier loyalty programs simplify the engagement process. Influencers and brand advocates alike play crucial roles in this context. By making it easy for contractors to connect with the brand and its values, manufacturers foster deeper loyalty. And inspire advocacy. Owens Corning’s Top of the House program offers streamlined communication channels and resources that facilitate effortless interaction between the brand and its contractors. This ease of engagement has been recognized for maintaining active and enthusiastic participation.
Beyond the Catalog
Leading-edge programs understand that traditional catalog rewards often fail to motivate contractors. Instead, experiential rewards – that encourage skill development, innovative experiences and homeowner satisfaction – prove far more effective. These rewards not only motivate contractors but also align with their professional growth. And elevate customer service targets. GAF’s Master Elite program demonstrates this by offering exclusive training opportunities, industry events and other experiential rewards… that enhance contractors’ skills and knowledge.
Embracing Digitalization
Forward-thinking contractors increasingly digitize sales processes to cater to new homeowners. These contractors seek support from manufacturers – particularly in areas like digital training and selling platforms – as well as innovations in green and energy-efficient products. LP Building Solutions’ Elements Training program provides comprehensive digital training resources… helping contractors stay ahead of industry trends and meet evolving client demands.
Best Practices for Designing Effective Contractor Loyalty Programs
- Prioritize Exclusivity: Develop programs catering to a select group of highly engaged contractors. This fosters loyalty and a sense of belonging.
- Align with Brand Stories: Equip contractors with compelling narratives about the brand’s products and services. Effective storytelling drives sales and enhances brand perception.
- Simplify Engagement: Make interaction with the brand easy for contractors. Streamlined communication and user-friendly platforms boost participation and loyalty.
- Focus on Experiential Rewards: Move beyond traditional rewards to offer experiences that enhance contractors’ skills and professional growth. This approach leads to higher satisfaction and motivation.
- Support Digital Transformation: Provide resources and support for contractors’ digitalization efforts. Embrace digital training and selling platforms to meet the needs of modern contractors and their customers.
“The evolving landscape of innovative loyalty programs allows Building Product manufacturers to stay competitive and foster deeper connections with their contractor base,” noted Chris Luzar, principal of Frohman & Associates Research.
Integrating these best practices allows manufacturers to design loyalty programs – that not only resonate with contractors – but also drive significant growth and innovation. These programs represent a strategic investment in the contractor-manufacturer relationship… ensuring long-term success and profitability in the competitive building products market.
If you’d like to explore how a more effective loyalty program can help align your sales and marketing teams, we’re here to help. Send an email to Steve at sk@kleberandasociates.com to get the conversation started.
