INCREASE SALES WITH CONSTRUCTION INCENTIVE PROGRAMS
Managing Supply Chain Relationships
When you’re a manufacturer of construction and building materials, products change hands often—from supplier to distributor to contractor. In order to increase sales numbers, it’s essential for you to cultivate positive relationships and brand loyalty within your sales channel. Your contractors and material distributors may frequently handle your competitors’ products, and they have no reason to promote your particular brand to dealers and contractors unless you’ve built direct relationships with them.
When sales channel partners don’t push your brand, you not only lose out on potential sales, you lose the chance to gather valuable information about your customer base. Some questions you may ask about consumers are:
• Are they buying the appropriate building supplies for their climate?
• Are they registering product warranties?
• Are they buying accompanying materials elsewhere when they could be buying from me?
Your ability to market effectively depends on how well you can answer questions like these. Incentive technology can help you answer important questions about your consumers’ buying habits by allowing you to collect data about purchases and, ultimately, streamlining your relationships with business-to-business (B2B) partners.
How Online Rewards Help
How can an online incentive program improve B2B relationships? Incentive program providers like Loyaltyworks use a multi-functional technology system to address multiple aspects of the construction supply chain.
The first step in using this technology is to offer your distributors, dealers, and contractors rewards for promoting your brand. Offering incentives for pushing your product will increase sales and establish greater mind share between you and your B2B partners.
The key component in the construction sales channel is the contractor. Contractors have the most interaction with end-consumers and the most influence over their choices. When they’re part of your construction incentive program, contractors have a reason to suggest your brand to consumers.
Advanced communication tools and mobile apps allow you to quickly alert contractors to new promotions and discounts. Contractors can encourage consumers to take advantage of discounts and deals, then earn points from your program for promoting your products. They can redeem those points for merchandise, travel opportunities, and ticketed events available in an online reward catalog.
Rewarding distributors is just as important as rewarding contractors, since contractors often buy building supplies from distributors. You can reward distributors a certain number of points each time they sell 1,000 square feet of your roofing tiles, for instance, and twice as many points each time they sell 1,000 square feet of high-end tiles. Strategies like this not only boost distributors’ motivation to move your product, but can increase your product mix.
Beyond Construction Rewards: Database Building
Reward program technology is capable of more than just distributing points. Each time a B2B partner submits a sales claim or product warranty registration to earn points, you receive valuable information about your buyers. As you collect this information, you can begin building a database of details about your contractors and consumers.
When you are well-versed in the homes your buyers build and the products they use, you can use this data to focus your communication and marketing tactics. For example, you may find it’s more effective to market high-quality, engineered lumber to consumers and contractors in certain areas where the climate tends to warp and bow wood. Equipping yourself with knowledge about your buyers’ needs will help you move products to those who have the greatest use for them.
Loyaltyworks online training options also help you generate feedback and increase product knowledge using surveys and quizzes. All program participants have to do is access the program website or mobile app, complete a survey or pass a quiz, and they can earn reward program points. This lends you even more data about your channel partners, while keeping them informed about your products so they can sell them with confidence.
Online reward programs provide clear, easily implemented methods of communicating effectively and increasing brand loyalty within your sales channel. Rewarding channel partners will motivate them to promote your products, while the reward program’s communication technology allows you to quickly deliver information about deals and promotions. Reward technology also allows you to build a customer database using information from your participants’ sales claims and online training results. As you collect this data, your marketing and communication will be more effective over time, steadily increasing your reward program’s ROI. Call Loyaltyworks at 1-800-844-5000 to find out how an incentive program can help your construction business.