Contractor Buying Decisions Are Changing

by | August 19, 2021 | Press Release

For Immediate Release

COVID impacts on channel erosion, eCommerce, relationships and more

NORWOOD, MA. August 19th, 2021 – HMI Performance Incentives recently received input from over 750 contractors in the electrical, roofing, plumbing, HVAC/R and landscaping industries to gain greater insights into the trends that are driving contractor decisions on where they purchase their materials.

The research, conducted by Channel Marketing Group and with the support of HMI partners Prokeep and SproutLoud, sought to understand what makes a contractor “loyal” to a distributor, where they are purchasing their materials and other key business drives.

In speaking of the report, Lincoln Smith, Chief Strategy Officer of HMI Performance Incentives, an incentive / loyalty company, stated, “This research provides distributors and manufacturers further insight into contractors and their decision drivers as well as what is impacting their channel choices. While some remains the same, contractors are changing their buying criteria.” 

Findings highlighted that channel erosion is occurring, eCommerce is accelerating, the drivers of “relationship” are changing, and that contractor marketing is becoming more important.

“This research illuminates the growing desire contractors have to do business with their distributors in more efficient, electronic ways that complement – not replace – the existing channels they’ve used to date. My hope is that these insights will help guide the industry on practical, next steps they can take to honor their customer’s desire for an omnichannel approach to communications. While some electronic channels may seem daunting, texting is a readily accessible entry point – one that will actually strengthen relationships distributors have worked so hard to build and contractors value so deeply.” – Jack Carrere, Co-Founder at Prokeep.

The report highlights research findings and touches on the implications for distributors. The opportunity to support their contractors in demand generation represents an opportunity to generate loyalty and strengthen relationships.

“The voice of the contractor matters to distributors, dealers and manufacturers. HMI’s research hones in on relevant takeaways about incentives and funds management — key factors in building customer loyalty that are too often overlooked. When Co-Op Marketing Funds and MDF, that originate with the manufacturer, are passed along ultimately to contractors, to bolster their local marketing efforts and grow their businesses, this benefits distributors. At every step in the process, using funds to incentivize SMBs to participate in localized digital marketing has a profound impact on generating leads and increasing brand sales in local markets.” – Gary Ritkes, President of SproutLoud

To obtain a copy of the report and register for the upcoming webinar where findings are discuss, visit


About HMI Performance Incentives

People are an organization’s most important asset. Using data and behavior-driven methodologies, strategic design, creativity, and empathy, every company can achieve their growth and profit goals through a comprehensive incentive loyalty strategy. Founded in 1980 in Cambridge, MA, HMI Performance Incentives is a global leader in designing and managing incentive loyalty solutions.

About Prokeep 

We’re on a mission to modernize and strengthen the relationships that are the fabric of the construction industry and the backbone of the built-world we live in every day. Prokeep’s messaging platform is purpose built for construction and it allows customers to text pictures, orders and more directly to counter or inside sales representatives – saving time and preventing mistakes.

From homes and offices to museums, schools, storefronts and more, we believe the buildings around us reflect the story of our times. And we’re honored to support the flow of communications in the construction industry that allows this story to come to life. 

About SproutLoud 

SproutLoud is a leading SaaS-based Through Channel Marketing Automation platform, designed to increase brand sales through partners in local markets. SproutLoud’s advanced marketing automation technology simplifies every aspect of Distributed Marketing and delivers comprehensive analytics on tens of millions of touchpoints for major, category-leading brands. SproutLoud gives brands unparalleled visibility on ROI for individual tactics, campaigns, partner engagement and platform usage. With SproutLoud, brands have the advantage of responding rapidly to changing market conditions in real-time with data-driven decisions.

About Channel Marketing Group

Since 2001, Channel Marketing Group has offered strategy and marketing consulting services to manufacturers, distributors, manufacturers reps, and associations focused on the electrical, lighting, HVAC, and plumbing industries. With its principals’ channel expertise, the company also serves the broader construction and industrial trades.

More importantly, our experts have worked in and with those industries, so their knowledge, experience, and relationships within the marketplace run deep. With exposure to more than 60 industries as well as over 100 years of industry experience, the team has completed successful engagements with more than 150 companies, from $10-million organizations to national and multinational chains.

Need more incentive insights? Check out these related articles.

Load More