Why you need to build customer loyalty sooner rather than later
When your focus is being pulled in multiple directions, it’s easier to prioritise what’s in front of you rather than add another consideration to the list. But you should know that companies using their own branded version of the Incentivesmart customer loyalty platform to run their channel incentive programmes are reaping commercial benefits from rising engagement and loyalty. They’re rewarding and recognising resellers, designers, installers, distributors and other trade customers, which means they’re increasing sales, protecting revenue, reducing churn and motivating their channel partners.
- A premium brand saw a 19% increase in sales in the first year of operating their new channel incentive programme for designers and showroom staff, powered by their own-branded version of the Incentivesmart customer loyalty platform
- A manufacturer of automotive parts found that even long-established loyalty programmes keep growing with Incentivesmart, with numbers of active dealer members increasing by 29% over four years
- Another premium manufacturer saw their Incentivesmart-driven installer loyalty membership increase by 72% over just two and a half years
You’re never too small for loyalty. A high retention rate will always benefit your bottom line, whether you’re servicing a handful of resellers or hundreds of installers and branches. With every day of delay, channel partners and customers who could be boosting your sales now and long into the future are being acquired and retained by competitors. Which means that now is always the right time for sharpening your competitive edge.
1. The right loyalty programme can cut your marketing costs
Finding new customers is always important, but sales and marketing activity focused solely on acquisition can eat up a considerable chunk of your time, effort and money – often with unpredictable results.
And without a loyalty programme, what will make even the newest customers come back to buy again? Service and product quality are undoubtedly key, but when you’re up against close competitors, it’s important to acknowledge that customers can have more choice than ever and can quickly turn to a rival if you’re not building the relationship on an ongoing basis.
The good news is, when you focus on building loyalty, you don’t need to throw so much money after new customers – stronger retention means lower acquisition costs over time. Returning customers often spend more money than new customers, too, making lifetime customer value an important consideration. Loyal customers are also most likely to provide you with brand advocacy and valuable testimonials (that all-important social proof – and nothing beats word-of-mouth recommendation).
2. Loyalty schemes help to reduce revenue erosion and customer churn
Weak engagement leads to reduced spend, less advocacy and increased vulnerability to competitors.
A strong, purpose-built customer loyalty programme can be the best way to engage and retain your business customers, acting as a safeguard against sales erosion and the high cost of losing business to competitors. Putting that safeguard in place ‘at some point’ just isn’t enough to weatherproof your business and ensure steady growth. If you’re not doing enough to boost retention through B2B communication and loyalty incentives, you can’t be confident about any long-term projections.
3. Loyalty schemes generate valuable data
Motivating your customers to regularly interact with your brand generates opportunities for gathering key data and obtaining valuable insights into who they are and what they do. Loyalty schemes are a proven way to build a strong data profile that will underpin your future interactions with channel partners and resellers, and help shape the offers and tactical campaigns you direct their way.
Use what you learn to target product sales, drive engagement, and generally stand out from your competitors. Supermarkets, the champions of B2C loyalty, have been doing this for years: recommending products, tailoring offers, and offering exclusive discounts to their loyalty scheme members – all based on known profiles, preferences and buying behaviours. The same principle applies in B2B.
4. Channel incentive programmes keep business customers engaged
It’s never too late to start building a loyal customer base: individuals who are actively engaged with your brand and motivated to continue giving you their business. Instead of discounting, like your competitors, you’ll be consistently building genuinely rewarding relationships with them every time they interact or make a purchase.
Loyalty is an incredibly valuable asset, particularly if you’re looking to keep partner and reseller channels motivated. With Incentivesmart, you get a programme that is purpose-built to maintain a high level of interest and engagement over the long haul through targeted incentives.
5. You can do more than reward what’s already happened – you can influence what happens next
Incentivesmart’s customer loyalty solution is much more than a platform – it’s based on your commercial goals. It’s backed by decades of incentive and motivation expertise, plus a pricing model that means you only pay for the reward once it’s done its job (pay on redemption).
Find out more about us on this website, or get in touch now to explore the possibilities.
Interested in finding out more?
B2B customer loyalty programmes: the complete guide
Loyalty points programmes: A crash course in loyalty rewards (with examples)
Your guide to customer and channel loyalty
Why loyalty might just be the most under-used tool in your growth strategy
