Loyalty tailored to B2B2C’s can and will grow the customer base, benefiting both companies involved. Committing to a loyalty program with too many changing factors may cause distress to some, like the three-body problem where we face the inevitable challenge of uncontrollable 3 variables.
Creating a B2B2C loyalty program isn't as daunting as it may seem at first glance. While there are challenges, having certain fundamental tools and establishing clear parameters can significantly streamline the process.
This blog post will discuss how to implement B2B2C loyalty programs in 4 easy steps while presenting the challenges and benefits of implementing one. Let’s start!
Is it Possible to Create a Loyalty Program for B2B2C’s?
Creating a loyalty program specific to B2B2C models is possible. In fact, implementing such a program can be highly beneficial for businesses operating in this space. A well-designed loyalty program can strengthen relationships with business clients and end consumers and aid in setting the business apart from competitors within its' vast industry. It can serve as a unique selling point and attract new clients while retaining existing ones.
Loyalty programs incentivize customers to continue doing business with the company while generating valuable data on customer behaviour, reducing churn and increasing customer lifetime value. This is valuable for the intermediary business (the second "B") and the original provider.
Implementing a well-thought-out loyalty program can drive repeat business and increase customer retention, contributing to revenue growth for all parties involved in the B2B2C relationship. It can also serve as a bond-strengthening tool between partners. Companies that grow together stay together!
How to Create a B2B2C Loyalty Program in 4 Easy Steps
Strategic planning for loyalty programs should always start with two fundamental steps: defining clear goals and gaining a deep understanding of the target audience. These two will be the road map for your loyalty program; with the answer to those, you can easily understand where you want to go and where you will end up with your loyalty program.
1) Reward System: Choose Your B2B2C Incentive
When creating a loyalty program, you have different incentive options. You can give out points that can be set aside for use in the future, or you can immediately offer exclusive discounts, rewards, freebies, and so on. For B2B audiences, offering marketing support, discounts, or rebates is ideal. Since they buy in high volume or package deals from other companies, offering to return an amount of the transaction or giving discounts will work like a charm. It is slightly different for B2C. Discounts on products, special access to new stuff before anyone else, or even points based on the amount you spend are excellent incentives.
Your main goal when creating incentives for your loyalty program should be to create a solution that will benefit each of the business models. That's why offering a mix of rewards is important—some that involve money (like rebates or bonuses) and others that don't (like exclusive access to new products).
A good example of this can be different approaches towards B2C and B2B with tier incentives. You can give out exclusive rewards or money to B2B’s as the sales go up. For B2C’s, the more the merrier! The more they buy or interact with the brand, the better deal they get. Giving out rewards almost immediately without stretching the process out will establish a sense of community and trust towards you!
Loyalty Incentive Examples to Choose From
You can offer different rewards or perks based on the level of engagement or purchases, encouraging both businesses and end consumers to strive for higher tiers. Early access to new products or services for loyal customers, offering exclusive discounts, and praising their loyal engagement will give them a sense of royalty within your company, almost like they are being seen. This will increase loyalty more than you think!
If you want to establish a loyal base, not keep them, you can try out personalized recommendations and reward points systems. In the long and short run, these two will market themselves for you! Use your B2B2C benefits to offer discounts from your partners and propose joint promotions to enhance the overall value proposition.
- Organize special events or experiences; Gen Z loves it!
- Let people recommend you with incentives (make your friend join, win discounts as a duo).
- Provide excellent customer service, which both business models (B2B & B2C) value highly.
2) User-Friendly Platforms for B2B2C
A fast, neat, and clean interface will make it more comfortable for customers and everyone involved in the B2B2C program to keep track of their activities, claim rewards, and see what you offer. You can’t tailor that specific platform for just one model; you need to consider both the customer and the business.
Allow businesses to submit rebates on behalf of their customers through the portal. This way, everyone can get their rewards without any extra fuss.
Go for the tech advancements to make life easier for those who interact with you.
“74% of people are more likely to return to a mobile-friendly site, and 67% are more likely to buy a product or service from such a site. Approximately $2.6 billion in annual revenue is forfeited due to sluggish website loading times.”
3) Launch Party: Communication within B2B2C
Creating a communication plan is vital for every organization. You must ensure everyone knows about the incentives, how to use them, where to get help, and what your business offers.
- Your loyalty program should have an identity.
All brands turn to loyalty programs to get benefits. How is yours different? Can you climb to the top within your industry? What are your competitors up to these days? These questions can only be answered with one answer: being different while being interesting—grabbing people's attention in the right way!
- Make a big deal out of it.
When it's time to launch your program, you want to make a big deal out of it! Send out launch kits to your partners and customers, kind of like invitations. These kits can include QR codes leading people to your program's website.
You need to make sure everyone stays updated about what's going on with your program all the time. Adjust your marketing strategies to focus on promoting your loyalty program. And what better way to spread the word than through the digital space!
- Make sure everyone feels special.
This is the tricky part because, as mentioned several times, you are not dealing with one but two simultaneously. To understand them better, you can give users different views on their dashboard and offer personalized promotions based on who they are and what they like.
- Provide step-by-step guides.
Not everyone sees the world as you do, people can get confused about how to use or participate in your loyalty program, and there is no better motivation killer than a complex loyalty program without explanations. So, provide step-by-step guides or training to help everyone succeed without needing too much help.
4) Use Your Data: Gathering Zero and First Party in B2B2C
In a B2B2C loyalty program, the data you collect is like a map that is full of valuable information about your customers and their buying habits. By looking at this data, you can learn all sorts of interesting things, like what products your customers like the most, when they like to buy them, and how often they shop with you. This helps you figure out what new products you should create or how to improve your existing ones. You can learn what your participants like or don't like about the program and then make changes to make it even more neat.
But here's the thing: figuring out all this data can be challenging. If your team is not skilled in loyalty programs or don’t know how to collect and break down data for future use, you might want to consider using experts like Kaizen.
How to Collect Zero and First Party Data in B2B2C’s?
Zero-party data refers to data willingly and proactively shared by the customer or user. This data is provided directly by the individual without intermediaries and often includes preferences, interests, and other personal information that the individual consciously shares with a business.
- You can collect zero-part through;
- Surveys and Feedback Forms
- Interactive Content
- Direct Conversations
First-party on the other hand refers to data that is collected directly by a business or organization from its own interactions with customers or users. This data is typically collected through interactions on the business's website, mobile apps, social media channels, email marketing, or other direct customer engagements.
First-party data is considered the most valuable type of data for businesses because it is collected directly from the source and is typically more accurate and reliable than data obtained from third-party sources.
- Website Analytics
- Purchase History
- Email Marketing
- Social Media Engagement
- CRM Data
Things like open rates, frequency of purchases, duo purchases, support tickets, sales interactions and so on will allow you to collect first-party data.
Loyalty programs are not one-time projects. Even after the launch, there is too much room for improvement. It is important to accept that nothing can be perfect and look for ways to improve without getting discouraged.
Conclusion
While it is possible and a must for B2B2C’s to invest in loyalty programs, there are steps that need to be taken to ensure success without hassle. You have to make sure your incentives benefit both business models, B2B’s and B2C’s. Platforms should perform fast and must include a B2B and B2C divider for effective use. Before starting out, you need clear goals and a good understanding of the audience.
Data gathered from your loyalty program should be effectively used, and you must be up-to-date with trends, technologies and customer needs. With Kaizen, you can do all of that with expert guidance; reach out to us to learn more about B2B2C loyalty programs!
