Successful loyalty models in the b2b sector

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


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.


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


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?


Agenda





Conculsion/Contact


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


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


Agenda





Conclusion/Contact


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


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


In the B-to-B market the retailers play an important role to the manufacturers and to the customers

Situation 2

Manufacturer Retailer Customer


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


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


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…


Agenda





Conclusion/Contact


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


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


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


Agenda





Conclusion/Contact


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: [email protected]

XING-Profil:

Swiss Post Solutions

E-Business SolutionsAlbert-Roßhaupter-Str. 3281369 München

www.swisspost.de/solutionswww.slideshare.net/swisspostsolutions

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Successful loyalty models in the b2b sector

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