WELCOME TO THE ERIC MOWER + ASSOCIATES … · ERIC MOWER + ASSOCIATES WEBINAR SERIES . EMA GROUP...

WELCOME TO THE ERIC MOWER + ASSOCIATES

WEBINAR SERIES

EMA GROUP B2B BUILDINGS + CONSTRUCTION

SPECIALTY

NOVEMBER 15, 2016

Building brand loyalty among contractors −Risks and Rewards

PLACE HOLDER FOR WORK GLOVES AND HEART SHOT

Brand loyalty is alive, well, and

worth the investment.

You can’t build loyalty in a specs-oriented, channel-sourced product

environment.VS

YOU CAN

POSE QUESTIONS TO OUR PANELISTS

THROUGHOUT THE PROGRAM


Hosted by John Favalo, Managing Partner, EMA Group B2B


PLACE HOLDER FOR HARLEY SHOT


Our panelists:

Towanda LongSenior Marketing Manager

Charlotte Pipe and FoundryManufacturer of Plumbing Pipe

and Fittings

Bill BurnsExecutive Vice President

Benfield ElectricElectrical Distributor

Todd AndersonPresident/Owner

Fortress Enterprises Contractor

Sue SmithProfessor of Marketing Practice

Whitman School of ManagementEducator and Consultant

FORTRESS

WHAT DO WE MEAN BY

LOYALTY?

Lo∙yal∙ty noun

A strong feeling of support or allegiance .

Cus∙to∙mer Lo∙yal∙ty very nice to have

The likelihood of previous customers to continue to buy from a specific organization.

−The Business Dictionary

Brand Lo∙yal∙ty holy grail

The extent of faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.

−The Business Dictionary

THE AND OF BRAND L YALTY

UPS

DOWNS

FIRST OFF, ARE BRANDS REALLY

IMPORTANT TO CONTRACTORS?



VALUES



VALUESRELIABILITY



VALUESRELIABILITYPRICE, UNIQUE



VALUESRELIABILITYPRICE, UNIQUEMINDSHARE

BRANDS MATTERTO CONTRACTORS

BRAND IMPORTANCE“How influential is a strong brand name when it comes to purchasing tools?”

Source: EMA Contractor Study

BRAND IMPORTANCE18%

10%

3% 2%1%

18%

8%7%

1%

4%

0% 0%

13%

9%

2% 2%

0%2%4%6%8%

10%12%14%16%18%20% What is the TOP reason the brand of BUILDING MATERIALS is

important to you?

Price

Convenience

Value

Recommendations/requests

Familiarity/past experiences

Performance/productivity


BRAND IMPORTANCE“How influential is a strong brand name when it comes to purchasing building materials?”


BRAND IMPORTANCE

“The equipment we use is highly regulated in regard to the standards we must meet.”

“Today’s specialty contractors have a lot of decision-making power because oftentimes specs are not complete or

conclusive about brands.”

Source: EMA Contractor Interviews

WAIT A

IS IT BRAND L YALTYOR

DISTRIBUT R LOYALTY?

DISTRIBUTOR IMPORTANCEFor what reasons do contractors prefer one source over another?


DISTRIBUTOR IMPORTANCE

“I prefer the personal relationship…you build trust…they help you out if you make a mistake…you can get a lot of help if you build a good relationship.”


DISTRIBUTOR IMPORTANCE

“It’s critical to me that the product be available at distributor locations all around town or in the areas where I work. It does me no good if what I need is in Georgia, when I’m on site in South Carolina.”


RESEARCH SHOWS

DISTRIBUTOR LOYALTY CAN SHIFTIN FAVOR OF BRAND LOYALTY

“L.E.K.’s findings clearly show that building products manufacturers with strong brands have more pricing powerthan originally thought.”

−Robert RourkeVice President

L.E.K. North American Building and Construction Practice

“Small residential contractors tend to be loyal to distributors. By default, the contractor’s brand loyalty will be to whatever brand is carried by his favorite distributor. On the commercial side, brand loyalty is both short-term and fluid. (Manufacturer) People and policies change very frequently…and the contractors’ loyalties shift with those policies.”

−John SaucierPresident

Temperature Inc.

