Distinguishing B2B Loyalty Programs from B2C

by Natasha Ambavle |

Distinguishing B2B Loyalty Programs from B2C

When it comes to loyalty programs, there is no ‘One size fits all’. We’ve come a long way since stamps and coupons to now bespoke loyalty programs. In the B2C sector, loyalty programs have been around for decades but in the B2B arena, they are fairly new entrants. However, the trend is rapidly catching up, … Read more

Understanding Customer Loyalty and Strategies to Reinforce It

During one of our conversations, a friend of mine insisted I switch my brand of toothpaste to hers. Her reasoning was simply that it was better and she had been using it for years. I questioned her about the product’s quality and whether she had any hard facts that prove it was better than the … Read more

Reward Card Programs – An Extensive Guide

Marketing is not limited to just print, broadcast, and outdoor advertising anymore. As the competition grows, it has become crucial for brands to prove themselves to consumers in the market by building a strong relationship with the clientele. Dedicated customers not only ensure great sales but often also have a high lifetime value. This should … Read more

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 … Read more

Understanding customer value and how you can create it

So, Larry goes out to the market to buy a washing machine. Seller A offers Larry “The best washing machine in town,” with good horsepower and a sleek new design. Seller B offers Larry a smartly designed, German-engineered washing machine, with 5 HP, 14 lbs. capacity, and one year warranty. Which machine do you think … Read more

Brand Loyalty – What and Why?

brand loyalty campaigns

Ever wondered why some brands have a set of devoted customers who stay loyal to their products, even across their various brand extensions? It’s because these customers are emotionally connected with the brand and aren’t swayed by competitors’ promotional offers or marketing tactics. Loyal customers can also develop into organic brand ambassadors that promote their … Read more

7 Tips for Your B2B Loyalty Program

b2b loyalty

We all love a good loyalty program. Who doesn’t want a perk for frequenting your favorite coffee shop or beauty bar? The problem is that a lot of businesses tend to think that their loyalty programs need to only exist in the B2C world but that simply isn’t true. It appears like B2C gets all … Read more

Case Study: How to Build a Successful B2B Loyalty Program

B2B Loyalty Case Study

B2B Loyalty Overview:

It is very true that there is no one-size-fits-all loyalty program. Especially not in the business-to-business industry. The B2B space is such a specific market with a narrower audience, so it must be treated as such. That means audience segmentation and personalized incentives are that much more important. This study will review how Annex Cloud helped two industry-leading companies build out their B2B loyalty programs and what impact it had on those brands.

Goals of B2B Loyalty:

Though the strategies may differ, there are several common goals of a B2B loyalty programs. These businesses both needed to increase customer spend and increase customer lifetime value. This can be challenging in B2B because the market is not only competitive but niche as well. They wanted to build brand advocacy and basically create a community of ambassadors. They also needed to reduce discounts on items. We live in an economy so deeply entrenched by discounting that retailers and B2B companies alike have the challenge of migrating away from it as to maximize product return.

Our Solution:

Every loyalty solution has its challenges but B2B requires another level of personalization. Both of these companies opted for Annex Cloud not only because we have a unified marketing platform with customer loyalty, user-generated content, and referral marketing capability, but also because we work with businesses to create a custom implementation strategy.

Annex Cloud also helps companies nurture their relationships with existing customers through personalized incentives, which in turn increases customer spend and average customer lifetime value. These incentives inspire customers to become brand advocates where they’re more likely to take actions like referring a friend or reviewing an item. It’s about following the customer journey from beginning to end and building a true community around their B2B brand.

B2B Rewards:

The key to rewarding in the business-to-business space is allowing your customers to sample your products risk-free. If you offer an impressive product catalog with a great loyalty offering, they are more likely to purchase. It’s a low risk scenario if built surrounding high-margin products. This B2B model implemented by Annex Cloud has proven to help support sales and drive revenue.

Consumer Electronics

Client A: Consumer Electronics

Objective:

Our client, a leading consumer electronics company, built a very successful model around selling office electronics like computers, monitors, copiers, and printers to small businesses around the world. They wanted to implement a B2B loyalty program that would sign up more users and build a community of brand advocates.

They had so many questions about best practices for strategy and segmentation. How do we best incentivize with the B2B model? How do we grow our customer base while creating meaningful relationships with our existing customer base? They chose Annex Cloud for its experience in creating very personalized incentives specific to the B2B industry.

Results:

Soon after launch, we saw major wins for the program. By designing a solution specific to our client’s B2B sales goals, we positioned them as a leader in SMB loyalty. Since initiating this campaign, we have already signed up over 100,000 businesses for the program. We also saw a 7% increase in repeat purchase rate and a 9% increase in customer lifetime value. However, probably the largest takeaway from the program has been building a community of 10,000 brand advocates. By building a custom solution with Annex Cloud and by leveraging their user-generated content, our client is seeing a huge increase in partnering businesses and overall brand awareness.

b2b loyalty

Client B: Physician Loyalty

Objective:

Our other client is a large specialty healthcare company with an array of products like over-the-counter and prescription pharmaceuticals. Their primary objective was to build a loyalty program targeting physicians, which of course brought a lot of challenges. How do we keep a physician’s attention when there’s so much competition in healthcare? How do we reduce discounting and still keep them engaged? Luckily, Annex Cloud specializes in using long-term incentives to keep attention and to help reduce discounting.

Results:

By implementing a tiered program where discounts depend on the physicians’ spend, we have been able to see major benchmarks in performance. We have now signed up 70% of our client’s current customer base since the launch of the campaign. We also saw a 6% increase in customer spend and an 8% increase in customer lifetime value. But what we’re most impressed by is the 25% decrease in discounting. For a healthcare company of that scale, to reduce discounts by a quarter is a huge plus. By working with Annex Cloud to award returning customers and by personalizing incentives, our client was able to surpass its goals in customer acquisition and discounts.

To learn more about how Annex Cloud can help your business grow, contact us or schedule a demo today.

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