2022 CONTRACTOR'S LOYALTY REPORT
The B2B loyalty landscape has undergone significant change in the past five years, especially among small business customers. Nowhere has this change been more pronounced than the building and contractor industries where hundreds of thousands of small business operators spend millions of dollars to buy materials, supplies, equipment, and services needed to do their jobs. Who they buy from and how they buy is complex. Historical patterns once dominated by visits to wholesalers and distributors, though still important, no longer command the bulk of purchases. Loyalty marketing and reward programs are shiftingas the landscape shifts. COVID-19 accelerated a shift that was already occurring.Download
CASE STUDY: EVOLVE OR DIE
In 2007, Ideal Electrical, the New Zealand unit of Rexel, launched a B2B loyalty program called Ideal Rewards. Having partnered with Reward Paths parent company, Incentive Solutions Ltd. (ISL), the program had a strong start and was well received by customers in the electrical trades. It ticked all the important boxes – sales gains among the target audience and increased retention – and was viewed as an overwhelming success in the immediate years that followed.
But like so many programs, Ideal Rewards stayed largely the same for over 11 years. Same points. Same structure. Same rewards. At the same time - competitors were investing more and more into competing programs, taking the attention away from Ideal's loyalty efforts. Competing programs launched new initiatives with improved value propositions for the electricians and soon some of the target audience started to migrate. Something had to be done.Download
CASE STUDY: STEEL & TUBE
In October 2018 Reward Paths parent company Incentive Solutions Ltd (ISL) launched a new B2B Sales Growth and Customer Loyalty programme for Steel & Tube (S&T). The programme called 'No.8 Wire Customer Rewards' was initially targeting long tail/ small to medium customers, for S&T's Steel Distribution division. Based on its success, No.8 Wire has now been expanded throughout S&T's other businesses and customer groups. ISL deliver end to end programme management working in close partnership with S&T.Download
THE GEMINI EFFECT
Veteran B2B loyalty marketers know that the redemption experience in any program is often governed by a strange two-headed phenomenon commonly referred to as The Gemini Effect.
As specialists in the B2B loyalty space we knew that "members" of any loyalty program had two distinct personalities. An individual signed up the business as a member of the program given the potential for reward and recognition based on the transactional and behavioral relationship the business maintained with the sponsor. But it was the individual who was the authorized member – an owner, general manager, accountant, etc. – and would therefore make decisions about the effectiveness of the program, the level of satisfaction obtained by belonging and ultimately what rewards would be redeemed.Download
LOYALTY AUCTION BEST PRACTICES
10-point guide to loyalty auction best practices
Strategy, Technology, Communications, Award Selection, Currency Choice, Limits, Social Elements, Timing, Survey, Make it fun!
Discover the best practices in our guide to loyalty auctions.Download
B2B LOYALTY GUIDE
The Essential Guide to B2B Loyalty is an e-book published instalments by our US company, Reward Paths. The book provides an essential overview of every aspect of building customer loyalty in the business-to-business (B2B) services space. Whether you're selling goods and services to small-to-medium (SMB) business owners, a wholesaler selling to contractors, or a professional selling your services to other professionals, the B2B Loyalty Guide provides you with the tools and best practices to build customer loyalty that lasts.Download
INSIGHTS: THE CONSUMER INSIDE
The ten essential components of B2B loyalty programs
Customer loyalty is arguably more important in business-to-business (B2B) industries than it is in consumer industries. That’s because, in B2B firms, the 80-20 rule is sometimes the 90-10 rule: the top 10 percent of your customers can account for 90 percent of your profits. The good news: by identifying the key purchasers and influencers in your client organizations and then building relationships with them that mimic relationships in the consumer world, you can increase the retention, yield, and lifetime value of your best customers. Here are the ten steps to finding the consumer inside your business client— and building loyalty that lasts.Learn more
CASE STUDY: PLUMBING THE DEPTHS OF LOYALTY
How one plumbing supplier achieved a double-digit increase in market share
A plumbing supply company experiencing flat sales wanted to explore a customer loyalty strategy designed to motivate plumbers in the mid-tier market to shift more share to their operation. Enter Reward Paths. After a thorough examination of the company’s business model and financials, we designed and launched a 6-month trial loyalty program constructed around specific, targeted goals for each individual plumbing company. Find out how Reward Paths helped the company generate a market share increase of approximately 10 percent.Learn more
INSIGHTS: LOYALTY BLUNDERS
Avoiding the most common loyalty pitfalls
Structured properly, executed flawlessly, and well-aligned with your brand, a customer loyalty program can pay big dividends in retention, advocacy, and increased yield from your best customers. Loyalty programs work because their design is built on a foundational understanding of human psychology and our very human desire for recognition and reward. Research has shown, however, that half of all loyalty program launches fail within two years of launch. Very often, programs fail for the same reasons; so much so that it's possible to catalog the most common loyalty blunders to avoid when designing or relaunching your own loyalty program. Discover the ten most common loyalty pitfalls.Learn more
Reward Paths suites include
Experienced and affordable loyalty program design and consulting services that can help you navigate your way down the optimal B-to-B loyalty path.
Our suite of analytical models and data-driven design tools designed to help uncover the unique customer DNA that delivers superior program results.
Our affordable, transparent and customer-friendly reward sourcing and design services deliver compelling, unique and differentiating reward content.
Our cloud-based, best-in-breed loyalty and reward management system offers unprecedented choice, flexibility, and control.
Our communications strategy and design services deliver customer engagement across web, print, and mobile channels to drive superior program results.