As per Gallup’s B2B study, only 29 percent of B2B buyers are considered to be fully engaged. That obviously means the remaining 71 percent are more likely to switch to competitors. But that also means that B2B businesses have a huge opportunity to engage and retain those customers.
The best and most feasible way to do that is to have effective B2B loyalty programs in place. As the name suggests, B2B loyalty programs are an assorted range of reward programs that help B2B brands retain buyers and reinforce their loyalty.
At LoyaltyXpert, we have created a wide array of B2B loyalty programs for many B2B companies of various sizes across the globe. In this blog post, we discuss some important things you should know about B2B loyalty programs.
Important stats on B2B loyalty programs
A survey conducted by Incentive Solutions revealed that more than three fourth of B2B brands that participated in the survey have a B2B loyalty program in place. But nearly half of them consider them ineffective.
As per Bain’s study, more than two third of B2B executives say they have witnessed a decrease in the loyalty of their buyers and clients.
Almost two-thirds of B2B companies have plans to upgrade their existing loyalty programs or implement completely new loyalty programs over the next 12 months.
Strategies for successful B2B loyalty programs
Running and managing B2B loyalty programs can be extremely easy when you have the right strategies and tools in place. Here are four successful strategies to run effective B2B loyalty programs.
1. Streamline the onboarding process
Onboarding business partners and B2B buyers is an extremely important part of a B2B loyalty program. If it’s a complicated and time-taking process, then many will hesitate to join. But if the onboarding process is automated and streamlined, then it would work like a charm.
2. Offer unique and valuable rewards
Among all B2B loyalty programs out there, you must try to make your program stand out from the crowd. And the best way to do that is to offer unique rewards to your business partners that offer value to them. Also, make sure that you customize rewards for different customer segments.
3 . Partner with a reputable and reliable loyalty solution provider
As per data published on Comarch, one in every four B2B brands said that one of the most important factors in selecting a loyalty vendor is the proven ROI. Selecting the right loyalty solution provider can mean the difference between the success and failure of your B2B loyalty program. In the market, it won’t be difficult to find a loyalty platform provider. But with so many options out there, it would be a challenge to find the right provider.
4. Monitor and measure the efficacy of your B2B loyalty programs
After running B2B loyalty programs, you must monitor and measure the efficacy of your loyalty programs. See to it that they meet your expectations and provide desired results. A lot of sophisticated loyalty program software comes equipped with analytics and reporting tools, which can help you track key performance indicators (KPIs) and generate reports in real-time. That’s why you must invest in the right software.
Popular B2B loyalty programs
When it comes to B2B loyalty programs, some incentive programs are much more effective than others. Here are some best B2B loyalty programs you should consider using.
1. Tiered memberships
Tiers provide a sense of exclusivity to customers. By offering tiered memberships, you can provide exclusive and personalized experiences to customers. It would also enable you to know the tastes and preferences of your buyers and business partners as they get to select the rewards they would like to receive. As per recent data, 16 percent of B2B brands that participated in a study said that they plan to expand their B2B loyalty program to add premium and subscription-based tiers.
2. Transaction-based discounts
Transaction-based discounts or rebates are offered based on the amount of money spent or the number of purchases made on specific transactions. These are among the most commonly used rewards in the B2B space. Recent stats have found that a majority of B2B brands have some form of transaction-based rewards and discounts.
3. Sales performance incentive funds (SPIFs)
These are performance-driven incentives that B2B companies use to motivate the sales team and business partners. Under this, you can reward top performers for sales volume, generation of quality leads, or any other achievement within a specific timeframe.
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4. Cooperative marketing funds
Cooperative marketing funds provide business partners with a percentage of a company’s total marketing budget. Many B2B businesses provide these types of funds to buy promotional materials, create joint marketing and advertising campaigns, as well as cover promotional costs. Partners and members can also use cooperative marketing funds to launch marketing campaigns, create advertisements, as well as enhance brand awareness.
5. Experiential rewards
For many business partners, experiences matter more than rewards. As the name suggests, experiential rewards are rewards and incentives that offer unique experiences. Many B2B businesses provide attractive experiential rewards such as taking loyalty program members on foreign trips, providing special access to concerts and sporting events, organizing annual functions and award ceremonies, and more.
6. VAR incentives
Value-added reseller incentives are rewards that are given to business partners who become value-added resellers (VARs) of a particular product or service. These rewards aim to encourage dealers and distributors to add value to existing products or services and sell them. Some of the most common VAR incentives are discounts on products or services, exclusive access to new features, extended warranties, as well as exclusive marketing deals.
As a B2B marketer or an owner of a B2B brand, you should leverage high-quality B2B loyalty programs to succeed in business. Hope this blog gave you some key insights on B2B loyalty programs and help you run and manage effective channel and influencer loyalty programs.
At LoyaltyXpert, we have crafted a wide range of B2B loyalty programs for all sizes of B2B brands across industries. If you are considering implementing high-quality B2B loyalty programs, contact our team of loyalty experts to book a free demo.