If we take a look at all B2B loyalty programs in the world, then we will find that some perform exceptionally well, while others are below average. But what if a large number of them belong to the latter category?
A survey conducted by Incentive Solutions revealed that more than three fourth (76.5 percent) of B2B brands said that they have a B2B loyalty program in place. However, nearly half (48 percent, to be precise) of them consider their loyalty programs to be ineffective.
There are two ways to increase the success rate of B2B loyalty programs. The first way is to do the right things. The second way is to stop doing the wrong things.
This blog post focuses on the latter and discusses the seven must-avoid mistakes for successful loyalty programs.
Avoid These 7 Mistakes When Building and Managing A Successful B2B Loyalty Program:
1. Complicating Enrollment Process
One of the biggest mistakes many B2B companies make is complicating the enrollment process of their B2B loyalty programs. Being the first step of interaction between clients and loyalty programs, the enrollment process can greatly affect a loyalty program’s success or failure.
Apart from making it hard for members to enroll and join, some B2B businesses also have many data fields, which can raise privacy concerns and drive away interested people from filling up all the details.
To avoid that, make the enrollment process of your B2B loyalty program as easy as possible and make it easy for interested people to join your program. Also, make sure that instead of keeping too many data fields, focus on a few relevant ones, such as “Name,” “Phone Number,” and “Email Address.”
2. Not focusing on transparency of loyalty programs and fraud prevention
Many B2B brands make the mistake of not taking transparency and fraud prevention seriously. That increases the chances of loyalty fraud and malpractices.
As per a Forter Fraud Index report, loyalty fraud increased by 89 percent y-o-y in 2021 alone.
Investing in sophisticated loyalty software and other fraud-proof technologies can help prevent loyalty fraud. Selecting a reputable and trustworthy loyalty solution provider such as LoyaltyXpert can be extremely beneficial.
We provide several fraud-proof features, such as dual wallet, location-based reports, as well as KYC updates to prevent fraud and duplicity.
3. Lack of personalization and irrelevant rewards
If a majority of B2B rewards are not relevant for members of loyalty programs, then, no matter how much money is spent on the rewards and technology, the B2B loyalty program will not be successful.
Because the tastes and preferences of all members will vary a lot. Some members may value experiential rewards more, some may value cash rewards more.
That’s why it’s extremely crucial to segment the members into different groups and find out what rewards hold value for them.
As a B2B marketer or a business owner, you must personalize your rewards and incentives. Using a cutting-edge loyalty platform can help you personalize rewards and provide relevant rewards to the right members.
4. Not promoting your loyalty programs
Let’s face it; not promoting B2B loyalty programs properly is worse than not having them in the first place. That’s because, if you invest in high-quality B2B loyalty programs and don’t promote them properly, then that would be a sheer waste of time, money, and effort.
You must invest an equal, if not more, amount of time, energy, and money to promote your B2B loyalty programs than designing and creating those.
If your target audience and prospects don’t know about your B2B loyalty programs, then you will never find the right members for your reward programs.
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5. Complicated redemption of loyalty rewards
Many B2B brands make the mistake of complicating the redemption process in their loyalty programs.
Sometimes, it may happen because their loyalty vendors make their B2B loyalty programs operator-friendly instead of making them member-friendly.
If your B2B loyalty rewards are hard to redeem, then they will lose their attractiveness and won’t be worth the hassle.
A B2B loyalty program should be designed with the convenience of members (buyers and clients) in mind and not the other way around.
6. Not evaluating the B2B loyalty program regularly
Many businesses make the mistake of not evaluating their B2B loyalty program at regular intervals. That’s extremely counterintuitive.
To know if the loyalty program is on the right track or not, it’s extremely crucial to evaluate the relevant key performance indicators (KPIs).
To know how your B2B loyalty programs are faring, you must check out the KPIs and generate real-time reports on a regular basis. That’s where analytics and reporting features in sophisticated loyalty software can help a lot.
7. Using only transactional rewards
Many B2B companies make the mistake of rewarding only transactional activities. By doing so, they overlook the potential for intrinsic motivation and forego many valuable touchpoints. It not only fails B2B loyalty programs but also harms a business’s overall performance.
Studies indicate that more than three fourth of B2B loyalty programs, particularly channel loyalty programs, which solely use transactional rewards fail within the first two years of launch. Make sure that you look beyond transactional rewards and include relational and intrinsic rewards.
All in all,
Running and managing B2B loyalty programs isn’t a difficult and expensive affair. But some mistakes can prove to be extremely hazardous and thwart all the time, money, and effort invested in the programs. This blog post touches upon seven mistakes that every B2B marketer and entrepreneur should avoid.
At LoyaltyXpert, we have created advanced and effective B2B loyalty programs for many national and international B2B businesses of various sizes. We also make sure that our loyalty software works as efficiently as possible so that there is no room for any mistakes. If you’re curious to know how to error-proof your B2B loyalty programs, contact our team of loyalty experts to book a free demo.