B2B Loyalty Success in the Building Products Sector

We have extensive experience of delivering first class loyalty programmes within the building products sector. Driving revenue growth of up to 27% and growing brand stretch by 43% are just two of the way we are helping companies in your sector.

Making Loyalty Work For You


We understand the challenges in the sector with the wide variety of customer types, the transient audience and disjointed promotions and our LoyaltyStream software has been proven to change buying behaviours long term.

  • Use loyalty to keep a traditionally transient audience engaged with your brand

  • Capture data on your audience's movements and habits to build a profile of where they purchase from and how often in order to understand their drivers

  • Use the modules to connect disjointed or tactical campaigns to generate long term loyalty

  • Create your own unique reward offering with tiered soft benefits and services

  • Inspire customers to engage with your brand digitally to enable better communication

43%

43% of customers changed their buying behaviours

Primaflow F&P

Created to solve the challenge of repeating campaigns, the programme targeted Primaflow F&P's merchant clients with the key aims of helping grow sales across the year, motivating interest in out-of-season products, building longer term loyalty, and delivering value and benefits that position Primaflow F&P as business partners.

The results have been transformational in terms of sales growth and engagement with clients with sales up 27% and 43% of customers changing buying behaviours. The programme has delivered excellent Return on Investment and has become a key sales and engagement tool for the business.

20%

How Showroom Rewards delivered a 20% increase in sales

City Plumbing

Showroom Rewards was built on Stream’s LoyaltyStream® platform and provides installers with the ability to earn points on all their brochure products. With a tiered loyalty metric and the added bonus of prize draws and consumer benefits, Showroom Rewards has been instrumental in delivering a 20% increase in sales of qualifying products and an average 300% increase in referral sales.

Not only does the platform work for their customers, it quickly became the go to place for the management team to obtain a single view of each customer. The data and analytics has been upgraded year-on-year and is an essential part of training, messaging and the only place that managers go to view their showroom’s progress status.

84%

84% engagement from all members with aspirational rewards

SBS

Smith Brothers Stores were looking to drive additional business and change buying behaviours by motivating customers to buy products not previously purchased.

The Select 15 programme, run on the platform, motivated a significant 80%+ increase in engagement, with regular 45-50% open rates and over 25% click throughs. The overall result was impressive with 84% of participants qualifying and redeeming rewards.

Loyalty Tips and Insights

How businesses are using loyalty to drive brand stretch

Loyalty promotions are one simple way to drive brand stretch, but to activate an effective campaign which also empowers your sales team requires a visualisation of the gaps in product purchasing.

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Securing Market Share at the top of the Loyalty Ladder
Securing market share at the top of the loyalty ladder

The loyalty ladder allows you to define the different stages of your customer relationship. The loyalty ladder focuses on how you progress your customers' relationship with the business.

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Customers are looking for more from rewards 

With so much choice personally, finding the rewards that are really going to grab your audiences attention can be hard. Read our tips on how to switch up your reward programme.

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How gamification helped The Bathroom Showroom boost sales by 21%

Increased engagement resulted in 39% extra page views and had a knock-on effect throughout the business. Members who had re-engaged were responsible for a 21% uplift in qualifying sales revenue.

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Customer retention. Is it also the solution for customer acquisition

One solution to customer acquisition lies close to home – among your existing customers. Its simple: one of the best ways to acquire customers is to ask your loyal existing customers to refer them.

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Using behavioural economics to drive loyalty with both customers and employees

Behavioural economics is the fascinating study of human behaviour to explain how/why consumers are motivated to buy products and/or engage with a company.

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Using loyalty to drive growth, retention and engagement 

In an environment where your audience typically purchases based on location rather than on price/brand, then a loyalty programme can have a big impact. Also knowing that your customers usually purchase based on location gives you some clear information on what they need from you – speed, convenience and relationship. How can you start to introduce these elements within your loyalty programme? This could be introducing immediate delivery, free delivery for your VIP customers, or personal account managers to source product for you. We have seen a shift in purchasing behaviour across all of our customers' programmes in this space, so we know it is possible to turn around an audience.

There are a number of sectors in which promotions are expected and you often find that everybody in the chain offers promotions and that customers just switch to whichever is the best promotion running at that moment. Companies feel they have to take part for fear of missing out, but really they aren’t changing behaviours; all they are doing is giving you some spend this month and then moving it next month. Using loyalty to connect disjointed tactical campaigns means that your customers are able to see how continuous brand engagement and activity will help them to reap more rewards over the course of the year.

