“Loyalty strategies are incredibly effective at positively disrupting the B2B sales cycle with moments of direct customer and indirect partner interaction,” said Kristin Cardona, senior director of strategy at Ansira. These touchpoints help push loyalty beyond program mechanics, embedding retention and relationship-building across the buying journey no matter if the sale is coming direct or from a partner ecosystem of indirect sellers.

Businesses that have B2B loyalty programs generate 32% more long-term clients than those without, according to a June 2023 report by Zipdo. The same report found that 81% of B2B marketers believe implementing a loyalty program strengthens customer relationships, while 37% say they provide a highly effective customer retention strategy.

Here’s what Cardona has to say about what makes a successful B2B loyalty program, especially those geared towards partner marketers or the indirect sellers of a brand's goods or services.

Q. What are the key differences between B2C and B2B loyalty programs?

A. There are a lot of similarities between B2B and B2C loyalty programs, such as building and maintaining strong long-term relationships. The key differences lie in the approach. For example, because B2B has a longer sales cycle, partner rewards tend to be focused on providing strategic value, such as consultations with industry or company experts, exclusive co-selling resources, or tiered pricing.

Q. How do you navigate those differences?

A. The first thing to do is understand your partner ecosystem. Do your research to figure out what is going to motivate them, much like you do with a consumer target audience. Then, tailor the rewards and make them relevant to their needs. To stay top of mind, devise a strategy that will foster interaction beyond the sale. Keep in mind that partners are people too, and they will still have consumer expectations that will bleed over into their professional life.

Q. What role does personalization play in the success of B2B loyalty programs?

A. B2B loyalty programs require customization, and that will usually start with partner segmentation based on partner type, region, or size. Incorporate data to identify what products and services are most valuable for you, your partners, and your shared customer base, so rewards can help partners avoid wasting resources on offerings that are not applicable to them. This flexibility is a draw, too, and partners will appreciate the choice and control that comes with being able to redeem a reward that they actually want and will use.

Q. What challenges do businesses commonly encounter when implementing or enhancing B2B loyalty programs?

A. One of the biggest challenges is low engagement and ongoing utilization. That’s why it’s important to have a strong program with simplified rules, ongoing communication, and a seamless enrollment process.

Another common challenge is scalability. As an enterprise grows, their partner programs need to be able to scale alongside their technology. That means the management of an incentive program requires not only a program design, but also tactical considerations that differ between partners. For example, global rewards are paid in the right currency following appropriate tax regulations. Insufficient or siloed data can be a barrier here, which is why we recommend investing in a robust partner funds and incentives platform to handle these types of B2B loyalty programs.

Q. How can businesses strike the right balance between incentivizing repeat business and maintaining profitability in their B2B loyalty programs?

A. Rewards programs should ultimately improve a business’s bottom line. Value-driven rewards centered around solutions, rather than discounts, will drive repeat business and maintain profit margins. These solutions should enhance your partner’s operations, create more efficiency, or increase their access to experts, customer support, or training. Partnering with another vendor through a joint rewards program can also improve the value proposition for partners while not significantly increasing your own costs.

To learn more about how your business can benefit from a B2B loyalty program, visit: https://www.ansira.com/Channel-Partner-Marketing-Solutions