successful loyalty models in the b2 sector
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Successful Loyalty Models in the B2B SectorComarch loyalty management conferenceBarcelona, October 22nd 2010
Swiss Post Solutions Seite 2Successful Loyalty Models in the B2B Sector
Agenda
Why treat the B-to-B sector different?
What to consider before implementing B-to-B loyalty activities?
Current market situation
How to run a successful B-to-B loyalty program?
Conclusion/Contact
Swiss Post Solutions Seite 3Successful Loyalty Models in the B2B Sector
The current market situation in the B-to-B sector is tense
1. Increasing number ofcompetitors
2. High importance of budget efficiency
3. Cost oriented bidprocesses
4. Retailers face:
…demandingcustomers
…increasing rents
…high storage costs
Managing the tight market situation (short-term challenges) and simultaneously moving business to „the next level“ (long-term strategy) is a challenge in the
B-to-B market.
Swiss Post Solutions Seite 4Successful Loyalty Models in the B2B Sector
Customer loyalty is becoming more and more important - also in the B-to-B market
Increase of loyalty
Differentiation from competitors
Development of the business relationship
Optimization of order- and fulfillment processes through information exchange
Avoiding participation in price wars
Additional Value through customer loyalty in the B-to-B market
Swiss Post Solutions Seite 5Successful Loyalty Models in the B2B Sector
B-to-B relationship
B-to-C relationship
Building up a B-to-B relationship is a worthwile invest-ment – but invests are still lower than in B-to-C markets
Example:
In the DSL market appr. 350 €SAC are invested in a customer who spends about 700 € p.y.
Higher value
=
more invest?
Swiss Post Solutions Seite 6Successful Loyalty Models in the B2B Sector
Agenda
Why treat the B-to-B sector different?
What to consider before implementing B-to-B loyalty activities?
Current market situation
How to run a successful B-to-B loyalty program?
Conculsion/Contact
Swiss Post Solutions Seite 7Successful Loyalty Models in the B2B Sector
In the B-to-C market certain aspects boost the usage of reward programs
Initial situation for loyalty programs in the B-to-C market
One single contact person
Tracking of customer behavior
Additional information, i.e. attitude, interest,…
available (primary/secondary sources)
Emotional involvement
Possibility of offering value added services
Scalability
Swiss Post Solutions Seite 8Successful Loyalty Models in the B2B Sector
In contrast to the B-to-C market, the initial situation for B-to-B loyalty activities is different
Initial situation for loyalty activities in the B-to-B market
Buying center
Various persons/departments with different goals
involved
Legal restrictions
Benefit structure –personal or companybenefit?
Moving target
Personal contact throughsales force
Swiss Post Solutions Seite 9Successful Loyalty Models in the B2B Sector
Agenda
Why treat the B-to-B sector different?
What to consider before implementing B-to-B loyalty activities?
Current market situation
How to run a successful B-to-B loyalty program?
Conclusion/Contact
Swiss Post Solutions Seite 10Successful Loyalty Models in the B2B Sector
Basically there exist two different types of business relationships which go along with different challenges
(manufacturing)company
Services company
(manufacturing)company
Retailer(s)
1
2
Different Models
-
Different challenges
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In large companies different persons are involved in the buying process
BuyingCenter
Expert
Gate Keeper
User
Buying agent
Decider
Who to adress?
Where to get up to date contact information?
Whose needs should be considered?
Who appreciates which benefits?
Who may use the benefits?
