Is Your B2B Loyalty Program Losing Members?
5 ways to re-connect with your loyalty program participants post-Covid
By Ko de Ruyter, Debbie Keeling and David Cox
It’s a bit of an understatement to say that the global pandemic has caused challenging trading conditions for a lot of businesses. Lockdowns have meant drastically reduced or zero product sales. Customers have become less motivated to buy from you and are more cautious about their spending. And if your company runs a loyalty program, the knock-on effect may well be that program members have given up on it.
After a period of dis- or even un-engagement, cancellations, and plummeted sales figures, it is time to reconnect with your B2B loyalty program members.
Here are five ways to get them actively participating again in your program:
1. Survey Members
These days many firms have an ‘exit’ survey on their cancellation pages. It is really important, even if you think you know your business like the back of your hand, to ask why they cancelled. Inquire what it would take to regain your members’ business. It is important to not only ask what members think (their perceptions and experiences), but also what they want (their program preferences). However, what is even more important is that offering an opportunity to speak their mind signals that you care about your members’ business. If done right, a survey allows you to add a meaningful touchpoint to the relationship.
2. Profile Members
Applying advanced statistical analyses (like RFM analysis and propensity matching), allows you to recognise a range of member cancellation profiles. By analysing past loyalty behaviour you can actually calculate which members are highly likely to re-engage with your program (aka the low hanging fruit). This is usually a small but profitable program segment, so it pays to simply engage in a high touch reach out. Other member profiles may require other comms strategies (for example ‘deal hunters’ or ‘promotion-prone deciders’). Your data will inform you what the best way is.
3. Forecast Your Future
Across all programs that we run, one conclusion always surfaces; members will significantly outperform non-members. Over time, if programs are managed well, members can exponentially outperform those not in the program. So, you need to focus on how to motivate your customers to cross the membership line. Forecasting is a special technique of making predictions for the future by using historical program data as inputs and analysing trends. This will allow you to strengthen the business case for your program and it will inform cash flow, planning of budgets and sales performance. And it will convince C-suite execs to invest in your programme as THE post-pandemic re-engagement tool.
4. Educate Members
The current Covid situation is not the only crisis that we are facing. Climate change, poverty, inequality, and discrimination are other crises that need to be addressed. This inevitably will impact the way in which customers take patronage decisions. In a para-Covid marketplace, your members will want to know about end-of-life cycle initiatives, product-emission rates, product provenance, and transparency of production. Provide your members with this information. Educate them and show, not just tell, that your program is a responsible program.
5. Reward Moments
Shake up the reward methodology a little bit and start to reward for special moments. These surprise rewards show that each and every value action is appreciated, particularly given the past 18 months where value actions have been overshadowed by Covid related news and events. Whether it be referring a colleague to the program, providing feedback online or to program sponsors, making a virgin sale of a new product category or increasing their visit to the program portal, random moment rewards show participants that you appreciate them not giving up!
