The HVAC market has experienced a dramatic slowdown compared to the past few years, which, with the benefit of hindsight, some of the slowdown / decline should have been expected (can’t expect price increases and supply chain issues to be a “benefit” to distributor sales long-term.”
According to the June HARDI report, sales were down 6% but, perhaps more disconcertingly, is that unit volume, according to some, may be down 11% (difference is price.)
Much of this can be attributed to the residential new construction market (and the Fed.) Presumably some markets are down much more.
While the recent heat wave may drive some emergency repair / replacement business, this can be categorized as a “windfall”, not a sustainable business model.
And considering the core market, many are concerned regarding the second half of the year and are wondering about 2024.
While we don’t have a crystal ball (but do have some thoughts based upon what is being projected in the electrical market, where we have data – feel free to reach out), we do know that customer engagement is critical to winning market share, which is what retains and grows revenues.
Some distributors are beginning to think about their 2024 strategies and are ideating marketing ideas.
With this in mind, Channel Marketing Group is working with a client and conducting distributor research, and we need your input.
- 2024 goals
- How distributors plan, and fund, marketing?
- How do distributors define, and measure, customer (contractor) loyalty … and do they believe their customers are “loyal”.
- What drives customer loyalty, according to distributors.
- What marketing activities are offered, but more importantly, work?
- The role of promotions, rebates and incentives in engaging customers and if they facilitate “loyalty”?
The survey should take about 5 minutes to complete and will give you helpful information to support your 2024 marketing planning.
All input is confidential. We’ll share HVAC specific results next month and you’ll have the opportunity to receive a free report, register to win one of 20+ awards including a sports vacation, and be invited to a webinar this fall.
This survey is only for distributors. (If you’re a manufacturer and are interested in the findings, send me a note and I’ll advise when findings are available.)
Winning in 2024 will require a new playbook. While the market, from a growth perspective, may remind many of yesteryear, tomorrow’s “battlefield” is different than 5 years ago. Insights from the survey will help, as will a new perspective (so give us a call.)
Would you like to learn if your customers are “satisfied” with your service and what your Customer Satisfaction Score, via an index, would be, ask us about our Uncover Your Difference survey, a turnkey CSI strategy that calculates an index you can use identify areas to improve … and measure branches / territories against.