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Loyalty initiatives have been traditionally considered a better fit in the <\/span><\/span><\/span>B2C<\/span><\/span><\/a><\/span> rather than B2B space. With long, complex sales cycles and buyers that aren\u2019t as responsive to discounts and coupons, many <\/span><\/span><\/span>B2B marketers<\/span><\/span><\/a><\/span> have rejected the concept of loyalty programs. However, due to increased competition and price wars, B2B companies are realizing the value in investing in loyalty. Let\u2019s take a look at the reasons more and more B2B companies are turning to loyalty to help them attract and retain customers and some of the tactics they are using.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Customer churn can cause serious concern for B2B businesses. Despite having a lower number of customers compared to B2C businesses, B2B transaction value is much higher. This is because B2B customers are likely to order in bulk and are tied into longer term contracts and subscriptions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Retaining customers and keeping them satisfied is a huge priority.\u00a0<\/span><\/span><\/span>Forrester Research<\/span><\/span><\/span><\/a><\/span>\u00a0says that a 2% increase in customer retention has the same effect on profits as a 10% cost cut, and the average company loses 10% of customers every year. Customers need to be incentivized to repeat purchase from your company. Forrester Research recommends B2B marketers develop\u00a0<\/span><\/span><\/span>an engagement plan<\/span><\/span><\/span><\/a><\/span>\u00a0featuring a mix of rewards falling into three categories:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Material rewards that incent and reinforce desired behaviors<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/li>\n Experiential benefits that engage channel partners, customers, and end users alike<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/li>\n Recognition and customer acknowledgement that appeals to advocates<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n B2B companies have fewer customers than retailers and brands, and the cost to acquire new customers is considerably higher than in the B2C markets. This is because customer segments are narrow, and competition is extremely fierce.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In a\u00a0<\/span><\/span><\/span>study Google conducted with CEB<\/span><\/span><\/span><\/a><\/span>, 86% of B2B buyers perceived no significant difference between competing company products. When products are non-differentiated it can be difficult to communicate competitive advantage, and as a result, many B2B businesses engage in price wars in an attempt to win market share. According to\u00a0<\/span><\/span><\/span>B2B International<\/span><\/span><\/span><\/a><\/span>, 80% of business-to-business buyers do not prioritize price. This means that price-focused businesses do not appeal to the majority of B2B buyers. In order to avoid competing on price, B2B companies need to be very targeted in their marketing efforts and build in ways to add more customer value. A loyalty program that adds true value to the target customer can set your business apart.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Referrals are extremely important in B2B customer acquisition.\u00a084% of B2B buyers\u00a0start the purchasing process with a referral, and\u00a0peer recommendations\u00a0influence more than 90% of all B2B buying decisions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n By implementing a robust loyalty program, you can motivate and encourage customers to become more active and engaged with your brand. Make referrals easy for already satisfied customers by building a referral program into your loyalty initiative that rewards existing customers for successful new business opportunities.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Using data effectively allows B2B marketers to understand their accounts better and target them with more relevant and personalized communications and experiences.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nIncentivize customers and increase retention<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n
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Differentiate and attract<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n
Reward for referrals<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n
Capture data and personalize experiences<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n