B2B Loyalty Programs

Becky Nelson
Member

Posted 18-Jan-2007 10:16 AM
Looking for successful examples of B2B loyalty programs. I have a B2B client who believes they should implement a loyalty program, but I only have familiarty with B2C. I also challenge their strategy for a loyalty program.

Michael Lowenstein, CRMGuru Panelist
Advisory Board
Member
Picture of Michael Lowenstein, CRMGuru Panelist

Posted 01-Feb-2007 11:37 AM
B2B loyalty programs, even more than B2C, need to be more about expression of the entire value proposition, including those components that are rational (tangible and functional, including cost to purchase and cost to maintain) and emotional (relationship, service, anticipation of needs, information, trust, etc.).

Companies tend to see loyalty programs only in terms of the rational; but that is often one-dimensional and non-differentiating. Customers want to bond and have long-term relationships with their suppliers, especially in B2B; and this can only be done if greater emphasis is based on the emotional underpinnings of value.

Now, that may seem counter-intuitive in terms of the way companies in the customer loyalty program business offer their wares and solutions; but the realities of customer-perceived value research repeatedly bear out the importance of relationship in driving long-term share of customer.

Howard Schneider
Member

Posted 01-Feb-2007 11:37 AM
Becky,

Gwynne Young at CRMGuru called your post to my attention. I would be glad to chat with you on this topic (phone: 323 394-9161; email: howard@metzner-schneider.com). I have been involved with successful (and other) B2B loyalty/engagement/retention programs, and have some strong thoughts on the correct strategies and best practices.

I don't necessarily think that the sort of structured loyalty program that works in B2C (e.g., airline miles or points-and-rewards programs) is the right way to go, although in some cases it may be. But there are lots of other ways to structure appropriate and effective loyalty strategies in the B2B environment. I look forward to sharing some thoughts with you.

Regards,
Howard Schneider

Graham Hill
Guru
Member

Posted 04-Feb-2007 11:06 PM
Becky

I fully endorse Michael's response to your question. The typical differences between B2B and B2C business in terms of product cost, product complexity, product/service/experience mix, relationship longevity and decision making, requires a much more rounded value-proposition that takes into account the end-to-end experience of the customer. Much more emphasis needs to be placed upon the relational intangibles that drive trust-based committment. This doesn't mean that tangibles are not important, just that intangibles drive more of the relationship.

Graham Hill
Independent CRM Consultant
Interim CRM Manager

Becky Nelson
Member

Posted 06-Feb-2007 06:06 AM
Dear Gurus: Thanks for your feedback. Your comments make perfect sense and I agree. I wanted to back my initial thoughts with support from others in the industry when I meet next with our client to discuss this.

Howard, I will take you up on your offer to discuss this further. Will try to call you this week.

Thanks again, and Gwynne for helping me troubleshoot this site and get the info I was after.

Becky