Creating a loyal customer base is more important than ever for successful B2B channel marketing. One way to achieve it is through the use of a loyalty program. But more than having a loyalty program is needed. For better results, brands have to consider various aspects. One of them is Personalization.
Personalization refers to modifying rewards, discounts, and communication per the need of brands’ channel partners, like retailers, distributors, and warehouses. So that they sense the mutually beneficial relationship, a brand can create a more meaningful and engaging experience for their channel partners, leading to increased channel partner engagement and higher revenue.
| “Personalization matters more than ever, with COVID-19 and the surge in digital behaviors raising the bar. Three-quarters of consumers switched to a new store, product, or buying method during the pandemic.” By Next in Personalization 2021 Report by Mckinsey |
Advantages of Personalization
There are significant advantages of Personalization, some of which are mentioned below:
Opportunity Identification
A brand can collect data about its partners. With this data, they can classify their partners as per their behavior, preferences, and purchase history. This classification can personalize their b2b loyalty program platform.
A brand can use machine learning and data analytics to predict needs and preferences. It will show them which type of rewards and discounts will be more effective for which channel partners.
As per the report from Mckinsey, approximately 75% of consumers are ready to try new ways to shop. Out of these three-quarters of consumers, 71% consumers prefer Personalization. It means they want something that makes them feel special. Brands or businesses can help channel partners in that area to attract these consumers by providing new technology, extra rewards, or engagement activities.
For instance, if a brand can identify customers in an area that frequently purchase sports accessories, then they can offer sports-related incentives and rewards such as gaming activities, digital collecting cards, or discounts on sports accessories.
Rapid Activation and Optimization at Scale
Data analytics can be used for the optimization of loyalty platforms. With the help of data analytics, a brand can identify and promote the activities that motivate its channel partners and iterate or discard unproductive activities.
Rapid activation is one of the most productive aspects of a B2B loyalty program. A long and tedious process just for participation can be very discouraging for channel partners and consumers.
If they wish to gain more information about the partner, additional rewarding and engaging activities can be added later. Such as, after generating login credentials, their loyalty platform can offer various badges or digital rewards in exchange for filling in more information.
Data Enablement and Automation
A brand has many channel partners, including retailers, distributors, warehouses, and local vendors. Keeping data on each of them and managing them then rewarding them can be a hectic and tiresome process. When they add the factor of a tiered rewarding system or personalizing, it just becomes impossible.
| “Brands lean into data and analytics to identify opportunities. Looking across the customer life cycle, leaders build a granular view of where there is the most value. They leverage customer segments and microsegments, and factor in behavioral, transactional, and engagement trends.” Next in Personalization 2021 Report by Mckinsey |
Here, data enablement and automation become the superhero that the brand needs. It will collect the data and arrange them as per the requirement of the brand. It helps them to classify their channel partners as per their purchase history, engagement, and sales patterns.
Agile Operating Model
Flexibility in the starting of the loyalty program can help the brand to a great extent. Agility offers to create an environment where a brand can have many iterations and choose the one which works the best for that specific condition and channel partners.
This model involves breaking down the loyalty program into small, manageable parts that can be quickly tested and optimized. Once they choose the best practice for their loyalty platform, they will have the specific data and a clear-cut vision of what they should do next step.
| “Brands commit to an agile operating model. Businesses that succeed in scaling personalization create teams that cut across marketing, product, analytics, and technology, using a hub-and-spoke approach.” Next in Personalization 2021 Report by Mckinsey |
Capability Building
Brands should know the opportunity and capability that their channel partner holds. After that, they will have a crystal-clear view, where they have to develop new strategies, motivation, promotions, and incentives.
It will create a sense of familiarity and belonging among the channel partners. It increases engagement and ultimately tilts them to become loyal to their brand. These small nudges and tweaks go a long way to creating Personalization in a B2B loyalty program platform.
| “Personalization leaders align organizational resources around these use cases and work back from the desired outcomes to build the data and road map and identify the enablers and investments needed to deliver.” Next in Personalization 2021 Report by Mckinsey |
Conclusion
Whatever happens, ultimately, brands wish to increase sales and then profit. B2B customer loyalty programs are here to make it sustainable. Personalization is the most significant factor that affects channel partner behaviors. It can increase the sale by 40% in the market.
By leveraging data analytics and machine learning algorithms, brands can gain insights into behavior and preferences and create personalized experiences that drive engagement and loyalty. An agile operating model that enables them to quickly adapt to changes and iterate on their loyalty platform in real time.
Finally, brands must invest the necessary capabilities and resources to execute the loyalty program effectively. By getting Personalization right, brands can multiply the value and create a more engaging and rewarding experience for their channel partners.
