Can you buy customer loyalty?

By rotide
Created 29/12/2021 - 09:32

To answer the question before we get going, loyalty - no matter what aspect of loyalty you're talking about - can't be bought, but you can earn it. That rings true for B2B buyers - their loyalty is something you earn rather than gain throughout the complexity of the buying cycle. It's as simple as providing a great experience. 

Plus, there are tons of facts we could throw at you that prove why you should invest in customer retention. For one, acquiring a new customer can be up to 25 times more expensive. And another, for a 5% increase in customer retention rates, you can expect to see up to 95% return in profits.

And all it takes is for you to go above and beyond to meet the client's needs - you're going to be the company they come to with their next order. Let's explore that in more detail.

Personalise and Prioritise

We all want to feel appreciated, and B2B buyers are no different. In fact, 81% of B2B buyers wish for brands to get to know them and understand when to approach them and when not to. One way of doing that is by introducing artificial intelligence (AI). 

31% of businesses now use AI to help with their buyer's experience. With regards to personalisation, AI can scour business websites, indexes, and social media pages to compile a list of contact details and business facts that will help you create a personalised strategy of attack. By using AI, you can meet the needs of a business without even meeting the brand.

Rewards and Loyalty

Rewards and loyalty programs are the holy grail of B2B trading and B2C, for that matter. As consumers ourselves, we know a business is far more attractive if they offer a loyalty program - but sadly, not many B2C brands do. Instead, they offer discounts that are mathematically detrimental to profits further down the line.

73% of buyers want to partner with a company that offers a loyalty program as they feel it's a way of companies showing how much they value their customers. Not only does it help with buyer engagement, trust, and spending, but it helps promote referrals. And - referrals are an integral part of new business, with 83% of buyers agreeing they take the referral of other brands, friends, or family over the advice of any business sending marketing information.

You'll find a great example of a customer incentive program through this link www.incentivesmart.com/customer-loyalty [1]. The points-based reward system is an effective way to engage your prospective and existing customer base. If you want to foster fruitful working relationships that reward both you and your buyers, a loyalty program is a way to go.

Track What Matters

If you want to improve buyer loyalty, you first have to understand where you may be going wrong - and that's easy to do if you track three specific measurements. Tracking these three measurements will allow you to analyse areas for improvement:

Tracking these three metrics will help you understand your customer retention rates more clearly and help you identify areas you may need to improve. Take net promoter scores, for example. If your net promoter score is low, you know you need to do more to help with referrals. 78% of the B2B referrals create viable customer leads [2] for the business - so it's worth tracking this score.

In short, you can't buy customer loyalty, but there are tons of strategies to put in place and metrics to track that should help your customer retention rates. Customer loyalty is about fostering a great working relationship built on impeccable customer service, loyalty programs, and clear communication.


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