WEST DES MOINES, Iowa — As competition intensifies and pricing becomes more uniform, distributors are searching for new ways to stand out. According to a new study from ITA Group, 49% of contractors purchase more frequently from companies offering a loyalty program once they enroll—revealing a powerful lever for growth and retention in the distribution channel.
Key Findings:
- 57% of contractors say loyalty rewards directly impact which distributor or manufacturer they select.
- 63% report that a loyalty program improves their perception of a supplier’s overall value.
- 83% of contractors not currently enrolled in a program would join if one was offered.
“Contractor loyalty programs are no longer a ‘nice to have’—they’re a competitive necessity,” said Kristin Brandenburgh, VP, Channel Partner Solutions at ITA Group. “Our research shows that when pricing and product availability are equal, loyalty programs are the deciding factor for contractors. Distributors that invest in awareness and compelling rewards are positioned to win in today’s market.”
Actionable Recommendations:
- Promote Program Awareness: Leverage sales teams, marketing, and digital channels to ensure contractors know about your loyalty program.
- Simplify Enrollment: Make joining and participating in loyalty programs as easy as possible.
- Offer Immediate Value: Use sign-up incentives and early rewards to encourage participation and repeat purchases.
- Tailor Rewards: Focus on rewards that contractors value most.
ITA Group’s report provides actionable insights for distributors and manufacturers seeking to differentiate themselves, increase contractor engagement, and drive growth.
For more details or to download the full report, visit itagroup.com.
Tagged with ITA Group, reward
Channel Marketing Group was pleased to support ITA Group in the research and developmen of this report to help electrical distributors strengthen relationships with their customers, enhance customer retention, and profitably drive growth.
Launching an incentive / loyalty program can be a profitable endeavor for distributors to drive growth. Personally, I’ve worked with many distributors in structuring, launching, and managing programs over the years … all enthusiastically supported by their manufacturers and every one has seen growth.