Did you know incentive points programs improve revenues, customer retention, cross-selling, and referrals?
A recent B2B Loyalty Report suggests businesses with successful loyalty programs:
Earn up to 20% higher annual revenues
Enjoy 13% higher customer retention rates
Receive 30% more cross-selling and upselling opportunities
Are 70% more likely to receive a referral
If you struggle to motivate your B2B partners, this post is for you. In this article, we’ll share how to create a successful points-based incentive program and structure your B2B loyalty program for long-term success. That way, you can motivate your channel ecosystem to enhance your B2B partnerships.
Read on to learn how to create a successful incentive points program.
Incentive points programs use points to reward participants for specific behaviors. Participants can be top-tier sales staff, employees, channel partners, or customers. The goal is to develop reward systems based on achieving desired outcomes. Participants can redeem for gift cards, merchandise, travel, and more.
A few outcomes you could incentivize include:
Points-based incentive programs offer flexibility. They allow you to reward B2B partners at all levels of your business, from new customers to VIPs. Let’s take a look at some of the benefits of incentive points programs for B2B businesses.
B2B businesses are investing in loyalty programs.
According to the Incentive Research Foundation 2024 Trends Report:
These statistics prove that incentive points programs are still growing year over year.
As B2B companies improve channel ecosystems, points-based incentives will remain crucial for success. Companies with well-structured incentives can motivate B2B partners to stave off competition. The right points-based loyalty program can offer a competitive advantage in your industry.
Let’s take a look at some of the key benefits of instituting an incentive points program:
It’s hard to beat the flexibility of an incentive points program, and reward catalogs offer thousands of options.
Rewards come in varying point values. This creates an experience where every reward holds personal value. When reward catalogs can offer up to 50,000 prizes, it’s a no-brainer.
Here are a few ways participants can redeem their points:
Points can be set at any amount. Points offer greater flexibility in how B2B partners can earn rewards. Each reward provides an experience that connects with your brand.
PRO TIP: Tiered incentives can boost brand loyalty and promote stronger relationships. Consider different point values for different actions. For example, when purchasing items online.
Channel partnerships remain a central focus for consistent growth for B2B businesses.
Microsoft is a prime example. Ninety percent of their revenue flows through their channel partnerships. But they are not the only ones expanding their channel ecosystems. According to a 2024 Demand Gen Report, 75% of businesses plan to expand their channel.
Incentive points programs provide scalability. B2B businesses can leverage points-based loyalty programs to incentivize partners. That makes them a popular option for scaling channel partner ecosystems.
Here are a few ways an incentive points program can help you scale your business:
Points-based incentives can help you scale your business and expand your channel ecosystem.
Brand loyalty is about more than good marketing, and it starts by providing a unique experience.
It happens when you attach buying behaviors to a deeper core emotion. Nike, Coke, and Apple perfected it, attaching feelings, aspirations, and traits to products. What if you could get your B2B partners to feel the same about your business?
That’s the power of a well-structured incentive points program. Connecting buyer actions, channel metrics, and sales goals to points creates brand loyalty. Each redemption creates a memorable experience that ties back to your brand.
Here are a few ways to create unforgettable brand loyalty:
Points-based incentive programs provide endless opportunities for memorability. With the right incentive points program, you can create long-lasting brand loyalty. Done well, it can lead to the brand dominance enjoyed by Nike, Coke, and Apple.
Channel engagement is more than a buzzword, it’s critical for B2B success.
Channel partners expect engagement strategies that feel personalized. A well-structured incentive points program offers many opportunities to build engagement. Instituting the right engagement strategy can give you a competitive advantage.
Here are a few ways to engage your channel partners with a points-based loyalty program:
Points-based loyalty programs are an easy way to drive engagement and brand loyalty. They provide a sales lift and motivation to reach higher order volumes. Use engagement to build healthy channel partner relationships.
Incentive points programs are tailor-made for personalization.
B2B businesses that create personalized experiences stand out against their competition. Points-based loyalty programs offer amazing opportunities to personalize their reward experience.
Here are a few ways to use personalization in your points-based loyalty program:
Consider segmenting partners by industry, geographic location, size, or other business factors. This ensures it feels tailored to their unique needs. Use metrics to track your efforts for unparalleled personalization and channel optimization.
Points-based loyalty programs are universal.
You can structure points to meet any currency. This creates a valuable reward experience for all channel partners. Participants can redeem rewards from anywhere in the world.
Incentive points programs promote an equal reward experience for global ecosystems.
Before we discuss the value of points, we must examine one critical question: What is a point?
Your definition plays a crucial role in how you will market your program. So, it’s good to think long and hard about this question. Here’s an example:
Suppose you look at points as a reward for purchases. The message when someone receives points would be “Thank you for buying ‘x’ product.” While there’s nothing wrong with this, it’s no different from any other business transaction. Effective points-based loyalty programs move beyond transactional rewards to something more transformative.
Now, suppose you look at points as an act of loyalty. This would evoke a very different message. For example, your message could be, “Your loyalty is earning you tremendous rewards!” Do you see the difference?
No matter what value you assign to a point, it should feel like a transformative experience.
Calculating Points: How to Structure Points-Based Incentives for Long-Term B2B Success
Transformative experiences are not set by point values.
They are set by point meaning. The way you structure your points is imperative to B2B success. Nonetheless, there is no hard or fast rule.
Some programs may set their point totals to match the U.S. dollar.
While this can make it easy for participants to calculate rewards, it has some drawbacks:
Another way to think about points is in the context of fractions of a dollar. Some programs may consider making point totals equal to 0.001 or 1/10 of a cent. It has varying advantages.
For starters, participants won’t equate a point to a dollar. This eliminates points feeling like a transactional experience. Additionally, participants can earn points faster, which gives the appearance of perceived value. Don’t forget, half the fun of a reward is earning it!
Not only that, but participants can earn points for small behaviors. For example, earning points for logging sales, completing a survey, or offering feedback. The opportunities are endless. And this drives to the heart of successful point-based incentives.
It’s all about building a loyalty experience. Successful incentive points programs start and end by recognizing their value. They understand it’s not only about buying behaviors. It’s also about small, loyalty-based actions.
How Much Should Your Reward Points Be Worth?
The truth is it all depends on your goals. The industry standard for point values is 0.005, or half a cent. This point value offers greater flexibility while making rewards achievable. After running thousands of incentive points programs, we’ve seen success at this rate.
Nonetheless, it all depends on your goals.
How to Transition to a Points-Based Loyalty Program
Non-cash incentives can revolutionize your channel partnerships.
The right incentive strategy can boost market share and wallet share. So, it’s important to build excitement for any points-based incentive campaign. You may want to begin by targeting a small group.
Here are a few strategies to consider for your incentive points program:
These aren’t hard or fast rules, but they are effective. The point is to create quick wins. Help partners understand how it “feels” to earn a reward.
Once you have a successful campaign, you can grow the reward experience.
Points-based loyalty programs are no longer a perk.
Incentive points programs are foundational to B2B channel success. Are you looking to transform your channel and engage your B2B partners? If so, a points-based loyalty program may be the perfect solution.
At 360insights, we offer B2B businesses a one-stop shop for all their incentive needs.
Our suite of tools allows you to reward your partners while you track your return on investment. Our technology offers real-time data so you can optimize your channel at the press of a button.
If you’d like to learn more or talk with an expert, contact us today!