Referral programs are not the only game-changer for B2C space. B2B brands also capitalize on the collective influence of their network. From that, they drive customer acquisition and increase sales.
Picture this: your happy customers become your sales superheroes. They spread the word about your amazing products to their network of qualified leads.
Sound enticing?
This article will help you make this a reality. Dive into all things B2B referral programs. You’ll know the perfect way to turn your customers into your biggest brand advocates.
Are you ready to capture this word-of-mouth power? Let’s begin!
B2B Referral Program: How to Build A Profitable One
Like other marketing methods, you must craft a well-designed program before launching. If you don’t know where to start, fear not. We’ve done the heavy lifting for you.
Detailed steps below will guide you through an a-z process to master referral marketing. Let’s jump right in!
Define your goals and objectives
If you want to know whether the result satisfies you, understand your expectations first.
So, what do you want to achieve from your referral campaign?
Are you looking to increase B2B sales, get new customers, or improve customer retention?
What specific metrics show the success of your referral program? Is it the number of successful referrals, conversion rates, revenue, or customer lifetime value?
These goals are the foundation for your entire program. They guide your strategy and help you measure success.
Thus, choose goals that reflect your business and customer relationship the most. Ensure they are measurable and realistic.
For instance, a SaaS company can expect to increase monthly recurring revenue by acquiring new subscription-based clients. Manufacturing businesses can boost sales revenue by securing new B2B contracts through referrals.
Note: Goals are not fixed. As your business evolves, your goals may change to stay relevant and effective. It requires reviewing and refining your goals based on market trends and program performance.
Find the right partners
Identifying the right partner helps you come closer to the success of your B2B referral program. Collaborating with them is key to reaching new potential customers who are more likely to love your offerings.
Then, who should you focus on?
Satisfied customers
Shout out to the strongest advocates of your program – the loyal customers. These people love your products or services. Their firsthand experience is the secret weapon that builds trust with their peers.
Prioritizing long-term users and repeat buyers for referrals to foster meaningful collaboration. Partner with those who have expressed positive feedback. This also increases the overall impact of your referral program.
Industry influencers
They could be industry analysts, thought leaders, or influential social media figures. These individuals help expand your brand reach to potential customers through their endorsements.
Industry partners or vendors
Businesses that offer complementary products or services are potential advocates. They have similar target audiences. Their existing customer base might be a good fit for your offerings.
Another great source of referral partners lies in happy vendors or suppliers. They might be willing to recommend you to their potential clients or partners.
Besides those key sources, you can expand your partner network by attending industry events. Joining professional networking groups is another great idea.
Decide referral program incentives and rewards
Enticing customers requires offering compelling incentives and rewards. What you offer should be relevant and valuable to your target audience. It motivates them to take action.
The referring customer in a B2B context isn’t the end-user or decision-maker paying for the product or service. Thus, the types of incentives are different.
B2B referral programs focus on long-term relationships rather than transactional rewards. Emphasizing the importance of ongoing collaboration can foster engagement among referrers.
Look at Dropbox’s referral program below. The company offers free storage space for both the referrers and the referred company. This non-monetary incentive aligns with their product and value. It potentially leads to continued use and larger paid plans in the future.
Now, review some common incentive types in B2B referral marketing.
Cash-related rewards
Offering monetary incentives is a straightforward and appealing option. Referrers may receive a flat fee or a percentage of the referred customer’s initial purchase.
Free upgrades or add-ons
Premium features or free upgrades can add value to the referral relationship. This compelling reward can incentivize participants to refer more clients or higher-value leads.
Exclusive experiences
Another enticing incentive includes access to special events or premium support services. This way, it shows how you value and appreciate their participation.
For instance, healthcare providers can offer priority appointment scheduling or expedited access to specialist services for referred patients.
Make your referral program easy to share
Simplify the sharing process. As long as you make things clear, you can maximize participation.
First, you need to communicate how participants can refer others to your business. Offer detailed guidelines on how to share referral links. Show them how to invite contacts or submit referrals through the program.
We recommend explaining the formalized process in 3-4 steps for the users to follow. Many brands craft their programs this way. Digital Ocean is a prime example.
Next, provide participants with multiple sharing options. This could include email invitations, social media sharing buttons, and personalized referral links. This way, customers can spread your program far and wide with just a few clicks.
Plus, consider implementing automation tools to increase the effectiveness of referral sharing. For instance, they help generate shareable content like pre-written referral messages.
Design a landing page
Your B2B referral program needs a dedicated landing page. It’s a vital communication channel that helps you connect with referrers.
Here are crucial things to note when crafting this page:
- List the key details of your referral program
How does the program work? What are the benefits offered and eligibility requirements? Are there any specific terms and conditions?
