Why B2B Food Wholesale Distributors are investing in loyalty technology

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b2b loyalty technology

Why B2B Food Wholesale Distributors are investing in loyalty technology

The Business to Business (B2B) Food wholesale distributor’s shift to loyalty technology is no surprise with loyalty technology proving a successful tool in almost every business strategy. B2B retailing consists of supplying products to distributors who then sell to retail stores. This model has been supporting the food industry for years now, but it is becoming outdated as younger audiences demand fresh, affordable, and traceable produce.
B2B companies should turn to Business to consumer (B2C) market for advice on this investment as B2C purchase decisions suggest that loyalty strategies can bring about leads while increasing customer retention. According to a study carried out by MarketsandMarkets, the loyalty management market is set to increase from $1.68 Billion in 2016 to $4.59 Billion by 2021. The B2B industry is a part of this increase. Loyalty technology helps a company to stand out among competitors by offering deals in exchange for customer loyalty. Food distributors need customer retention strategies to encourage trade and loyalty.
Loyalty technology is more than offering rewards, however; it is about understanding the needs of the customer, who is, in this case, another business owner. Increasingly, e-consumers expect a standardised experience online when dealing with B2B platforms.
B2B loyalty programs can cultivate consumer data to put more investment into the customer experience. By understanding in what way a business is interacting with your business, you can customise the nature of the relationship, making customer retention more likely. As consumers, we know what stops us from repeat purchasing with brands. As a B2B food industry retailer you need to embody the qualities that you seek in other businesses to increase customer engagement.
Clinging to outdated modes of interaction will only result in a loss of revenue and ineffective communication between businesses. Keeping up-to-date data on your consumers is paramount in such a highly competitive market.
B2B customer loyalty is set to be a lucrative industry, this is indisputable but keeping customers loyalty can be harder than it appears. Studies show that what drives B2C loyalty strategies also drives B2B loyalty trends. An example of this is in B2B food distributors encouraging consumers to purchase online to minimise customer acquisition costs. Another driving force behind B2C is the price. Study after study proves that no matter what rewards you offer, consumers are still driven by price.
This translates to the B2B market in a surprising way. The main selling point is still most certainly price but it correlates with ease of purchase more directly. Companies want to be able to reorder from a past purchase, accurate real-time stock information, and detailed product descriptions. Customer behaviours in B2B are more dependable and easier to analyse as it is business to business, the budget doesn’t fluctuate as much as a consumer’s and the ordering schedule is regular.
B2B loyalty programs are the only way forward for food wholesale distributors. Marketing needs to be personalised in this era of online consumerism. The importance of a product depends on consumer’s interaction with it, not on blanket marketing investments. Your business’ “personality” is becoming more important than ever as purchasers and consumers look for authenticity in brands. Digitisation is blurring ideas of standard retail structures – make the most of a changing market by finding the perfect platform for your business.
Origin of produce, and nutritional information, still take precedent but food wholesale distributors have the task of closing the gap between convenience and sustainability. A personal commitment to product quality boosts consumer confidence, and in turn consumer loyalty. Loyalty technology works best when you understand the needs of the consumer, and in B2B industries, the needs of the consumer are your needs too.
Read more: https://www.azpiral.com/b2b-loyalty-programs-really-work/

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