Every day we see Business-to-Consumer (B2C) loyalty programs all around us. However, Business-to-business (B2B) loyalty programs are far rarer.
This makes acquiring the correct information to launch a successful B2B loyalty program and finding constructive examples very difficult.
But we’re here to give you everything you need to know about B2B loyalty programs including, the best practices for B2B customer loyalty programs. And three fantastic B2B loyalty program examples.
B2B customer loyalty is essential to maintain repeat customers and expand your customer base. But how do you create a B2B customer loyalty program that works?
Let’s get into that!
Loyalty programs are a practice of customer marketing that incentivizes clients to do consistent business with your company.
As the name reveals, loyalty programs develop stronger customer relations and engagement in your business to achieve brand loyalty.
As Fundera proves, 43% of customers are more likely to spend more money at businesses they’re loyal to. This figure proves how crucial it is for your B2B company to adopt a loyalty program.
Don’t exhaust your marketing efforts on gaining new customers solely. Focus on making your existing customers more satisfied through a loyalty program.
You have a 60%-70% chance of selling to an existing customer. Whereas for a new customer, your chances range between 5%-20%.
Although the aim of a B2C and B2B customer loyalty program can be the same, many factors set these two reward programs apart, including:
The participants. B2B customer loyalty programs are usually more restrictive regarding who they allow to participate in their loyalty program. This includes customers who are not eligible to receive the reward or take part at all, such as government agencies. customers.B2C loyalty programs rarely have these restrictions and are open to all
Primary focus. B2C loyalty programs focus on the needs and pain points of individuals to develop loyalty. These companies also need to show individuals they share the same values. However, B2B companies direct their loyalty programs to solve the pain points of organizations and their decision-makers. This makes B2B customer loyalty programs more complex, as that customer information is difficult to gather.
Personalization. Because B2C companies have a larger consumer base, they don’t have to personalize their loyalty program tactics as much as B2B companies do. For example, think about the millions of customers Starbucks has compared to the few a B2B company would have. The B2B business would have a smaller consumer base that requires more personalization to deliver the best customer experience.
Purchasing decisions. B2B customers make rational purchasing decisions based on how products can elevate their businesses, which must be accounted for in B2B incentive programs. On the other hand, B2C customers make emotional purchasing decisions based on desire, prestige, and style.
Summary: The Difference Between B2C and B2B Loyalty Programs:
As we’ve discussed, there are staggering differences between B2C and B2B customer loyalty programs.
But even though those differences exist, both businesses share challenges and opportunities for their loyalty programs.
Let’s examine what those challenges and opportunities are:
When a business neglects to document the smallest to the biggest details, this can cause confusion and inconsistency within the loyalty program.
When I say “details”, I’m referring to minor aspects of the loyalty program that businesses need to document to keep all their team members on the same page.
A few of the details you should document include are:
The Solution
Companies should document all the details that cover the terms and conditions, the method of operation, relevant legal information, and other important information to the business.
Both B2C and B2B businesses should create material for team members on how to approach customers and any friction with the loyalty program. To stay consistent, businesses need to update these details regularly.
“43% of customers are more likely to spend more money at businesses they’re loyal to”
According to Blue Corona, 80% of B2B buying decisions are based on the buyer’s customer experience. Only 20% of buyers go on the price or product/service.
This emphasizes how essential customer experience is, but both B2C and B2B businesses have limited control over it in loyalty programs.
Sales representatives don’t have the time or opportunity to share valuable knowledge about the product/service and what makes them novel and beneficial to the buyer.
Also, without using third-party integrations and advanced loyalty program software, it is difficult for companies to analyze and use their customer interactions properly.
The Solution
Companies should incorporate more feedback from their sales and marketing teams to improve the customer experience they deliver.
Additionally, brands need to use in-depth tools and refined sales techniques to provide their buyers with an informative, engaging, and consistent customer experience.
Many businesses forget how crucial managing accurate data on their loyalty programs is. Brands fail to integrate reliable software to collect data at different points of the loyalty program.
