How to solve revenue issues with a B2B incentive or loyalty program.
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Now that 2022 is in full swing, you should be reviewing where your best business opportunities come from, build plans to address change and set budgets for the forthcoming financial year.
You’ve no doubt read lots of articles about ‘Trends for 2022’, or predictions for our market already this year. Unfortunately, living with current market fluctuations and changes are now our new normal. With so much change around us, it’s difficult to feel bold when considering new directions or plans for the coming year!
212F believe that the start of a new year is the perfect time to discuss your business plan. A good place to start is to review the issues that hurt your business last year. For many, the instability of the last two years, due to the pandemic, could mean there are a lot of issues to solve.
Luckily, we work very closely with our clients and partners across a wide range of industries and have been reviewing their data, processes, and challenges to help them to solve their business pain points. So, we can share with you some key insights into the common pain points that B2B businesses have recently encountered, regardless of their industry.
Doing a similar pain point analysis for your own business will help you to highlight your operational, sales, acquisition, and growth weaknesses, while also pinpointing those bottlenecks and other pressures that are impacting your bottom line. If, after reading this article, you then wish to discuss your business pain points in detail with 212F, we can help you develop new strategies and programs to reduce or solve your issues, and change the behaviours of your customer base to build strong growth in the coming year.
After 25 years, our pain point methodology has helped us to understand the issues that B2B sales and marketing leaders are facing now, and our specially designed rewards programs will quickly make your business pain points a thing of the past.
We’d like to share our top 5 insights into incentivising B2B loyalty in 2022 . . .
Share of wallet is a strategy that many businesses use to guide their B2B customer base on the best goods and services to buy while allowing them to choose when they buy, how much they spend, and who they buy from. The question is, how much of the customer’s wallet are you currently receiving, and what are you doing to grow that share in the future? If you are struggling to get the larger portion of their spend, then a 212F rewards program will help you target and capture the loyalty of your customers, and better understand their purchasing drivers, while driving growth and positive ROI for your business in the market.
You can slice or dice sales any way you want, but ultimately, you should always be looking for strong business growth, whether you calculate that in dollars, units, or any other measure.
In 2021, we saw lengthy supply chain delays severely impact many industry programs causing loss of growth because key stock items were scarce or not available. This saw many industries struggle to maintain their expected growth because of the delays. So, when choosing a rewards program for 2022, it is important to focus more on sales performance than growth this year, and use the current situation as an opportunity to cross-sell to other product lines, available stock or even premium stock.
A cross-sell strategy will give you much stronger cash flow, as well as increased growth in your market share. Plus you will see an improvement in moving your slow-moving or dead stock that will also improve your bottom line. And, by rewarding your customers for purchasing end-of-line or premium stock, you will ensure the ongoing loyalty of your main customer base while running your rewards program within the dictates of the current market uncertainty.
As always, maintaining or growing margin is critical to business success because it shows if your current pricing covers your cost of goods sold. Remember, more margin = more freedom. So, the larger your margin the more flexible your pricing policies can be. In addition, having your sales teams focus on higher-margin products – and on the customers who buy them – will build a strong foundation sales database for the future, rather than the short-term approach of reducing margins to achieve high “volume now”.
Commonly coined as customer loyalty, retention and engagement is paramount to your continued success. Particularly in an uncertain market. Successfully retaining customers who buy premium stock and spend often is far more valuable to your business than acquiring new customers on low margin items. Customer churn is one of the most visible and harmful pain points for any business. Loyalty and retention activities, like rewards or incentive programs, will help you to reduce customer churn by improving their customer experience, and ensuring their continued future spend with your business long into the future.
Price can be a significant pain point in a competitive market. The go-to strategy for most businesses, when looking for new customers, are the ever popular promotional sales or discounts. Unfortunately, reducing your margins to attract quick sales can be a dangerous strategy and a very costly exercise, especially if your competitors are all doing exactly the same thing, and you end up in a price war. Ultimately, promotions and discounted prices have caused many businesses to fail, because they lowered their margins too far, damaging their brand. Instead, your focus should be on maintaining your regular pricing, whilst offering your customers more value than your competitors offer. Rewards and incentive programs add value to your brand, and 212F rewards strategies have shown that rewards conquer discounts every time. In fact, rewards completely remove many pain points associated with discounting, and will give your business the price protection it deserves, and your loyal customers will appreciate more.
Most business pain points come about through poor sales processes and positioning strategies. A loyalty and rewards program, like 212F, will move your focus away from tracking revenue to tracking customer behaviour and sales performance, reducing your pain points in no time at all. Sales performance is a critical part of the universal language of business, and a loyalty and rewards program can easily relate back to a standard business metric like ROI to keep your Finance department happy.
Employing a new B2B incentive and loyalty program in 2022 will help you shift the focus of your Sales program design towards better profits and stronger customer base, allowing you to give more time and thought to your future goals.
Many businesses are currently avoiding performing a Business Pain Point Analysis, preferring to first wait for the market to settle down first. However, those businesses who take pleasure in addressing their pain points now will gain a competitive advantage over their peers because they will have the essential pillars and B2B loyalty, incentive or rewards program in place to help them meet their business objectives regardless of uncertainty, as the pandemic pushes them towards the new normal throughout 2022.