- Emphasize the referral incentives and rewards
Besides presenting a captivating headline, highlight the rewards offered. Let your customers realize the value-added benefits they can expect to receive before asking them to do anything else.
- Use eye-catching visuals
This is a perfect tip to make your program more outstanding. Images, graphics, or videos can capture the attention of visitors. They help reinforce your messaging while making the landing page more engaging and memorable.
- Implement a logical layout and organization
As you design your landing page, make it easy to follow. If necessary, include a navigation menu for quick access to different page sections.
Include eye-catching Call-to-Action
A strong call to action (CTA) serves as the final push. It motivates users to take the desired action, which in this case, is to join or engage with your program.
How to create a CTA that works?
– Use persuasive language or strong verbs in your CTA. They help evoke urgency and encourage immediate action.
– Keep the text short and to the point. Avoid using long sentences or excessive wording that may distract visitors. Some great examples include “Start Now,” “Sign Up Today,” “Join Us” or “Get Your Referral Link.”
– Use contrasting colors, bold fonts, or graphical elements to make the CTA button or link stand out from the rest of the page.
As you’ve got your desired button, strategically place it in high-visibility areas. According to VWO, after clearing out the unnecessary elements and putting white space around their CTA, Open Mile found their conversions increased by 232%. So, consider an ideal position, such as above the fold or in a prominent location that aligns with the natural flow of the page.
Bonus tip: Use A/B testing to compare different CTA variations. It lets you know which type of text, design, or placement performs best in terms of engagement and conversion rates.
Have a clear B2B referral program message
A personalized message from a satisfied customer carries more weight than a generic marketing message. It helps to establish trust with potential referrals, leaving a better impression of your brand.
A pre-drafted message can save time for referrers. However, allow them to customize parts of the message to add a personal touch. Encourage them to share their positive experiences with your company. This way, the message can foster trust, increasing the likelihood of a positive response.
Plus, the message can include a clear CTA. It encourages the recipient to take the next step. It could be contacting your company, scheduling a demo, or exploring your website.
Make the email sweet, clear, and easy for recipients to respond to the referral.
Create FAQs page
A dedicated FAQs page adds a touch of clarity to your referral program. It addresses potential concerns participants might have.
This space not only enhances the user experience but also puts less strain on your customer service staff. Plus, it prevents the main referral page from becoming cluttered with extensive text or repetitive information.
What are crucial tactics when designing an FAQ page?
Compile a list of common questions potential referrers may have about the referral program. They could relate to eligibility criteria, the submission process, payouts, and program terms.
For each question, provide clear and concise answers. No fancy jargon. Use simple language to ensure that the information is understandable by all users.
Note: Keep the FAQs page up-to-date with the latest information and changes. Identify new questions by monitoring feedback and user inquiries.
Use a B2B referral software
Running a B2B referral program takes a lot of effort. If you desire to alleviate the burden of managing the program, referral software might help.
Software’s automation features help streamline workflow processes and reduce manual intervention. The automated tasks often include referral validation, reward distribution, and communication with referrers.
You can use the software to track referrals at every process stage. Use the reporting and analytics tools to generate insights into referral performance. The referral data provided will help you measure success and find opportunities for optimization.
UpPromote referral software helps automate the calculation and distribution of rewards based on predefined criteria. This way, you can expect timely and accurate reward fulfillment for participants.
Tip: Their free trials or demos can be helpful in exploring different software options. Capitalize on this offer before determining the best fit for your program.
Promote your B2B referral program via multiple channels
Making contact with people on a list of possible referrals and offering them programs is one option. That being said, you shouldn’t limit your referral base to simply that. There are still many options that help you broaden your recruitment horizons.
By utilizing a multi-channel marketing approach, you can reach your current customer base and potential referrers across various platforms.
Here are effective marketing channels for consideration:
Leverage your existing email list to reach current customers and partners. You’ll craft targeted email campaigns highlighting the referral benefits and encouraging recipients to join.
Notify people about your referral program using social media. Share engaging posts and success stories to encourage followers to visit your program.
Some brands might desire a faster reach. It leads to investment in paid advertising. Running Google Ads or social media advertising is a great option to promote your referral program to a wider audience.
Do you know that transactional messages like shipping notifications, order confirmations, and thank-you pages typically receive high open and engagement rates? They make a perfect chance to integrate your referral program promotions into these messages.
The reason is that they are already part of the customer’s interaction with your brand. Your promotion won’t disrupt the flow of communication and is more likely to be well-received.
So, consider adding appealing banners or prominent call-to-action buttons within these messages. Highlight the incentives of your program to incentivize participation.
