If you are running a B2B company, it is important to look into acquiring a loyalty program. Click here to find out how they can help you thrive and grow.
Customer retention is crucial for a B2B company’s prosperity, yet, according to recent studies, only 48% of B2B companies actually focus on customer retention, whilst 82% are focused on customer acquisition.
Not only is customer retention important to build relationships, reputation and (most importantly) increasing bottom line profit; it is also far more efficient, both practically and financially. On average, it can cost a company 500% more to acquire a new customer rather than have an existing one return. Your time and your finances can therefore be saved through a solid customer retention plan.
This is why a number of B2B companies invest in loyalty programs which help to motivate and retain customers, mitigating the risk of them fleeing the nest before you have made a strong return on their acquisition. But what are loyalty programs, and why are they so effective for new B2B companies? Here is a simple description of customer loyalty programs and why you should look into acquiring one:
What Is A Customer Loyalty Program?
A B2B customer loyalty program is essentially an incentive strategy which rewards businesses for their repeated custom. You may have seen it explained in simple terms, such as this:
- One purchase = 20% off next purchase
- Five purchases = 50% off next purchase
- Ten purchases = Next purchase free.
This nicely explains the motive behind loyalty strategies, but that doesn’t necessarily make it the best option for you. The best B2B loyalty programs are based on points, personalised reward choices and customer referrals. Essentially, they are a powerful and constructive way to motivate customers to stick around and avoid getting carried away by a competitor. It tells the customer that if they continue to interact with the brand, then they will ultimately be rewarded.
Why Is This So Important?
When thinking about customer loyalty programs, a common mistake is to look at them through a monetary lens. This is not about rewarding the customer with cash or benefits. A large part of why loyalty programs are successful is that they are one of the ways you can make a customer feel valued and build a relationship. B2B is different to B2C in that you are looking to know specific customers. Loyalty programs show the customer that they are known, recognised and appreciated, which similarly encourages them to remain loyal and stick with the company that respects them.
Are There Any Other Reasons Loyalty Programs Help B2B Companies?
Another reason why loyalty programs are so important is that they can help to build awareness and market yourself to new customers while ultimately marketing to existing ones. With a loyalty program, you are creating a space where you can engage with your audience and turn them into advocates. If a business has a good experience with another business, they are far more likely to refer you to others and build brand awareness.
You can also get a chance to understand your customers and get to know them better. This will help you adapt and update your services to fit in with what the market is looking for. This, amongst all other reasons, is why you should take the time to find a good, solid loyalty program and instil it into your company as soon as possible.
