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Successful Loyalty Models in the B2B
Sector
Comarch loyalty management conference
Barcelona, October 22nd 2010
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
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.
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
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?
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
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
Swiss Post Solutions Seite 8Successful Loyalty Models in the B2B Sector
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
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
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
Swiss Post Solutions Seite 11Successful Loyalty Models in the B2B Sector
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
Swiss Post Solutions Seite 12Successful Loyalty Models in the B2B Sector
In the B-to-B market the retailers play an important role
to the manufacturers and to the customers
Situation 2
Manufacturer Retailer Customer
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
Swiss Post Solutions Seite 14Successful Loyalty Models in the B2B Sector
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
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…
Swiss Post Solutions Seite 16Successful 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
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
Swiss Post Solutions Seite 18Successful Loyalty Models in the B2B Sector
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
Swiss Post Solutions Seite 19Successful Loyalty Models in the B2B Sector
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
Swiss Post Solutions Seite 20Successful 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
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
www.swisspost.de/solutions
Your contact
Contact
Kilian Thalhammer
Director Solutions Management
main: +49 (89) 2441 059 – 50
direct: +49 (89) 2441 059 - 52
fax: +49 (89) 2441 059 - 63
mobile +49 (160) 4784 995
E-Mail: kilian.thalhammer@swisspost.eu
XING-Profil:
Swiss Post Solutions
E-Business Solutions
Albert-Roßhaupter-Str. 32
81369 München
www.swisspost.de/solutions
www.slideshare.net/swisspostsolutions

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Successful Loyalty Models in the B2 sector

  • 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
  • 8. Swiss Post Solutions Seite 8Successful Loyalty Models in the B2B Sector 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
  • 11. Swiss Post Solutions Seite 11Successful Loyalty Models in the B2B Sector 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
  • 12. Swiss Post Solutions Seite 12Successful Loyalty Models in the B2B Sector 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
  • 14. Swiss Post Solutions Seite 14Successful Loyalty Models in the B2B Sector 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…
  • 16. Swiss Post Solutions Seite 16Successful 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
  • 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
  • 18. Swiss Post Solutions Seite 18Successful Loyalty Models in the B2B Sector 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
  • 19. Swiss Post Solutions Seite 19Successful Loyalty Models in the B2B Sector 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
  • 20. Swiss Post Solutions Seite 20Successful 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
  • 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
  • 22. www.swisspost.de/solutions Your contact Contact Kilian Thalhammer Director Solutions Management main: +49 (89) 2441 059 – 50 direct: +49 (89) 2441 059 - 52 fax: +49 (89) 2441 059 - 63 mobile +49 (160) 4784 995 E-Mail: kilian.thalhammer@swisspost.eu XING-Profil: Swiss Post Solutions E-Business Solutions Albert-Roßhaupter-Str. 32 81369 München www.swisspost.de/solutions www.slideshare.net/swisspostsolutions