B2B loyalty providers must hone their offerings
Maintaining customer loyalty is an increasingly important part of most B2B marketers' jobs, yet many practitioners are ignoring the opportunities presented by B2C-style dedicated loyalty programmes. This is according to new research by B2B Marketing in association with Nectar for Business, which found that whilst 80 per cent of practitioners describe customer loyalty as 'critical' or 'very important' only 20 per cent have actually utilised formal loyalty programmes (see figure 1.)
The results suggest that cost or pricing of such dedicated programmes is not a major factor in many B2B marketers' decision not to utilise them, as it was cited by only 14 per cent of respondents. Indeed, the sums being invested in loyalty are significant: the majority (70 per cent) spend at least 10 per cent of their budget on loyalty initiatives.
By contrast, 'rewards not appropriate to my customers' was identified as the largest single reason for not using formal loyalty programmes, selected by 40 per cent of respondents. This suggests that programme providers have more work to do to tailor activity and rewards to specific audiences, and perhaps senior business audiences in particular. Nectar for Business, for example, which is the largest programme focused on the B2B space, is mostly targeted around the needs of SME members, rather than those in large corporates, and its proposition is designed accordingly.