The Complete Guide to Referral Marketing for B2B Companies

Is referral marketing a part of your B2B company's promotional strategy? Research shows that 84% of decision-makers begin their buying journey with a referral. They are "referred" to a vendor, supplier or other B2B company by someone they know. You can still use other methods and channels to interact with prospects, but leveraging referral marketing will pave the way for greater B2B success.

What Is Referral Marketing?

Referral marketing is a form of marketing that revolves around recommendations and word-of-mouth exposure. It taps into a given B2B company's existing audience. When buyers are happy with a B2B company, they may recommend it. Existing buyers may tell their friends, family members and colleagues about the B2B company. Some of those people may then voluntarily reach out to the B2B company to see what it offers. Referral marketing consists of recommendations such as this.

How Referral Marketing Can Benefit Your B2B Company

You can achieve a trustworthy and credible B2B company with referral marketing. Prospects trust referrals -- even more so than traditional marketing messages. Traditional marketing messages typically come directly from B2B companies. Therefore, they are naturally biased. Referrals, on the other hand, come from existing buyers. Because they are unbiased, referrals project trustworthiness and credibility. More buyers will trust your B2B company if you use referral marketing.

Referral marketing is cost-effective. It costs less than nearly all other forms of marketing. This is because referral marketing uses existing buyers as brand ambassadors. You won't have to invest in extensive advertising or expensive lead-generation campaigns. With referral marketing, you can acquire new buyers at a lower cost per acquisition.

You can expect a high conversion rate when using referral marketing to drive sales. One report found that B2B companies with a dedicated referral marketing strategy experience a 70% higher conversion rate than those without a referral marketing strategy.

To expand your B2B company's reach, look no further than referral marketing. You can use it to reach buyers who otherwise wouldn't know about your B2B company. And each referral has the potential to bring in more referrals, creating a runaway effect. This can lead to a steady stream of high-quality leads at little or no cost to your B2B company.

Referral marketing is easy. It's a "hands-off" process that requires minimal work on your part. With referral marketing, your B2B company's existing buyers will do most of the legwork. They will recommend your B2B company to their colleagues, some of whom may reach out to your B2B company to inquire about your products or services.

How to Get Started With Referral Marketing

Know that you know its benefits, you might be wondering how to get started with referral marketing. Referral marketing begins with top-notch customer service. You must ensure that your B2B company's existing buyers are completely satisfied. If they have a negative experience, they probably won't recommend your B2B company to their colleagues and other individuals whom they know.

Improving your B2B company's customer service will result in more referrals. It will boost buyers' level of satisfaction with your B2B company. And with a positive experience, buyers will be more likely to recommend your B2B company.

You can use incentives as part of your B2B company's referral marketing strategy. Incentives are rewards or "perks" that buyers receive in exchange for recommending your B2B company. Incentivized referrals are commonly used by B2B and B2C companies alike. Some companies offer discounts, whereas others offer free products or branded gifts. Regardless, incentives will encourage buyers to recommend your B2B company to their colleagues.

When using incentives for referral marketing, consider the following tips:

• Choose incentives that are relevant to buyers.
• Create clear terms and conditions explaining what buyers need to do to earn an incentive.
• Use tools, such as tracking software, to manage referrals.
• Provide buyers with prewritten messages or social media posts to streamline the referral process.

Don't forget to collect feedback from buyers. Feedback and referral marketing go hand in hand. To encourage buyers to recommend your B2B company to their colleagues, you must provide them with a positive experience. Feedback can help by revealing whether buyers are satisfied, and if they aren't satisfied, why they aren't satisfied.

Some B2B companies send their buyers satisfaction surveys. Buyers can rate their experience when completing a satisfaction survey, and they can typically include additional information about any problems they encountered. Other B2B companies have sales reps or account managers seek feedback from buyers. Regardless, if you're going to use referral marketing as part of your B2B company's promotional strategy, you should seek feedback from existing buyers.

Testimonials are a powerful tool for referral marketing. Testimonials are messages from existing buyers that praise your B2B company and its products or services. You can publish them on your B2B company's LinkedIn Page, website, emails and elsewhere. When buyers recommend your B2B company to their colleagues, some of those individuals may read these testimonials. With plenty of testimonials, they'll feel more confident interacting with your B2B company and buying its products or services.

In addition to testimonials, you can use case studies to generate more referrals. Case studies are real-world studies revealing the positive effects of your B2B company's products or services. Try to create one or more detailed case studies showcasing how your B2B company helped an existing buyer overcome a specific challenge. You can then share these case studies with buyers who participate in your referral program.

Referral marketing is synergistic with other forms of marketing. You don't have to choose between referral marketing and traditional forms of marketing. With their synergistic qualities, you can use them both. Referral marketing will fill the gaps left behind by other marketing tactics so that you attract more leads and generate more sales.

In Conclusion

If you own or manage a B2B company, you can't ignore the benefits of referral marketing. It's a cost-effective and reliable way to acquire high-quality leads and generate more sales. By implementing a well-designed referral marketing program, you can encourage existing buyers to recommend your B2B company to their colleagues and other individuals. Each of these referrals is a sales opportunity.