The average amount that B2B organisations spend on marketing activities is 13% of revenue. That’s a hefty sum. Especially if customer ‘leakage’ means a poor ROI. Adding to the importance of customer retention, and understanding ‘What is a loyalty scheme?’

(source: https://www.business2community.com/b2b-marketing/marketing-budgets-are-growing-again-say-cmos-and-marketings-standing-as-well-02397092)

To remain competitive, of course, you need a sustainable flow of potential purchasers. However, you are wasting a lot of your marketing and sales spend if your customers buy once and then defect to your competitors at an alarming rate.

Here’s a statistic every organisation needs to know. It costs around five times more to attract a new customer than it does to retain an existing one.

(source: https://www.profitwell.com/recur/all/customer-acquisition-vs-retention)

Also, have you heard of something called ‘vanity metrics’? This is when an organisation gets so focused on successfully harvesting sales leads it fails to fully assess the impact on sales figures.

The trick – of course – is finding feasible, affordable and simple ways to build customer retention, especially loyalty creation initiatives.

We have gathered some ideas on this vital topic, as well as insights into what successful customer loyalty schemes ‘look like’.

What is a good customer loyalty strategy?

The most successful organisations appreciate the importance of LTV – a customer’s Lifetime Value.

Once you have invested in bringing them to your eCommerce website, or B2B customer database, you should assess the likely revenue from repeat sales. Or better still, how much money you can make by getting them to buy more, or more often.

Also, could the LTV of your customers include the Holy Grail – positive customer recommendations and testimonials? These can boost your sales figures in magical ways!

Underpinning your customers LTV then involves investing in customer loyalty initiatives at an appropriate level. As well as rewards programmes and other incentives that match both your brand and your customers’ expectations, preferences and purchasing behaviours.

That is not as complex as it sounds, as we go on to explain further into this article about what is a loyalty scheme.

The basics of building customer retention

Before going on to explain some of the more dynamic and responsive customer loyalty programmes you can now buy into, here’s a quick reminder of the fundamental principles of building customer loyalty.

Website UX

Having an attractive eCommerce website, or highly brand-centric pages to promote your physical business or location, is not enough. This could still leave you with poor sales figures long term. The best performing websites adhere to robust user experience (UX) strategies. Ones that convert leads brilliantly and invite repeat visits to your pages.

Customer service in general

We can skim over this core business need, beyond mentioning that you must thoroughly and regularly assess (1) what your customers expect, want and need from your CS and (2) whether you are meeting those targets consistently.

This can include using technology to make your customer service more assured, reliable and effective. Including the sort of loyalty reward program they expect to benefit from, and things like clear and acceptable delivery and returns policies and procedures.

In other words – don’t assume you know your customers or get complacent about your organisation’s ability to match their CS demands.

Evidence-based reward ideas for customers

This is another aspect of customer retention that requires regular evaluation, to make sure the solution you’re using is effective enough.

There’s a tendency to slip into traditional patterns of offering discounts and deals, Such as periods of free delivery, or buy one get one free campaigns. Perhaps your biggest B2B customers get volume discounts, or your longest-standing clients are on ‘sweetheart deals’.

These can become a headache to manage!

Also, piecemeal or sliding scale customer rewards are so commonly used, they can lose their value. They may hold on to a customer temporarily before they look around for the next discount initiative from your competitors. The same applies to many incentives for new customers. They get them in but don’t prove successful in holding on to them.

Instead, you need a solution proven to create authentic loyalty, a system you can apply universally and consistently across your entire customer base.

So, what is a loyalty scheme?

This would involve a customer retention initiative that’s proven to work in creating authentic loyalty to your brand. What this looks like, can be different for each organisation, though the general principle is the same.

Your loyalty reward program must integrate with your existing technology, to create a seamless and agile way to build customer loyalty.

This could focus primarily on a dynamic discounting platform for your own products or services. However, for many companies – especially B2B ones – the best customer loyalty scheme would reward and incentivise using a diverse and appealing range of offers. Offers drawn from a dynamic range of non-competitive brands.

This perfectly illustrates to your customers that their continued relationship with you nets them ample and exciting advantages.

Online retailers may want to find a specialist provider of eCommerce platforms for discounts and customer rewards and incentives. However, keep in mind that leading loyalty platforms can be configured and adapted to fit around various B2B customer demands and expectations.

Leading loyalty platform providers work with you, for solutions bespoke to your business goals.

More insights on loyalty platform features

As referenced above, the best loyalty schemes based on digital platforms are easy to integrate, configure and personalise to your company’s products or services. They are also a white-label loyalty solution. That means they slot into your subscriptions system and backend CMS, for example, and become instantly synergic with your brand.

The Perx loyalty and rewards platform is a highly recommended loyalty scheme for many reasons. Not least, as it’s a turnkey loyalty-building solution, and it’s scalable and highly responsive.

Also, it has proven ability to retain customers for B2B clients.

Looping back to the customer acquisition v customer retentional differential, why not explore the cost of a customer loyalty scheme with our online ROI calculator tool. Or, contact us to learn more about what is a loyalty scheme or book a demo.