Top 5 Strategies for Building a Successful B2B Referral Program

Referral programs are not a novel approach to marketing. Actually, it was just known as word-of-mouth marketing until B2B marketers began referring to it as “referral marketing.” In other words, if a customer is satisfied with your goods or services, they will recommend them to another business associate, who will then tell still others, and so on.

84% of B2B decision-makers begin the purchasing process with a referral, according to a Salesforce survey.

It is equally valuable in the realm of digital marketing. However, it has created new avenues for people to share their experiences via emails, videos, podcasts, social media platforms, and reviews, complaints, and other means.

Referral marketing techniques are necessary, nevertheless, if you want to optimize the likelihood that your clients will tell others about you.

Don’t worry, though, since we’ll teach you how to create B2B referral marketing techniques that will attract devoted customers with a higher lifetime value in this article.

1. Set out your goals and strategy

Determining your desired outcomes is the first step in creating a successful B2B referral program.

Your goal may be to increase client acquisition, improve customer experience (CX), or further align the strategies to increase revenue, provide quality leads, and raise brand awareness.

But, you may also change your referral goals to fit the demands of your business. For example, if your firm is SaaS-based, your goal might be to increase annual recurring revenue (ARR) through new subscriber-based referrals. But for a consulting business, marketers might concentrate on using referral networks to grow on high-quality leads.

2. Choosing Appropriate B2B Referral Partners

You need the right referral partners to create a successful referral campaign. Finding the best one, nevertheless, would always rely on a few variables, like your target market, industry, communication style, and reference types.

Finding your ideal referral partner is simple; for example, “satisfied customers” are people who enjoy your services and products and are inclined to tell others about you. Since they have firsthand experience with your business, happy customers are always sincere in their recommendations. Conversely, “business partners” are motivated to see you succeed and will gladly recommend you to their prospective customers.

Last but not least, “value-added referral partners (VARPs)” are essential to your referral business because they recommend, advertise, and enhance your goods and services, which helps you reach a wider audience, establish credibility, and build strong relationships with your clients.

3. Find the Rewards for the B2B Referral Program

It’s time to choose the incentive or reward structure when you’ve found your possible referral partners.

Because it encourages your referral partners to recommend others, the incentive is essential to your referral programs. These incentives for referrals may be monetary or non-monetary.

Marketers frequently give their referral partners financial incentives in the form of commissions or discounts. The industry, the type of product or service, and the lifetime worth of a new client all affect these incentives’ rates. Non-monetary incentives, on the other hand, are not dependent on money; in the context of business-to-business (B2B) marketing, marketers offer a package of exclusive material, extending features, early bird deals, and priority customer services. These incentives are also very valuable to your referral partners.

4. Asking B2B Referrals

Since asking for referrals from clients or partners can be a continuous, continuing process rather than a one-time endeavor, it requires striking a balance between tact and clarity. Finding possible referral partners makes it easier to explain the program and its advantages, including obtaining early access to new items, discounts on subsequent purchases, or awards or unique content. Even with a customized approach, you build a network that benefits all parties engaged in the business process and improve your chances of getting referrals.

The type of business you run and your relationship with your partners will determine the channel you use. Therefore, to increase the number of referrals, contact your possible referral partners via phone calls, emails, in-person meetings, or even social media.

5. Tracking Referral Partners and Automating Training

Your referral partners will need the resources they need to effectively promote your product or service, which may include marketing content like banners and brochures as well as training materials. Additionally, by putting in place an automated system to generate and monitor customized referral links, you may monitor program performance and rewards. From tracking depending on the source link to recognizing the appropriate partner, these links aid in the completion of the lead generating cycle.

Marketers can set up a procedure even with automation tools; these tools let you monitor and evaluate the effectiveness of your referral program on a regular basis, pinpoint areas that need development, and modify your marketing tactics accordingly.

Concluding remarks

Referral programs are among the most effective yet underutilized tools for business-to-business (B2B) firms in the digital realm. Referral programs allow you to influence your clients’ purchasing decisions, which in turn allows your clients to validate others’ choices and foster a trustworthy environment.

As a result, you can plan your growth, open up new business channels, and help staff members become strong brand ambassadors by creating an effective referral program.