Loyalty programs in B2C brands are adding a lot of value for brands, manufacturers, and retailers. B2B, however, is just now starting to take off. B2B manufacturers and distributors view loyalty differently than B2C. However, it is clear that loyal customers drive perpetual growth and boost brand affinity. According to Pareto’s principle, 80% of your sales come from 20% of your customers. Research reports state that a 5% hike in customer loyalty can increase gross margins between 25%-100%. 64% of brands, manufacturers, distributors and retailers confessed that their loyalty program is the best way to authentically connect and engage with customers. Hence loyalty programs are imperative in the B2B market to increase retention and reduce customer churn. A loyalty program should be easy to access and engage, relevant to your industry trends, and appealing to your target audience. Research from Forrester states that B2B companies can benefit a lot from customer loyalty programs and have a lot to learn from B2C companies.
Here are some benefits of B2B loyalty programs:
In most cases, B2B companies have a much smaller customer base as compared to B2C and that unfolds opportunities to foster personal relationships with customers. Going the extra mile in serving your loyal customers greatly impacts their purchasing behavior.
So, here are some best practices for a lucrative B2B loyalty program:
Business loyalty program strategies inspired by B2C