Offering 'nontangible-nonfinancial' benefits beyond letter-of-contract makes customers feel positive about the vendor. Providing extended services such as delivering supplies or rendering after-sales service even on a holiday to keep customers' production lines going; deploying dedicated service personnel to assist staff at customer site for free of cost; helping clients in solving their business problems; proactively moulding to clients' requirements; developing informal relationships, etc., all these keep business customers loyal. For example, the global science major DuPont built amazing informal customer relationships by offering exciting racing experience and hospitality programs to its clients. However to reinforce customer loyalty, B2B marketers should keep communicating the nontangible-nonfinancial benefits offered by them, as clients don't keep track and quantify the value of all such services they get from different vendors. In the early years of Arrow Electronics, the supplier was shocked when it found that companies using its parts coordination and design engineering services weren’t aware that they were provided by Arrow. Recognizing such possibilities made one of the global chemical companies to practice regular communication about nontangible-nonfinancial benefits it offered to its customers via a monthly matter-of-fact letter.
A focused customer-driven model (viz., flat & stable management structure, lead-by example philosophy, open communication, service ethics, tangible value-adds, frequent social interaction, hospitality, etc) helps even a small B2B player to effectively compete with big giants. For example, South-African based ZEST Motors shows how critical is ‘customer relationships’ to withstand competition in B2B arena. Its ability to withstand competition against big giants like ABB and Siemens is mainly due to the customer-driven organization culture and loyalty built up over years. Though loyalty building efforts are appreciated by clients at later stages, binding customers can help firms during troubled times. For example customers of Lucent Technologies continued to buy from it and gave a chance to catch up with its rivals, when Lucent's switching systems did not incorporate the latest technology. This was due to relationships that Lucent has built with its customers over years.
Besides value derived from retaining client, benefits of promoting loyalty are ample. Initially, loyal clients tend to grow business relationships in terms of increased purchase quantity or buying other products/services of the firm. Next, they start referring to others and spread positive word-of-mouth. Besides acquiring new clients easily, costs of selling and acquiring reduces. Furthering clients' loyalty convert into affinity that resists competitors' offerings, though rivals offerings are attractive. For instance, CEO of Aeropres, a leading propellant manufacturer and distribution company though had the opportunity to go with other companies offering at lower prices, consistently stuck with DuPont products since he experienced the NASCAR car racing events and hospitality programs sponsored by DuPont. Eventually clients those who develop deep trust and willingness to bank on, will be willing to pay a premium, as well as collaborate to improve product and/or innovate new products/services. This will generate added revenue besides driving product innovation. In the most ideal situation, selected clients show interest to invest in new business ventures that can help them. It eliminates risk of the vendors, both retention and financial risks. However, B2B marketers should be constantly open and flexible to new opportunities and simultaneously focus on business growth while maintaining customer relations.
