Construction manufacturers: here's how to solve your sorrows

By Anna Sophie Gross Aug 10, 2016

The building materials industry is now recovering from the housing crisis of 2008 and this an exciting time to think about how to grow, evolve and invest in the future.

It is a major multi-hop industry from product suppliers to manufacturers, vendors, dealers, subcontractors, architects and developers. Whether your company is a direct multi-hop company looking to incentivize purchases and benefits at each hop, or an indirect multi-hop vendor looking to provide the dealer with a budget to incentivize their own channel partners, you need to be driving more sales through strong incentivization architecture.

The key behaviors

The two behaviors you really want to drive are:

  • Pushing one product over another – you want dealers to utilize shared marketing spend to promote your vendor products over rivals’
  • Push your products more effectively – you want architects to push products more effectively by creating high-quality renderings.

We’re going to discuss both of these objectives in more detail, examining the challenges and pain points preventing you from reaching these goals.

Push one product over another

There are a few of stubborn obstacles preventing you from getting key influencers to push certain products over others. One is that you currently have no formalized incentive scheme – store clerks and dealers have inconsistent and limited rewards experience. At the same time, key influencers are ambivalent, exemplified by the fact that architects aren’t including your products in drawings. They also aren’t trained very well meaning that the material or fixtures they suggest aren’t actually technically feasible and the general contractor has to recommend replacements, often leading to delays in the project.

To solve this, you need to create an industry standard, such as rebates direct to the purchasing entity and a formalized prize scheme based on sales. You also need to offer little extras which improve their marketability, such as skills endorsements and written Linkedin recommendations.

Push products more effectively

One of the major reasons key influences aren’t pushing your products very effectively is that they lack the proper skills to do so. For example, some architects deliver low quality renderings, making it difficult for developers to make quick purchasing decisions. Channel partners are also under tight time constraints, which means that they often find themselves sacrificing quality for the sake of expediency.

Our research team spoke to an NYC real estate developer recently who said: “The rending is my first impression of how the material choices align with the design. If the rendering does not look good, I am much more likely to question the material choices. It could very well be that the architect’s choice of materials are excellent but I won’t be convinced of that unless the rendering conveys that.”

Case and point: quality renderings are essential.

To help your influencers gain the skills and capacity to sell your products well you need to provide them with software to improve the speed and quality of drawings and, once again, offer things which will improve their marketability, such as skills endorsements and written recommendations on Linkedin, as well as creating blog and sponsor articles referencing the architect’s work.

Technology solutions

Most building material manufacturers are looking to formalize their channel partner incentive programs. These are currently pretty ad hoc, chaotic and unsuccessful. They also want to go beyond using Salesforce as a data dump to using it as a strategic sales tool and as a means of cultivating and maintaining good relationships with their partner base.

Cloud-based incentive solutions like Fielo can help you automate and formalize your loyalty incentivization schemes. It provides a platform for manufacturers to extract greater value and insights from Salesforce and effectively incentivize multi-hop value chains.

Fielo is an intuitive, easy-to-implement solution which integrates smoothly with CRM systems. It enables manufacturers to optimize and personalize their multi-hop incentive program and drive and scale relationships with untapped partners, resulting in increased sales and more loyal partnerships.

Free Dwonload - The Quick Guide to Measuring Your Channel Incentive Programs