13 Customer Loyalty Best Practices for B2B Companies

13 Customer Loyalty Best Practices for B2B Companies FI 13 Customer Loyalty Best Practices for B2B Companies

Marketers are often laser-focused on one thing: Get new customers. It ends up being such a focus that any other part of the customer lifecycle gets second-shrift.

This can cause a bit of tension, as most of us know keeping customers is nearly as important as getting them in the first place. And then there’s the quotes and statistics about the benefits of customer loyalty, aka customer retention. They usually go something like this:

Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.”

“Increasing customer retention rates by 5% increases profits by 25% to 95%.”

It’s hard to ignore stats like that. It’s frustrating to pour our efforts into getting new customers, only to lose them to churn.

Because of stats like that (or maybe because of competition, or because of pressure to grow, or simply due to the awareness of all this), B2B loyalty programs are on the rise. There’s more and more examples of them working, and marketers are increasingly prioritizing these loyalty programs.

You may have some kind of customer retention or loyalty program in place already, too. Or maybe it’s on your short list for 2017. Wherever you’re at, consider testing a few of these best practices for B2B loyalty soon. Many of your peers are already putting them to work.

1. Think beyond points and discounts

Good loyalty programs are fueled by both emotions and financial rewards. They address the two types of loyalty: emotional and behavioral. If your loyalty program neglects either of these aspects too severely, you may not get the results you want.

One idea for building loyalty that isn’t connected to money? Build your brand. Be known for high standards, strong ethics and doing the right thing. A strategic partnership with a non-profit might also help.

Here’s another idea: Focus on service benefits rather than reducing your costs. There’s nothing like reducing “the hassle factor” to cement loyalty, whether you’re a business or a consumer.

2. Coordinate across departments

Existing customers interact with several departments in your company. They need a coordinated, consistently positive experience if you want them to be loyal to you. Because of this, it’s critical your different departments are willing to bridge any gaps between the different services they offer. In other words, if a customer is having a problem, the mindset of “it’s not my job” or “that’s not my department” won’t do.

3. Measure what matters

You know the saying, “what’s measured increases?” Well, here are three measurements to track for loyalty:

Repeat customer rate (RCR)

How many of your customers buy from you more than once?

Customer lifetime value (CLV)

I hope you’re already tracking this. If not, learning it will be like turning the lights on in a dark room. CLV (aka “LTV”, Lifetime Value) affects more than just your loyalty program.

Net Promoter Score (NPS)

How likely are your customers to recommend you to their friends or peers? That’s what this metric tracks.

Hat tip to Bob Murphy for defining these in his MarketingProfs article, “How to Measure and Improve B2B Customer Loyalty.”

Let’s block ads! (Why?)

Act-On Marketing Action Blog