R. T. Lenz - “Organizations are most vulnerable when they are at the peak of their success.”
Currently, in most parts of the country, the home building industry is strong with plenty of business to go around for everyone. Now, what can your company do to maintain a steady profit and competitive advantage into the future?
Strong economic times brings more competition including the establishment of regional and national suppliers into your traditional trade area.
Having a full-service performance incentive program, designed to increase customer satisfaction and loyalty, has assisted numerous home building suppliers in maintaining a strong customer base when economic conditions change and competition becomes predatory.
“A satisfied customer is the best business strategy of all.” - Michael LeBoeuf
What is ?
is a full-service loyalty marketing company created for and dedicated to the home building industry. Our Sponsors receive many significant benefits. This is accomplished through combining only the most highly qualified but limited number of suppliers from a trade area into a co-branded marketing program that provides the strongest level of customer satisfaction available to a home building supplier.
is a full service incentive and marketing company that is a part of a family of loyalty marketing companies including Builders Club North and Rock Solid Incentives. Headquartered in the historic North Loop District of Minneapolis, MN and established in 1989, our companies provide substantial benefits to the suppliers and builders in the home construction industry.
Here are a few of the many successful local home-building suppliers that have been Sponsors of our loyalty marketing program for all or a portion of this time;
“In marketing I’ve seen only one strategy that can’t miss - and that is to market to your best customers first, your best prospects second and the rest of the world last.” - John Romero
By combining with your own company’s loyalty marketing efforts, the program delivers these ten significant benefits:
“Pretend that every person you meet has a sign around his or her neck that says, ‘Make me feel important.’” - Mary Kay Ash
Here are some examples of our program’s success:
A survey of Members in the MSP chapter shows 20% will switch to a BuildPerks Sponsor when all prices and services are equal to their current supplier. 91% will change suppliers to a Sponsor when they need or want to make a change.
Scherer Bros. Lumber does not require its sales force to sign non-competes as the points its customers receive and redeem make these customers loyal to the company and not the sales person.
Recently a key sales person was retiring from a prominent home building supplier in the MSP area. This supplier is not a Sponsor of our program. Through the information available in our database, letters were sent out to those program Members who were not using our Sponsors. This resulted in seven new customers for one of our Sponsors and three new customers for another Sponsor within one category.
Scherer Bros. Lumber stated earlier this year that they have picked up, on average, four customers each year for the last 7 years due solely to relationships formed on our incentive trips and other events, or by builders wanting to participate in our incentive activities but desperately short of points.
Our Sponsors report that days out on receivables is significantly shorter than the national averages for each of their unique trade or products. An average of 10-15 days.
With the BuildPerks program, your company controls the perk or “discount.” Often a builder will send their checks back a few days late, but still deduct their cash discount. Points are reported directly to by our Sponsors based on on-time payment.
Due to being associated with fun and relaxation, our representatives are often able to have lengthy conversations with the Members of our program. This allows us to act as a sales force for our Sponsors. As a result, we have successfully generated hundreds of calls to our Sponsors by encouraging our Members to call and acquire the Sponsors services and win more points to use towards travel or merchandise.
Your internal travel and entertainment costs are eligible for a tax deduction of 50%. Since is a full-service marketing company, your payments for participating in our incentive program are 100% deductible. Most often, we offer many of the same networking opportunities you seek to accomplish through your marketing efforts, thus, lowering your administrative costs.
As a Sponsor, you have access to select aspects of our Member database including Member search, point accumulation, Member profile, points from your category, event attendance and company information.
When uniting with other high-quality suppliers, like yourself, within the building industry, it creates a synergy and volume that rewards, energizes and motivates a Member beyond that which you would be able to accomplish alone. Here is an example from MSP;
To help determine your ROI would like to develop a simple spreadsheet to help you understand what the costs for your individual company may be. If you are willing to answer a few simple questions such as;
What incentives or events are you practicing now, and what are the costs affiliated with your marketing?
How much of your revenue is from home builders and remodelers, and what percentage of them make on-time payments?
Do you have any customers that purchase in excess of $1,000,000.00 yearly?
What is your category of supply (e.g. lighting, lumber, flooring, brick or etc)?
is a full-service incentive and marketing company that is a part of a family of loyalty marketing companies including Builders Club North and Rock Solid Incentives. Headquartered in the historic North Loop District of Minneapolis, MN and established in 1989, our companies provide substantial benefits to the suppliers and builders in the home construction industry.
Here are a few of the current Sponsors participating in our loyalty marketing program.
"Customer spending tends to accelerate over time; longer-term customers are more efficient users of the products and services they buy and have lower operational costs; long-term satisfied customers provide more referrals; and longer-term customers are less price-sensitive than newer customers."
Frederick Reichheld of Bain & Company
Author of The Loyalty Effect
"The uniqueness of this program cultivates a strong tie to all of our customers. While any company can reward their customers with incentives, our points are coming from many complementary Suppliers throughout the industry, thus giving our customers not only a critical mass of points, but a strong loyalty to all of their Suppliers. This value creates a strength in our relationship that cannot be broken by cheap pricing and ultimately drives more business through our doors."
Mark Scherer, Scherer Bros. Lumber
Brooklyn Park, MN
Are you a home-building supplier interested in learning how to increase your sales while lowering your administrative costs? Please take the time to review our brief presentation.