Customer Loyalty: How Do You Do It In B2B World?
Jay Ehret wrote a good post on Starbucks "loyalty" programs. I say "loyalty" because, as Jay points out, most of these benefits – cards, free WIFI – are more of a pain in the java bean than anything else. I’m not a huge Starbucks fan, anyway, so reading Jay’s post won’t make me go to Starbucks any less (which is zero times a week). But, it did get me thinking about my coffee joint, why I go there and if B2C loyalty tactics can successfully be adapted to the B2B world.
Unlike Starbucks, the BeanTowne Coffee House has meanigful customer loyalty programs: buy ten coffees and I get one free, a drawing to win a free lunch after you buy ten coffees and free WIFI that just works. These benefits, along with a constant, friendly staff and good coffee, make the early morning choice easy. Now that’s the B2C world, where, it seems to me that customer loyalty programs are straight forward (if executed properly).
But, a lot of us live in the B2B world where, beyond providing great products and services, customer loyalty seems a little more complicated. So, have any of you adapted customer loyalty tactics of the B2C world to the B2B world? If so, What has worked brilliantly and what has failed miserably?
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July 29th, 2008 at 4:38 pm
Jeff,
Interesting question–a pretty tough assignment, unless you’re talking about FedEx, or Canon copier services, etc., where it might work pretty much the same.
I can hardly wait to suggest the “Buy ten Hot Jet Aluminum Billet Furnaces, Get One Free” promotion to one of my clients. Actually, they might go for it, thinking that by the time any client actually got around to needing ten of those babies (maybe a half million each), we’ll all either be in heaven or someplace where we certainly won’t need furnaces.
July 29th, 2008 at 6:08 pm
Mike-
I know, right? I don’t really have an answer either. I’m hoping a reader will come up with something.
-Jeff
August 4th, 2008 at 8:02 am
Jeff,
I wrote an article about B2B loyalty programs for MarketingSherpa a couple of years ago.
Suffice to say, B2C loyalty programs, such as points programs, don’t work for B2B.
This is because in B2B, especially with regard to large companies, you’re marketing to many people who either influence or directly oversee the purchase — versus one individual.
To develop customer loyalty, according to the experts I interviewed at the time, you have to maximize customer relationships — i.e. find out why they stopped doing business with you, find out what they want and then give it to them, identify your best customers and then give them perks others don’t get, etc.
For example, Volvo Rents broke rules for special customers — i.e. opening a store on Sunday morning or making a late night delivery.
August 4th, 2008 at 10:50 am
Dianna-
Thanks for your insights. Beside what Volvo did, do you know what other perks have been used?
-Jeff