Dissecting patterns in consumer behavior can be tedious. There are an infinite number of factors that affect how a customer makes decisions during his or her purchasing journey. Narrowing down the right product, brand and even shopping location all depend on the customer's personal preference. But do professional contractors follow a simpler customer journey?
To explore this question, the Home Improvement Research Institute (HIRI) studied contractors' preferred channels for home improvement purchases. Data from over 500 remodelers and general contractors helps shed light on where home improvement professionals shop most often, the biggest incentives for their preferred channel and the products that are in the highest demand.
Take a look:
Purchase Channel Spending
The greatest percentage of spending from respondents in the last three months occurred at retail locations:
- Retailer: 69%
- Manufacturer: 11%
- Specialty dealer: 11%
- Lumber and building material dealer: 8%
- Somewhere else: 1%
Of the purchases from retailers, home centers accounted for the greatest spend:
- Home centers: 70%
- Hardware stores: 13%
- Specialty stores: 9%
- Online-only retailers: 6%
- Somewhere else: 2%
Channel Preference
What's the draw toward retailers? HIRI dug further to find out why home improvement pros prefer one channel over another.
Retailer:
- Best selection/always have what I need: 37%
- Convenient/easier: 18%
- Better pricing: 18%
- Closer/better location: 13%
- Faster/same day: 9%
- Other: 5%
Manufacturer:
- Better pricing: 60%
- Convenient/easier: 15%
- Best quality: 10%
- Better customer service/knowledgeable employees: 10%
- Other: 5%
Specialty Dealer/ Pro Dealer:
- Best selection/always have what I need: 33%
- Better pricing: 18%
- Better customer service/knowledgeable employees: 18%
- Best quality: 15%
- It's the store I'm most familiar with: 11%
- Other: 5%
LBM Dealer:
- Best selection/always have what I need: 28%
- Better pricing: 24%
- Best quality: 21%
- Better customer service/knowledgeable employees: 14%
- Delivery: 10%
- Other: 3%
Online vs. In-Store
Clearly, professional contractors have ample reasons they may prefer one shopping channel over another. But one major channel is not listed above:
Online shopping.
As the internet becomes a more ubiquitous marketing and sales tool, online storefronts are more readily accessible for home improvement product seekers to scope out their needs. However, according to HIRI data, a majority of pros (90%) still prefer to purchase products in-store. This lines up with the percentage of in-store purchases (82%) made by respondents in the last three months.
Respondents were also asked whether they think online shopping is better or worse than one year ago. While most (52%) thought the experience is the same, some had reasons that it seems better or worse:
Purchasing online is better than one year ago because:
- There are more choices: 21%
- It is easier: 15%
- There is faster shipping: 15%
Purchasing online is worse than one year ago because:
- There is a longer wait time for products: 23%
- It is harder to find products: 23%
- It is more expensive: 21%
Most Purchased Products
Regardless of channel, respondents provided details on which product categories they purchase from most often. Here are the top seven:
- Building materials: 20%
- Lumber, treated lumber and plywood: 16%
- Paint and paint supplies: 14%
- Power tools: 9%
- Hardware: 7%
- Kitchen and bath remodeling products: 6%
- Plumbing supplies: 6%
Takeaways
Contractors have existing perceptions about the channels they use to shop. If your business operates in one of these channels to sell products, make sure your customers are getting the experience they expect. You may also consider expanding with a retail partnership, or simply use sales and marketing techniques to emphasize the advantages of your current channels.
For even more insights into contractor purchasing journeys, join HIRI as a member and get access to $1 million worth of home improvement industry research.
