Dive Brief:
- Deepening its pursuit of pro customers, Lowe’s has introduced its suite of Lowe’s MVPs Business Tools, the home improvement retailer announced Monday.
- On the retailer’s website and mobile app, customers can get quotes online for their supplies, re-order frequently purchased products and track their orders, per the announcement. Silver Tier MVP Pro Rewards members and above will also receive discounts on eligible orders of $1,500 or more.
- The retailer said its tools are meant to enhance its MVP Pro Rewards and Partnership Program, which lets members earn bonus points on select items, “paint rewards” and more.
Dive Insight:
Lowe’s has continued to court its professional customers with new services and incentives. Last August, the home improvement retailer announced that it wanted to better serve professional customers through new fulfillment and delivery pilots. That included launching a Pro Fulfillment Center in Charlotte, North Carolina, that offered customers same- and next-day deliveries.
Per its internal research, 61% of Pro members want retailers to help them shop quickly, so they can finish their work as soon as possible.
“We know that for Pros, time is money. As demands on their time increase, new technologies like the MVPs Business Tools help Pros be more efficient and stay focused on their business,” Tony Hurst, senior vice president of Pro and Services, said in a statement. “These enhanced digital features replicate our fast and simple in-store shopping experience so Pros can manage their orders from anywhere – whether that’s on the jobsite, at home or out of town.”
But as Lowe’s focuses on pro customers, rival Home Depot has largely been the destination of choice for the segment. Home Depot last year launched features on its B2B site aimed at enhancing the quoting and interconnected shopping experience for its pro customers.
The rollout of new digital tools for pro customers follows mixed Q4 results for Lowe’s. The retailer reported net sales of $22.4 billion for the quarter, up 5.2% year over year, while net sales for the full year saw a 0.8% bump. However, the retailer’s operating income dipped by 8% for the quarter and 16% for the full year.
Still, pro customers continued to outpace DIY customers in the fourth quarter. “We’re capitalizing on our momentum with our pros by growing our MVPs pro rewards and partnership program; building relationships through our CRM tool; and continuing to enhance our product assortment to meet pro needs,” CEO Marvin Ellison said on a call with analysts at the time, adding that the retailer is bringing back Klein Tools to its assortment to further help it enhance its pro product offering.
