Development of a B2B loyalty program into a profitable (digital) business model

Challenge

A globally active B2B manufacturer is facing a mammoth task: he wants to convert his B2B multi-partner loyalty program, which has been introduced worldwide, from a pure marketing tool to a profitable business model à la Payback and Miles & More. The aim is to get to know the customer (B2B) better and to further promote product sales.

Approach

iq! supports the company from strategy development to the implementation of digital sales measures.

This was achieved in successive steps:

Initially, the current situation in selected focus regions was evaluated and their cost and revenue structures illustrated. In addition, the previously generated customer data quality (address data, purchase histories, etc.) was evaluated. As a result, quick wins were defined to make the program more efficient in the short term, for example through sales-push campaigns and optimization of the reward portfolio.

Moreover, a legal due diligence was carried out to define the current situation of all stakeholders in the respective regions to be able to estimate, for example, the time frame of organizational changes.

Subsequently, to convert the Multi-Partner Program into a profitable business model, recommendations for actions were derived and requirements for changing the legal and organizational structure defined.

A business case for the considered regions was calculated to quantify the recommended actions, their costs and additional revenues.

Result

Adoption of a new digitally driven business model with an action plan (incl. partner portfolio, pricing, rewards and organizational set-up) and implementation roadmap (quick wins and mid-term actions).

Support during the implementation of digital marketing & sales measures (quick wins) in a pilot country (incl. concept development and user stories).