Master Class Series Part 2: Cutting Edge Ways To Capture Key Buyer Segments Online

To successfully capture and retain the growing online market, your LBM business must understand the unique needs of each of your customer segments.

Here’s a deep dive into what our experts have to say about the market segments you’ll need to understand most as you accelerate your ecommerce management planning:

The new wave of younger contractors

The age group of 25 – 40-year-old contractors consist of Millennials and Gen Xers. These groups engage with lumber and building supply dealers in entirely different ways than older generations of industry professionals. They use laptops and mobile devices at work and home to search for data. They are looking for time savings, ease of use, flexibility, and buy online, pick up in-store (BOPIS) options. They want deep visibility into data including inventory levels, pricing, and item availability. If they are willing to drive extra distances to get to you, they must be confident that the information on your website is accurate.

To avoid causing this segment the frustrations that lead them to your LBM competitors, look at your website and ecommerce strategy and ensure your prices are online, customers can log in, see invoices, and access price quotes. Your advantage: this segment values authenticity and wants to support brands with transparency. Be honest with your solutions and you will earn their trust.

Soon-to-be retirees in the existing business category

There are significant differences between this segment and their younger counterparts, including a desire to reach you by phone. However, you may be surprised at their online service expectations. These include selecting products and suppliers, buying products, issuing quotes, and paying off invoices. They would instead conduct these activities online – a significant shift from the same segment’s preferences just a few years ago.

Their motivations are still trust, loyalty, and customer service, but they have become accustomed to the convenience of accessing existing relationships and expertise from your LBM staff online. Your advantage: they reject big box stores and prefer to engage with independent dealers like you, so use your advantage.

Larger professional contractors

This segment of age 40+ Gen Xers and Baby Boomers bridges the gap between the older and younger generations, with more requirements for LBM dealers than the above segments. Like the younger generations, they primarily use mobile devices, on-site and at the office. Their industry experience and expertise have taught them ease of doing business and being able to maximize cash flow helps you stand out. To that end, they demand the following: the shortest possible lead times from quotes to winning jobs, the least number of errors and delays, suppliers who can meet stock demand for medium and large contracts, and access to contract pricing, suppliers, products, invoices, and quotes.

Just as important, they demand the ability to connect with a personal contact who knows their business. Your advantage: this segment chooses LBM dealers who act as business partners whether online or in-person and understand and deliver on what makes them successful.

Administrative teams at your clients’ businesses

This segment consists of employees from 26 – 50+. They are digitally skilled and require access to data, including inventory levels, pricing, and availability from LBM dealers. Their main goals are to issue quotes and pay off invoices quickly and efficiently. The single most significant issue they have is a lack of online information. They don’t want to call dealers to chase financial paperwork, copy invoices, reconcile payments, and determine what was delivered and what is due.

Understanding their jobs is essential. Your advantage: administrators for your LBM business and your staff will be happy with less work and more efficient to help customers with other issues.

Do-it-yourselfers (DIY)

This group, age 30+, consists of Millennials and Gen Xers who are looking for websites that offer a wide selection, great deals, and comprehensive “how-to” resources.

As an LBM merchant, you can quickly lose this segment by not providing pricing or delivery/ BOPIS options. Your advantages: You know what DIYers need to get the job done so offer them deals, pricing visibility, and tutorials, all online!

Homeowners

This segment, age 30+, includes all three generations and is focused on high-ticket items used for remodeling. To that end, they differ in their desire for inspiration from the other groups. This group wants to enjoy the buying process – online and in your stores. So, your trendy showrooms, range of products, product advice, and one-stop shopping can all help your business to outshine other local LBM competitors.

Conversely, a “hard sales” technique, lack of choice, and lack of service will deter them from doing business with you. Your advantage: getting a whole new segment of online buyers/sales with homeowners as the advantage. Learn more about integrating your business strategies, including ecommerce management, into a coherent company vision.

You can watch Master Class 2 on-demand and see the other classes and content available.

If you liked this article on lumber yard software, be sure to check out:

• The Growing Importance of Ecommerce: Why It’s Crucial for Digital Growth
• Talking Tech: Q&A With Industry Expert John Maiuri
• How to Make Your Website Better than Your Competitors