Question

Topic: Strategy

Service Orientated B2b Loyalty Program

Posted by Anonymous on 2/9/2010 at 8:56 PM ET 250 Points
Over the past couple of months I have been researching about service orientated B2B loyalty programs. The company I'm working for would like to implement a loyalty/retention program as they have noticed that in the last two years, some of their clients, who have previously hosted multiple projects, have ceased to take on another project.

The company I work for links students from three of Queensland's major Universities with companies/government, for completion of industry-based projects. Meaningful projects are completed by students as part of their University degree.

After some survey and indepth interview research I found that the main reasons why company's were not continuing business was because they either didn't have a project available or they didn't get the results they expected from the students in the past.

How could you suggest a loyalty program fit into this situation? I only have a couple of weeks to implement a loyalty program which encourages regular repeat projects from clients (at least one per year), and encourages ‘lapsed’ clients to return.

Thank you.

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RESPONSES

  • Posted by mgoodman on 2/9/2010 at 9:15 PM Accepted
    I don't think a loyalty program will accomplish your objective unless/until you fix the basic problem that has led to reduced usage of the service.

    You say that "... [the companies] either didn't have a project available or they didn't get the results they expected from the students in the past."

    How will a loyalty program address either of those problems?

    It looks like you need to solve the fundamental problem and not cover it up with a loyalty program that is likely to fail. Maybe you need to identify the differences between projects that were perceived as successful versus those that were perceived as not-so-successful. Or redefine the kinds of problems you can address effectively and seek those out. Or maybe you have a communication problem, where prospective client companies don't really understand what you do or why they need it.

    All of these things need to be addressed before you even think about a loyalty program.

    A loyalty program in your situation would be like Toyota trying to fix a problem with brake failure by making it easier to turn off the engine when the brakes fail.
  • Posted on 2/9/2010 at 10:42 PM Author
    The problems that I outlined were from over 2 years ago when they did business with our company. Over the years we have grown, changed and fixed alot of the problems. they mentioned. Is there a way we can tell them we have improved our service that will be attention grabbing enough for them to start working with us again? Then the next step is designing a loyalty program.
  • Posted by CarolBlaha on 2/10/2010 at 6:47 AM Member
    Both posters are right. If you have fixed the issues, you need to get out there and get them to use you again. No loyalty program alone will get them back. You have to mend the fences first. Once you get them to try you again, and you accomplish what they expect of you-- a loyalty program may keep them thinking of you.

    This is an ezine I get on incentives. You'll see there are a ton of programs, you question, while short is really huge. What is your budget?

    https://www.incentivemag.com/msg/incentive/index.jsp
  • Posted by Jay Hamilton-Roth on 2/10/2010 at 8:55 AM Member
    Can you get testimonials from the students themselves (either handwritten letters and/or videos)? You want the students who went through the program and onto bigger things to give thanks to those that gave them a first chance. Also, your past students are now working for companies - can you have these student-ambassadors help to connect their current employers to your program?
  • Posted by CarolBlaha on 2/10/2010 at 9:03 AM Member
    I just got an email for a loyalty program. This company is rewarding miles to your fave frequent flier account. Everyone loves miles. Amex gave me 25,000 miles for just getting their credit card. That would inspire people to try you again, and then their continual support will add to their account.

    Everyone also loves cash. Discover's rebate program esepcially works as they partner with some companies to get more tha the rebate. For exampl, Bed Bath & beyond, $25 certificate and they bump it to $30.
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