Add your program to your website
As you’ve created a dedicated landing page, feature it on your website. This way, you ensure that it’s easily accessible to visitors who are already engaging with your brand. This increases the likelihood of them discovering and participating in the program. They can learn about the program and sign up without having to navigate to external platforms.
Moreover, visitors are more likely to trust a referral program presented on your official website. So, don’t miss out on this chance to reinforce its legitimacy.
There are some ideal locations to showcase your program. Some brands might include it in the main menu or announcement bar. Others place it in the footer or a dedicated “Referral Program” section.
Track the results and optimize your program
The B2B referral marketing program is not a one-time project. Thus, for long-term success, it’s vital to track the program and continuously optimize it based on the data you collect. This allows you to address areas for improvement and maximize program effectiveness.
Tracking and analytics tools help monitor the performance of your referral program in real-time. We’ll list detailed types of tools in the following section. But first, let’s see which metrics to track to measure your program’s success.
- Number of new leads generated. Track the volume and source of referrals to understand which channels drive the most traffic.
- Conversion rates. Analyze the conversion rates of referred leads to determine the quality of referrals.
- Cost per acquisition (CPA). Assess the total cost of acquiring a new referred customer or conversion.
- Return on investment (ROI). Compare the costs associated with running the program (e.g., incentives, rewards) to the revenue generated from referred customers.
Based on your analysis, implement optimization to address concerns and improve performance.
Look for insights such as:
Which promotion methods are most effective in driving participation?
What are the most common reasons for referrals not converting into successful sales?
From these insights, refine your strategies.
For instance, focus marketing efforts on channels that deliver the best results. You can adjust incentives for different types of referrals or customer segments. What else? Improve communication or personalize the experience for participants, further increasing engagement.
What is A B2B Referral Program?
The B2B referral program is a word-of-mouth marketing strategy. It incentivizes customers to refer your brand or services to decision-makers or key stakeholders at other businesses. These referrals can help generate high-quality leads with a higher likelihood of conversion. Why? They come from trusted sources within the professional network of potential clients.
This program often has a structured process to ensure efficiency and transparency. It facilitates the ease of referral link sharing and reward offering.
B2B referral programs leverage the relationships and networks of satisfied customers. This scheme makes it a valuable strategy for expanding the customer base and improving sales cycle. It also helps brands build long-term business relationships within the B2B ecosystem.
Why You Should Have A B2B Referral Program?
If you want to add a fresh touch to your marketing campaign, a B2B referral program is worth considering. Let’s find out why this method is a favorite of B2B businesses of all sizes worldwide.
Tap into the trust and credibility of existing customers
According to Useful Social Media, word-of-mouth influences the purchasing decisions of over 90% of B2B customers. It’s also the primary source of “information and advice” for 88% of B2B decision-makers (Capterra).
So, referrals from trusted sources carry significant weight in B2B decision-making. By having a suitable referral program, businesses can benefit from the trust and credibility of their existing customers and partners. These individuals might present your products or services to other companies that might be of interest.
Achieve high-quality leads in a cost-effective way
Do you know that people who receive referrals are four times more likely to buy something? (DCR Strategies).
What’s the reason?
Referrals often come from participants familiar with their peers’ needs and pain points. They come with a built-in level of trust and advocacy. Thus, this targeted reach can result in higher conversion rates. In other words, referral recommendations tend to produce better-qualified leads.
Even better? The B2B referral program is cost-effective. Satisfied customers will help you reduce customer acquisition costs, which is a puzzle in other traditional marketing methods.
Foster stronger customer relationships
A well-executed B2B referral program can go beyond just driving new leads. It can build meaningful relationships with your customers.
Statistically, referral increases the customer lifetime value (CLV) by 16% (DCR Strategies)
It’s the result of increased trust and engagement between the two parties. When you invite customers to participate in your referral program, you can make them feel appreciated. It deepens their emotional connection to your brand.
Rewarding them for referrals also fosters a sense of community and encouragement. Mutual success strengthens the bond between you and your customers. Ultimately, it leads to increased loyalty.
Tools That Help B2B Referral Program
Tools open a new world of running and managing your business referral program. They help alleviate some manual burdens while ensuring a seamless flow for your campaign. If you are looking for a more effective, scalable program, consider using crucial tools as follows:
Referral Program Software
We’ve already discussed how functional referral software is in your referral marketing journey. These platforms not only streamline management but also provide valuable insights.
It’s obvious that not all brands use software to manage their referral programs. This is especially true for smaller firms. Costs, implementation, and integration problems are the main points of discussion.
The decision of whether or not to use software for a referral program depends on various factors. They could include budget, program complexity, and desired features.
If you go with a referral software option, ensure you choose the right one. How?
Consider your program size, budget, and specific needs. Then, evaluate the platforms’ features and customer support options before making a decision.
