Reward loyal customers for best behavior.
Understanding which customers are consistently contributing to the company success and retaining that group is critical to revenue and margin growth. Typical rewards for such customers are discounts for repeat buying, lead generation sharing, product knowledge (PK) sessions and other reward programs. These business rewards are generally better received by building pros who want to increase their company performance rather than free travel or merchandise.
Create a strategic plan, execute efficiently and manage diligently.
Few LBM dealers utilize professional management techniques. Too often, firms have limited strategic planning and tend to get whipsawed by market shifts such as housing downturns, unforeseen shifts in product preference and usage trends, etc. Strategic planning with respect to products, locations, customers, services and financial metrics can help drive the business forward. The age old business adage “What gets measured, gets managed” applies to this industry exceptionally well and can help all industry participants better position themselves for high performance regardless of the business environment.
