5 Reasons to Invest in a B2B Reward Program When Economic Concerns Mount
Is economic uncertainty hurting your sales outlook? There is no better time to leverage your own sales data using a customer or channel partner rewards program.
As concerns grow about the economy and likelihood of a recession, many companies are understandably cutting back on new marketing investments or putting them on hold but one strategy that should be on everyone’s radar, especially when economic concerns mount, is using your own sales data to maintain as much available market share as possible – and even drive incremental growth.
Despite the fact a softening of the economy is under way, it’s not as though everything is going to zero; many businesses and consumers will continue to spend money on things they need and want. There is still lots of business to be had – and a well-structured reward program will ensure you optimize your share of that spending.
Here are 5 reasons to introduce a customer or channel reward program now:
1. No advertising or marketing costs
You already own your sales data; you just need to put it to work. A customer reward and/or channel partner incentive program is the perfect vehicle for you to do this, helping drive retention, maximize available market share and drive growth from new sources.
2. It’s much less expensive to sell to existing customers than trying to acquire new ones
According to the Canadian Association of Sales Professionals, the probability of selling to an existing customer is 60-70% versus only 5-20% for a new customer. On top of that, customers or channel partners who participate in a reward or incentive program are over 60% more likely to keep buying from you versus those who don’t earn rewards.
3. Customer retention is a very lucrative undertaking
According to a research study by Bain & Company, increasing customer retention rates by as little as 5% can increase your profits by 25% to 95%. So, building customer or channel loyalty is hugely beneficial. A performance-based reward program can be a huge driver of customer or channel retention.
4. Low cost of entry
The costs associated with setting up an effective customer or channel reward program are surprisingly low. Less than $10,000 is required to deliver a custom-branded reward website and monthly reward statement - and the return on investment is surprisingly large and immediate.
5. No new staffing requirements
Thanks to the availability of full service providers like Lift & Shift, any company can launch a best-in-class customer or channel reward program without having to hire a new employee to run it. Not only can you avoid adding to your head count, your program will be expertly set up and managed from day 1 with optimal results and built-in ROI, resulting in incremental sales volume and gross profit that pays for the program and the service provider costs many times over.
Investing in your sales data is sound strategy at all times – but when economic concerns begin to restrict advertising and marketing budgets, using your customer or channel sales data to promote your products and services could not be more important. Your sales data is an incredibly valuable sales and marketing tool – so be sure to tap into its many benefits.
Lift & Shift offers a powerful B2B reward platform that can help your company leverage its sales data to drive incremental purchases with customers and channel partners or motivate sales staff. We work with manufacturers, distributors and service providers to analyze sales data, identifying purchasing gaps and other valuable targeting opportunities.
We create and deliver highly relevant offers to customers, in-house sales staff or sales associates, motivating your target audience to respond, using a wide array of appealing reward options as influencers. Our performance-based reward structures deliver an unparalleled return on investment, with absolutely no wasted budget.
Our customizable reward platform enables clients to easily benefit from a robust loyalty reward program. It's affordable and includes Lift & Shift’s turnkey professional program administration. We take care of everything so you can focus on your key initiatives.
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