Jun 14, 2015
Written by: Mark Pearson
(View Author Bio)
It’s time to start thinking differently about channel engagement and B2B loyalty. And it’s time to stop thinking differently about B2B versus B2C marketing.
As the line between B-to-B and B-to-C marketing continues to blur, it’s important to make sure your marketing efforts are evolving too. Knowing how your customers behave and consume information will help you determine which type of program design will be most effective at engaging them.
The B2B2C Ecosystem
Channel engagement operates within increasingly complex and continually evolving economic ecosystems. These ecosystems differ by industry, vertical, product or service, brand and even customer segment. Understanding the unique characteristics and cross-channel dynamics of your ecosystem is a critical first step in thinking differently.
The Loyalty/Incentive Continuum
At the foundational level, effective channel engagement requires an assessment of the role that businesses play within the ecosystem. At one end of the continuum, businesses behave like customers or buyers. The restaurant industry is a great example. Here, a B-to-B loyalty or lifecycle marketing program is the most effective solution. At the other end of the continuum, businesses behave like sales people or re-sellers. Auto dealers fall into this category. Here, an incentive program is the best solution. Not surprisingly, most businesses exhibit characteristics of both buyers and sellers. In these cases, a hybrid approach is the best solution.
The Blurring Line Between “B” And “C”
Regardless of position on the loyalty/incentive continuum, effective program
design requires an acknowledgment that the line between B-to-B and B-to-C marketing is blurring. More and more, businesses are increasingly behaving like consumers. This is great news because it means that the marketing concepts at the core of successful consumer loyalty programs can be leveraged in the design of channel loyalty programs. It also means the behavioral economic theories that drive consumer behaviors can also drive business behaviors. Let’s explore some of the key theories and concepts behind the evolution of channel loyalty.
Reframe Loyalty as Lifecycle
Customer lifecycle marketing as a strategic framework for loyalty can be just as powerful for businesses as it is for consumers. Where loyalty is nebulous, lifecycle is tangible. And where loyalty is the destination or goal, lifecycle is the journey or the path to reach that goal. The key to a successful lifecycle marketing program is creating a win/win scenario by balancing the desired engagement and behaviors with the appropriate motivators and rewards. Start by identifying and prioritizing the critical touch points and behaviors tied to the optimization of your unique customer lifecycle. Then, determine the value of each behavior and rank those behaviors on the degree of effort required. Finally, identify the right mix of rewards and motivators based on value/effort alignment.
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