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5 ingredients to cement customer loyalty in B2B industries

5 ingredients to cement customer loyalty in B2B industries

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Customer loyalty is the aspiration of every business. However, loyalty as a marketing concept is particularly challenging to apply to 'low tech' industries such as the one we operate in.

[The writer is Shirley Low, vice president, marketing at Lafarge, the Euronext-listed cement, concrete and aggregates manufacturer. Low is a judge at the 3rd annual Marketing Excellence Awards]

B2B companies in my industry are often pushed to deliver results based on ‘tangible’ areas – volume, number of units produced, sold, billed etc. In such situations, the measurement of loyalty is often hazy and to a large extent foreign.

Producing effectively with high efficiency requires precise planning, strategic management of resources and investment. However, many other companies are also able to replicate this. This results in high volume 'me-too' products that are marketed to the same customers. These lowly differentiated products or commodities are the bane of many material suppliers in Malaysia’s construction industry today. Price is often the main lever, and as profit erodes, cost cutting follows. In the long run, this erodes quality.

So, instead of asking ‘how much can we produce’, the right question should be ‘what do customers need?'

Changing the game means putting customers’ needs first and then finding solutions to meet these needs. Solutions can be products, services or a totally new innovation/ system.

I believe there are five crucial ingredients for B2B marketers to cement customer loyalty:

1. Focus on solutions: Adding value to the offer provides a major new dimension to the playing field, making it substantially harder for competitors to match. Perhaps the most powerful form of differentiation is through deep involvement in customer operations. Even at its most basic, service-related areas such as ease of ordering, delivery, customization, training and co-creation can be seen as solutions. At Lafarge Malaysia, we introduced ProSolutionsâ„¢, a brand that encapsulates the promise of being an end-to-end Solutions Provider to our customers. For example, to ensure timely delivery and consistent stock supply, we offer our ProSolutionsâ„¢ Tracker. This service uses GPS to track delivery as well as silo trackers to monitor the level of cement customers have in stock to ensure consistent supply. The tracker alerts us to send material when the silos are 1/3 full without the customer having to worry. By including services in the equation, Lafarge successfully managed to cement loyalty.

2. Brand Imagery: For customers to understand the offer and benefits they are getting, companies need to create a strong brand presence and image. Decide on how to bundle certain offers and communicate this consistently.

3. Quality: Product quality is a given for any organisation to succeed. Customers’ perception of overall quality establishes the image and business sustainability. At Lafarge, the importance of manufacturing exceptional quality cement and concrete is the core of the business. However, as the market evolves with different construction practices being introduced, it’s apparent that we need to move downstream to understand and cater to our customer’s needs.

4. Customisation: B2B businesses can learn from B2C in integrating their offers and creating loyalty. Nike, for example, promises inspiration and innovation to every athlete in the world. The founder, Bill Bowerman, believed that ‘if you have a body, you are an athlete’. Nike does not only sell shoes and exercise wear - they sell a lifestyle. Services such as customized shoes, proper fit for workout wear, customized exercise programs and workout music creates stickiness and a close bond between the brand and users. In order for B2B businesses to be game changers, they too will need to tap into their customers’ minds, needs and aspirations. Only by truly understanding these areas will they be able to offer solutions that are truly powerful for their customers.

5. Packaging: The right packaging is an important element in decision making with customers. For B2B marketers, as it is for B2C marketers, it can range from the size, brand or product positioning and price. By differentiating on these three elements, it becomes harder for competitors to enter the game.

The business model fundamentally does not change in any industry. It is the adaptability and the openness of the players within the industry to embrace a new way of selling their products, using strategies and plans that focuses more on the pull rather than push that will help differentiate B2B players in the coming years.

The writer is Shirley Low, vice president, marketing, Lafarge.

Low is a judge at A+M’s Marketing Excellence Awards taking place on 29 October at InterContinental KL.

For more details on entry guidelines and deadlines click here.

Don’t miss out on the chance to get the recognition your team deserves. 

If you would like to learn more about sponsorship opportunities, contact Soren Beaulieu at sorenb@marketing-interactive.com or call +65 6423 0329

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