January 15, 2021. – Airlines are having hard times. The last happy landings were in March 2020, and most of the planes have been on ground ever since. No “bonus” miles are being collected or used.
Airline companies have a long experience in customer loyalty programs, but without customers they both are out of work. The situation is extraordinary, but customer loyalty is not out of style.
What are the customer loyalty programs in plywood business? Where the B2C customer loyalty programs (like airlines) are generalised to all customers, B2B programs need to be tailored. Each customer has their own product portfolio and volume level. The buying incentive structure must fit to those. The incentives are a way to increase sales and to commit for longer relationships. Annual bonuses are the traditional way to engage plywood customers. When designing the buying threshold levels, it is good to have a sense of how the market will develop. The same bonus levels don’t work on both growing and diminishing markets.
Keeping a customer for a longer period requests more a good customer experience than a great bonus. Things like delivering a quality product on time and answering customer’s emails and calls. Sending order confirmations promptly and solving claims decently. Simple things.
As the competition gets tougher, we may see new B2B loyalty programs rising. However, in plywood selling and buying such programs are not a necessity. Loyalty is built on good customer experience.