lift and shift logo

How Rewards Drive Better Customer Engagement

What is customer engagement?

Customer engagement is the connection your company/brand has with your customers. Highly engaged customers tend to be better customers. They buy more, are open to suggestions on buying products or services they don’t currently purchase and are more likely to tell their peers about you and your brand. These benefits contribute to greater loyalty, making your customers less susceptible to buy from your competitors.


Effective customer engagement helps to increase retention and customer lifetime value.

Why is customer engagement important?

Customer engagement is crucial to increasing retention and sales while reducing churn. It costs a lot to acquire a new customer, so you obviously want to hang on to them once you've earned their business. It is also much easier to drive incremental sales by selling more to an existing customer than trying to secure new ones. An engaged customer will remain with your organization for longer periods of time (the customer lifetime) and will be far more receptive to opportunities to make more purchases, thereby increasing their value and loyalty to you (the lifetime customer value).


Here is how the process works:

Companies must offer several ways for customers to engage with their brand

A typical company will have hundreds, thousands or even tens of thousands of individual customers. Each one is different, with unique needs and wants. The more you recognize, understand and act upon each of your customer segment's triggers, the greater the level of customer engagement.


Engagement triggers can be identified in many ways. Two of the most common are sales data analytics and good old-fashioned customer feedback. Both methods should be integral parts of a robust B2B customer loyalty program.


Sales data analytics: Looking at what products or services a customer has purchased is an easy way to understand a lot about them. Ideally you want them to continue making their regular orders however, you can also target customers with offers to drive desired purchase outcomes. Identify the product(s) they are not buying from you (that they may be buying from a competitor) and encourage them to make that purchase with you. Easier said, than done…right? 


With a loyalty program, the use of targeted or personalized bonus reward offers tied to desired purchase outcomes will help ensure the customer recognizes that you understand them and their business, driving better appreciation, loyalty and engagement.


Customer Feedback: Asking customers for candid feedback about their likes, dislikes and wishes regarding their relationship with your brand is a staple element of best-in-class customer support. It shows you care about them beyond the most recent sale and indicates you wish to build upon your current relationship. Obviously, you may not be able to act on every request, but at least be sure to acknowledge its receipt. Then commit to doing your best and be sure to share success stories where feedback was acted upon. Customer feedback can be easily solicited via an email survey or a comments section on your website. Asking customers how they are treated will help to drive greater customer engagement.

The degree and depth of customer engagement is long-term

Any customer engagement strategy needs to be nurtured and developed over time. A “one and done” engagement tactic is short-sighted and highly ineffective. A B2B customer loyalty program is a long-term engagement initiative that addresses this issue very well, helping to create highly engaged customers. They are rewarded for their ongoing purchases, and their historical purchase data is used to identify other products they could be purchasing. Offering bonus rewards to influence those purchases will drive a greater share of market and increased sales benefits.

How do rewards drive customer engagement?

Creating stickier, ongoing relationships with customers is a cornerstone of any customer engagement strategy and is a key focus and benefit of a well-structured and executed loyalty program. A customer who opts into the program is giving a telltale sign that they are interested in rewards and will be motivated by them.


It is imperative to link the customers' interest in rewards to the company's interest in retaining these customers for longer periods of time and selling more to them during their customer lifetime.


Because the actual rewards help to drive customer engagement, it’s important to regularly remind them about their point balance, how to earn more points and what items they can redeem their points for. 

 

Using rewards to incentivize customers to make continued purchases and expand into different categories, will help grow your bottom line while delivering more rewards to the customer on a "pay for play" performance basis. This will heighten their level of customer satisfaction - "I got the product I needed, and I also got closer to the trip I want to take" - creating more loyal customers.

