May 23rd, 2013
Contractor Rewards is a unique industry initiative that brings together the best branded manufacturers in the building products space – all working together to add value and differentiate their products from the competition.
It rewards remodelers, builders and trade contractors in the residential, commercial and industrial construction markets in the U.S. and Canada.
Launched in February of 2010, the program engages tens of thousands of end-user tradesmen, keeps sponsor costs low and gives them opportunities to acquire new customers with the same marketing platform.
If data-driven marketing is a goal of yours, let’s schedule a short demo. Call me at 952-841-2895 or email me at: email@example.com to schedule a webcast. I look forward to meeting you.
Want to learn more? Watch these short videos about Contractor Rewards, how it works and why you should consider sponsoring this trade initiative.
What is Contractor Rewards?
How the Program Works
What’s the Value of Sponsorship to Manufacturers
May 24th, 2013
by Tony Thomas
The first loyalty program I worked on was in 1989. Rocky Mountain Banks wanted to keep more of their credit card holders by rewarding them for repeat purchases. It is identical to the points-based program offered with my Capital One credit card.
Rocky Mountain Banks spent $500,000 to build the relational database. Administrative costs were tens of thousands per month and so were the printing and mailing of points statements (this was before websites.) The fixed costs of operating loyalty programs in the 80s and 90s easily reached $1 million plus each year.
It’s vastly different today.
The fixed cost elements of Contractor Rewards include:
- A program website, served up and maintained
- An online catalog of 375,000 items with shopping cart technology
- An Oracle relational database
- IBM Cognos report writing tools
- Survey and email blast tools
- A Mobile phone website and applications
- Dedicated account teams and more
Looks expensive doesn’t it? If a company, by themselves, were investing in this technology, it would be.
But Contractor Rewards is a coalition of more than 20 brands, each sharing those fixed costs. They spend a fraction of what it cost to build. For what you’d spend on a full-page ad in a trade publication, the administrative costs would be covered in CR.
This leaves the bulk of marketing budget dollars for data-driven promotions to capture new business and reward loyal customers.
If the perceived high cost of CR has been holding you back from exploring this strategy — it’s not as much as you think.
May 22nd, 2013
By Tony Thomas
Many companies have user groups they can call upon for surveys and focus groups to gain knowledge on everything from brand preference to product design. There are hundreds of good reasons to talk to your end-user customers.
The survey tool on the Contractor Rewards platform gets used a lot. Instead of paying a stipend however, participants who answer questions are paid in CR points. Our members know it takes just little of their time and they love those points.
The open rate for our surveys run between 25% and 35%. The remarkable thing is how quickly data can be compiled. A few weeks ago I ran a brand preference study on battery brands for a prospective sponsor. We gathered data from 200 contractor members in 14 minutes!
If you don’t have a user group and you think it’s a good idea for running your business. CR can help.
May 16th, 2013
By Tony Thomas
According to the National Association of the Remodeling Industry, which reported a 3.9 percent jump in home remodeling inquiries during the final quarter of 2012, compared to the previous quarter. Requests for bids also were up 3.7 percent.
In Minneapolis, where we live, kitchens and master baths lead the list of remodeling projects. The average bathroom remodel in the Twin Cities can cost from $15,000 to $20,000, while the average kitchen remodel costs about $25,000. This translates into substantial revenue gains for plumbing, cabinet, countertop and other manufacturers.
We see tremendous growth in the number of remodelers in Contractor Rewards; enrollment in this segment has doubled in the 12 months.
If remodelers are a key market for you, our program gives you a tremendous opportunity penetrate and reward loyalty among these professionals.
April 23rd, 2013
The Contractor Rewards team is hedquartered in Minneapolis. This is what we woke to this morning. Not to whine, but I’m real sick of this winter.
April 19th, 2013
Spending by homeowners on improvement projects is expected to accelerate as the year progresses, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
March 25th, 2013
By Tony Thomas
Samsung took on Apple last year. Denise McAllister writes in Ricochet.com:
They increased their advertising spending from $78 million in 2011 to $401 million in 2012. They put that money into an effective campaign that targeted the public’s attraction to Apple—its cool image that until now made many people forget (or not care) how expensive the products are and to keep buying them with every new upgrade.
The marketing plan bore fruit. In December of 2011, Samsung Galaxy sales were 8 million compared with iPhone’s 37 million. A year later, Galaxy sales were 38 million compared with iPhone’s 48 million (and in September of 2012, Galaxy actually beat the iPhone by a million).
What can you learn from Samsung? How about grow a pair, get some vision, stop thinking about ‘getting ready for KBIS’ and start thinking about stealing market share from the leader in your category. Small minds and timid action produce lousy results.
Oh and one more thing — call me and ask about Contractor Rewards 952-841-2895
March 20th, 2013
Hardware Rewards is a totally new loyalty and acquisition program directed at the independent hardware stores. It will give manufacturers direct access to thousands of new customers; market directly to store owners, promote your entire product line and reward store owners for their loyalty.
Built on the successful concepts of Contractor Rewards and the other coalition marketing models, Harware Rewards will be like having your sales team in all the stores on a weekly basis.
What to learn more? Contact Rob Branton, Director at Rob.Branton@biworldwide.com or 952-844-4730.
March 15th, 2013
By Tony Thomas
I became a Grandpa 4 months ago, first one for my wife and me. Remember those feelings you had when your children were infants? They all come back with grandkids.