Attracting and retaining customers is one of the key tasks of companies working in B2B. Firstly, there is a sales paradox, when a company makes 80% of its revenue from 20% of large and most loyal customers. Secondly, it saves money, since attracting a new customer is more expensive than retaining an old one. A loyalty program is not only about the desire to sell more. It is about the opportunity to get to know your customers better, adapt business processes to them and grow sales.
We will show you how to create a loyalty program, what tools successful companies use, and what mistakes should be avoided when implementing it.
TOP 10 techniques for increasing loyalty in B2B sales
Effects of implementing a loyalty program
Implementing a loyalty program can significantly improve business efficiency. According to a study conducted by Accenture, 77% of B2B companies report revenue growth thanks to loyalty programs.
What effects can be observed:
- Improving understanding of customer buy telemarketing data needs, adapting the offer to their needs.
- Increase repeat sales. Regular customers tend to spend more than new customers. A loyalty program can increase purchase frequency by 20-30%.
- Reduced customer acquisition costs. Retaining existing customers is 5-7 times cheaper than attracting new ones. A loyalty program helps retain customers and reduce churn.
- Increase in average check. It is more convenient to buy from a trusted supplier than to search and compare different options.
- Improving the nature of communication with customers and intermediaries, reducing the number of incidents.
- Increase the number of referral recommendations. Satisfied partners will recommend you to their clients if necessary.
Stages of creating a loyalty program
- Start by understanding your goals. marketing list The choice of goals will determine the mechanics. These could be:
- increase in the frequency of purchases;
- increase in the average bill;
- reducing customer churn;
- expansion of the customer base.
- Define performance metrics and determine the current loyalty level. Typically, I use the following for this purpose: participation rates, activity rates, points write-off rates, churn rates, as well as RFM and LTV.
- Study your customers. Conduct interviews, ask what is important to them when making transactions. This will help segmentation.
- Decide on the type of loyalty program. There are several options, for example:
- Points: accrual of points for paid orders, low accounts receivable, pick-up, etc.
- Discount: privilege levels, fixed or increasing discounts, retro bonuses.
- Access to services.
- Hybrid: a combination of different put email follow up into practice mechanics.
- Develop the mechanics of the program. Determine the conditions and rewards that will motivate clients.
- Financial model. Calculate the costs of launching and supporting the program, including IT infrastructure and marketing costs.
- Automation and technical support. Prepare the necessary IT infrastructure for program implementation, including an accounting and CRM system, a B2B platform or other sales automation and data collection tools.
- Inform and train employees on how to use the loyalty program.
- Through communication channels, convey the terms and benefits of the program to clients.
- Measuring effectiveness: Once a program is launched, it is important to monitor its results and make changes based on analysis of purchase data and customer feedback.
Common Mistakes When Creating Loyalty Programs
Despite the benefits, many companies make mistakes when implementing loyalty programs.
1. Perception of the loyalty program as a “magic” tool
Some people believe that implementing a loyalty program will automatically lead to increased revenue. This is not always the case. It is difficult to say in advance how and which elements of the program will work. In order to spend money effectively, testing on a small group will be required. If the hypothesis about the expected impact of the tool on customer behavior is confirmed, we take it into work and recalculate the budget. Do not forget to implement and set up analytics in advance.
It is important to note that the loyalty program goes well with one-time promotions and individual offers. Try to combine them.
2. Limiting the analysis to transactional experience only
The client has made a deal. Great! But the financial result says almost nothing about loyalty. Clients may buy because: others do not have the required volume in stock, delivery from your warehouse will be cheaper, or their regular supplier does not have time to fulfill the order on time. To understand the reasons for making one-time and regular deals, collect feedback. This is conveniently done in the B2B platform from INTERVOLGA.
3. Ignoring the product matrix
The loyalty program should be adapted to the specifics of the products and services offered. It is important to consider the needs of different customer segments and make relevant offers.
4. Studying only one type of buyer
B2B sales often involve several decision makers, and ignoring their interests can lead to program inefficiencies. It is important to consider the opinions of all participants in the process, not just the end user. Our partner, 1C-Bitrix, offers special training courses and webinars for various categories of users, including accountants and IT specialists. This helps increase loyalty from both distributors and end users of their software.
A loyalty program in B2B sales is a powerful tool for increasing revenue and strengthening customer relationships. However, to successfully implement it, it is necessary to avoid common mistakes, use modern IT technologies, and analyze customer behavior at all levels.
Our company has a B2B wholesale platform, the implementation of which can be one of the steps towards winning the loyalty of your customers. Call or leave your contact information in the form below. We will arrange a meeting, answer questions, show a demo of the platform and tell you about its advantages.