B2B LOYALTY PROGRAMS RESEARCH

How does being a B2B business affect the rewards you offer?

Strong differences in motivation arise when we consider if the buyer is the actual user of your product or
service, or a financial decision-maker, or both

When the client is a business entity, multiple people control its operations. When selecting rewards for
B2B loyalty program, it’s imperative to first identify the stakeholder(s) at that company who will be the
most influential in deciding whether to keep doing business with us.

Our focus is best steered by who we identify as the individual or group of people engaging with our
product on a daily basis.

A common misconception is that discounts and cost savings will motivate anyone, but not all rewards are
seen as equal when driving action from business entities.

Loyalty program should be made keeping in mind below things,

UNDERSTANDING WHO TO INCENTIVIZE

WHO ENGAGES WITH OUR PRODUCT ON A DAILY BASIS?

WHAT DO THEY CARE ABOUT?

WHAT DO THEY NOT CARE ABOUT?

The above exercise will help in understanding the core entity around which a loyalty program can be
made. The distinction to make is that the user and purchaser of product are often two extremely separate
people when we’re selling to a business, which calls for different driving factors when motivating specific
actions.

The overall goal in choosing rewards is to ensure the users of our product see added value in remaining a
customer.

In a corporation, while the user may not be cost-conscious, they are brand champions when it comes to
convincing upper management to renew the subscription.

This becomes important when realizing that reducing churn by as little as 5% can increase profitability
by 20% to 125% (source).

The overall goal of any loyalty program is to offer rewards that your end-users perceive as valuable.

TYPES OF SUCCESSFUL LOYALTY PROGRAM EXAMPLES

1) Use a simple points-based system

This is the most common loyalty program methodology. Frequent customers earn points, which translate
into some type of reward. Whether it's a discount, a freebie, or special customer treatment, customers
work toward a certain amount of points to redeem their reward.

2) Use a tier system to reward initial loyalty and encourage more purchases

Tiered incentives ignite customer engagement right from the start and prompt business clients to
purchase more. Can begin with basic membership rewards to encourage customers to sign up for the
loyalty program and offer more valuable rewards to repeat clients as they increase their purchasing
volumes.

Use Case Example : An equipment manufacturer provides rewards to its distributors based on their sales
performance in the form of earned points. By gaining more points, buyers can level up from one tier to the
next. Leveling up to the next tier can offer more benefits, better pricing, or other incentives.

The biggest difference between the points system and the tiered system is that customers extract short-term
versus long-term value from the loyalty program. We may find tiered programs work better for high
commitment, higher price-point businesses

3) Arranging member events

As a rule, enterprise customers tend to build long-term and sustainable relationships with partners and
suppliers. In this regard, in-person events give businesses a great opportunity to recognize their clients,
strengthen mutual ties, and discover their product experience first-hand.

Use Case Example : An email marketing software provider arranges both free and paid conferences, trade
shows, meetups, and retreat events for its B2B users to increase loyalty and educate them on the industry-
related issues.

4) Providing transaction-based immediate discounts

This loyalty program echoes a B2C approach; however, it perfectly fits with the B2B environment. When
completing an order, customers are offered an exclusive discount that can be applied to the current or
future purchase. This method is used to encourage clients to join the loyalty program membership.

Use Case Example : A textile clothes distributor selling to apparel shops offers an instant discount applicable
to every order made within a certain timeframe.
5) Setting up personalized buying experience via B2B e-commerce website / mobile app

In the age of digital automation and B2B e-commerce, there is one simple method of managing monetary
rewards and discounts for clients – and that is a personalized online buying experience. Can use modern
e-commerce technology to set up customized product catalogs and price lists on web store, which further
empowers clients with 24/7 self-service capabilities.

6) Structure non-monetary programs around our customers' values

Truly understanding customer means understanding their values and sense of worth, and shared valued
have a huge impact on if a customer will be loyal to a brand. As per , CeB surveyed consumers on
customer loyalty and found that customers were loyal "not to companies, but to beliefs."

Businesses that can provide value to the customer in ways other than dollars and cents have a unique
opportunity to connect with their audience.

Reward Programs in Logistic Industry

https://forwardrewards.iagcargo.com/en/

https://www.prnewswire.com/news-releases/apple-express-introduces-the-first-rewards-program-
in-logistics-industry-300205932.html

Source:

https://www.saasquatch.com/blog/b2b-loyalty-programs-what-rewards-perform-best/

https://assets.kpmg/content/dam/kpmg/be/pdf/Markets/is-it-time-to-rethink-your-loyalty-
program.pdf

https://oroinc.com/orocrm/blog/successful-b2b-customer-loyalty-program

https://blog.hubspot.com/service/customer-loyalty