If you aren’t dealing with the end customer it can seem difficult to influence the purchasing behaviour. You are obviously able to influence your customer to purchase from you over your competitor but how do you encourage them to buy more product or more expensive product when you aren’t speaking with the end user?

Think about how you can use loyalty to incentive your customer to provide more data. How could you help them with their business to upsell to the customer? Here are a few ideas

  • Invite the end user in and help your customer complete the sale
  • Hold monthly product events where your customers can
    • Pick up new brochures
    • Watch a demonstration of new products
    • Obtain sample products they can take to their customers

All of these benefits could be rewards that your customer unlocks as they purchase from you.

Absolutely, loyalty programmes can have a huge impact in B2B. Remember that your B2B customer is a consumer when they leave the office so they are already used to transacting with companies that offer them loyalty. The complexities are greater in the audience relationship and personalisation requirements but the rewards can be huge. In a recent programme, we delivered a 23% increase in revenues, 80% increase in referrals and 43% increase in brand stretch. Imagine what that could do to your business trajectory.

A loyalty program is designed to change customer behaviours. A well-designed programme should drive customer growth, motivate customer retention and inspire customer acquisition. Personalising the programme to the audience will build their emotional connection with the business. Traditionally, loyalty programmes include a mixture of hard benefits (rewards and discounts) and soft benefits (service benefits, VIP rewards) that reward the customer for their purchases. The program will usually be closely integrated with the brand identity and culture as well so that the program is consistent with the wider customer experience.

Customer loyalty is the result of multiple positive experiences with the brand that build up trust over time. It’s about building a relationship with the customer so that they are connected, valued and understood by the business.

Loyalty continues to bring positive outcomes for brands and the impact on advocacy, retention, and spend remains strong. The 2020 study by Bond found that 72% of customers are more likely to recommend a brand with a good loyalty programme, 78% of customers are more likely to keep doing business with a brand with a good loyalty programme and 64% of customers modify their spend to maximise point earnings.

The vast majority of British people are members of loyalty programmes and are fans of them too:

  • 75% are current members of programmes
  • 73% think loyalty programmes are a great way for brands and businesses to reward customers
  • 52% think all brands should offer a loyalty programme

  • Loyalty programmes tie into a customer's emotional reasoning. By creating a programme that makes a customer feel valued, that gives them something for “free” or even is tailored to them ,makes them make more emotional purchases rather than using logic (e.g. searching around for the cheapest item available).
  • Loyalty programmes are usually low cost but high yield.
  • Acquiring a new customer can be up to 25% more expensive that retaining an existing customer.
  • Having a stable loyal customer base is more profitable long term.

Any good loyalty programme should be a win for the customer as well as the business. A customer might switch their behaviours for a short time to get a specific reward, but if the programme doesn't fulfil their long term needs, then the behaviour change won't stick. Ultimately your business's service or product has to match the customers' needs; and then the experience they have with the brand has to match their values. If you can create an experience where you customer is happy to refer you and talk about you, then you have created something which they feel part of. They have an emotional connection, and it is that emotional connection that a loyalty programme is designed to create.

We are firm believers that loyalty starts within, and you can't preach loyalty to your customers, if you aren't practicing it with your staff. To that end we would always recommend using your loyalty platform to run a programme designed for your staff. Using a similar programme on the same platform means that your staff will be better able to communicate to your customers and are therefore more likely to live and breathe your brand.

Creating a loyalty programme in a B2B business is more complex than in B2C as the relationship you have with your customer is often much more personal. The audience needs to be considered from more angles, as the relationship is likely to be one-to-many rather than one-to-one (which is what we see more regularly in B2C). In a B2B loyalty programme you need to be even more focused on the needs of each member. If you only have one person from each business as a loyalty programme member, should that be the person who pays the invoices, the person who decides which suppliers they use or the person who completes the transactions? The rewards that motivate each person will be different, so you really need to understand the audience and personalise every aspect of the programme to engage them. The mechanics by which you reward each member can be the same, but each might have different outcomes.

Request a Demo

If you would like a demo of our LoyaltyStream software to see whether it would work for your business and your audience, just enter your email address in below and click the Request a Demo button. A member of our team will get back to you to arrange a time. Alternatively you can call us on 01844 208180.

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Loyalty Insights

Loyalty: Back to Basics

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It isn't easy getting loyalty right first time. Our Back to Basics Whitepaper will give you a great starting point and some insights as to how other people are using loyalty to succeed in their business.

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