Promotions are a core product marketing strategy for businesses across industries, including within the home improvement products marketplace. Promotions are seen as a way to motivate individuals to try a new brand or product, increasing their awareness of what’s available, motivating a willingness to switch brand, or building their loyalty to a particular brand, and overall making them feel empowered as customers.
This holds true for professional contractors, who frequent home improvement centers, manufacturer websites, and other supplier channels to purchase building products and materials for their projects.
What we see, however, is that the effectiveness of various promotion types differs among major segments of professionals, by trade, as well as by the revenue of the company and the decision-making power of the pro doing the purchasing.
When talking about contractors and installers as customers, it’s helpful to organize them into a few distinct categories, or segments. These include:
Data from our 2024 Contractor Promotion Effectiveness study shows that promotions — whether that be discounts, loyalty programs, bulk purchase discounts, or offering free shipping—increase loyalty and perceived value for nearly two-thirds of home improvement pros.
Additionally, these types of offers encourage more than half of contractors to keep purchasing products from the same brand, even after promotion ends.
They are incredibly effective in influencing how pro customers think about a brand, with nearly half stating that promotions either “somewhat improve” or “significantly improve” their perception of a brand’s quality.
While HIRI’s research highlights the importance and effectiveness of promotions, there’s more to it than that. As home improvement manufacturers and retailers, you have to be thoughtful and strategic about which types of promotions you implement, based on your specific customer base.
Here are a few insights to help you dig deeper into how to market to contractors:
Discounts are the most influential promotion type when it comes to influencing sales, according to HIRI’s research. This is especially true for remodeling professionals.
Meanwhile, discounts are the second-best type of promotion for construction contractors, or those whose workload is more than 50% new construction work. For that group, the most influential promotion type was volume or bulk purchase discounts.
In terms of autonomy, promotions are also preferable, whether the contractor is the sole or joint decision maker.
The only two contractor types who demonstrate a higher unwillingness to try new promoted products, even with a discount, are exterior and mechanical contractors. Since discounts are generally the most influential promotion type, it’s important you ensure they are accessible to a variety of industry professionals and also that the terms of the discount are very clear and straightforward, making the discount easier to use.
In order for customers to be willing to try a new product based on a discount, you need to make it worth their while. The value of an offer is important to about two-thirds of contractors who are shopping for home improvement products, and that’s true regardless of gender and other characteristics.
For example, another HIRI study, about Contractor Brand and Supplier Loyalty, revealed that a 30% off discount is the minimum discount required for contractors to be willing to try a new brand (or supplier). Also, it’s worth noting that in light of past delays in acquiring building materials, contractors are a more willing to try new brands and products than they used to be, all in order to keep their projects on track.
Brand reputation and product quality are highly important to home improvement pros, with more than half listing it as one of the most important factors when considering promotions. They don’t want to buy and use a low-quality product and risk jeopardizing their own work — even if that item can be purchased at a discounted price.
Satisfaction with current products also weighs heavily into a willingness to try new products through promotions for female contractors, whereas male contractors are notably more influenced by lack of information and brand unfamiliarity.
Overall, and depending on the trade, between 2 in 3 and 3 in 4 pros avoid new promotional products, because of their concern about product quality or their satisfaction with their current products. You can use testimonials, case studies, and other research tools to ensure potential customers can perceive product quality and reliability before promoting building products and materials to your customers.
Use data to your advantage. There are numerous resources available today that can help you collect and apply individual customer data to develop targeted and customized promotional strategies. Even if you can’t narrow it down to individual customers, you can apply aggregate data about historical engagement and past purchasing behavior to tailor your promotions to specific customer segments.
Tracking and analyzing data on a regular basis can also help you monitor trends to refine your future promotions. Our research shows that while customization is fairly low on the list of factors that pro customers consider most important, those who do value customized offers are more likely to try a new brand based on that factor.
When running promotions, you also have to consider your optimal marketing channels, or those that most effectively encourage contractors to purchase products.
According to our Contractor Promotion Effectiveness study, pros prefer that promotions come through retailer/supplier channels than all other marketing channels.
Often, they have a more personal and consistent relationship with individual retailers. They know the employees and where to find what they’re looking for. As a manufacturing brand, you should prioritize local home improvement stores and supplier/retailer websites as your primary marketing channels to effectively connect with contractors. Email is the third most-effective marketing strategy for reaching home improvement pros with your promotional offers.
Similar to how you reach contractors, when you reach them is critical to think through. You have to time your promotions correctly.
Half of professionals are more likely to purchase when the offer timing is right, and of that group, three-quarters of them prefer “just-in-time” promotions. Using custom market research and feedback from your partners, aim to time any promotions around project cycles and seasonal demands. This is especially relevant for capturing share of wallet from sole decision-makers, who make more frequent promotional purchases.
Relationship-based promotions and cumulative benefits — such as loyalty programs, bulk purchasing discounts, and points that add up over time — appeal to certain demographics more than others.
For example, high-revenue companies who make high-volume purchases more regularly will get more value out of a loyalty or points program.
Female contractors also tend to place a higher value on relationship factors than their male counterparts. Additionally, 40% of female contractors, compared to 29% of male contractors, cited flexibility of use (such as no minimum purchase required) as one of the most important factors to them.
Understanding the preferences of contractors regarding product promotion strategies will help you tailor your future promotional efforts to be even more effective.
Our Contractor Promotion Effectiveness study is just one source of data that you can use to make smart business and marketing decisions. With your organization’s membership to HIRI, you’ll have access to a wide range of studies and research about home improvement industry trends, as well as customer needs, behaviors, and preferences. Simply schedule a consultation to learn more about the value of HIRI membership.
HIRI members have exclusive access to ~$1M of annual research, which covers Channel, Product, Project, and Market Size activity for both Homeowners/DIYers and Contractors. HIRI is the best source of secondary home improvement information. To leverage HIRI data ensures your organization has a strong, foundational comprehension of the industry and dynamics impacting it.