In the power tools and trade industry, margins are tight and competition is fierce. Trade professionals have more choice than ever, and too many brands are fighting for attention with discounts that cut into profit.
Here’s the hard truth: price cuts don’t build loyalty, they build dependency.
If you want to boost retention, protect your margins, and drive long-term revenue growth, you need a different approach. You need loyalty.
Why discounts do more damage than you think
Discounts might deliver short-term sales, but they train customers to buy based on price, not value. In a market where reliability and service matter most, that’s a dangerous game to play.
Once your customers associate your brand with discounts, they’ll hold off buying until the next promotion.
That means:
- Less predictable revenue
- Lower average order values
- Higher acquisition and retention costs
A Harvard Business Review study found that a 5% increase in customer retention can boost profits by 25–95%. Yet brands still spend up to five times more on acquiring new customers than keeping existing ones.
In other words, every time you discount, you could be giving away future profit.
How loyalty programmes drive trade customer retention
Loyalty isn’t about luck, it’s about psychology. A well-designed loyalty programme taps into motivation, recognition, and reward to influence behaviour.
For the power tools sector, this means rewarding trade customers for repeat purchases, referrals, and engagement.
Loyal customers are proven to:
- Spend up to 67% more over time
- Be less sensitive to price changes
- Recommend your brand to peers and colleagues
When you make customers feel recognised, they don’t just buy, they belong.
Why loyalty programmes outperform promotions
The best loyalty programmes in the power tools and construction industry go beyond points and prizes. They create connection, choice and communication, all the things discounts can’t do.
Here’s why they work:
Choice matters
Not every customer wants the same thing. By offering a mix of rewards, from branded tools and gift cards to travel and experiences, you keep your audience motivated.
Consistent communication
A loyalty programme gives you an ongoing reason to engage. From tier progress updates to reward reminders, it keeps your brand visible between purchases.
Actionable insight
Every interaction gives you data. You can see who’s buying what, when, and how often, and use those insights to tailor future offers and promotions.
That’s how you move from reactive discounting to strategic retention.
Real-world example: Ironmongery Trade Extra Rewards
A great example comes from Ironmongery Trade Extra, a loyalty programme built for trade professionals.
Members earn points on every purchase and can redeem them for rewards of their choice, from premium tools to vouchers and experiences.
What makes it work?
- A wide range of rewards to suit every type of customer
- Consistent engagement through targeted campaigns
- Recognition that goes beyond transactions
The result: higher retention, more frequent purchasing, and stronger customer relationships.
Ironmongery didn’t just sell more products, they built a loyal community of repeat buyers.
The takeaway: play the long game
Price wars might win you sales today, but they’ll cost you loyalty tomorrow.
The strongest brands in the power tools industry don’t compete on price, they compete on experience. They invest in loyalty programmes that reward, engage, and retain their best customers.
If you’re ready to step off the discount treadmill and start building a loyal customer base that drives consistent revenue growth, we’ve built something to help.
