B2B loyalty program

What is the B2B loyalty program?

B2B loyalty programs are an effective tool for customers encouraging continuous cooperation with the company.

There are two types of interactions with the buyer:

● Formal — such cooperation with a company that has a hierarchy, regulations, internal processes involves contractual relationships and contracting.
● Informal — interaction with specific employees of the company, who may perceive the terms of the contract in their way, forget to pass information within the organization, etc.

According to surveys, the main reasons for B2B loyalty are:

● Quality of customer service;
● Brand Reputation;
● Loyalty;
● The customer value of the product or service offered by the company.

Benefits of B2B loyalty program

The main advantages of loyalty programs for corporate clients:

● Reducing advertising costs.
Relationships with the client are bottom on long-term contracts, so the company can save on advertising to attract new customers.

● Improving the business relationship with the client.

The customer, benefiting from a loyalty program, is more likely to renew a contract or make a faster decision to enter into a new contract. An effective loyalty program results in the customer recommending the company to business colleagues.

● Increased revenue and increased profits.

The company doesn’t profit from one-time deals but long-term contracts. With a smaller number of transactions, it makes more profit.

Differences between B2B and B2C loyalty

Loyalty programs for corporate clients differ from B2C programs in several indicators:

● Profitability

Sales to companies generate more profit than sales to consumers.

● The way the buyer makes the decision.

In the B2C sector, the customer acts mainly out of emotions. In the corporate sector, the decision-making process is based on rational motives. The purchase process is long-time and formalized. The decision-making process goes through some stages of approval. The company is interested in reducing risks and increasing business profits. Therefore, holiday discounts offers, time-limited offers don’t work in the corporate segment.

● Programs cannot be built on a free membership basis.

In the B2C sector, a company can offer a discount, a bonus card, or participation in another loyalty program for free or for making some action (subscription, registration, filling in contact information). In the corporate segment the relationship is built on a contractual basis, therefore the loyalty program is part of the paid deal with the customer.

● The need for additional communication.

The company is a hierarchical structure with a multi-level decision-making system. Therefore, the implementation of the loyalty program involves formal and informal communication with employees occupying different positions in the organization.

● Selective use of loyalty program tools.

Not all the tools used in the B2C sector are suitable for creating loyalty programs for corporate clients since they are based on the frequent purchases principle. For example, loyalty points saving program. In the corporate segment, expenditures are planned and are less frequent, but companies spend more money on one-time purchases.

● There is no need to collect data about the client.

In the B2C sector, companies offer customers to join loyalty programs in exchange for contact information, which is used for audience research. In the corporate segment, there is no need for data collection. The company knows about the customer before the contract is signed. A survey is often used to get valuable feedback from the customer instead of collecting data.

● Limitations on program participants.

While in the B2C segment there are no significant restrictions for participants. Not all clients can join the program in the corporate sector. For example, there are restrictions for state companies or institutions, which cannot receive additional rewards.

Types of B2B reward programs

Tiered Incentives
Multi-level programs allow a member to achieve a certain status based on the number of purchases. For example, an equipment manufacturer might reward distributors based on sales. Some programs provide both upgrades and downgrades to customer status.

Co-marketing and support activities
Joint marketing campaigns are one of the tools to strengthen loyalty and attract new customers. The parties share the costs and efforts for participation in business events, exhibitions, and advertising campaigns. As a bonus, the client gets training opportunities or additional hours of support. Mailchimp is an example of an effective co-marketing program.

Referral Programs
Referral programs are easy to implement and therefore popular. They act as word-of-mouth marketing in the B2B segment. Clients get bonuses, attracting new clients. Partners get a win-win situation that benefits everyone.

Transaction-Based Discounts
Programs that work in the B2C and B2B sectors. The partner gets a discount or other bonus:
● If he conducts one more transaction within a certain period after the order is completed;
● is if he buys a certain amount of the product.

B2B Loyalty software solutions

Managing loyalty programs in the B2B sector is more complex than in B2C because it involves different levels of participation and multiple rewards. For example, a company may offer discounts on future purchases or reward partners with prepaid discount cards, valuable gifts, or paid travels, depending on the level and goals of sales.

Special software is needed to manage the system. B2B companies can use two types of digital solutions:

● White Label platforms: the company gets a ready-made platform to offer to customers under its brand;
● Partner platforms: a third-party vendor program into which the company integrates its customer base for loyalty management.

Get a personal demo

This is only a small part of the functions available in CRM

We will conduct a detailed presentation of our solution, after which we will send the Demo accesses for study.