------------| MANAGEMENT TIPS
CASH IN ON LOYALTY
INCENTIVE PROGRAMS PAY OFF IN TOUGH TIMES ------------ BY NICHOLE GUNN THE LBM INDUSTRY is facing headwinds. Between shrinking budgets and evolving consumer priorities, it’s no surprise that 34% of homeowners plan to scale back on home improvement spending in the coming months. This means fewer projects and fiercer competition. For LBM dealers, distributors, and contractors, staying competitive requires out-of-the-box thinking—and incentive programs could be the solution.
timate the power of unique perks like tools, event tickets, or gift cards. 3. Make It Simple: Complicated programs turn away participants. Keep rules clear and concise so everyone understands how to earn rewards and when to expect them. 4. Measure and Adjust: Track your results—participation rates, sales boosts, customer feedback—and refine your program to keep it fresh and effective.
What Makes Incentive Programs Work?
Why Incentive Programs Work
Incentive programs reward specific actions that help your business hit its goals—whether that’s increasing sales, promoting higher-margin products, or delivering exceptional service. As the CMO of Extu, a provider of incentive programs, I’ve seen firsthand how their flexibility makes them an excellent fit for businesses of any size. For instance, imagine a distributor launching a campaign that rewards sales reps for surpassing monthly targets on premium siding. Or a contractor offering bonuses to crews for finishing jobs ahead of schedule with stellar reviews. By aligning rewards with the outcomes you want, you create a win-win scenario: your team feels valued, and your business reaps the benefits.
Data-backed Success A heating and cooling company recently teamed up with Extu to increase sales of specific HVAC systems. The program was simple but effective: sales reps earned branded debit cards with instant payouts for every approved sale. It created a stunning 45% increase in claimed incentives. It worked so well they turned it into an annual initiative. This is one example of finding the right combination of targeted rewards and immediate gratification to motivate and engage your employees.
Beyond boosting sales, incentive programs bring added value to your business: • Boost Efficiency: Motivate your team to focus on high-margin opportunities. • Elevate Quality: Reward performance metrics like ontime deliveries or glowing customer reviews. • Strengthen Loyalty: Recognize your team’s hard work, and they’ll stick around longer. • Maximize ROI: Target your top performers to get the most bang for your buck.
A Smart Strategy for Tough Times Economic challenges demand innovative solutions, and incentive programs are a powerful tool to keep your business competitive. They build morale, drive results, and set you apart from the crowd. Whether you’re running a small contracting business or managing a large distribution network, the right incentives can help you turn challenges into opportunities. With a little creativity and a well-thought-out plan, incentive programs can help your business not just survive but thrive—even in a tough market. BPD
How to Build a Winning Incentive Program Here are four straightforward steps to get started: 1. Define Your Goals: Be clear about what you want to achieve. Are you aiming to boost sales for a particular product line? Improve job completion rates? 2. Choose Rewards That Matter: Think about what motivates your team. Cash is popular, but don’t underes-
18 • building products digest • M
NICHOLE GUNN Nichole Gunn is the global chief marketing officer at Extu, bringing over 20 years of marketing expertise in the B2B sector.
arch 2025
building-products.com