Gone are the
days when businesses customers lasted for a lifetime. It is getting easier than
ever for B2B customers to switch their vendors and suppliers. Not only can B2B
customers easily search for competitive products, your competitors can easily
find your customers and bombard them with targeted messages.
A well
designed B2B
loyalty rewards program is now critical to retain your customers.
Businesses are quickly realizing that the traditional B2C marketing strategies
are equally, if not more applicable to B2B vertical as well. After all
businesses are run by people!
For B2B
companies, the customer pool is significantly smaller, which means that losing
just one customer can be catastrophic. Therefore, customer retention needs to
be the number one priority for any B2B business.
As per
a research
study by Bain & Company, a 5 percent increase in the customer-retention rate can
result in a 25 percent-to-95 percent increase in profits for B2B
businesses. Another interesting point to note is It
is 25 times more expensive to bring on a new customer than
to keep an already existing one. B2B companies dread working on the
customer-turnover rate and seemingly will do anything to avoid it.
The above
highlights why B2B loyalty rewards programs are on the rise. Let us look at
some B2B
Loyalty programs that have created a niche for themselves.
HP Planet
Partners Rewards Program
HP Planet
Partners Rewards Program is available in more than 60 countries
and territories around the world.
The
program’s objective is to reward companies for returning used original HP print
cartridges to support HP’s recycling initiative. It goes beyond just rewards
for an organization. This program is enabling organizations to contribute
towards social and environmental responsibility efficiently.
About the
program:
- The objective is 3-fold: Companies get rid of the empty cartridges, in the process they earn HP credits and contribute their bit in creating a safer environment by opting for the safe recycling option.
- The program is open only to select MVC accounts as appointed by HP and offers multiple options to return and recycle HP cartridges.
- Only qualified Original HP Ink and Toner Cartridges are covered in this program
- On a monthly basis, the used original HP inkjet and LaserJet print cartridges are picked by HP’s designated collection agency.
The used
original HP inkjet and LaserJet print cartridges are counted, and points
awarded basis the slab below:
The earned
points can be redeemed by companies for HP Gift Vouchers which can be used to
purchase HP products from select authorised channel partners, thereby saving
organisations money and resources as the recycling is free.
What makes
the program work?
- It is a simple but brilliant strategy. Companies feel good about recycling and earn HP credits in the process. This creates a compelling reason for them to buy HP products again and the cycle continues.
- The program is simple, designed in such a way to make it convenient for organizations
- It is enabling companies to be socially responsible in business dealings by minimizing their impact on the environment
- Leveraging partnership with collection agency to ensure a seamless pick up process
- Participating companies are recognized for their initiative
American
Express Partners Plus
American
Express Partners Plus is a referral-based partnership program
between an organization and American Express Global Corporate Payments.
American Express awards organizations with incentives if they successfully
refer one of their business contacts for their Global Corporate Payments
program.
About the
program:
- This program gives B2B companies and professional associations an opportunity to partner with American Express and offer their business clients financing and expense management solutions from American express.
- Customers reap many benefits when they refer new accounts.
What makes
the program work?
- Simple and straightforward for customers to understand
- Establishes and deepens a trusted partner relationship with clients
- Creates a win win situation for customers and clients
- Provides more credibility in the market being associated with a brand like American Express.
Know Your
IBM (KYI)
Know
Your IBM (KYI) is IBM’s primary B2B loyalty programme, targeting resellers
in its distribution channel globally with rewards for completing product
educational activities and selling eligible IBM solutions. KYI is critical to
building relationships with business partners, increasing their knowledge of
products and services, and growing overall revenue.
About the
program:
- KYI is structured into two components: learn and earn, here participants are rewarded with points for completing year-round online learning modules, sell and earn which rewards participants for selling certain IBM products/services.
- On completion of each module, business partners are rewarded with points that can be exchanged for gifts from participating merchants.
In 2017 KYI
participants consistently sold 3x more IBM products than their non-participant
counterparts.
What makes
the program work?
- Members can expand their professional network, continually refine their IBM solution expertise as well as achieve fantastic rewards.
- Participant engagement is driven by fusing innovative gamification techniques with e-learning to drive participation.
- The program offers fun and rewards at the same time. Example, in 2017, KYIBINGO involved completing specific e-learning modules via digital BINGO cards. Players were rewarded with the opportunity to share in 200,000 KYI points pot, earn bonus points on the top ten leader board.
The Lenovo
Lenovo Expert Achievers Programme (LEAP program)
Another
interesting and successful B2B program is The Lenovo
Lenovo Expert Achievers Programme (LEAP program).An
innovative B2B channel program, designed to drive resellers’ loyalty in selling
Lenovo’s server solutions.
About the
program:
- The key objective has been, to ensure resellers (known as Business Partners) are as technically proficient as possible, empowering them while selling complex server solutions to their clients. This fuelsin revenue generation and market share growth.
- Points can be redeemed for MasterCard gift cards or reloadable cards and retail vouchers.
- A specific 2017 target was for LEAP to join forces with eight coalition partners – a relatively new concept in B2B loyalty, participants earned bonus points for selling Lenovo servers, or completing education modules, bundled with complementary vendor products. This target was exceeded as 10 coalition partners joined LEAP, contributing to a significant drive in engagement and revenue.
The program
hit the right chord, it impacted partner sales efficacy; partners sold seven
times more Lenovo products than non-participants
What makes
the program work?
- Program is structured in a way to provide the business partners multiple options
- Two-fold benefit- Learn & Earn which awards participants with points for completing education modules online; and Sell & Earn which rewards participants for selling eligible Lenovo server products.
- Learn from anywhere anytime as per their convenience provides them the flexibility.
Priority
Partnership
Nufarm Limited is one of
the world’s leading crop protection and specialist seeds companies. They
produce products to help farmers protect their crops against damage caused by
weeds, pests and disease. Priority
Partnership is a rewards program rewarding Nufarm NZ customers. Itwas launched
to reward customers for purchasing products, to provide product information,
offer product specials and much more. This is now an institution
within the farming community.
About the
program:
- Nufarm operates through national merchant/ retailer channels the Priority Partnership Members Services team
- Priority Partnership members nationwide receive special product and service information through the program
- Priority Partnership members have been members of the program for more than 19 years on average. They are highly engaged with over 90% annual points earn to spend (earn vs. burn ratio).
- The program has helped in improving the efficiency, service and functionality at Nufarm
What makes
the program work?
- The available data and insights offer better decision making and foster closercustomer relationships.
- Priority Partnership was taken to the cloud at a time when many local B2B programs were still spreadsheet based.
- Customers get access to customised reward specials and a chance to redeem from more than 5,000 reward offerings. Keeping a balance between exciting and delighting customers!
- Customers can maximize profits with Increased rebate opportunities
- A wide selection of high-performing herbicides, fungicides, insecticides and plant growth regulators included in rewards.
- The ability to leverage customer data, develop insights and offerings to better serve customers has helped them have loyal customers over the years.
- Special membership offers, and promotions makes the program lucrative for customers
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