The Home Depot Adds Membership Tiers to B2B Loyalty Program

Home Depot has added new membership tiers to its B2B loyalty program.

The Pro Xtra loyalty program for professional contractors and builders now has three tiers and enables pros to earn additional benefits as they increase their spending, The Home Depot said in a Thursday (Jan. 5) press release.

“Pros make up about 10% of The Home Depot’s customer base and approximately half of our sales,” Hector Padilla, the company’s executive vice president of outside sales and service, said in the release.

Home Depot expects its professional consumer segment to grow faster than the U.S. home improvement market in the coming years. The home improvement retailer is committed to serving that trend, company executives said on Nov. 15 during an earnings call.

“To serve the pro, it’s about removing friction through a multitude of enhanced product offering and capabilities,” The Home Depot Executive Vice President of Merchandising Jeff Kinnaird said at the time.

PYMNTS research has found that retailers in several market segments are investing in loyalty programs.

In fact, 16% of general retail, 23% of automotive merchants, 23% of convenience stores and pharmacies and 32% of grocery retailers are currently doing so, according to “Big Retail’s Innovation Mandate: Convenience and Personalization,” a PYMNTS and ACI Worldwide collaboration.

Loyalty is the glue that binds customers to their merchants, the report said, and retailers seeking to boost loyalty must anticipate the channels their customers may want to spend next and provide an experience that is both convenient and personalized.

With The Home Depot’s new membership tiers, pro customers can unlock new levels of benefits as well as earn rewards. The additional perks include a new Elite Support Line, VIP experiences, account management services and preferred pricing, according to the press release.

These benefits are in addition to the business tools, exclusive sales and events, and other specialized perks that customers can access when they enroll in Pro Xtra, the release said.

“We’re always looking for way to enhance Pro Xtra to best support pros as their needs grow and evolve, along with their businesses,” Molly Battin, senior vice president and chief marketing officer at The Home Depot, said in the release. “This tiered loyalty system unlocks a new experience of rewards and savings for our pro customers with more benefits than ever, right at their fingertips.”