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Loyalty programs offer rewards of all kinds; some reward repeat business with apparel and electronics, while others opt for complimentary travel and accommodations. One organization, however, is taking a step into almost unprecedented territory by offering their customers a piece of the company itself.
MTBC, a cloud-based IT provider specializing in healthcare, is looking to build its client base through this unique system, simply called the MTBC Client Loyalty Program. All customers will receive a portion of MTBC stock shares, encouraging (and incentivizing) them to aid in the growth of the company. Further pushing customers to play a role in expansion is the continued distribution of these shares: each client is given a base amount of stock, increasing with the number of referrals made.
Loyalty360 asked MTBC Chief Financial Officer Bill Korn about the program, and how the company made the decision to implement the unique structure.
“We realized that the best way to grow our business was from referrals of our existing, satisfied clients, typically doctors who own their own practices,” Korn explained. “By treating our clients like owners, we think that they will act like owners, taking a little time to refer us to the same doctors they refer their patients to. We think that this is especially powerful since our clients are professionals who have the ability to influence their peers, although the model of aligning clients’ and employees’ motivations with those of shareholders is a great way to grow any business.”
The benefits are clear: Because customers own a stake in the company, they feel a stronger connection to MTBC. As a result, they’re more likely to spend more with them, further increasing the yield of their shares.
In a program like this, stock value dilution is an obvious concern. To eliminate this dilemma, the company is limiting the distributed shares to 100,000, ensuring that customers aren’t negatively impacted by the growth.
To execute the program, MTBC is partnering with LOYAL3, a company that specializes in similar stock offerings.
“We’re excited to help companies like MTBC enable their customers to become shareholders,” said Josh Rutberg, Managing Director of LOYAL3. “It’s an innovative way to show customers appreciation for their loyalty and support.”
Innovative it is, and for the customers of MTBC, “buying in” to their IT provider is set to take on a whole new meaning.
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