How Strategic Retail Partnerships Drive Consumer Satisfaction and Growth in Home Services

How are American consumers showing confidence in this economy? By going shopping: in-store, online, and at home. According to Statista, in 2023, the retail market grew by 4.11 percent, reaching $8.29 trillion, with the home services sector playing a significant role. Valued at $90.63 billion, according to Grand View Research, home services are expected to grow by 7.2 percent annually, making strategic partnerships a critical driver for businesses aiming to enhance consumer satisfaction, streamline operations, and innovate. Within this context, partnerships have emerged as a critical driver of success for home service providers, enabling them to deliver superior customer experiences, streamline operations, and foster innovation.

Consumer satisfaction hinges on delivering positive experiences at every customer journey stage. While most retailers do not currently offer a home services division, their customers have jobs to be done. As per IBIS WorldToday’s customers, with 70 percent relying on reviews before selecting a service provider, prioritize reputation. The strong relationship between a customer and a retailer can be extended to the service provider and vice versa. This is where the strength of partnerships comes into play, helping providers offer superior services by leveraging strong relationships with suppliers, contractors and technology partners.

The Benefits of Collaboration

Retailers increasingly recognize the value of collaboration with home service providers, which helps improve product quality, operational efficiency, and innovation while, most importantly, allowing them to solve customer pain points they couldn’t before. By fostering diverse partnerships, businesses can enhance their ability to compete in a crowded marketplace, differentiating themselves in what's often seen as a commoditized​ industry.

Driving Innovation

Effective partnerships begin with a deep understanding of each party’s strengths and gaps, aiming to create a synergy that produces an outsized outcome for all three parties: the homeowner, the retailer and the provider. These relationships can also catalyze innovation. Imagine a world where you don’t ever have to think about appliance maintenance or be surprised by unexpected breakdowns. Where that’s already been thought through and planned for the second you buy your appliance. Where with the coming together of retailers, service providers and artificial intelligence-powered technology, your experience of buying, maintaining and upkeeping your home systems is seamlessly happening all at once. This is all about saving homeowners time and giving them a turnkey solution for managing their homes.

When retailers partner with tech-savvy service providers, they can integrate advanced solutions such as AI, machine learning (ML) and Internet of Things (IoT) technologies into their service offerings. Alliances between traditional retail companies and software developers have created user-friendly apps that enhance the customer experience, from easily booking appointments to tracking service progress — earning high marks from consumers.

Streamlining Operations

Efficient operations are crucial for customer satisfaction, especially regarding service delivery. Long wait windows, such as the notorious half-day service call blocks, frustrate customers. Strong partnerships between service providers and contractors help optimize logistics, ensuring timely service​.

Joint training programs between retailers and their partners also contribute to operational efficiency. For example, Walmart’s collaboration with Angi allows customers to book home services directly through the Walmart app, streamlining the process and improving customer satisfaction. These programs improve consistency and reliability in customer experiences, boosting satisfaction.

Enhancing Customer Touchpoints

Over 70 percent of homeowners plan to hire a home service professional next year. This strong demand comes with an expectation of satisfying experiences, from initial engagement to cost estimates to project completion, often in stages over many days, weeks or months, sometimes adding up to dozens of interactions before the job is complete. Every consumer interaction with a service provider contributes to their overall satisfaction.

Partnerships enable retail brands to enhance these touchpoints by offering personalized, data-driven services. By collaborating with CRM software providers, businesses can gather insights into consumer preferences and behavior, which can be used to tailor marketing efforts and services​. Positive customer interactions lead to stronger recommendations and repeat business, which are critical factors for home service growth.

Best Practices for Cultivating Partnerships

Effective partnerships are built on clear communication, aligned goals, and mutual flexibility, recognizing that each party has their own objectives and road maps outside of the partnership.

• Practice Clear Communication: Establish preferred forms of communication with partners — email, text, regular meetings and, most importantly, adopt a phased approach. It’s challenging to continue allocating resources to partnerships that don't show progress; managing internal and external stakeholders is easier when there's momentum. The broader business relationship requires similar attention to detail, with a clear understanding of responsible parties, contracts and payment schedules.
• Align Goals and Values: While profitability is always a shared goal, all parties must have aligned objectives and values. Do the retailer and its suppliers put customer satisfaction above all else or is incremental revenue the core focus? Perhaps reducing operational complexity is the priority. This alignment creates a foundation for trust and mutual benefit. When choosing partners, retailers should consider the immediate benefits and how well a potential partner’s mission aligns with their own. Remember, partnerships take longer to establish and yield value than buying keywords on Google, but they provide a far better experience for all parties.
• Remain Flexible and Adaptable: For partnerships to grow, they must remain dynamic and responsive to change — whether from road map adjustments, new executives or shifting market conditions. Joint marketing initiatives, collaborative training sessions and shared technology platforms can help partners stay in sync. Being open to change and willing to adapt to new circumstances is crucial. The retail landscape constantly evolves, and flexibility is key to maintaining strong partnerships.
• Measure Success Together: Establishing joint metrics for success is essential for partners to gauge the effectiveness of a collaboration. By agreeing on key performance indicators related to consumer satisfaction, service efficiency and innovation outcomes, the parties can focus on achieving measurable results. This approach not only reinforces accountability but also encourages continuous improvement.

Gaining a Competitive Edge

Partnerships aren’t just about one-on-one relationships. The most successful companies understand that building a thriving ecosystem of symbiotic partnerships can truly transform a business. By layering value on top of value and bringing together multiple “best-in-class” providers, businesses can deliver a seamless and cohesive customer experience where the whole becomes greater than the sum of its parts.

Retailers need to shift their mindset — partnerships aren't simply transactional; they're strategic alliances that can elevate or break the customer experience. Just like a well-oiled supply chain, these partnerships must be tightly integrated so that every touchpoint reflects the same message of reliability and excellence to the consumer. By driving innovation, streamlining operations, and enhancing every customer interaction, retailers can polish their brands and establish themselves as the go-to service providers in a highly competitive market.

In today's rapidly evolving retail landscape, those that harness the power of strategic partnerships will meet customer expectations and exceed them, setting new standards for excellence in consumer satisfaction.

David Steckel is chief product officer of Sears Home Services, which provides expert services for the entire home — from appliance care and HVAC to appliance repairs — along with affordable warranty coverage.