Some businesses don’t know how to separate different data pools and what data is vital to track. This is an issue as businesses might not have accurate, detailed information and results to work with.
11% of businesses don’t calculate their Return on Investment (ROI) from loyalty programs. A further 17% of businesses calculate their ROI but don’t use the correct metrics.
The Solution
Businesses must put an effective system in place to track the essential data of their B2B incentive programs.
Companies need to integrate the required software to accurately collect data on customer satisfaction, ROI, and overall progress.
But while doing this, companies must try to keep their method of data collection as organic as possible.
Every business would like to optimize its lead generation, and customer loyalty programs make this possible.
Companies can design their referral program, so consumers must exchange their contact details before accessing the incentive. For example, “Subscribe to our newsletter and get $5 off your first purchase.”
Businesses can use loyalty programs to leverage contacts for their lead-generation strategy.
So, brands can still market to them even if a customer hasn’t bought anything yet.
Brands must get the full picture of who their customers are.
This helps them tailor their products and marketing techniques to appeal to their customers.
A customer loyalty program can help businesses find out more about their audience. Companies can do this by making a form part of their loyalty program.
Businesses can use the information captured through the form to deliver personalized user experiences and marketing campaigns that solve their clients’ pain points, and provide them with what they need.
Gaining new customers is much more expensive than retaining old ones. And loyalty programs can help brands retain their existing customers.
This will not only help businesses save money but retaining 5% of customers could lead to an increase of 25%-95% in profits.
In other words, B2C and B2B loyalty programs help companies save money by retaining their customers. And these companies have the opportunity to make more money.
If possible, find out the reason for your buyers leaving your business. Try to find a way you can solve that through your loyalty program. This approach is sure to increase retention rates!
Summary: B2B Loyalty Programs: Challenges and Opportunities
Challenges:
Opportunities:
Here are some successful B2B loyalty program examples that you can learn a lot from:
Being one of the world’s largest and most favorable electronics manufacturers, Lenovo shows us what one of the best B2B incentive programs looks like.
Back in 2014, Lenovo bought IBM’s X86 server division. However, IBM’s former business partners weren’t sure how to go about selling the same servers.
But Lenovo was determined not to lose those business partners. So, this tech company developed a staggering loyalty program with support from Motivforce Marketing & Incentives.
“80% of B2B buying decisions are based on a buyer’s direct or indirect customer experience,”
When it comes to B2B loyalty programs examples, Celebrity Cruises is a great example of how a business can motivate third parties like booking agents into their programs.
Desperate to stand out from their competitors, Celebrity Cruises designed a highly effective loyalty program.
Most of this companies sales stem from travel agents. So, Celebrity Cruises decided to incentivize the best agents for their loyalty.
TRW is one of the best companies in the automotive aftermarket and also designed provides one of the best B2B loyalty programs examples: Automotive Diamonds.
Because of the high volume of competitors in TRW’s industry, the problem businesses were facing is that they could not directly communicate with their aftermarket. TRW created a loyalty program to solve these challenges.
Loyalty programs provide B2B businesses with various opportunities including competitive advantage, saving money, and increasing their customer lifetime value. However, there are challenges for B2B loyalty programs. Read our article to find out what these challenges are and how to solve them.
Rewards that customers love for B2B loyalty programs included tiered rewards, discounts, VIP experiences, and much more! Read this article for the three best B2B loyalty programs and the best practices. We also include solutions to challenges B2B businesses face for loyalty programs.
Brands that provide the best B2B loyalty programs examples are TRW, Lenovo, and Celebrity Cruises. To find out what these brands did and what the results of their loyalty programs were read this full article. You will also find B2B loyalty program best practices and B2B loyalty program reward ideas.
Fundera: Keep Your Customers Coming Back: 13 Brand Loyalty Statistics You Need to Know
Invesp: Customer Acquisition Vs.Retention Costs – Statistics And Trends
Blue Corona: 75+ B2B Marketing Statistics to Know
Harvard Business Review: The Value of Keeping the Right Customers