The fact that data analytics is becoming an increasingly important requirement for modern businesses, whether they are B2B or B2C, shouldn’t come as a surprise. A 2018 study found that a staggering 89% of B2B marketers surveyed agreed, even in the incentive loyalty industry. Don’t believe that data is only important for marketers, though. The Harvard Business Review reported that same year that data has also become crucial for B2B selling.
Data from the reward loyalty program’s inception
An incentive loyalty program is heavily influenced by data from the beginning. Consider a mid-size B2B distributor who just teamed with HMI to launch a rewards program for their channel partners as an example. Even before to the program’s launch, the client is likely to have a wealth of information about the intended audience that will inform its design, such as transaction history (frequency, quantity, and diversity of purchases), user profiles on e-commerce platforms, or any other quantifiable behaviors.
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Using that information, we will create a program strategy that divides the client’s target audience into various subgroups, occasionally modifying the program to improve its effectiveness across the board. Depending on the objectives or KPIs our B2B distributor has for their incentive strategy, such as increasing sales revenue, developing product knowledge, or broadening the variety of products purchased, participants may be segmented by region, products purchased, previous year’s purchase total, and so forth.
Assume that the incentive loyalty program plan for our B2B distributor debuts with a goal enrollment rate of 70% of invited customers. The figures will show how well things are doing in a few months: is the current enrollment rate at or near what was anticipated, or was it lower? Unsatisfactory enrollment rates frequently indicate a weakness in the implementation approach; perhaps the channel partners to be targeted should be expanded, or perhaps it’s time to enlist the client’s own sales force in spreading the word. The client might also consider adding a fresh program element, such as a gamification element or a refer-a-friend promotion, to pique the curiosity of invitees who haven’t signed up.
Monitoring participant data can make it easier to find solutions. Our B2B distributor may attempt delivering a point bonus right away only for signing up to pique participants’ interest in the incentive loyalty program if they are enrolling but not doing anything else. They may try an email campaign saying “we miss you” if members are active in the first few weeks but then stop, or they may investigate whether the program structure is too complicated or awkward. Long-term participants who are seeking some freshness in the program may be attracted by a new special promotion.
If participants don’t spend their points, they frequently don’t feel like they’re being properly rewarded and won’t feel inspired to keep doing it. Participants need to feel like they’re being recognized for their hard work, whether it’s learning a new skill or selling more merchandise. If the data shows that participants are not using their points to their full potential, we and our B2B distributor client will need to come up with some creative solutions. We might try an email campaign that divides people into groups based on the number of points they’ve earned and nudges them to exchange for rewards at comparable levels.
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There are many methods to use data in a loyalty incentive program, but one thing is certain: as companies develop and expand, having the ability to understand and use data will only become more crucial and beneficial. The users of your loyalty programs, regardless of the type you operate, anticipate more individualized preferences, offerings, messages, prizes, etc., and data is the first step on that road. How well you are prepared to organize your data will determine how far you can go. The only issue is how you use it; data is here to stay.