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Every day, we are surrounded by Business-to-Consumer (B2C) loyalty programs of all types and sizes. Business-to-business (B2B) loyalty programs, on the other hand, are far less common.
The lack of relevant information makes gathering the necessary knowledge to start a successful B2B loyalty program and locating constructive examples challenging.
Meanwhile, we’re here to provide all the information you need on business-to-business loyalty programs, including the best practices for B2B loyalty programs. And here are three beautiful examples of business-to-business loyalty programs.
A customer loyalty program is a kind of consumer marketing that rewards customers for doing business with a particular firm over an extended period.
As the name implies, loyalty programs are designed to improve customer relationships and interaction with your company to increase brand loyalty.
According to Fundera’s research, 43 percent of consumers are more inclined to spend more money at firms with whom they have a strong relationship. This statistic demonstrates how critical it is for your B2B organization to have a customer loyalty program.
Don’t focus all of your marketing efforts only on acquiring new clients or consumers. Instead, concentrate on increasing the satisfaction of your current clients via the use of a loyalty program. For example, selling to an established client has a 60 percent to 70 percent likelihood of success. In contrast, your odds of getting a repeat client are between 5 percent and 20 percent.
Customer loyalty in the B2B sector is critical for retaining repeat clients and expanding your customer base. But how does one go about developing a B2B loyalty program that is effective?
Let’s get this ball rolling!
What is a Business-to-Business Loyalty Program?
When it comes to B2B loyalty programs (also known as B2B rewards programs), these solutions have unique features and loyalty logic that are meant to assist companies in establishing brand loyalty with the businesses they sell to. In terms of both incentives and advancement, they are significantly different from their B2C counterparts.
Considering that the B2B eCommerce industry alone is expected to reach $1.8 trillion by 2023, it’s logical that businesses in this sector want to increase their market share. One method of doing this is to guarantee that current customers or contacts remain loyal, pleased, and engaged.
Significant B2B Loyalty Program Features
Following the discussion of the general structure and qualities, it is time to delve into the individual elements that distinguish B2B loyalty programs from other types of programs.
Perks
If a loyalty program comes under the category of ‘perks program,’ it indicates that it does not include a points system, no levels, and no other features that encourage growth. Instead, members get access to all advantages from the time they sign up for the program. For example, when creating a VIP club for their clientele, B2B companies might use the rewards strategy. In addition, organizations may continue to communicate with members via surveys and prize drawings. Still, if they stop being a partner or fail to purchase a set date, they will lose their ability to participate in the program.
Tiers
Tier advancement is generally determined by the money spent or the number of points earned in a loyalty program. However, there is a third kind that is less often used: invites. For B2B firms, this implies that they are automatically put into a tier based on the sale amount rather than allowing clients to move on their own. So naturally, higher tier levels provide more significant benefits, and customers have the opportunity to downgrade or upgrade their orders on their next purchase.
Cooperative rewards
Educating and educating partners and suppliers may be an effective way to increase their level of customer loyalty. After all, it is in your best interests to assist them in improving their performance so that you may further the commercial connection. More to the point, if you administer a smaller, less experienced customer by sharing marketing, sales, or other skills, they are likely to credit you with a portion of their success.
Partner rewards
Aside from branded products, gift packages, and other things, B2B loyalty programs can also consider offering different types of incentives. The explanation is straightforward: client organizations may get these incentives as a ‘free bonus’ along with their purchase and then distribute the items to boost employee morale. So it’s a win-win situation for everyone. Furthermore, if you already have excellent partnership ties, you may get these benefits at a very minimal cost.
Experiential rewards
From member gatherings to complimentary movie tickets for a client’s staff, experiential incentives may be whatever you want them to be. These incentives do not have to be costly to be effective. Your vendors need to be creative enough to excite your buyers. And when the workers of your client are content, your client is happy as well.
Referral program
WOM marketing is equally as vital (if not more so) in B2B as in B2C marketing. Customers who refer people to your loyalty program and use your name as a reference should be rewarded. Furthermore, since membership necessitates direct business, each recommended customer represents the possibility for additional money.
