Although loyalty programs are more popular among B2C brands, these can also work amazingly well for B2B businesses. As the competition is really high in the market, almost every business is running a loyalty program to attract potential customers and retain them. Running a loyalty program for a B2B brand can be quite challenging, but with the right strategies, you can make your loyalty program successful and bring immense success to your business. Before planning a loyalty program for your B2B brand, you need to keep a lot of things in mind. The most important thing to understand here is that B2B loyalty programs are different from the ones that work for B2C businesses.
You need to analyze your business requirements and your customers’ needs before implementing a loyalty program. Let us help you understand what B2B loyalty programs are, how are they different, and what are the best loyalty program ideas for B2B businesses:
How Are B2B Loyalty Programs Different From B2C Loyalty Programs?
One major difference between B2B and B2C businesses arises in the size of their customer base. As B2B businesses generally have a smaller customer base, they can customize their loyalty programs to provide each customer with personalized experiences and fit the requirements of each customer. Moreover, B2B loyalty programs need better communication as you need to communicate with each customer separately for encouraging them to participate in your program. Another significant difference between B2B and B2C loyalty programs is that rewards need to be more premium in the case of B2B programs.
5 Effective B2B Loyalty Program Ideas
Here are some top loyalty program ideas to boost B2B customer engagement and improve loyalty:
1. Offer Transaction Based Discounts
Discounts work amazingly well in boosting customer loyalty as well as in improving brand reputation. After your customer makes a purchase, provide them with a discount coupon that they can redeem against the current or future purchase. Discount offers are not just beneficial for your customers, but also for your business. Customers are likely to purchase more at discounted prices and as a result, your overall sales increase. Discount-based loyalty programs can be advantageous in boosting B2B brand loyalty in many ways.
Customers always prefer to buy items at sale and hence discount offers can attract new customers to your business. When they get items at lower prices multiple times, they are more likely to make future purchases from your business and stay connected with you for a longer period. Discount-based offers can be of different types. You can either offer a fixed percentage of discount to all your customers or offer higher discounts to customers who spend more.
For example, you can offer a 10% discount to customers who buy 100 units of a product and a 20% discount to those who buy more than 300 units. Another example is to offer a 10% discount to all customers irrespective of the units they purchase. To boost sales, the first offer seems to work more effectively.
2. Run a Rewards-Based Loyalty Program
A rewards based loyalty program works for almost every type of business, including B2B and B2C businesses. However, there can be a difference in the implementation of rewards programs for B2B companies. With this type of loyalty program, you can allow your customers to earn some reward points for every purchase they make and redeem these rewards against exciting vouchers or discount coupons. Make sure that you offer some exciting redemption options that can encourage your customers to earn more and more reward points.
You can fix the number of loyalty reward points against a certain spend amount and allow your customers to earn rewards accordingly. Also, the monetary value of these reward points can be fixed by you as per your preference. You can even keep the monetary value higher for some redemption options and lower for others. For example, suppose you offer 500 Reward Points for every spend of Rs. 10,000, where the value of each reward point is equivalent to Re. 1 for redemption against your products and it is Re. 0.5 for redemption against other options, such as vouchers or discount coupons of other brands.
With these loyalty programs, customers are encouraged to spend more in order to earn more rewards. And when you offer a higher monetary value of reward points for redemption against your products, customers are more likely to make repeat purchases in order to use their reward points. Reward and loyalty solution companies like RewardPort can help you run such loyalty programs and boost B2B brand loyalty.
3. Use Tiered Incentives
Offering tiered incentives is one of the fairest ways to treat your most loyal customers the best. Tier-based loyalty programs are also among the most popular types of loyalty programs for B2B companies. You can divide your loyalty program into different tiers, where a higher tier comes with better rewards and benefits. The more customer purchases, the higher tier they get promoted to. This is a great way to encourage your customers to purchase more frequently in order to get into the upper tier and receive more premium benefits.
For example, let’s suppose you run a loyalty program having three tiers. Your customers enter the first tier after they make their first purchase and receive a 5% discount coupon after every purchase in this tier. This discount coupon can be redeemed against future purchases. After spending a certain amount on your business or after making a specific number of purchases, they enter the second tier and receive a 10% discount coupon after every purchase. Similarly, they enter the third tier after fulfilling the pre-specified conditions and receive a 15% discount coupon after every purchase in this tier.
4. Stimulate Co-Marketing and Support Activities
Co-marketing activities do not just help you boost customer loyalty but also allow you to strengthen relationships with your customers. Provide your B2B customers with the marketing resources and allow them to expand their business as it is ultimately going to benefit your business as well. You can allow their marketing teams to work with your marketing experts and make better sales strategies together. You can mention their business in your advertisements and marketing campaigns to help them get a better reach.
For example, as a manufacturer of home decor products, most of your customers will be retail home decor shop owners. When you advertise your products, you can mention the addresses of your customers’ shops from where your end consumers can buy these products. This will not only help your customers but also improve your marketing campaigns.
5. Offer Referral Incentives
Referral incentives or discounts are one of the most effective loyalty programs with dual benefits. One, you can boost loyalty in your existing customers. Two, you can acquire new customers with minimum effort. In a referral loyalty program, you incentivize your customers to recommend your brand to their friends. The referral incentives can be in the form of rewards, discount coupons, or any other benefit that is exciting enough to encourage your customers to participate in this program.
To make the program more interesting, you can even add different incentives at different stages of referral. For example, suppose you run a discount-based referral program. In this, your customers get a 5% discount coupon when they refer a friend and they get another 10% discount coupon when the friend makes their first purchase. Along with acquiring new customers, this is a great way to boost B2B customer engagement.
Run the Best B2B Loyalty Program With RewardPort
RewardPort, being one of the top rewards and loyalty solution providers in India, can help you build a customized loyalty program for your business. The team of marketing experts at RewardPort makes sure that every detail of your business is taken into consideration and that the loyalty program is planned accordingly. A B2B rewards program is successful when it aligns with your business requirements and fulfills your customers’ interests. This is what RewardPort can do for you.
Frequently Asked Questions: -
B2B loyalty programs are the strategies that businesses use to retain their customers (businesses they sell to). In short, these are the loyalty programs for B2B brands that aim to boost loyalty in their dealer businesses instead of focusing on the end consumers.
There are many benefits of boosting loyalty in B2B businesses. Loyal customers are likely to purchase more often and they are also easier to manage.
Promoting B2B loyalty programs requires more communication efforts. You should communicate with each of your customers and encourage them to participate in your loyalty program by making them aware of its benefits.