Digital Loyalty Programmes

Abstract

Digital loyalty programmes are an increasingly common tool for business-to-business marketers hoping to increase repeat sales through deeper customer engagement. In consumer markets, such programmes do little to influence behavioural loyalty and disproportionately attract the firm's existing heavy buyers. Industrial buying, however, relies on direct sales channels and features negotiation and reciprocity. Loyalty effects may therefore differ in B2B, and although no clear picture yet exists, such knowledge is important as B2C digital loyalty programmes grow in popularity. Here, the authors describe programme membership's evolving characteristics over in a B2B scheme that was launched in the US metal-cutting tools manufacturer customer base. Findings are consistent with the idea that the scheme recruited the heaviest buyers earliest and had an insignificant effect on total revenue. The authors discuss managerial implications, particularly about (1) managing the rollout of similar schemes and (2) refocussing on the programme objectives to maintain sales from the lightest rather than the heaviest buyers.