What Market Challenges Do B2B Loyalty Programs Address?
Emerged a long time before the digital revolution swept global markets, loyalty program realization still undergoes deep restructuring. Last year, the Covid-19 pandemic irreversibly changed consumer buying habits, bringing another new loyalty into play. The new loyalty is ignited by contactless engagement, which, in turn, is based on the digital-first experience. Therefore, online procurement has become a common practice among B2B clients worldwide. The B2B market is expected to reach $20.9 trillion by 2027.
Let’s define the main market challenges an average B2B company regularly faces and how to meet them via digital loyalty programs.
Building a customer profile
To succeed with your marketing strategy, it’s important to identify an ideal customer and ascertain their needs comply with your solutions. Furthermore, knocking on the right door helps you save time and money you would waste trying to sell flowers to an allergic person.
To create a comprehensive ICP, it’s necessary to acquire channels for collecting customer data. Your loyalty program for B2B customers could become one of them. Gathering feedback from your existing clients and asking newcomers about their opinion on the given problem is a common practice within the loyalty program. In such away, you can capture such information, as their clients’ location, interests, pain points, and then interpret it and bring a corresponding offer along with relevant rewards.
Customer retention vs customer acquisition
Digital marketers often raise the problem: what is more cost-efficient for businesses — customer retention or customer acquisition? In our expert opinion, this theorem has been already proved. Customer retention matters more than customer acquisition in terms of cost-efficiency.
Since Dinarys is an e-commerce development company that provides services for the wholesale sector, in our practice we are also used to operate facts and numbers. According to the recent Invesp survey, regular customers are worth 10x more than the value of their first purchase. There is another fact: the Bond loyalty report says that 78% of buyers are more likely to make another purchase from a brand that has a loyalty scheme.
This leads to the assumption that loyalty is gold, and B2B businesses should place much emphasis on customer retention strategies, in which loyalty programs remain crucial.
B2B lead generation
Despite customer retention is vital for business growth, B2B companies shouldn’t neglect lead generation and customer acquisition. It allows businesses to grow not only qualitatively but also quantitatively and build a solid basement for the further stage of a sales funnel — customer retention.
By using B2B loyalty programs, marketers can make a positive contribution to lead generation optimization. To access the incentives, like first purchase discounts, welcome bonuses, or educational materials, newcomers should fill in the form and leave their emails. Thus, brands receive both basic information about their leads and the reason to market to them subsequently.
B2B incentive program digitalization is a must-have in times when global technological progress is gaining speed. Loyalty program automation can cover the key issues of online marketing: targeting the right audience with the right message, generating warm leads, fostering client relationships, and, after all, deriving insights for faster growth.
If you are looking for seasoned e-commerce consultants, you’re in the right place. In our development processes, Dinarys readily invests knowledge and competencies gained through years of dedicated experience in B2B.