B2B Customer Loyalty Programs Best Practices

B2B Customer Loyalty Programs Best Practices

Loyalty initiatives have been commonplace in the B2C space but, due to increased competition, B2B businesses are waking up to the fact that investing in loyalty is vital. In today’s times when change is the only constant, retaining your loyal customers is critical for success. The payoff for customer retention is big: a 5% increase in retained customers yields as much as 95% more profit, according to Bain & Company. While Gallup reports that 71% of B2B customers are at risk of taking their business elsewhere, their studies also show that B2B companies with high customer engagement achieve 50% higher revenue, 34% higher profitability and 55% higher share of wallet. With those statistics in mind, are you doing enough to inspire and harness loyalty among your customers? 

“Loyalty is not about short-term promotional tactics that are launched today and forgotten tomorrow. It requires a set of ongoing customer interactions to attract new members and to consistently exceed the needs and expectations of the customers,” said Sallie Burnett, president of Customer Insight Group, Inc.

In order to foster lasting relationships with customers, B2B businesses are going the extra mile to retain their most profitable customers and win over their loyalty. To achieve continued growth of your business, B2B loyalty programs are quite influential. Loyalty programs not only increase customer retention, they also provide a competitive advantage that drives increased profitability. If your loyalty program offers personalized brand experiences and makes your clients feel valued, this will encourage more spending and greater brand loyalty. Loyalty program rewards that go beyond offering discounts give members the opportunity to feel part of an exclusive community in exchange for their brand loyalty. It’s a known fact that acquiring new customers is more expensive than retaining existing ones. 

Here are some factors to consider before you introduce B2B loyalty programs:

  • Assess your client’s purchase potential and behavior. Also ensure that your loyalty program fits their budget like a glove and is tailor made to their needs. 
  • Because your clients are business owners, your loyalty program should be lucrative enough for them to keep coming back. 
  • Your loyalty program shouldn’t be a one-size-fit-all model. Every business is different, hence their needs are different, too. Cater to this by integrating a CRM platform to maintain real-time updates of customer information and communications. This will enable you to build a loyalty program suited to the needs of each of your clients.

Here are some key elements of a successful B2B loyalty program

  • Post relevant, informative and useful content about your industry to drive engagement. Reward your clients for interacting with your business, as well as engaging with your blogs or social media posts. 
  • According to research, 84% of B2B buyers start the purchasing process with a referral, and peer recommendations influence more than 90% of all B2B buying decisions. By integrating a referral program into your loyalty initiative, you’ll be able to reward your most profitable clients for successful recommendations. 
  • Segment your customers based on contract size and value to your company using a tiered loyalty program. Tiers create exclusivity and encourage them to compete. When a member advances to a higher tier, they earn elite status and privileges, and makes them feel valued. 
  • Offer exclusive access to new products, new developments, events or services. Offer free products, or invitations to client dinners and events, conference passes and so on to your most influential customers.

Annex Cloud’s unified B2B Loyalty Experience Platform is designed to boost your customer retention and profits. To underscore this point, e.l.f. Cosmetics, an American cosmetics brand, saw their Average Order Value increase by almost 50% and Repeat Purchase Frequency increase by 30%. Call us for a free demo today!

 
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