From Retention to Referral: B2B Loyalty turning into Advocacy and Referrals

Abstract

This present thesis, titled “From Retention to Referral: B2B Loyalty turning into Advocacy and Referrals” researches on the transformation of customer loyalty into advocacy and referrals in the B2B context. As customer advocacy proves to be a successful lever for businesses growth, a clear shift of strategic focus towards it (Lawrence et al. 2019; Sandu 2021) can be highly beneficial. Transforming from simply maintaining client relationships to turning them into powerful assets (Boyd, Sese, and Tillmanns 2023), supports businesses in establishing a stable and loyal customer base, while mutually achieving a high level of profitability (Gutierrez et al. 2020; Rauyruen and Miller 2007). To accomplish this objective, it is essential to deeply understand the multiple factors that enhance client loyalty and utilize this comprehension to convert clients into advocates who effectively promote the business (Aksoy 2013; Williams 2022). Throughout the thesis, the literature review explored key characteristics of the B2B environment influenced by broader economic factors, complex buying behaviours and marketing strategies (Gutierrez et al. 2020). In examining customer loyalty, the study defines it as a multidimensional construct, combining emotional and behavioural factors (Oliver 1999; Watson et al. 2015) and outlines the increasingly evident global shift towards loyalty marketing as crucial, as to impact managerial outcomes and performance indicators such as sales, share of wallet and/or profit performance (Kwiatek and Thanasi-Boçe 2019; Watson et al. 2015) In regard to the empirical component of the thesis, qualitative interviews with B2B managers to explore practical insights of theories, were focused on. These interviews revealed that while many organizations recognize the importance of advocacy, actual practices vary significantly across the businesses of the experts, but in a structured way they are hardly implemented yet. Concluding turning loyal customers into advocates requires a deep understanding of customer needs, exceptional service and strategic engagement. By leveraging these elements, businesses can enhance their competitive advantage and achieve sustained growth in the B2B market. However, it's important to note that the content of this analysis has its limitations; while it offers direction, it does not provide a complete, ready-to-implement business strategy due to the continually evolving nature of the topic and the differencing goals of businesses.

Date of Award	2024
Original language	English
Supervisor	Florian Kollros-Farthofer (Supervisor)