In the question of B2B channel loyalty programs, the first thing you should know is what B2B means. It is an abbreviation of “business-to-business”, which is when two businesses make commercial transactions between each other.
Certainly, the term of the transaction is simple; one company gives the raw materials and the other produces the output. Usually, the relationship appears between a retailer and a wholesaler, or a wholesaler and a manufacturer.
Loyalty Programs and Their Value to the Business
Customer loyalty defines when a consumer keeps on buying from one business, company, or brand. So, in a similar sense, B2B customer loyalty is very important, especially in the concern of e-commerce. Here, the main way businesses can survive is if they build enough potential business relationships that last for the long-term. So, they need to find different ways to engage with and access more clients.
In the business world, loyalty programs are very beneficial in a lot of ways. One, highly-engaged customers buy 90% more frequently and spend around 60% more for each purchase. Plus, attracting new customers costs more than engaging with a loyal customer. So, loyalty programs focus on retaining customers mainly. With its help, companies hold more clients and their brand awareness gets higher. And the opportunities for upselling or cross-selling is higher, too.
Strategies in Making B2B Channel Program Successful
There are a lot of strategies that make such B2B channel programs more successful. In Singapore, many companies have implemented them to improve business and sales well. Some of them are mentioned below.
- Providing transaction-based discounts
Transaction-based discounts are a B2C thing, isn’t it? However, they still work for the B2B businesses too. Here, when an order completes, the brands offer permanent discounts or exclusive singles to them. They can use this later for the future or even current purchases. Indeed, this is helpful for both the customer and the business, as it improves sales margin and brand reputation.
Discounts bring in customers who repeat purchases to gain these discounts. Plus, businesses can lower their operational costs too, ensuring better inventory management, production equipment, etc.
- Using tier incentives
Many of these programs in Singapore follow the tier incentive system. Here, the ones who sign-up as members and are loyal repeat customers get the premium rewards. Indeed, the top vendors get better rewards, as they contribute the most. So, when they get these quick-access content, they are more likely to stay with the brand.
The strategies involved here are many, and the companies need to focus on tailoring the offerings for particular sales ends. And the ones in Singapore do this, which is why they are successful with their loyalty reward programs.
- Running referral programs
One of the ways that many of the business owners generate higher business is by using practices like referral marketing. These are dependable programs and mainly work through word-of-mouth publicity. To elaborate, if your friend refers you to a brand, and you trust their judgement, you would trust the brand too.
In terms of B2B loyalty programs, the company gives B2B reward to those who can bring their friends. That is the basic outline of this type of program, and many companies in Singapore adopt it well. They get good profit through it and reliable customers too.
- Arranging member events
Companies can arrange member events, and that keeps many B2B customers loyal. Some offer free tickets to concerts or baseball games as a reward to high-value customers. But, there are other ways to top that. Like, some companies organise expos for their customers to gain networking opportunities amongst each other.
Others give VIP access for user events to their loyal customers. Also, there are virtual events available too, where companies provide access to members for events that include presentations and keynote speeches.
And some get to choose between on-demand or live access to such virtual content. All of these event types have one effect; realigning a B2B customer’s loyalty to the company. In Singapore, this method has surely seen success highly.
- Stimulating co-marketing and support activities
Without a doubt, co-marketing is a wonderful manner of improving B2B business partnerships. And even the support activities have a similar effect, which is why many companies practise this strategy. As a result, both the channel partners gain higher resources, expertise, and value together than alone.
For example, they do not have to deal with a huge budget since both parties are contributing. They can also share similar customers and give them more free stuff, special services, and co-branded items. Moreover, they help each other by giving training courses to one another. As a result, it is easier to keep a good long-term relationship.
- Narrow It Down in the Smart Way
Essentially, the loyal customer base of B2B businesses is smaller in size. Yet, it is important to put in a more straightforward and focused effort to keep them happy. Plus, one needs to define its target areas and objectives more clearly first.
After all, every marketing tactic the company adopts or any statement they make shows its brand objective. So, companies need to create brand strategies that would show their authentic voice to the customers. So, those that do this well get the most success.
- Find Your Tone and Stick to It
Companies need to decide on a tone and language and that helps them shape their channel perfectly later on. Many companies in Singapore who adopted the B2B loyalty incentive programs did concentrate on this first. Then, they tailored parts like the customer base and brand image accordingly. And the better it is, the more successful their program is later.
- Reward the Value Creators Better
It is obvious that in the B2B channel, a lot of value creators work together on the different portions. For example, some focus on brand creation while others focus on providing supply value. The managing companies need to engage them well and reward each creator nicely. And those who do progress well.
With the right strategy, companies can gain success with their B2B channel loyalty programs. The companies in Singapore who did this right earned well.