The power of referral marketing: 84% of B2B decision makers start the buying process off with a referral
Your best customers are also your best sales people. They hold the key to growth through referral marketing.
Did you know that 83% of satisfied customers are more than willing to become your advocates, referring your company to friends, colleagues and industry peers, and yet, on average, only 29% of customers do?
How do you motivate the rest of those satisfied customers to refer your company?
Simple. You make it easy, fun and rewarding through a user-friendly referral marketing program that turns customers into referral-generating advocates.
A direct referral lead is over 36x more valuable than a lead generated by a cold call, 10x more valuable than a trade show lead, and 4x more valuable than a web lead. —Ken Krogue, Co-founder and President, InsideSales.com
Launch a mutually-rewarding B2B advocate referral program
Advocate referral programs are surprisingly economical, powerful and, most importantly, proven when it comes to inspiring your advocates to refer high-quality leads.
A good customer referral marketing program enables you to:
- Engage customers in meaningful ways
- Enhance existing relationships that will help you establish new ones
- Focus on high-quality leads
- Shorten sales cycles
- Grow exponentially
- Give advocates what they want and get more referrals
A referred customer has a 16% higher life-time value. — Journal of Marketing
To help motivate advocates to share the love, you will want to create a reward system that is relevant to their needs.
Ironically, research shows that cash does not motivate advocates to refer others as well as non-monetary benefits, such as insider access to new initiatives at your organization, a seat at the table when making important decisions, and special treatment at events or even from your customer success organization.
If you have trouble deciding how to reward your advocates, ask them. They will be flattered to know you appreciate their insight and may even surprise you with low-cost requests.
Referral leads convert roughly 30% better than leads generated from other marketing channels and take a shorter time to close than regular leads. —Tony Nissen, National Solutions Manager, R&G Technologies
Make it easy for advocates to refer you
Once you have established how you want your referral rewards program to operate, be sure to integrate it into your social and web channels so you can help advocates refer you everywhere they connect.
This can easily be achieved by adopting software that empowers you to:
- Engage customers across a variety of digital channels
- Invite new customers to join your advocate referrals program
- Measure ROI on various social networking sites
- Increase brand loyalty among followers
Behind The Scenes: Act-On Software’s Advocate Marketing Program, ALUV
5 B2B Customer Referral Program Dos And Don’ts
Hanging Out With InsideSales.com’s Ken Krogue: Gathering B2B Referrals From Advocates
The More Customer Advocates You Have, The Fewer Ads You Have To Buy
Entrepreneur: Why Referral Marketing Works