Coalition loyalty
Although coalition and business-to-business loyalty programs are not the same, there may be some overlap between the two. For example, cooperative loyalty programs may be divided into two categories by organizations that run them: The visible half is oriented at rewarding consumers. In contrast, the hidden half is geared toward providing benefits to renters and other stakeholders. In this approach, the incentives system motivates renters to improve their performance and become more active.
Gamified surveys
There are a variety of approaches you may use to incorporate customer profiling into your incentive system gently. For example, specific awards may be withheld until a buyer completes a quick survey about their experience. Alternatively, customers might obtain more tickets into a prize draw in exchange for supplying further information. However you choose to use it, gamified profiling is a fantastic tool for collecting feedback and gathering more data for your personalization approach.
Case Studies of Successful B2B Loyalty Programs
Sephora’s Beauty Insider
The strategy;
The Beauty Insider program offered by the firm is one of the most remarkable instances of tiered, point-based loyalty programs available.
With every dollar spent in the business, members may accrue one point, allowing them to progress through the ranks from “insider” to “VIB” and finally to “rouge.”
Even if members don’t make any purchases at Sephora, they may still benefit from the program’s rewards just by being a member of the insiders’ club—in other words, by registering for the program using their email address. In addition, Sephora will be able to target them subsequently with “member-exclusive” specials and other unique offers in the future.
The benefits of Sephora’s rewards program go beyond getting discounts by making purchases. Birthday presents, special events, sweepstakes, and product releases are just a few of the perks offered by the organization.
Member benefits include discounts, store credit, and entry into giveaways for those who have accumulated enough points at Sephora.
You may shop for your favorite goods on a site called “Rewards Bazaar,” which Sephora has created to use your points.
However, it isn’t your only choice. You may even use your points to enter a contest for a chance to win a cash prize of up to $50,000 if you qualify.
Key takeaways;
- By providing you with various ways to redeem your reward points, Sephora keeps you engaged and it’s brand top-of-mind, regardless of whether you purchase the business at this time.
- Members will appreciate the diversity of choices accessible to them, both earning and redeeming points.
Anthropologie’s AnthroPerks
Creating an effective landing page for your business should never be an afterthought when developing a client loyalty program for your company.
Although there is no one-size-fits-all method for creating an efficient rewards program website, the following elements should be included:
Promote the program to prospective members by establishing an exclusive atmosphere; clearly describe the advantages of joining the program, and anticipate questions that consumers may have before they arise.
AnthroPerks, Anthropologie’s customer reward program, meets all of the criteria listed above.
To address the buyer’s pricing worries, when you arrive at AnthroPerks’ landing page, the firm greets you with the call to action, “Sign up—free,” it’s which appears above the fold of the page.
After making it apparent that AnthroPerks is not a for-profit loyalty program, the firm goes through the advantages of being a member of the program one by one.
A benefit that members get is represented by a box in each box, ranging from “all-inclusive” access to promotions and new goods to clear incentives such as yearly free delivery.
The final package contains something I’ve never seen before, even though numerous e-tailers offer comparable perks in their loyalty schemes. An advantage listed by Anthropologie is the ease with which you may join. Although it may not seem to be an advantage, it is significant since it indicates that you will not need to complete lengthy paperwork with several procedures to become a member of AnthroPerks.
In this section, the business reiterates that AnthroPerks is a simple and free program that anybody can join—just in case you have any doubts.
As promised in benefit #2, Anthropologie sends you an email with a birthday discount code to use on your next purchase when your birthday comes.
The corporation sends you an email with the subject line “It’s YOUR day! “inviting you to celebrate your birthday and emphasizing that this is a “members-only birthday gift.” As a result, being a member of Anthropologie’s loyalty program is effectively reaffirmed (and gives you an excellent excuse to shop from the company.)
In a similar vein, as a member, you will also have first dibs on special deals that are announced through email.
Key takeaways;
- The key to Anthropologie’s loyalty program is how well it follows through on its promises via emails that include special discounts and birthday incentives, among other things.
- Don’t only think about recruiting new members to your customer loyalty program; also, consider how to engage and keep current members by providing them with compelling incentives and rewards.
