The main drive of a business should be to keep your clients coming back (revenue), and to not lose them to your competitors (turnover). Recent research from Inc. says that it costs a business about 5-10 times more to acquire a new client than it does to sell to an existing one — and on average those current clients spend 67% more than a new one. Basically, keeping existing clients around is like earning free money! Losing them is like giving money away.
But how do you keep them coming back? Aside from an excellent product or service, many clients will stay with a business if they are a member of that businesses’ B2B customer loyalty program. They’re a great tool to enhance your business. If you have or are looking to start your own B2B customer loyalty program, here are five ideas to consider:
- Don’t Complicate Things – K.I.S.S. (Keep It Simple Stupid) is the way to go if you want your clients and channel partners to engage in your program. People don’t want to have to do complex math and/or need a calculator and a notepad to make sense of the value of the points they earn. It should be simple, like “x points = x dollars.”
- Use a Tiered System – Give a small reward as an initial offering for joining the program. You can then encourage them to move up the “loyalty ladder” by increasing the value of the rewards as they progress. This will ensure that they continue making purchases from you, and that they feel they’re being rewarded for their increased loyalty. It answers the question of “what’s in it for me?” for all parties involved.
- Paid VIP Club – In some instances, a one-time, annual fee that lets them bypass certain purchasing requirements in the program can actually be beneficial. They may want to participate in your program but don’t want to have to buy the first 15 items to get the points later on from buying bigger items. A pay “VIP” club lets them get in on the action they want without having to trip over the small details.
- Discounts – If you want them to keep coming back, but don’t want to have to do the whole program thing, try offering promotional coupons and discount codes. This idea works even better when partnered with a B2B customer loyalty incentive program. Providing value to your clients can oftentimes be just as fulfilling for them as a reward is. Doing this allows you and your programs to appeal to your entire customer base, and not just some of it.
- Gamify It – Gamifying your loyalty program is an incredibly fun and easy way to encourage repeat purchases. And depending on the type of game you choose, you can also help solidify your brand’s image and relationship with the customer. Fun promotions make the customer feel much more intimately linked to your brand, and relationship is crucial to keeping it on top of your customers’ minds.