Most B2B businesses tend to focus on marketing to attract and convert prospects into customers. However, did you know that it costs 5x as much to attract a new B2B customer than to keep existing ones? This is small businesses should start focusing more on creating loyal, repeat customers.
That said, a B2B loyalty program can be your secret weapon. Not only does it help in boosting customer retention and loyalty, but it also helps in strengthening your business’s relationships with your channel partners.
In this article, we’re sharing some tips and strategies on how to create an effective B2B incentive and loyalty program for your B2B company.
1. Customization Is Key
Similar to B2C, customization is a critical aspect in creating well-accepted rewards and incentive programs in the B2B industry. Your partner B2B company also has its own distinct goals, motivations, and challenges. So, you want to create a B2B loyalty program that’s personalized for them.
Like any customer, your B2B partners already expect a personalized experience. If you deliver this expectation, your business partners are more likely to remain loyal and more likely to make bigger purchases. In particular, B2B partners become more attached to businesses that offer them great value while lowering risks.
So, a more personalized approach is the best way to secure a solid relationship with your business partner.
2. Reward The Right Business Partner
Today, customers have more options in terms of purchasing decisions. They can easily switch from one business to another, comparing several products and services. They often interact with several parties, which may include your business partners, before purchasing.
This means that your business partners also contribute to a customer’s decision-making. Thus, you want to make sure to reward them for that contribution. Arrange the rewards at every point of the sales process–from brand awareness to closing deals– and reward contributing business partners in the process. This way, they know that you appreciate every effort they make.
3. Use For a Tier-Based System
Normally, some business partners are more beneficial to your company than others. In this case, implementing a tier-based rewards system can help you recognize and reward your best-performing partners while also encouraging other partners to follow suit and become one of your high-value partners.
4. Establish Transparency And Trust
Unlike B2C, B2B incentive programs are not as assertive or fast-moving. It’s more focused on strengthening and building relationships. Thus, it’s critical that your business partners see the program as something beneficial and that working with you is an investment.
Thus, you want to focus more on establishing transparency and trust in your programs. Make sure to present the program’s terms and conditions and clearly communicate the offered incentives, including discounts, rewards, and rebates. Ensuring that both parties understand and agree to the incentive program can guarantee efficiency and success.
5. Vary Your Rewards
Everyone, even your business partners, loves getting perks and freebies. But providing the same rewards, again and again, can make it less exciting. So, make sure to vary your rewards. For instance, aside from the expected sales incentives or point rewards, you can also send corporate gifts to show your appreciation.
Also, you can send special rewards to your most loyal business partners. For instance, you can give long-term business partners early access to new features, invite them to exclusive events or upgrade their current service plan.
Varying your rewards and receiving extra perks can make it more exciting to work with you and further encourage loyalty.
6. Adapt A Digital Platform
You can streamline and optimize the process by going digital with your B2B loyalty program. A digital-based incentive program can help you easily distribute information and the benefits of your loyalty program to all business partners. Also, incentive digitization makes it convenient for business partners, allowing them to access rewards information easily and track their achievements instantly.
That said, if you’re going digital, make sure to choose the right platform. With the right platform, you’ll be able to implement your B2B incentive program without exerting any extra effort. It also helps you in segmenting business partners easily, facilitating the acquisition of insightful data, streamlining repetitive admin tasks, and ultimately improving your partners’ experiences.
7. Have An Onboarding Process
Implementing an onboarding process for your B2B incentive program can encourage participation and help business partners better understand every detail of the program. You can also use this opportunity to highlight the incentives and rewards offered and how your partners can benefit from them.
To create the best onboarding experience, you should consider providing a short video or tutorial, sending an onboarding email, posting a program FAQ, or, much better, hosting a live Q&A webinar.
Customer incentive programs are a great way to give back and establish a solid relationship with your channel partners. Utilizing the above strategies can help you create an effective B2B incentive program that will drive customer loyalty and ultimately boost business profit and growth.