2023 is going to be a difficult year for businesses across the UK. According to the CBI economic forecast, GDP growth is going to drop to 1% in 2023 – which is down from 3.7% in 2022. This means that consumers are going to be spending less and, in the case of B2B, singling out businesses that offer the most.
The primary cause for this is inflation, which has risen to a peak in October 2022. But it isn’t all bad news. Despite their outlook on GDP growth, the CBI has stated that the economy will essentially be stagnant rather than dipping low enough to be called a recession – although this is still possible. That being said, if you are running a B2B company, it is important to refocus your plans and look into b2b loyalty programs that will help you not only get through 2023 but continue to grow in the process.
How To Keep Customers In 2023
One of the most important factors of running a B2B company is attaining and retaining customers – with a specific emphasis on the retaining part. According to research, most B2B companies make 60% to 70% of their sales to existing customers, with new customers only making up 5% to 20% of revenue. This is why customer retention is such a big subject in this area of business.
Going into 2023, it is likely that you have a number of existing customers who have so far been loyal, but their loyalty is going to be tested by inflation. It is important that you continue to prove yourself as being a necessary company for them, and this is done through loyalty programs.
What Do Loyalty Programs Do?
Loyalty programs are a customer retention strategy which recognises loyal customers and rewards them when they do business with your company. A good loyalty program should be personalised to the individual buyer, designed to build a relationship and help the customer feel valued by the company – aided through regular outreach.
Loyalty programs also make strong marketing strategies. If you are effectively utilising your social media marketing channels – which included LinkedIn – then word can get around that you are providing strong rewards for loyalty program members, and this can help to entice customers to repeat business with you.
What Are The Other Benefits Of Loyalty Programs In 2023?
While consumers will be saving their money in 2023, it is just as important for you to save your own money. Of course, you will have to spend money on a loyalty program, but it is far more cost-efficient than acquiring new customers.
Loyalty programs can also help you to build. When a customer joins a loyalty program, you will be able to track their interests and their preferences. This kind of data can then be used to personalise your outreach and understand where your business will have to go in the future. Once again, there should be bigger goals in 2023 than just survival. You have to continue to build upon what you have made, and loyalty programs can provide the data which can aid this growth.
