When thinking about successes in rewards programs, several brands come to mind. One that many think of is Starbucks and their highly desirable Gold Card. Or maybe you will think about your favorite program in your favorite grocery stores as all of them seem to have some type of B2B rewards program. There are numerous best e-commerce rewards programs. While all these programs are strong, probing only B2C popular programs does not paint a total picture of today’s current rewards landscape.
Examining each of the successful rewards programs, it is easy to believe that rewards are only working when they are for consumer brands and do not hold much value for a B2B organization, but nothing could be further from the truth. Because of the way that the B2B industry is built and the normal profile of a business consumer, B2B brands increase the leveraging add to the powers of rewards.
Gone are the past days when customers of businesses lasted a lifetime. It has become quite easy for B2B customers to change their suppliers and vendors. Not only do B2B customers easily search for competitive goods, but competitors can also very easily find your customers and barrage them with targeted information.
Well-designed rewards program
A program of B2B loyalty rewards that is designed is now grave in retention of your customers. Businesses realize quickly that outdated B2C marketing policies are equally, if not more appropriate to B2B vertical as well.
When it comes to B2B companies, their pool of customers is knowingly smaller, and this can mean that losing only one customer could spell out a catastrophe. So, customer retention becomes to be the number one importance for all B2B business.
As shown per a recent research study, only a 5%loss in a company’s retention rate can produce a 25% to 95% loss returns for B2B businesses. One other motivating point is that it is close to 25 times expensive to gain a new customer than to keep an existing one. B2B companies hate being occupied on the turnover rate for customers and seemingly will do almost anything to avoid losing customers.
Programs on the rise
This information from research shows why B2B loyalty rewards programs are currently on the rise. These loyalty programs have indeed created a nice niche for themselves.