When you hear the word customer loyalty program, what comes to mind? What are your thoughts about customer loyalty programs?

It is true that no loyalty program is one-size fits all. The impact of keeping customers happy is more important in B2B than it is in B2C. This is because contracts are much more expensive than they are for B2C. This article will explain what B2B is and how to create successful B2B loyalty programmes.

What is B2B?

You might have heard the term “B2B” many times if you are passionate about business publications or online e-commerce forums. If you’re still unsure about the term “B2B”, it’s time for us to clarify what it is and how it functions in this ever-changing world of trade.

B2B or B to B is a common abbreviation for the term “business-to-business”, which is a transaction between businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer.

Forrester predicted that U.S. B2B ecommerce would account for 17% of all B2B sales by 2023. Over the next five year, B2B ecommerce will experience a compound annual growth rate of 10%. The Internet provides a great environment for companies to search for products and services as well as to partner with others to transact. Companies can create company websites to communicate with one another, learn more about their products, and start cooperation.

Loyalty Programs & Their Business Values

Customer loyalty refers to the act of continuing to buy from a company or brand and actively responding to it. Customer loyalty to B2B is vital, not just for bricks and mortars, but also E-commerce. B2B businesses are more likely to be engaged than B2C companies. This means that businesses need to explore different ways to establish long-lasting relationships with their clients and gain access to them in new ways.

A study by Rosetta Consulting found that high-engaged customers spend 60% more on transactions and purchase 90% more frequently. This results in a three-fold increase in the value that consumers are able to deliver to a brand’s brand over the course of a year. It can be five times more expensive to acquire a new customer than to keep an existing one. Loyalty programs were created to improve customer retention and enhance their purchasing experience.

Customers will decide whether to stay or go based on the quality of their products and services. This is something that no loyalty program can compensate for. Loyalty programs can be used as an additional element to increase brand awareness, customer acquisition, and cross-sell/upsell opportunities.

Fundamental Differences between B2B Loyalty Programs and B2C Loyalty Programmes

B2B loyalty programs require greater personalization

The size of their customer base is a significant difference between B2B companies and B2C businesses

B2B customer loyalty programs for smaller customers should be more personal and tailored to the needs of their clients. Personalization refers to the ability to tailor your advertising, offers, or communication efforts to each customer. This requires smarter planning and better understanding in order to provide customers with faster and more satisfying experiences.

B2C loyalty programs can be very effective in retaining, rewarding, and engaging customers. They also help to grow a customer base. B2C loyalty programmes are designed for all customers and not just one.

Additional communication is required for B2B loyalty programs 

Companies today are busy and diverse. They prefer to communicate with their customers in a way that suits their lifestyles. B2B loyalty program designers need to create a seamless communication channel that allows them to communicate quickly with their customers via different channels. This is also a method of personalization.

B2B companies need VIP rewards

Incentives programs are a great way to build strong relationships with VIP customers. These programs will show your appreciation for their business and allow them to keep their VIP status, which allows you to provide continued access to your business.

While there are some obvious differences between B2C business models and B2B, they are willing to go the extra mile for their customers to build stronger relationships and retain their loyalty. This blog outlines the differences between B2B & B2C.

5 B2B loyalty programs that work

Offering transaction-based discounts

This loyalty program is similar to the B2C model, but it works well in a B2B setting. Customers are given an exclusive discount, either permanent or single, upon completing their order. This discount can be applied to any future or current purchase. Discounts not only benefit your customers but also your business. Discounts can be a key factor in boosting your business’ success, whether it is increased sales or a better reputation.

Here are the key benefits of using these discounts for your business:

• To attract new customers, discount offers are a way to get more customers. To make them want to shop from your company, show them the attractive discounts your business offers.

• To increase sales, offer a lower price or a reduced cost for multiple orders to increase your chances of customers purchasing more.

• You can lower your business costs by discounting items. This allows you to reduce operational costs, as well as get better economic resources, production equipment and inventory management.