YES, CONTRACTORS CAN BE FICKLE

INNOVATIONCAN DRIVE

BRAND SHIFT

PLUGTAIL®

No exposed terminals

Pre-stripped connector leads

Tougher polycarbonatebody

Mechanical shuttersprevent insertion of foreign objects

UL finger-safehousing

Audible “snap” Assures connection

Strap tabs hold face and back together

Self-contained leadscut install time and enable apprenticesto finish job

INNOVATIONCAN DRIVE

BRAND SHIFT

PLUGTAIL®









SO CAN… BROKEN PROMISES

INNOVATIONCAN DRIVE

BRAND SHIFT

PLUGTAIL®









SO CAN… BROKEN PROMISESNOT EVOLVING

REPEAT PURCHASESTRY NEW PRODUCTS

LESS TIME AND INVESTMENT TO CLOSELARGER SHARE OF SPEND

WILLINGNESS TO PAY A PRICE PREMIUMLESS SENSITIVITY TO PRICE INCREASES

ADVOCATEMORE RESISTANT TO COMPETITIVE OFFERING

THE BENEFITS OF BRAND LOYALTY

Source: Kotler and Pfoertsch

REPEAT PURCHASESTRY NEW PRODUCTS

LESS TIME AND INVESTMENT TO CLOSELARGER SHARE OF SPEND

WILLINGNESS TO PAY A PRICE PREMIUMLESS SENSITIVITY TO PRICE INCREASES

ADVOCATEMORE RESISTANT TO COMPETITIVE OFFERING

THE BENEFITS OF BRAND LOYALTY

Source: Kotler and Pfoertsch

Loyalty leaders grow 4% to 8% over market.

- Bain and Co

THE KEY QUESTION IS THIS:

CAN BRAND LOYALTYAMONG CONTRACTORS BE BUILT?

AND, IF SO, HOW?



AND, IF SO, HOW?

2 to 1- Source: L.E.K.

DERIVING STRATEGIC ADVANTAGE FROM LOYAL CUSTOMER RELATIONSHIPS

REQUIRES

TRUE DIFFERENTIATION

- Bain and Co

DIFFERENTIATION IN COMMODITY CATEGORIES

EDUCATION AND TRAINING IMPERATIVE

PROJECT AND CODE IMPLICATIONS

HELP WITH

NAILING THE SPEC

THE IMPORTANCE OF SERVICE

Source: EMA Interviews



IF SO, HOW?

PRODUCT AND BRAND FUNCTIONAL CONSIDERATIONS

• Contractors seek products and brands that enable them to save time and minimize the exertion of unnecessary labor. In most instances, contractors are comfortable paying higher prices for elevated and differentiated value.

Work Efficiently(this need is more pronounced for

products being installed)

Work Smartly(this need is more pronounced with

“personal” tools)

• Seek products and brands that shave installation time

• Seek products and brands that deliver consistency throughout installation

• Seek products and brands that require less muscle

• Seek products and brands that multi-task (E.g. drill with light attached)













CUSTOMER CENTRIC












CUSTOMER CENTRICPRODUCT + RELATIONSHIP + SERVICE = LOYALTY













STRONG RELATIONSHIPS













STRONG RELATIONSHIPSLISTENING TO FEEDBACK


Contractor loyalty programs

A look at loyalty programs

Manufacturer/distributor combo

Distributor to contractor

“With Ferguson PRO Plus™, your company can use Ferguson Online to earn points for every online purchase. Access to the industry's leading wholesale web site makes it easy to earn points for products you buy every day. Your company can also earn Bonus Points on specially featured products that are part of a specific promotion.”

https://www.fergusononline.com/fergusononline/?r=/userarea/searchProducts?N%3D4294843804

