Strategic partnerships with contractors are a smart growth move for building materials distributors. Done right, they deepen loyalty, increase repeat business, and improve jobsite service. But to manage what you build together, you need to measure what matters.
KPIs (Key Performance Indicators) are how you track the health, value, and effectiveness of your contractor partnerships—especially as they scale. Without KPIs, your “strategic partnership” can become a vague handshake deal with no accountability.
Here’s how to use KPIs to monitor, strengthen, and refine contractor partnerships—from setup through growth.
✅ Step 1: Define Partnership Objectives First
Why it matters:
KPIs only work when they reflect clear goals.
Common Partnership Objectives:
Increase contractor retention and wallet share
Improve delivery speed and jobsite satisfaction
Reduce backorders and errors for high-volume partners
Streamline order workflows and communication
🎯 Before you measure performance, define what success looks like—for both parties.
📊 Step 2: Select KPIs That Reflect Value and Accountability
🔹 1. Revenue and Volume Growth From Strategic Partners
What it tells you:
Is the partnership generating real business impact?
Track revenue by contractor account
Measure year-over-year growth in sales, orders, or delivered tonnage
Set baseline goals and review monthly or quarterly
🔹 2. Order Accuracy and On-Time Delivery Rate
What it tells you:
Are you meeting service expectations and minimizing jobsite disruption?
Measure on-time, in-full (OTIF) percentage for each partner
Track error rate in picking, packing, and loading
Use this data to strengthen logistics or adjust delivery windows
🚚 Reliable fulfillment keeps partnerships strong.
🔹 3. Repeat Purchase Frequency
What it tells you:
Are your partners coming back consistently?
Track orders per month or per project cycle
Monitor time between purchases to spot potential churn
Segment by contractor size or specialty to identify trends
🔹 4. Customer Satisfaction or Net Promoter Score (NPS)
What it tells you:
How do contractors feel about the partnership?
Run brief surveys after deliveries or project completions
Use NPS or CSAT to measure satisfaction with service, support, and product availability
Track trends and respond to feedback
🔹 5. Credit Usage and Payment Performance
What it tells you:
Are your partners financially healthy and reliable?
Monitor days sales outstanding (DSO) for strategic accounts
Set credit thresholds and flag overdue accounts
Balance loyalty with risk mitigation
💳 A great partnership includes financial transparency.
🔹 6. Partner Engagement Metrics
What it tells you:
Are your contractors actively engaged with the program?
Track use of your contractor portal, mobile app, or digital order tools
Monitor attendance at partner events or training sessions
Measure participation in early-buy programs or co-branded marketing
📲 Engagement signals commitment on both sides.
✅ Step 3: Share KPIs With Internal Teams and Partners
Why it matters:
KPIs only drive improvement when they’re visible and actionable.
What to Do:
Build dashboards for sales reps, branch managers, and leadership
Share quarterly scorecards with each partner to review progress
Use data to drive joint planning sessions and adjust service levels
📣 When both sides see the data, alignment gets easier.
✅ Step 4: Use KPI Trends to Improve the Partnership Program
Why it matters:
KPIs don’t just track performance—they help evolve the strategy.
What to Do:
Identify top-performing partnerships and replicate their success
Flag at-risk partners early and respond with re-engagement strategies
Use feedback and trends to refine benefits, support, or delivery models
🔁 Great partnerships are managed like key accounts—with insight and intent.
🧠 Conclusion: KPIs Turn Contractor Partnerships Into a Competitive Advantage
Strategic partnerships with contractors can transform your business—but only if you track the right metrics. With clear KPIs in place, you’ll know what’s working, where to improve, and how to turn loyalty into long-term revenue and operational efficiency.