Situation 1
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In the B-to-B market the retailers play an important role to the manufacturers and to the customers
Situation 2
Manufacturer Retailer Customer
Swiss Post Solutions Seite 13Successful Loyalty Models in the B2B Sector
But not only the business relationship is an important influence factor to the individual loyalty strategy
country specification
Product-strategy
Program-strategy
Competitors Legal framework Political framework Finance
Type of businessrelationship
Branch/Market segment
Market position
Individual B-to-B loyalty strategy
Swiss Post Solutions Seite 14Successful Loyalty Models in the B2B Sector
For implementing the loyalty strategy different tools and methods can be used
Corporate Publishing
B-to-B Platforms
Integration in engineering
Special eventsReward programs
EXAMPLES
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Depending on the individual market situation B-to-B loyalty instruments can be used
Instruments:
- Retailer Platform
- Reward program
- Engeneering integration/customization
Instruments:
- Individual contact
Loyalty Program Sales Force
Possibilities:
Constant direct contact
Retailer/Customer initiated contact
Continuous information flow
Enforcing certain actions due to rewards
…
Possibilities:
Personal contact
Direct feedback
Quick establishment of personal relationship
…
Difficulties:
- Limited personal contact
- Set up/running/improvement necessary
Difficulties:
- Success strongly depending on quality and manpower of sales force
- Only certain contact points/appointments…
Swiss Post Solutions Seite 16Successful Loyalty Models in the B2B Sector
Agenda
Why treat the B-to-B sector different?
What to consider before implementing B-to-B loyalty activities?
Current market situation
How to run a successful B-to-B loyalty program?
Conclusion/Contact
Swiss Post Solutions Seite 17Successful Loyalty Models in the B2B Sector
Examples of successful B-to-B Programs -Farming-
Our solution for an international farming company
Full Service Reward Program
Individual market
analysis & business case
calculation
Development of a unique program concept
Implementation of the strategic program
concept: -Marketing concept-IT implementation
- Partner integration-…
Fulfillment
1
2
3
4
Swiss Post Solutions Seite 18Successful Loyalty Models in the B2B Sector
Examples of successful B-to-B Programs –Gasoline I-
The Aral Aktiengesellschaft (joint stock company) currently operates around 2,400 petrol stations (approx. 1,500 tenants / approx. 630 freehold tenants) in Germany and, as the market leader, thereby offers its customers a comprehensive network of petrol stations.
- Complex contractual situation
- Lots of service stations are operated by tentants (dealer owned/dealer operated)
- Guaranteeing constistantcompliance is difficult
- Developing & implementing an incentive system
- Motivation to take part in certain special offers and activities
- Integration of more than 600 freehold tentants
Initial situation Goal
Swiss Post Solutions Seite 19Successful Loyalty Models in the B2B Sector
Examples of successful B-to-B Programs –Gasoline II-
ConsultationTechnical
designImplemen-
tationHosting/ Operation
- B-to-B reward program
- Target group: free tentants
- Concept: rewards for tentants who participate in certain special events, promotions etc. (criteria-based reward logic)
- Marketing: Introductory campaign for the participating petrol station tenants
- Go live: on tim on 01.04.2010 after a total project duration of only four months
Our solution for ARAL
Swiss Post Solutions Seite 20Successful Loyalty Models in the B2B Sector
Agenda
Why treat the B-to-B sector different?
What to consider before implementing B-to-B loyalty activities?
Current market situation
How to run a successful B-to-B loyalty program?
Conclusion/Contact
Swiss Post Solutions Seite 21Successful Loyalty Models in the B2B Sector
The key to successful B-to-B loyalty activities is…
…to understand clients´ needs
… to look at the individual market and internal situation
…to integrate professional partners, so you can focus on your core business
…to analyze the current loyalty activities
…and last but not least to develop and implement an individual reward program
Conclusion
www.swisspost.de/solutions
Your contact
ContactKilian Thalhammer
Director Solutions Management
main: +49 (89) 2441 059 – 50direct: +49 (89) 2441 059 - 52fax: +49 (89) 2441 059 - 63mobile +49 (160) 4784 995E-Mail: kilian.thalhammer@swisspost.eu
XING-Profil:
Swiss Post Solutions
E-Business SolutionsAlbert-Roßhaupter-Str. 3281369 München
www.swisspost.de/solutionswww.slideshare.net/swisspostsolutions
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