Big box to contractor

Co-op/coalition rewards from third party

Manufacturer endorsement

Business benefits to contractor

• Consumer Financing

• eNewsletters

• Customized Marketing Support

• Exclusive Tech Support Hotline

PRINCIPIA CONSULTING RESEARCHSUPPORTS

EFFICACY OF LOYALTY PROGRAMS

FASTER GROWTH FOR PARTICIPATING FIRMS

PRODUCT KNOWLEDGE AND TRAINING YIELD HIGHEST VALUE

LOW RANKING FOR TRIPS AND CASH

THE BENEFITS OF LOYALTY PROGRAMS

Source: Principia Consulting

CPG PRO Rewards landing page launched at the 2016 Builder Show

CPG PRO Rewards handout used at the 2016 Builder Show

FOR EMA CLIENT CPG, WE LEVERAGED BEST PRACTICES FOR A

BETTER PROGRAM

FOR EMA CLIENT CPG, WE LEVERAGED BEST PRACTICES FOR A

BETTER PROGRAM

INCLUSIVE ENROLLMENTPARTICIPATION VIA MULTI-TIERS

MULTIPLE BENEFITSPRIME THE SALES CHANNEL

LEVERAGE TECHNOLOGY

BUILDING BLOCKS OF SUCCESSFUL LOYALTY PROGRAMS

Source: Principia Consulting

BRAND L YALTY ISALIVE AND WELL

THERE IS NOSILVER B LLET

POINT ONE

POINT ONE: THERE IS NO SILVER BULLET

DEVELOP THE OPTIMUM

BALANCE

POINT TWO

POINT TWO: DEVELOP THE OPTIMUM BALANCE

Building Brand Loyalty

INNOVATIVE/ DIFFERENTIATED

PRODUCTSBrand must

deliver products that are

consistently better and smarter

DURABLE Brand must deliver

products with longevity, “that

endure over time”

SERVICE + RELATIONSHIPManufacturer, or

its rep, must deliver 1:1

personal service and proactive relationship

PROMISEBrand must

deliver on its promises: e.g.

reliability, consistency, availability,

warranty

Where are your areas of strength or where can you develop them?

Rarely can strength in one element build sustained loyalty.

Products, performance or innovation aren’t the only factors. You can build loyalty in commodity categories.

WHAT IS REALLY IMPORTANT

POINT THREE

POINT THREE: REMEMBER WHAT IS REALLY IMPORTANT

Source: Bain and Co

CREATE STRATEGIC AND ECONOMIC VALUE FOR THE CONTRACTOR’S BUSINESS

PROVE YOU CAN BE TRUSTWORTHY

SIMPLIFY DAILY OPERATIONS AND THE CONTRACTOR’S WORK LIFE

BE LIKED IN THE WORKING RELATIONSHIP

BUILD FRIENDSHIPS

POINT FOUR

POINT FOUR: BUILD FRIENDSHIPS

The nine key drivers of friendship that activate brands more personally, more powerfully, more pervasively.

Building Affection among steel buyers for Nucor

BUILDING AFFECTION

By telling stories that surprise the audience and demonstrate caring and listening, we made a pound of Nucor steel worth more than 16 ounces of ferrous oxide.

BUILDING AFFECTION

In a commodity industry, perceived to be archaic, dirty, uncreative and environmentally insensitive, Nucor Steel has become one of the most admired brands in the United States.

Building Relevance among contractors for Lenox

BUILDING RELEVANCE

You can launch a product in the same way as always. Or, you can make it more relevant to the contractor’s need to save time and the rapid growth of digital technology among the trades.

BUILDING RELEVANCE

Take advantage of the growing medium.

BUILDING RELEVANCE

Tell a great story about a great product and enable easy connections online and on the phone.

Demonstrate the advantages to promote switching.

http://www.lenoxunplugged.com/

Building Trust among plumbing contractors and specifiers

for Charlotte Pipe

Build trust and differentiate by the way you make it…

BUILDING TRUST

…by the way you deliver it...

BUILDING TRUST

…and by the audience.

BUILDING TRUST

BUILDING TRUST

https://www.youtube.com/watch?v=7DtIY2Cw9bA

©2015, Eric Mower + Associates (EMA). Brand as Friend is a registered trademark of EMA and its methodologies are proprietary information. All ideas, concepts, strategies, recommendations, trademarks and materials presented in this document by EMA are provided to you to help make an informed decision regarding the use of our ongoing services, and will remain the property of EMA unless otherwise negotiated in a formal agreement with our agency. The use of any EMA presentation concepts and materials outside of a contracted relationship with our agency is prohibited, including the use of this material in-house or with other

agencies. By accepting this proposal, you agree to these terms and understand our ideas cannot be employed or further developed without a formal agreement between our agency and your organization.

THANK YOU

WELCOME TO THE ERIC MOWER + ASSOCIATES … · ERIC MOWER + ASSOCIATES WEBINAR SERIES . EMA GROUP...

Documents

Transcript of WELCOME TO THE ERIC MOWER + ASSOCIATES … · ERIC MOWER + ASSOCIATES WEBINAR SERIES . EMA GROUP...