How a reward program improves customer engagement between purchases

Purchase frequency for customers can vary significantly. No matter how frequent or infrequent the customer purchasing cycle, it is critical for your company to remain top-of-mind. Many companies use email and social media to remain visible with customers. A leading indicator of customer engagement is seen in email open and click-through rates, but for B2B companies’, open rates tend to be very low:


All Industries*:

  • Average open rate: 17.92%
  • Average click-through rate: 2.69%

*Source: campaignmonitor.com


However, the story is very different when it comes to customers who participate in loyalty programs, where email open and click-through rates are far higher because they contain information that is personally relevant and therefore highly engaging:


Loyalty Programs*:

  • Average open rate: 45.80% (255% higher than average)
  • Average click-through rate: 16.17% (600% higher than average)

*Source: Constant Contact analysis of Lift & Shift client emails


Reward emails contain relevant and sought-after information including:

  • The customer’s current point balance, something many participants monitor closely;
  • A variety of bonus offers than can be easily tailored to the customer or customer segment, ensuring greater click-through and response. It is recommended to regularly change the bonus offers to keep users engaged and to create anticipation;
  • Available rewards for the customer to redeem or to save towards.

 

Are you looking for a new way to engage with your customers? Let us show you how a loyalty reward program can do just that.


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.

Looking to create or improve your program?

We can help!

Blog page form

photo of six gold stars over black background of stars to illustrate high-quality customer service
By Lift & Shift 27 Mar, 2024
In this post, we explore how to implement a growth-based incentive program strategically to maximize B2B engagement, ensuring your business not only attracts but retains the loyalty of its channel partners.
By Lift & Shift 01 Mar, 2024
We had a productive week at the NAHB International Builders' Show® (IBS) and the NKBA Kitchen & Bath Industry Show® (KBIS) in Las Vegas. Engaging discussions centered around enhancing company-channel partner relationships by leveraging sales data to identify purchasing gaps and uncover new sales opportunities, as well as the unique needs of each company. Many were pleased to hear that a Lift & Shift loyalty program is not one size fits all, but tailored to meet their specific sales objectives. Whether it's personalized incentives for different segments of their indirect sales channel or targeted strategies, we've got you covered. Excited to pursue new opportunities with the connections we've made!
Lift & Shift team at PrimeSource annual customer buying show
By Lift & Shift 20 Feb, 2024
Full-service program management means just that - we take care of the details so you can focus on your core business. That includes industry shows. The Lift and Shift team was helping their PrimeSource client sign up their customers and answer questions about the PremierClub Rewards Program at their annual customer buying show in Phoenix  .
By Lift & Shift 07 Feb, 2024
The team is at the International Roofing Expo to connect with field support members from our partner in the roofing industry.
Lift and Shift employee is standing in front of a sign and a crowd of people at the AHR Expo.
By Lift & Shift Loyalty 24 Jan, 2024
There has been a great reception to our B2B reward and incentive program offerings at the AHR Expo for the HVACR industry. At Lift & Shift, we're all about helping B2B companies grow channel sales and customer lifetime value, and it's inspiring to see the enthusiasm for our innovative approach! Our voices may be hoarse and our feet are tired, but we're excited about expanding our network and developing new connections made at the show. We can help you too!
marketplace sign hangs above a food truck
By Graham Farrell 22 Nov, 2023
Graham Farrell, CEO of Lift & Shift Loyalty, writes about how the e-commerce giants are changing the playing field for distributors.
fragile boxes are stacked on top of each other on a forklift
By Lift & Shift 21 Nov, 2023
B2B distributors face a formidable challenge from the e-commerce giants. Read how distributors can effectively compete in this marketplace by creating a customer rewards program that utilizes historical purchase data to direct customer purchasing goals and marry those goals with personalized reward offers to drive member purchase behavior.
two men standing in front of a sign that says issa
By Lift & Shift 21 Nov, 2023
Uncover customer insights, shape a lucrative rewards program, and enhance your bottom line. Explore the benefits of understanding customer behavior today.
Lift & Shift team attending SEMA2023
By Graham Farrell 09 Nov, 2023
Elevate sales with our proven Lift & Shift Loyalty strategies. Unleash the power of customer loyalty and channel incentives. Contact us for accelerated success.
A man is standing on top of a trophy with a star on it.
By Lift & Shift 19 Oct, 2023
In this post, we explore the top 5 incentive solutions that contribute to an impactful B2B loyalty program.
More Posts
Share by: