IN THIS ISSUE

• AMEX or ACH? Insights on payment methods 💳

• E-commerce satisfaction—are your priorities upside down? 🙃

• Poll: Do you fire off promo emails? 📧

• Business management from the comfort of an F150 🛻

• Earn a free hoodie (for a limited time!) 👇🏼

DEEP DIVE

A breakdown of payment methods in LBM

Ever wondered how your customers’ payment preferences impact your bottom line? We analyzed thousands of transactions on our platform to uncover payment method trends and explore how you can use this data to fine-tune your payment strategy.

The key findings

• Visa Credit Card: The most popular choice by far, Visa boasts nearly half (49.1%) of all transactions, with an average amount of $2,030.

• ACH: The heavyweight in average payment amount, ACH (Automated Clearing House) payments top the chart with an impressive $6,137 per transaction, and make up 22.6% of total payments.

• Mastercard Credit Card: Mid-tier in both average amount and share, Mastercard transactions average $2,300 and represent 18% of the payment pie, highlighting Visa's dominance in the market.

• AMEX Credit Card: A significant player with $3,064 per transaction, but accounting for just 10.3% of payments. Contractors favor AMEX for its robust rewards, purchase protection, higher credit limits, and customer service.

Why this should influence your payment strategy

Understanding the nuances of payment methods in the LBM industry is crucial for dealers aiming to optimize financial operations and customer satisfaction. ACH stands out with its high average payment amount, making it a perfect fit for large transactions. Though less frequent, these transactions can significantly streamline operations and reduce processing fees compared to credit cards, offering a cost-effective solution for both dealers and customers.

AMEX, while popular among contractors for its high credit limits, purchase protection, and attractive rewards, is often a less favored option for dealers due to its higher processing fees. However, offering AMEX can be a strategic move to attract and retain high-value customers who appreciate these benefits. Balancing the higher costs with the potential for increased customer loyalty and satisfaction can lead to better overall financial outcomes.

Credit card fees can vary by issuer, and knowing which cards are most commonly used can be a game-changer. By recognizing these patterns, dealers can strategize fee pass-throughs to customers to effectively manage these costs and produce a healthier bottom line.

Curious about payment strategies? Chat with our team to optimize your costs.

Are you happy with your e-commerce investment?

Are you happy with your e-commerce investment? If not, you might be focusing on the wrong goals.

A report by Distribution Strategy Group revealed a strong correlation between dealer satisfaction with their e-commerce investments and their strategic priorities. Dealers who report high satisfaction levels share common priorities:

1. They focus on enhancing the customer experience,

2. have completed their ERP integration, and

3. prioritize increasing efficiency and productivity with their platforms

Focus on existing customers over new

In B2C, the game is all about net new customers. Purchases are often one-off or infrequent, and low switching costs mean loyalty is hard to come by.

But B2B is different. Think of your e-commerce platform as a 24/7 service desk. Dealers who prioritize making life easier for their existing customers are the ones who truly win. According to the chart, 47% of the most satisfied dealers put customer experience first, and another 23% place it second. Fast, self-serve portals that let customers manage their accounts anytime, anywhere? That’s the secret sauce.

New customers are important, but ranking well with search engines and growing your overall store traffic will take time. When starting your e-commerce journey, it’s more beneficial to focus on how this investment will streamline business for your existing customers. This approach not only boosts satisfaction but also fosters loyalty and repeat business.

ERP syncing is the backbone of your operation

For a truly exceptional customer experience, your e-commerce platform must seamlessly integrate with your ERP system. Think of this integration as the backbone that supports your entire operation, ensuring that inventory, pricing, and customer data are always accurate and up-to-date.

Dealers who have completed their ERP integration report higher satisfaction with their e-commerce platforms. With 16% of dealers rating ERP integration as their highest priority and another 12% as their second, it’s clear that this integration is crucial for providing a smooth and efficient customer experience.

Efficiency and productivity—the hidden boosters

While customer experience is paramount, efficiency and productivity improvements are also key to maximizing the benefits of your e-commerce investment.

The chart shows that 14% of dealers prioritize increasing efficiency and productivity, with an additional 21% ranking it as their second priority. These dealers understand that an efficient e-commerce platform not only improves the customer experience but also enhances overall business performance.

By automating routine tasks you free up your team to focus on more strategic activities. Streamlining operations from sales to finance with an online store and self-serve portal means your existing team can handle more volume, more customers, and more complexity without the need to scale up your workforce at the same rate. By investing in efficiency and productivity now, you set the stage for long-term success without the escalating costs of expanding your team.

PULSE CHECK

Results from our last poll

In our last issue we asked dealers ”Has your business been affected by a ransomware attack?”. Well, guess what? We received a resounding, "Nope!" from everyone. That's right, no respondent has fallen victim to those pesky ransomware attacks. Let's all breathe a collective sigh of relief 😮‍💨

Has your business been affected by a ransomware attack?

⬜️⬜️⬜️⬜️⬜️⬜️ Yes (0)

🟩🟩🟩🟩🟩🟩 No (100%)

Email marketing in LBM

We will provide a breakdown of results from responses in our next issue.

Have you got a question you’d like to get a pulse check on among LBM dealers? Hit 'Reply' to this email to send us your question.

WORTH READING

• 63% of dealers who are investing in technology this year are investing in e-commerce: 📊 The Farnsworth Group have released their quarterly Independent Retailer Index in partnership with the North American Hardware and Paint Association (NHPA) for Q1, 2024, which measures the performance of independent retail channels, tracking changes in total sales, transaction counts, inventory investments, cost of goods, gross profit margins, future expectations, and investment plans. It offers great insight into current sales trends and dealer sentiment about the future.

FROM OUR PRODUCT TEAM

Protect your business with Fraud Check

We’re excited to share Fraud Check, our latest enhancement in order payment processing. This powerful feature is designed to increase security, minimize fraudulent chargebacks, and provide you with advanced risk management tools.

With Fraud Check, you can customize fraud detection settings to suit your business needs, reduce chargeback risks through proactive fraud detection, and receive real-time notifications for transactions that require review.

Currently available for e-commerce orders, Fraud Check allows you to configure settings like risk score thresholds and new customer checks. Orders meeting the fraud criteria will be flagged for your review, enabling you to make informed decisions before proceeding with payments. To activate this feature, please message your Account Manager. They will discuss your configuration preferences and assist with setting up Fraud Check for your account.

NAIL THE TREND

We really like this strategy from @arnoldlumber cross-promoting their YouTube series featuring a recent deck renovation by a customer with short clips on Instagram. It’s a great way to highlight your customers work and increase your reach across multiple social channels 🤳

Watch Murray Kruger of @krugerconstruction managing his construction business from the driver seat of his F150. Your e-commerce store and self-serve portal are optimized for tablets, right? Right?! 😳

@krugerconstruction

Welcome to my mobile office • I never thought I would ever use this center console work surface in my F150 but I use it all the time for e... See more

We apologize in advance for ruining multi-tools for you…

UPCOMING EVENTS

Your thoughts?

Was this issue a hit or a miss? Whether it's cheers or jeers, we're all ears. Share your feedback and tell us what you're itching to see more of. Just hit 'Reply' to this email with your thoughts.