Relationships are the building stones of our lives. They create bonds between two different poles that provide sustainability and functionality of everyday life. As well as there are many diversified relationships, each of them requires different needs and strategies. From past to present, many different fields are established to define the subjects and their needs, problems and solutions in every kind of relationship. As an important strategy in today’s business world, the B2B loyalty model helps companies retain their customers.
Firstly, human relationships come to our minds which are the field of study of social sciences. Furthermore, we forget about the bigger thing in that system we live in business. Especially nowadays, we can say that it is the main actor in every sphere of the world, literally.
From the food we eat to the clothes we wear and the house we live in, everything is the consequence of business relationships. So which strategies do we use for business? One of them is B2B Loyalty.
Business to Business Model
B2B is a shorter version of “Business to Business”. It means that companies sell the products or services to not customers but other businesses. Where the products or services are sold to customers, then the name of the model will be B2C. We will focus on the differences between B2B and B2C later. Before coming to this topic, we would like to explain what B2B loyalty is, and more.
Importance of B2B Loyalty
Before a product can be made, it needs many ingredients, right? For instance, the car has many various components and it’s impossible that a company to have all of them at once. So the company, which assembles all pieces, needs other companies, and other companies offer those pieces to it.
B2B is where companies do business with other companies, offering raw materials, services, and consultancy where companies need to operate, grow and profit. As a result, you are able to buy a car! B2B is everywhere in business life from manufacturing to retail.
When a firm interacts with others, it must have a specific strategy to maintain the already existing relationship or to attract the interest of other firms. There, B2B customer loyalty programs show up themselves! These programs keep your customer companies, in other words, provide customer loyalty. While this situation increases your business value, you don’t have to put extra effort to find new customers.
Retaining already existing relationship is always more effective and profitable than searching for new ones. Although, it doesn’t mean that you can bear without making any move and still, you have to improve your customer retention. Even it is better always having new customers to make more profit by increasing your business value and reputation, your priority has to be not to lose what you have in your hands.
B2B Via Internet
After growing the numbers of the e-commerce markets, business to business has started taking place on the digital platforms more and more. With the advancement of the internet compared to the past, trading and servicing by one click became possible and safer.
Nowadays, many companies using e-commerce chances, therefore strategies change. On the internet, the design of the company’s website is crucial for suppliers, it should involve to optimization process like other e-procurement sites.
Let’s Look Over The Differences Between B2C and B2B Loyalty Programs
As we told before, B2B is “Business to Business”, B2C is “Business to Consumer”. While in B2B, companies sell products or services to other companies, in B2C companies sell them directly to the customers.
Therefore, loyalty programs differ in a few ways. When the focus point is the other business, a loyalty program should be more personalized according to the demands of the customer. Invertedly, business to the consumer should have the public profile for the general customers.
Here, you should consider that the loyalty program you’re planning to practice is adaptable for the other company, also. Buying habits, budgets, and needs of the customer’s company ought to be defined briefly at the beginning, in order to please everyone here.
If you are self-centered at that point, you would lose the race before getting involved. The company you do business with has to feel that you care about its benefits and profits also, which can be an excellent reason to work with you long-term. Now, we want to talk about things that can be done before approaching the loyalty program.
Few Steps That Should Be Taken in B2B Loyalty Program
It’s not always easy that keeping someone’s attention constantly, so you should work smart. Here, there are some basic B2B customer loyalty program examples you may want to know.
- Firstly, be aware of the goals of your company and the strategies you can practice. There is no point to exceed your limits or exaggerate the things you can and can’t do, just know your strengths and weaknesses.
- Define your customers. Try to think over the long run, don’t forget you will need to put more effort for searching new customers, retaining already existing customers is more profitable and less exhausting.
- After you have customers, the next step is learning their business models. Every loyalty program should be unique and value-driven to each.
- Fostering B2B brand loyalty is more significant now compared to old times. If your brand has a reputation and a trustworthy name, it’s easier to acquire customers. Besides this, you should put B2B incentive programs to your list on the top. Offering incentives makes your customers feel special along with being excellent reinforcement to work, grow and profit. Making discounts and having to tier reward system are mostly known suggestions. B2B incentives have supposed according to the demands and needs of your customers. Holding a meeting and giving conferences would helpful to the communication and showing your intention more sincere.
To sum up, determining the needs and demands of customers is crucial in B2B loyalty programs. Implementation of programs that have proven successful with incentive programs would bring enormous prestige to your company’s customer care profile and brand value. Hereby, it improves your customer retention rate and makes attractive your company to other potential customers.