Tarte’s Point-Based Rewards
The strategy;
Join, begin earning points, and then redeem them. It’s as simple as that.
More intriguingly, you get varied numbers of points depending on the acts you do. Purchasing a sample item, for example, results in a different amount of points being awarded than buying a full-size product. That seems to be reasonable.
It’s even better since you can get your first 100 points just by joining up, which gives you a feeling of success and starts the ball rolling.
Points are crucial since they form the foundation of Tarte’s customer loyalty program. The greater the number of points you earn, the greater the number of benefits you may access.
Tarte delivers on its promise by providing club members with early access to specials and encouraging you to purchase before others with the use of a countdown timer, among other features.
However, as part of its customer retention effort, the corporation does more than send promotional emails. Every month, they summarize your loyalty status and the distance you have left to go before reaching the next tier.
Key takeaways;
- Tarte demonstrates the value of considering your customer loyalty program as one of your most essential marketing platforms by showing its success. Tarte manages the whole flow of communication, from welcome messages to win-back emails.
Abercrombie & Fitch’s myAbercrombie
The strategy;
After all, the sensations of inclusion and exclusivity are at the heart of all incentive schemes. Whether a paid or free membership, it’s a closed-access club that offers specific privileges to its members in exchange for their participation.
That is, of course, only true if you promote your loyalty program as such in the first place.
Abercrombie & Fitch is one of the companies that has gotten it right on this occasion. In its customer loyalty program, myAbercrombie, the corporation employs strong text to emphasize the concept of exclusivity.
They aim to be a rewards program that makes your life easier by providing you with “extraordinary privileges,” “exclusives,” and other perks and bonuses. And when you become a member, you are “rewarded” for your participation. (Note how A&F uses repetition to draw attention to the benefits of being a member of myAbercombie.)
As you learn more about the company’s loyalty program, you’ll notice that it becomes more “exclusive.” In addition to the standard advantages, A&F has a VIP area created in gold and accentuated with strong wording to stand out from the crowd.
When you are a VIP, you are entitled to even more significant discounts, unique experiences, and invitations to exclusive events. Even better, A&F pledges to make a great deal out of your birthday celebration.
All you have to do is pay €600 a year to maintain your current level of status. Furthermore, in contrast to many of the other examples in this article, A&F’s loyalty program is comprised of just two classes: Gold and Silver.
The free and VIP categories make the software a lot more user-friendly and straightforward. In addition, creating a difference between the two becomes more accessible, motivating you to spend €600 and achieve gold status.
In a similar vein to Tarte, A&F offers you a monthly account overview that visualizes your progress in real-time.
It’s difficult not to want to shut open loops like the one described above. However, a&F’s email is tempting because of the innovative use of a progress indicator in the body of the message.
Furthermore, the firm discloses your membership status and your current points balance at the top of each email.
Key takeaways;
- Practical copywriting skills should be your closest buddy if your objective is to create an appealing customer loyalty program.
- Abercrombie & Fitch certainly understands how to show appreciation to their loyal customers. So, on the anniversary of your membership, you will still get another special discount.
- It’s a simple email that you can use to express your gratitude to consumers even if you aren’t operating a customer loyalty program.
REI Co-Op
The strategy;
REI began as a member-owned cooperative, and the corporation has remained true to its founding principles. A $20 investment to become a member of their loyalty program results in a lifelong membership that offers loyal consumers access to a slew of goodies…yes, we said rewards for the rest of their lives!
Every year, you will get a 10 percent rebate on your purchases, which will be paid out in one lump sum in the spring.
There are two garage sales every year when gently-used and returned goods are sold at a discount of 50% off the regular price.
The ability to buy items that are only available to members, such as towels and water bottles.
Discounts on seminars, activities, and field excursions are available.
Discount and credit incentives, such as a $20 bonus card after completing a purchase of $100 or more, are pretty valuable.
Knowing that your membership payments are being contributed to deserving outdoor-related NGOs gives you a warm and fuzzy feeling.
Key takeaways;
- Everything that REI provides in exchange for the one-time payment of a lifetime membership emphasizes the firm’s importance on its clients. The fact that consumers get all of this for $20 is incredible – they must feel like they own a piece of the firm, particularly given that they receive more than their original investment back after making a significant purchase!
