Absolutely, and here’s how…
Long gone are the days when business relationships lasted for years if not decades. The digital landscape has made it that much easier for B2B customers to make the move to a different vendor or supply house.
On the flip side, it is just as easy for your competitors to find your customers and target them directly via social media, email blasts, banner ads, etc.
We all understand how valuable a loyal customer base is and what that loyalty can mean to your bottom line. According to the Temkin Group, loyal customers are 5 times as likely to repurchase, 5 times as likely to forgive, 7 times as likely to try a new offering and 4 times as likely to refer potential new business your way. This dynamic is even more apparent in the B2B sphere.
We can all agree that there is a significantly smaller pool of potential customers to draw from in the B2B landscape as opposed to B2C. The cost per conversion into an actual customer is far higher as well.
Every single B2B customer offers tremendous value to your bottom line as both a steady source of recurring revenue and a potential brand advocate.
Loyalty is Paramount in the B2B Marketplace
A well crafted B2B loyalty rewards program is now crucial in helping to improve your customer retention rate. It’s become apparent that marketing and retention tactics that work well on the B2C level can also translate to the B2B side of things. In the end, you’re still dealing with people and personalities whether you’re a B2B or B2C company – there is a level of crossover.
A strong loyalty program can help prevent customer poaching while also improving your ability to attract new business as well. A loyalty program that hits it out of the park and helps to solve your audience’s pain points will significantly decrease churn and drive sales.
Granted, your level of customer service and the quality of your products or offerings is the foundation of a happy customer base. A loyalty program can never replace that aspect of your business relationships. However, a B2B loyalty program can help foster good will and strengthen your customer experience.
Loyalty Increases Sales and Reduces Churn
The bottom line is always the bottom line. We all want endlessly up trending sales figures and zero customer turnover. Realistic? Of course not. But a well-constructed loyalty program that has been customized for your business’s unique needs can help.
A loyalty program helps to reinforce that emotional connection with your clients – remember, we’re still dealing with people. It also provides a material benefit for continuing the business relationship.
If clients have that emotional connection with your brand and see those material benefits in remaining loyal, chances are they will. People are more likely to advocate on behalf of a friend than they would a stranger.
Another benefit of a properly structured rewards program is the data collected. You’re able to gain insight into your customers preferences and their own business challenges. You’re able to uncover leverage points for possible upsells and increased sales. You’re also able to uncover potential trouble spots and dissatisfied customers and head them off at the pass. All of this can lead to improved sales and lower customer churn rates.
Loyalty Is Profit
Companies are now recognizing that customer loyalty is the source of all profits whether it’s via direct sales or customer advocacy on your behalf.
It makes sense to leverage that loyalty as best you can – a loyalty program can help you do that and more:
- Put the focus on providing real value to your customers
- Identify potential opportunities for value adds
- Strengthen current client relationships
- Prevent or reduce the risk of customer defections
- Help to reel lost customers back into the fold
- Differentiate your brand and accelerate new customer acquisition
If you’re looking to maximize the potential of your client base, a B2B loyalty program with a Pay-for-Performance model, makes all the sense in the world.
The Incentive Group has 30+ years as a leading agency focused on customer loyalty and sales incentive programs. We specialize in B2B customer loyalty programs and with our best-in-class inGauge platform, we’ve continued to produce results that delight clients and participants alike. Reach out to us to learn more about our turnkey program design, administration and fulfillment services.