What Makes a B2B Loyalty Rewards Program Successful?
Gone are the days when businesses customers lasted for a lifetime. It is getting easier than ever for B2B customers to switch their vendors and suppliers. Not only can B2B customers easily search for competitive products, your competitors can easily find your customers and bombard them with targeted messages.
A well designed B2B loyalty rewards program is now critical to retain your customers. Businesses are quickly realizing that the traditional B2C marketing strategies are equally, if not more applicable to B2B vertical as well. After all businesses are run by people!
For B2B companies, the customer pool is significantly smaller, which means that losing just one customer can be catastrophic. Therefore, customer retention needs to be the number one priority for any B2B business.
As per a research study by Bain & Company, a 5 percent increase in the customer-retention rate can result in a 25 percent-to-95 percent increase in profits for B2B businesses. Another interesting point to note is It is 25 times more expensive to bring on a new customer than to keep an already existing one. B2B companies dread working on the customer-turnover rate and seemingly will do anything to avoid it.