Table of Contents
Introduction
1. Arrange your Strategy and Objectives
2. Specifying the Right B2B Referral Partners
3. Find the B2B Referral Program Incentives
4. Asking for B2B Referrals
5. Automating Training and Tracking Referral Partners
Final Thoughts
Introduction
Marketing via referral programs is not new. In fact, before B2B marketers started calling it “referral marketing,” it was simply considered word-of-mouth marketing. Simply put, if your client likes your product or services, they would suggest this to another business partner, who in turn would tell someone else, and this goes in a loop.
In a report by Salesforce, it was observed that 84% of B2B decision-makers start the buying process with a referral.
Even in the digital marketing world, it holds the same value. But it has opened new doors that allow people to communicate their experiences through recommendations, reviews, grievances, etc. on social media platforms, emails, videos, and podcasts.
However, to maximize the potential of your customers to spread the word for you, you need referral marketing strategies.
But wait no more, as in this guide, we will show you how to build effective B2B referral marketing strategies that will bring in loyal clients with a higher lifetime value.
1. Arrange your Strategy and Objectives
The initial step in developing a successful B2B referral program is identifying the goals you want to achieve.
Your objective can range from improving customer experience (CX) to increasing customer acquisition and further aligning the strategies to drive more sales, generate high-quality leads, and boost brand awareness.
However, you can also alter your referral objectives according to your company’s needs; for instance, if you are a SaaS-based organization, your objective would be to boost annual recurring revenue (ARR) based on new subscriber-based referrals. However, for a consulting firm, marketers might focus on expanding on high-quality leads through referral programs.
2. Specifying the Right B2B Referral Partners
To build a good referral program, you need ideal referral partners. However, discovering the right one would always depend on a few factors, such as your industry, target audience, mode of communication, and types of references.
Identifying your ideal referral partner is quite easy; for instance, people who love your services and products are called ‘satisfied customers’ and are likely to recommend you to others. A satisfied customer always offers genuine referrals because they have personal experience with your organization. On the other hand, ‘business partners’ have a vested interest in your success and will willingly refer you to their potential clients.
Lastly, ‘value-added referral partners (VARPs)’ are vital contributors to your referral business as they refer, promote, and add value to your products or services, further aiding in extending your market reach, boosting credibility, and fostering a thriving partnership with your customers.
3. Find the B2B Referral Program Incentives
Once you have identified your potential referral partners, now it’s time to select the reward structure, i.e., incentives.
The incentive plays a vital role in your referral programs as it motivates your referral partners to refer to other people. These referral rewards can be either monetary or non-monetary.
For monetary incentives, marketers often provide a form of commissions or discounts to their referral partners. The rates of these incentives vary depending on the industry, the nature of the product or service, and the lifetime value of a new customer. On the other hand, non-monetary incentives are not tied to cash; in the B2B marketing realm, marketers provide a combination package of exclusive content, extending features, early bird offers, and priority customer services; these incentives also hold significant value for your referral partners.
4. Asking for B2B Referrals
Approaching clients or partners for referrals demands a balance of tact and clarity, as this can be a consistent, ongoing process rather than a one-off effort. Identifying potential referral partners aids you in explaining the program and its benefits, such as receiving discounts on future purchases, getting early access to new products, or earning exclusive content or rewards. Even with a personalized approach, you increase your chances of receiving referrals and create a beneficial network for everyone involved in the business process.
The channel you choose depends on the nature of your business and the relationship you have with your partners. Therefore, to get more referrals, use a combination of email, phone calls, in-person meetings, or even social media to reach out to your potential referral partners.
5. Automating Training and Tracking Referral Partners
For effective promotion of your product or service, your referral partners will require necessary sources; these can include training materials and marketing collateral such as brochures and banners. Further, you can track program success and incentives by setting up an automated solution to create and track personalized referral links. These links help in completing the lead generation cycle, from tracking based on the source link to giving recognition to the right partner.
Even with automation tools, marketers can establish a process; these tools allow you to regularly track and analyze the performance of your referral program, further identify the areas for improvement, and adjust the marketing strategies accordingly.
Final Thoughts
In the digital world, referral programs are the most powerful yet one of the most underutilized tools for B2B brands. With referral programs, you can influence your clients’ buying decisions, and then your clients can validate people’s decision-making and create an environment of trust.
Therefore, by making a good referral program, you can strategy your growth, unlock new channels of business opportunities, and also aid employees in building powerful brand advocates.
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