5 Benefits of Trade Loyalty Programs
With a wide array of options from wholesaler groups, manufacturers, and suppliers, trade customers – ranging from carpenters, concreters, construction, to the more specific areas such as air conditioner and electricians – are no strangers to finding value in their purchases. Usually, these come through financial benefits such as discounts, trade terms, and rebates, but that’s not the only way to present your customer base with additional value.
By introducing B2B trade loyalty programs into your business, you can present a new standard of value to your proposed customer base and build customer loyalty throughout. This blog is going to take you through five of our top benefits of what a trade loyalty program can do for your business!
Benefit #1: Customer retention
It’s no secret that keeping a customer is cheaper than securing a new one. B2B sales go through a far longer vetting process during the early stages of the marketing funnel, so it’s in your business’s best interest to find a way to improve your customer retention.
With a B2B trade loyalty program, loyal customers will understand that repeat business with your brand will provide additional value for them through exchanging their hard-earned loyalty points for bespoke rewards, selected specifically for your target audience.
With these additional value points, customer loyalty programs allow your business to keep consumers coming back for more, especially considering the sea of products available to trade customers through retailers.
Benefit #2: Gaining insights on your customers
What if there was a way to find out exactly which products your customers prefer, when they go in to purchase, how much they’re looking for, and other specifics surrounding their buying habits?
The best loyalty programs provide businesses with valuable insights into how, when, and why your existing trade partners purchase your products, which will allow you to gain production information and anticipate specific annual trends. This customer data can be invaluable to any serious trade business.
When you consider the market-wide supply chain disruptions we’ve experienced over the last 12-18 months across Australia and New Zealand, imagine having the power to know ahead of time when to drop your stock and when to hold it. Well, trade loyalty programs may hold the answer for you in the form of customer data!
Benefit #3: Create lasting relationships
As we mentioned earlier, trade partners are used to choice when it comes to making purchase decisions with retailers. Creating brand loyalty can be a tricky thing, especially in a difficult economic market where revenue growth may not always be possible.
Loyalty programs elevate brands above competitors through a selection of aspirational rewards or memorable, once-in-a-lifetime trips, creating an emotional relationship with your brand, and turning your customers into brand advocates by speaking on the experiences they’ve had or value they’ve gained through your program.
For example – say a contractor has a choice of paint brands, one of which has sent them on a trip to France or given them a PS5, all for using their products – which do you think they’ll choose? Probably the one that rewards customers!
Even if there is a price difference, our experience shows that the one with a lasting relationship generally wins out.
Benefit #4: Staying Front-of-Mind
Many businesses would love the ability to jump right out to the customer and let them know that it’s time to buy again and have it cut through. The separation between consumers and companies is wide, and doubly so in B2B aspects.
With loyalty programs, you receive additional data from your customers, as well as the ability to have additional touchpoints with them. Notice that it’s been a while since their last purchase? Update them on the new rewards. Looking for those end-of-quarter sales? Point out how close they are, points-wise, to the next tier or aspirational reward!
Your trade partners will be glad to hear from you, especially when you’re announcing specific rewards and offers that are beneficial to them, and it will incentivise them to keep gaining points. Plus, the data that you gather will allow you to provide important communications, allowing your brand to stay front-of-mind for when they’re ready to make that next purchase (a trend you’ll be able to anticipate through knowledge of their buying patterns!)
Benefit #5: Flexibility of Solutions
The biggest benefit of a loyalty program for trade retailers is the ability to be flexible in the pain points that your organisation is attempting to solve. Whether the issue is finding a way to increase sales, power over competitors with an increased share of wallet, increase retention or gather intel on your trade partners’ buying habits, a loyalty program tailored to solving the problems facing your organisation is exactly what you need.
With our bespoke program design, we can help you tailor your communications and platform to specifically address the pain points your business is looking to solve, and work with you through strategy and implementation.
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Q: Are loyalty programs a good way to secure repeat customers?
A: Loyalty programs are a fantastic way to have your trade partners build brand loyalty. Using marketing campaigns for your rewards program, providing customers with a way to earn points that they can exchange for special incentives or other perks or benefits will keep them coming back for more, giving your business an advantage over rival companies.
Q: How are loyalty programs better incentives than discounts?
A: Discounted price points work differently than loyalty programs, in that discounts serve to secure sales right now, whereas loyalty programs benefit your brand through making repeat customers out of your channel partners. You may not always be able to guarantee discount price points in different economic times, but loyalty programs can secure more business by providing value to repeat and new customers, potentially leading to success through increase sales and positive brand sentiment.
Q: What are trade loyalty programs, and how do they benefit my company?
A: Trade loyalty programs are customer-centric initiatives designed to enhance company-consumer relationships. These programs offer rewards, including points and exclusive incentives, encouraging repeat business.
Q: Why should retailers invest in loyalty programs?
A: Retailers benefit from increased sales as loyal customers, drawn by enticing rewards, make repeat purchases. Loyalty programs also foster a sense of exclusivity, attracting new members.
Q: How do loyalty programs benefit channel partners?
A: Channel partners gain advantages through increased sales and collaboration with loyal customers. Early access to promotions and special incentives strengthens partnerships.
Q: Can loyalty programs be tailored for different services?
A: Absolutely, loyalty programs are versatile. Tailoring program design to suit various services ensures members earn points and enjoy benefits relevant to their preferences.
Q: What sets loyalty programs apart from traditional reward systems?
A: Loyalty programs provide instant access to rewards, fostering a sense of instant gratification. Unlike traditional systems, loyalty members enjoy early access to promotions and other special incentives.
Q: How do customers earn points in loyalty programs?
A: Customers earn points by engaging in repeat transactions, a simple and effective way to encourage loyalty. These points translate into valuable rewards.
Q: Are loyalty programs an effective way for companies to save money?
A: Yes, loyalty programs prove to be an effective way for companies to save money by retaining customers and reducing customer acquisition costs.
Q: In which industry are loyalty programs most beneficial?
A: Loyalty programs benefit various industries, enhancing customer retention and incentivizing consumers to consistently buy products or avail services.