Brand loyalty is what ultimately guides consumers to choose one brand over another – and it’s a powerful tool for B2B companies. If you have loyal customers, you can improve your profits and grow quickly. But if you do not build this brand loyalty, you may face high churn rates, lower revenues, and difficulties reaching new customers. DCatalog offers a strong solution with tools that provide cohesive messaging to help your brand tell it’s story and generate customer loyalty .
Just how important is brand loyalty? Attracting a new customer is 6-7x more expensive than keeping a current customer. And, according to Harvard Business Review, increasing customer retention rates by just 5% can result in a 25% to 95% jump in profits.
So, let’s talk about the basics of B2B online ordering systems and B2B loyalty programs, the value of investing in a loyalty program, and cover some examples of successful brand loyalty components that you can integrate into your own strategy.
The Value of A B2B Customer Loyalty Program
Loyalty programs are valuable for both B2C and B2B customers – but they are even more essential for B2B customers due to higher customer acquisition costs (CAC). A study from Propeller found that the average CAC for a B2C retail product is just $10 – while this cost is $83 for manufacturing.
Of course overall product quality and unique value propositions are huge contributors to the success of your business, but with the power of a B2B customer loyalty program B2B companies can build long-term relationships, benefit from referrals, and gain access to a large pool of potential business engagements.
By integrating a loyalty program into your B2B online ordering systems, you can ensure your customers look forward to every business interaction with your company – and build a network loyal brand advocates who will help your business grow for years to come.
What Are Some Components of Successful B2B Customer Loyalty Programs?
While every B2B company will need to take a different approach to create an effective loyalty program, there are a few time-tested elements that are useful for most companies in the B2B space:
● Tier-based incentives – This helps boost customer engagement and encourages clients to purchase more of your products or services. For example, a client that meets a $20,000 spending threshold annually may get a 2-5% discount on their purchases for the rest of the year.
● Strategic partnerships – Working with companies that are complementary to your industry is a smart way to help encourage customer loyalty. For example, a company that sells semi-truck tires could partner with a manufacturer of wheels to provide a bundle discount – saving customers money and making it more likely that they will choose to purchase your products in the future.
● Exclusive member events – In-person events, conferences, and trade shows are a great way to meet customers face-to-face and build a genuine long-term relationship. Consider offering exclusive member events to customers to educate them about industry-related issues and get to know them personally.
If in-person events are not practical, consider hosting webinars and events using telepresence software, such as Zoom, to engage with your most loyal customers.
● Immediate, transaction-based discounts – Discounts on particular items are a great way to improve your value proposition and market certain products. This approach is particularly effective if discounts are only offered to your best customers, as they will be encouraged to shop exclusively at your store.
● Referral programs – Referrals are a powerful way to build your brand in the B2B world. 78% of B2B marketers say that referrals generate “strong leads.” By offering rewards like discounts for referrals, you can reach new customers while also building brand loyalty among existing clients.
B2B Loyalty Programs Work with Great Products & Strong Customer Experiences
If you can create an appealing loyalty program and integrate it with your B2B online ordering systems, you’ll be able to build more brand loyalty, turn your customers into brand advocates, and improve sales at your business.
But make sure to focus on all parts of your business. Great products and services are the bedrock of B2B companies and so is a strong customer experience. A great B2B loyalty program is only a piece of the puzzle. Combining these different elements can assure that you will get the best results.
At DCatalog, we’re here to help. We can turn your catalog PDFs into interactive, branded, digital shopping experiences that we guarantee will delight your B2B customers.
From supply order forms and quote catalogs to shoppable product catalogs, you can benefit from an enhanced user experience, reduced printing and labor costs, and a wider reach for your brand as you develop your brand loyalty strategy.
To get started, just upload a sample PDF to convert it into a digital flipbook – and see the results for yourself. Have more questions? Feel free to contact DCatalog online or give us a call at 1-855-303-9410.