The Body Shop’s Love Your Body Club
The strategy;
The Love Your Body Club, offered by The Body Shop, is more than simply a standard loyalty points program. There is a strong emphasis on social responsibility, which manifests in voluntary charity contributions to groups that align with the brand’s vision.
Members get one point for every dollar they spend. Once a member has accumulated 100 points, The Body Shop will give them a $10 gift card.
Members will have the option of using the $10 as shop credit for themselves or donating their loyalty award to one of two environmental and animal welfare organizations: Born Free USA or the National Parks Conservation Association.
This perfectly aligns with the fundamental aspect of The Body Shop’s values: the pursuit of sustainability in all of its manifestations.
Members also have early access to new goods and invitations to unique in-store events, according to The Body Shop.
Key takeaways;
- Genuine social good initiatives are fantastic strategies to establish long-term client loyalty while making a positive difference in the world.
- The Body Shop’s customer loyalty program perfectly aligns with the company’s fundamental principle of conservation, which is something that all of its consumers believe in. Furthermore, since consumers may select when to give to the charity, they feel like contributing to something greater. The Body Shop has done an excellent job!
Lenovo
The strategy;
As one of the world’s most prominent and most respected electronics manufacturers, Lenovo exemplifies what a successful B2B customer loyalty program should look like.
Lenovo purchased the X86 server business of IBM in 2014. However, IBM’s former business partners were unsure about how to go about selling the identical servers that IBM had previously pledged to them.
Lenovo, on the other hand, was adamant about avoiding losing those commercial partners. As a result, with the assistance of Motivforce Marketing & Incentives, this technology business created a unique customer loyalty program.
Learn and earn at the same time. Business partners who completed two instructional courses on servers will be awarded points.
Earn money and then sell it. Business partners may keep track of how well they are doing in terms of sales. The points earned from their sales were converted to dollars.
Key takeaways;
- Lenovo employed education as a motivator, assisting companies in learning how to create more money via server technology.
- According to the authors, Lenovo’s emphasis on current customers rather than obtaining new ones was an excellent strategy that may be learned from this loyalty program.
Celebrity Cruises
The strategy;
Celebrity Cruises, desperate to distinguish itself from its competition, developed a tremendously successful customer loyalty program.
The majority of this company’s sales are generated via travel agencies. As a result, Celebrity Cruises chose to reward the most dedicated agents for their efforts.
Agents may use a user-friendly platform where they can claim their booking sales and track their points.
When agents upsell to consumers, they might earn more points for their efforts.
Moments of Celebrity. Three months were dedicated to this particular campaign. Agents who outperform the leaderboard in terms of booking points might receive £500 in bonus points.
Key takeaways;
- Celebrity Cruises provided great incentives that were readily accessible to customers on their cruises.
- Gamification was employed to increase the level of engagement with the loyalty program.
TRW Aftermarket
The strategy;
TRW is one of the top firms in the automotive aftermarket, and it also has one of the best business-to-business loyalty programs in the industry (Automotive Diamonds).
In TRW’s sector, firms were experiencing difficulties communicating with their aftermarket because of the large number of rivals in the industry as a whole. As a result, TRW developed a customer loyalty program to address these issues.
By using a loyalty program, they were able to link workshops around Europe.
Workshop participants may join up and earn points by buying items from other members.
Workers in workshops may exchange their points for rewards of their choosing.
Key takeaways;
- Communication and assessment across various workshops became more accessible as a result of this.
- TWR used the information gathered in several workshops to tailor the loyalty program to their specific requirements.
- Making it possible for workshops to choose their prizes increases the engagement of the loyalty program and the value of the incentive.
Final Thoughts
Based on the B2B loyalty program examples provided above, you’ll see that each company typically handles the establishment of B2B incentive programs uniquely.
Some companies, such as Lenovo, created the program from the ground up. Others, such as Celebrity Cruises, have used innovative approaches to attract and retain loyal partners via their plan despite fierce competition.
It all comes down to figuring out how to increase partner loyalty via the use of your program.
