When it comes to implementing a Customer Loyalty and Rewards Program, understanding the distinction between B2B and B2C is essential. Here's how the two differ, and how you can best tailor your rewards program to B2B.
B2C loyalty
There's a lot more emotion involved in a B2C purchase.
There's a lot more emotion involved in a B2C purchase. Normal consumers tend to be much more impulsive with their decision-making, often buying a product on the spur of the moment without too much prior thought going into it.
This is partly because when a consumer buys a product it's often not particularly high risk. For example, if someone purchases some jeans that they later decide they don't like, they've only lost a small amount of money.
B2B loyalty
There will always be some sort of emotion in B2B because, just like B2C, people are involved. However, instead of making an impulsive decision based on their own needs and desires, a business will instead consider a B2B purchase carefully. After all, the risk is greater - if it turns out to be a bad decision, it could affect the financial health of the whole business and all the employees, suppliers and other people involved.
B2B sales cycles are much longer and there are far more people involved.
This means sales cycles are much longer and there are far more people involved. These people will want to learn as much as possible about the product or service before making a purchase, and will want a close relationship with your sales team in order to get this information.
B2B loyalty also has the potential to last longer. While B2C customers often shop around, there are plenty of businesses that have been with the same supplier for several years or even decades. So if you do manage to create real loyalty, you have a good chance of reaping the rewards from it for a significant period of time.
Tailoring your loyalty programs for B2B
It's important to tailor any Customer Loyalty and Rewards Program to these differences. For example, B2B purchasers want a close relationship with your business so they can receive as much information as possible. So you should consider incentivising things other than sales - this can include completing certain types of training or product demos.
Because the relationship is so integral in B2B selling, it also helps to personalise your program.
Because the relationship is so integral in B2B selling, it also helps to personalise your program. Offer regular events that incorporate training as well as other facets of the program, and make sure you're offering a choice of reward. This is also important because the relationship with B2B selling lasts so much longer, and therefore you'll need to keep the program fresh by running regular events and promotions.
Remember also to advertise your B2B loyalty program during the sales cycle. Most people associate loyalty programs with B2C selling, so you will be able to stand out significantly as a supplier if you incentivise B2B loyalty.
B2B loyalty programs give you an edge - providing an incentive for customers to keep returning to your organisation. But only if you make your program effective. Power2Motivate can help, offering a range of customisable Customer Loyalty and Rewards Programs. To find out more, talk to us today or request a demo.