Over the years, many HVACR distributors have launched programs designed to increase contractor sales. These programs may be called frequent buyer programs, loyalty programs, or incentive programs. While there are nuances to the three, the commonality is that contractors are recognized for their support.
The concept helps distributors market themselves, and drive sales.
ITA Group, a loyalty leader, recently asked Channel Marketing Group, to survey contractors about why they are loyal to their “preferred” distributors and if loyalty programs influence their purchasing behavior.
(Editor’s Note: David Gordon started in the Incentive and Loyalty Rewards Business before joining IMARK Group and founding Channel Marketing Group. He has worked on hundreds of Loyalty programs. In my distribution career, I was part of designing and executing 9 Loyalty programs for the 5 distributors I was fortunate to work for. So, we were excited to work with ITA Group on this comprehensive survey and report.)
We would encourage you to download the full report by clicking here.
Here are the top 10 takeaways and highlights from the 2025 contractor loyalty report:
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Loyalty Drives Sales Growth
Loyalty programs have proven to increase purchase frequency and volume, with 49% of contractors reporting increased order frequency and 39% providing increased volume to sponsoring distributors after joining a program.
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Positive Brand Perception
A loyalty program significantly improves contractors’ perception of a distributor’s or manufacturer’s overall value, with 63% reporting improved perception of channel partners with a program.
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Untapped Market Potential
About 50% of contractors are not enrolled in any loyalty programs, and 22% of them are unaware of such programs—presenting a major opportunity to gain market share for distributors and manufacturers who have loyalty programs.
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Competitive Edge – Loyalty
In markets where product availability and pricing are uniform, loyalty programs act as a differentiator, helping distributors win business when all other factors are equal. We believe, and know from experience, that when the business is a “jump ball” between 2 or 3 distributors that the distributor with a loyalty program will win that “jump ball” more often.
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Contractors Want Rewards
Contractors are motivated by rewards such as discounts (37%), gift cards (21%), and billing credits (18%), aligning with their preference for practical and tangible benefits.
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Increased Engagement
Contractors use loyalty program portals not just for tracking rewards, but for exploring new product information (42%), promotion updates (34%), and other valuable business insights.
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Proven Interest
A resounding 83% of contractors would enroll in a program if one was offered to them—highlighting the interest, and acceptance, of loyalty programs. This is a clear indication of a potential demand gap.
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Reward Structure Matters
Contractors prefer being rewarded for every purchase (55%), though milestone-based or tiered systems can also drive growth when implemented strategically. All purchases should count on some level.
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Retention Through Customization
Customized rewards and tiered programs ensure relevance and encourage loyalty while balancing cost-effectiveness. Programs should offer flexibility to appeal to both large and small contractors.
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Actionable Insights
Contractor loyalty programs offer valuable data to segment contractors, analyze spending habits, and refine marketing campaigns—helping to optimize ROI while nurturing relationships.
Investing in a loyalty program isn’t just about incentivizing purchases; it’s about differentiating your brand, building stronger partnerships, and creating sustainable growth. With these insights, leadership teams can confidently position such programs as integral to their strategic roadmap.
The full report is available to Download. [Exclusive research] Drive more purchases with a contractor loyalty program that work.
If you are seeking a marketplace differentiator that can profitably drive growth while engendering manufacturer support, reach out to ITA Group for ideas.
