The document discusses successful loyalty models in the B2B sector. It notes that customer loyalty is becoming more important in B2B markets to increase loyalty, differentiate from competitors, and optimize order and fulfillment processes. Implementing loyalty programs in B2B requires understanding different challenges compared to B2C, such as dealing with buying centers rather than individuals and legal restrictions. Successful B2B loyalty programs require understanding customers' needs, the market situation, and developing individual reward programs in partnership with professional operators.

1. Successful Loyalty Models in the B2B
Sector
Comarch loyalty management conference
Barcelona, October 22nd 2010

2. 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

3. Swiss Post Solutions Seite 3Successful Loyalty Models in the B2B Sector
The current market situation in the B-to-B sector is
tense
1. Increasing
number of
competitors
2. High importance
of budget
efficiency
3. Cost oriented bid
processes
4. Retailers face:
…demanding
customers
…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.

4. Swiss Post Solutions Seite 4Successful Loyalty Models in the B2B Sector
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

5. Swiss Post Solutions Seite 5Successful Loyalty Models in the B2B Sector
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?

6. Swiss Post Solutions Seite 6Successful 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?
Conculsion/Contact

7. Swiss Post Solutions Seite 7Successful Loyalty Models in the B2B Sector
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

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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 company
benefit?
Moving target
Personal contact through
sales force

9. Swiss Post Solutions Seite 9Successful 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

10. Swiss Post Solutions Seite 10Successful Loyalty Models in the B2B Sector
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

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In large companies different persons are involved in the
buying process
Buying
Center
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

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In the B-to-B market the retailers play an important role
to the manufacturers and to the customers
Situation 2
Manufacturer Retailer Customer

13. Swiss Post Solutions Seite 13Successful Loyalty Models in the B2B Sector
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 business
relationship
Branch/Market
segment
Market position
Individual B-to-B loyalty strategy

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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

15. Swiss Post Solutions Seite 15Successful Loyalty Models in the B2B Sector
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…

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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

17. Swiss Post Solutions Seite 17Successful Loyalty Models in the B2B Sector
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

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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 constistant
compliance 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

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Examples of successful B-to-B Programs –Gasoline II-
Consultation
Technical
design
Implemen-
tation
Hosting/
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

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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

21. Swiss Post Solutions Seite 21Successful Loyalty Models in the B2B Sector
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

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Contact
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E-Mail: kilian.thalhammer@swisspost.eu
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