Three Key differences between B2C and B2B Loyalty Marketing and Why They Matter

November 1, 2021November 3, 2021 Stan

We’re all familiar with B2C loyalty programs, whether it’s a coffee punch card you keep in your wallet or a credit card points account you cash in every summer for a vacation flight, rewards programs are part of our daily lives. In the retail sector they’re a major part of a brand’s core strategies, but how do customer loyalty programs function in a B2B setting? In many ways, the differences are minor with common goals to increase client retention and drive more frequent sales.

Because of this, B2B customer loyalty programs have many similarities to their B2C counterparts, sharing the same main goals and approaches. Both seek to identify a business’ core customers, reward them for frequent purchases and incentivize retention. There are, however, some very important differences, as well as opportunities, in the B2B loyalty world to consider in order to set your organization up for success.

Tailored Rewards

Consumer loyalty programs are typically one size fits all programs. Buy products. Accumulate points. Redeem. Repeat. In a B2B setting, this approach is rarely successful, especially when the size of purchases are large and the frequency is long. Rewards are often customized to the individual company in a B2B loyalty campaign.

The power of B2B customer loyalty programs is the ability to custom tailor the rewards on a company-by-company basis. If done right, the program can increase your revenue by reducing across the board pricing discounts and augmenting them with targeted perks. This can be in the form of value-add services like enhanced post-sale support, extended trial periods on new products or invitations to exclusive member events.

Reach the Right People

Understanding your B2B customers is inherently more difficult than identifying B2C customers. In B2B this is often more complicated with multiple people involved in purchase decisions. Knowing who these people are may take additional research. A person’s job title, for example, won’t always reveal their role in the purchasing process, and will vary from company to company. Each business will need to be analyzed to identify the key decision-makers you need to reach.

Enlist the support of Sales from the onset. They can often quickly point you in the right direction, identifying important contacts within companies you do business with. For ongoing efficiency and scalability, look for ways Sales can tag leads or contacts in your CRM who are key decision-makers or would be ideal to include in customer loyalty marketing campaigns.

Lower Barriers to Entry

Because of the highly customized and personalized nature of B2B loyalty programs, it’s often possible to stand up a pilot program with the tools you have at hand. B2C loyalty programs typically require an investment in a 3rd party platform to manage accounts registration, points balances, redemption and customer communication. The program needs to be available to all customers at launch, fully functional and supported by a large enrollment campaign to be successful.

In a B2B environment, a single company can be selected for participation and offers can be extended through your normal marketing channels. A pilot program can reveal how successfully you’ve identified the decision makers within the target company, show which incentives worked and which didn’t, and give you a blueprint for expansion.

As you begin to set up a model for your B2B loyalty program, always keep the basics in mind. A good loyalty program will make customers feel like they’re getting a good deal and feel appreciated. By creating incentives that deliver on that and by targeting the right people and you’ll be well on your way to delivering a solid experience. Revenue metrics will take some time, especially if your organization’s sales cycles are measured in quarters and years. In the meantime look to engagement metrics as indicators of success and know that the insights you gain from researching your customers will help inform all of your marketing efforts.

Need help developing, strategizing or implementing a loyalty program for your business? We’re here to help.

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