INTRO
It’s no secret that every type of company (product, service, B2C, B2B, etc.) rely on referrals to grow and excel. Consistent referrals demonstrates that your business is on the right track because you have customers and clients who are willing to share their experience with their peers. Although referrals apply to every business model, this article explores how to build and enhance a structured Referral Program through the lens of “B2B” (Business to Business). .
Why Referrals Matter in B2B?
Referrals should be treated like gold in the B2B space. Oftentimes, larger companies will have specific roles or entire departments dedicated to managing and developing referrals. Of all the opportunities generated for a business, referrals are at the top- here are a few reasons why:
- ✔️ Higher conversion rates
- ✔️ Increased lifetime customer value
- ✔️ Cost-effectiveness
- ✔️ Building trust and credibility
WHERE TO START & HOW TO BUILD A B2B REFERRAL PROGRAM?
1. Existing satisfied customers
Your goal should be to bring value to every interaction you have with your customers. Solving problems, answering questions or turning a wrong into a right allows you to develop a deeper relationship; after these types of interactions let them know that you see them as a leader in their industry and ask if they know of someone that could benefit like they have. As stated earlier, any referral or reference they provide should be treated like gold.
2. Strategic partners and alliances
In the B2B space it's rare that a service/product provides all of the solutions for a business, because of that, strategic partners and alliances are created. Think of the additional solutions that are not competitive, but complimentary to yours. Offer a referral partnership and communicate with them often to discover more ways you can work together. Sharing customer lists, co-marketing efforts and attending the same conferences are a great way to build the strategic partner relationship that will lead to more referrals.
3. Industry influencers, publishers and affiliates
After you’ve worked with your satisfied customers and developed stronger strategic alliances, another great place to obtain B2B referrals is by partnering with industry influencers. There are many active business influencers that may be a fit for your referral program, it will take some effort but look for them on LinkedIn, business blogs, publications and conferences. Offer to give them access to your service or solution in exchange for a review and invite them to share their experience with their audience.
PROGRAM STRUCTURE AND INCENTIVE OPTIONS
Every industry in the B2B space may operate under different rules and regulations, investigate what some of your competitors are doing for their referral programs and make sure you implement a structure that works for your industry. Incentive structures for a referral program can include commissions, discounts, recognition, co-marketing opportunities, and gift cards to name a few. At the end of the day, think of the value you are receiving for a successful referral and the value you deliver in return.
HOW TO ENHANCE A B2B REFERRAL PROGRAM?
After you’ve established the basics for your B2B referral program- here is how you take it to the next level:
- Leverage Tools and Tech Spreadsheets have their place in the business world, but it’s time to graduate your referral program from manual tracking to a dedicated solution built to track, analyze and optimize. In many cases, a B2B sales cycle can be weeks or months long- keep your referrer engaged by providing real time updates during the sales cycle and rewarding key milestones. A good solution for this is LinkTrust Pipeline that integrates with existing marketing client tools and CRMs.
- Provide resources and copy For strategic partners and influencers, help them out by providing a media kit with testimonials, product/service descriptions and anything else they may need to inform their audience. Ask them what mediums their audience engages with and have those options ahead of time if possible. Videos, articles, and images should be updated on a regular basis.
- Keep it simple:Create easy to follow processes for anyone providing referrals and don’t be afraid to be flexible with different partners. Develop a simple submission form that will capture all relevant information along with an optional comments/notes section for additional context. Some partners may prefer a warm email intro for referrals- even if you have to go back and add the info post email intro- don’t say no, say thank you!
KEY TAKEAWAYS AND CONCLUSION
Starting a B2B Referral Program from scratch may seem daunting, as long as the focus is on value for all parties involved, the right decisions and adjustments will be made.
For existing programs- think of all of the manual processes currently in place and lean on technology to help you clean those up. Your program shouldn’t be stagnant, actively adapt and evolve your Referral Program to keep leveling up.
Lastly, follow the golden rule and always communicate and thank partners, clients and influencers for the referrals they provide. Good luck with building and enhancing your B2B referral programs!
.png)