• Reputation building: Trade discounts are a great way to boost customer perceptions of your company. This will allow potential business partners to maintain strong relationships with you company in order to continue doing business.

A textile clothing distributor that sells to apparel shops may offer a 10% discount on every order placed within a certain time frame.

Using tier incentives

Tiered systems are a way to build customer loyalty and encourage customers to buy more. To encourage customers to sign up, you can offer primary rewards and then increase the value and appeal of your programs to repeat clients as they purchase more.

You can create customized incentive programs based on your sales goals with tiered incentive programs. Tiered programs reward top vendors more than low vendors. This increases motivation and matches their contributions more closely.

Furniture manufacturers offer rewards to their distributors in the form earned points that are based on sales performance. They will receive more incentives, better pricing and other benefits the more points they earn. Buyers can move up from one level to another by earning more points. They will have access to valuable and amazing land at the next tier.

Referral programs

John Jantsch, who writes on duct tape marketing about the ways small businesses can generate new business every day, says that “business owners” refers to referral marketing. Referral programs are reliable and work. Referral programs work because they are reliable.

Referral programs often offer more rewards for inviting more friends. Participating in these programs is a win-win situation for everyone. Referral programs can bring in large amounts of money. They also bring in quality customers.

A team of researchers from Harvard Business Review examined 10,000 accounts at a large German bank over a three-year period. A simple referral program was offered by the bank. They would pay EUR25 to anyone who refers to a friend. This study showed that referral program customers were more loyal and valued than other customers. On average, 18% of customers who have been referred to the bank are more likely to remain with them.

They also generate 16% more profits, which amounts to EUR40 per bank. This means that the bank receives a return of 60% on their initial EUR25. Referral programs can be a powerful tool to grow your business and bring in new customers.

Service provider that offers a variety of business tools and applications. This allows for additional referrals, as well as offering a more comprehensive package to newly-referred customers.

Arranging member events

B2B events are an offline channel that promotes real-life experiences to foster in-person interactions. This helps achieve business goals such as customer retention and event revenue. It also increases brand awareness. Face-to-face communication is a great way for enterprises to establish long-lasting and sustainable relationships with suppliers and partners.

A well-planned member event can be a huge benefit to your company and provide unexpected benefits.

• Enhance your business relationship: Attendees at such events might feel that they are being treated with appreciation and special treatment. This can lead to a stronger bond between you and your business.

• Promoting products and services is an excellent opportunity to train, educate, and advertise your products and services to customers. This will increase the likelihood of generating leads, and ultimately sales.

• Create comparative advantages. Organizing member events can make your company stand out from the rest, especially if your customers are able to remember your brand over time.

A conference is launched by a HR supplier company to educate, delight, and coach its customers. Members have access to keynotes and interactive presentations as well as professional coaching and networking opportunities.

Encourage co-marketing and support activities

Effective customer acquisition strategies include co-marketing and support campaigns. Many companies discover that two heads are better than one. They can combine the expertise, value and resources of both companies to create something greater than the sum of their parts.

Here are some co-marketing benefits:

• Using resources such as budget and talents to pool your resources can make you more economical.

• Customers who are similar to you and could be potential ones.

• Customers are delighted with exceptional services, free stuff, or co-branded products.

• Each other’s continuous support and training.

• Fostering a long-lasting, positive relationship.

A wine company partners up with major food and drink distributors to offer wine on tap at the top restaurants and hotels around the world.

Before you go

It doesn’t matter what business model you have, building and rewarding relationships with customers is a huge economic benefit. Retaining existing clients has a higher ROI (Return On Investment) than acquiring new clients.

It is well-known that it is more difficult to engage with multiple users than one user. Building customer loyalty programs in B2B is more difficult than a single user. You need to be more personal and have a deeper understanding of your customers in order to understand their needs and expectations.

This will help you to understand your customers and the motivations that you want to create. It also helps you to see what you can expect from them. These key points will help you to ensure that your B2B loyalty is on the right path.