3 minute read
PARTNERSHIPS
GETTING DOWN TO BUSINESS
Are B2B loyalty programmes gaining the same sort of traction as their B2C counterparts? LISA WITEPSKI investigates
As businesses scramble to hold on to existing customers – never mind gain new ones – any new weapon in the arsenal is welcomed. Could this mean the stage is set for an increase in business-to-business (B2B) loyalty programmes?
Rioma Cominelli, director at First Loyalty Plus, believes the answer is yes. Loyalty programmes across most sectors in South Africa are exploding, she reports, as companies strive to add value for clients and drive retention.
But, while business-to-consumer (B2C) loyalty programmes are certainly benefitting from this increasing interest, the B2B sphere is lagging somewhat. DashPay MD Benjamin Powell maintains that although there is plenty of willingness to co-operate (and even, in some cases, develop partnerships), he is hesitant to say there is a cohesive B2B industry. “We’ve already seen several successful collaborations between brands, so there is interest in this model, but we’re not there yet.”
Powell says that while some of the big brands in mass retail are getting it right, it’s the country’s sports teams that are closest in scale. “If they could align their various sponsors with their fan base and get them all working together, they would have a captive audience of like-minded people engaging in the brand and its associated sponsors.”
WHAT WE’RE DOING RIGHT, WHERE WE NEED TO IMPROVE
When it comes to digital engagement, the industry is on target, Powell says, replacing the need for paper and cards or clumsy earning and redemption processes. The industry should also be commended for its efforts to maintain real-time engagement: transparent methodologies are in place, delivering tangibles, which enhances credibility while generating excitement.
Cominelli believes that in our hyper-digital world, the greatest opportunities lie in creating a substantial digital ecosystem or universe. group’s malls as an open loop, with individual brands and stores able to participate in a group app. Tenants and consumers can earn and redeem loyalty benefits across retailers at all Attacq properties. He points out that a fuel brand would do well to join the programme as a partner, as such companies target the same market.
There’s also room for more collaboration between brands, which would benefit not only the corporate partners in question, but also their customers.
Partners need to think less in individual terms, says Powell, and focus instead on the value they could generate in a partnership. He cites the example of DashPay’s Shôping: the app developed to house loyalty for the Attacq
LESSONS LEARNED
How closely aligned are B2C and B2B programmes? “In a B2C environment, loyalty programmes generally aim to lock customers into an ecosystem and so increase the share of wallet,” says Cominelli. “In a B2B environment, the goal is to drive retention, spend and loyalty.” The goals may be different, but that doesn’t mean that those in the B2B space can’t learn from their consumer-focused counterparts – the most important insight being that the moment of truth is that instant when someone redeems the benefit. It’s that simple, says Powell, adding that “simple” should be considered key when it comes to loyalty. The easier it is for members to understand the currency and the more transparent the programme, the better. Whatever the environment, funny money and weird formulas create distrust.
Will B2B loyalty reach the same heights as the B2C industry? Perhaps, but getting brands to collaborate can be tricky, Powell observes. “Also, these programmes need to be run at scale, and because of the slow nature of turnaround in corporates, they often can’t react quickly enough to changing market opportunities and challenges. They need agile, exciting and dynamic partners to help them do this,” he concludes.