As you arrive here, have a glance at UpPromote’s customer referral program. What can you expect from our feature?
There is no need for complicated program creation or management. UpPromote handles everything. The program integrates with your existing account, streamlining the referral process for you and your customers.
Additionally, capitalize on the automated functions to maximize efficiency.
Well, the functions are a lot more. Check out our innovative feature to see how it can leverage the advocacy of your existing customers and drive sales organically.
CRM Software
While not specifically designed for referral programs, CRMs offer valuable functionalities to enhance your program’s success.
Its most crucial feature might be storing and organizing customer data. It includes contact information, interaction history, and referral activity. This information lets you identify potential referrers. Also, you can track their engagement with your referral program.
Besides, CRM software helps segment your business’s customers. For instance, it can group them based on industry, company size, or purchasing behavior. This segmentation is a valuable source for targeted outreach and program promotions.
It’s true that this system provides crucial features for managing and tracking data. However, it shows full potential for your program when integrated with dedicated software. The combination allows users to sync customer data and leverage the strengths of both tools.
Google Analytics
Businesses use Google Analytics to track referral traffic sources from websites, email campaigns, etc. This data lets you identify which channels are driving the most referrals.
But it’s not just about the source. This popular web analytics tool provides insights into user behavior on the website. For instance, it tracks time spent on the site and interactions with content. By analyzing the data, business owners can understand how referrals engage with the website. From the insights, they can identify areas for improvement in the user experience.
Even better? Google Analytics also measures the effectiveness of your referral program in generating leads.
But again, to get comprehensive data on these metrics, you need to combine it with your referral software. The combination will enhance the effectiveness of tracking and managing referrals.
5 Examples of Best B2B Referral Programs
Before sketching a perfect B2B referral program for your business, learn from other’s experiences. Explore how they’ve structured their programs. Which valuable practices can you implement in your own program?
And while learning is useful, you don’t want to copy simply. Identify areas where you can differentiate your own offering and stand out in the market.
We’d love to introduce you to five remarkable programs from big brands. Let’s dive in!
ActiveCampaign
Let’s kickstart the list with ActiveCampaign, a leading customer experience automation platform.
This brand offers a robust referral program to benefit its existing customers and any referred clients.
What are the referral rewards, to be exact?
The referrers can earn up to $100 in Amazon gift cards for each new customer they refer. The exact rate depends on the referred customer’s chosen subscription plan.
New customers referred receive a $10 credit toward their ActiveCampaign account.
Besides offering competitive incentives, ActiveCampaign simplifies the referral process. Customers can start sharing their referral links by logging in to their account.
The company also employs transparent tracking, with details presented on the account dashboard. This way, they prove the credibility and transparency of their referral program. It fosters qualified referrals and long-term engagement with customers.
Besides referral marketing, ActiveCampaign also runs an affiliate program. They open up more opportunities for those interested in their brand. And, of course, they look to boost sales and customer base from the two strategies.
GetResponse
GetResponse’s referral program is another notable example of how to leverage customer advocacy to drive growth.
Like ActiveCampaign, this email marketing platform provides incentives for both parties. In particular, they receive a $30 credit for each successful referral.
But this is not the only incentive. The referrer can earn a free digital marketing certification course upon referring three paying customers.
We love how GetResponse focuses on simplicity when designing this program. They include a clear, detailed process on the landing page. This way, interested customers can understand their campaign and find a quick way to participate.
They can generate unique referral links easily through the GetResponse dashboard. Here, feel free to choose sharing options, such as email, Facebook, and LinkedIn.
Hiver
Hiver is a provider of email collaboration and management solutions. Their referral program is a rich source of information and tactics that others might learn from.
Let’s dig a little deeper!
Hiver goes beyond typical cash or discounts. They offer exciting reward tiers to truly capture attention and motivate participation.
In particular, they implement a multi-tiered structure with escalating rewards. Each successful referral will give the referrer up to a $350 Amazon gift card. That’s huge!
But this one is more impressive. Upon conversion of the referred lead into a paying customer, customers might earn compelling rewards. They include a Kindle, an evening-out experience, and an iPhone.
While rewards are appealing, they’re not the only thing that impresses us. We value how Hiver breaks down the process into simple steps. This way, they eliminate complexity and make the program easy to understand.
There’s also an FAQ section, and the chat feature offers quick resolutions to any potential questions. This is evidence of their dedication and support throughout the positive customer experience.
Additionally, they make use of testimonials, which are a powerful tool. The section features real-world success stories that help reinforce trust. It reminds customers of the benefits Hiver provides. Smart point!
FreeAgent
Let’s move on to the next program by FreeAgent. This is a provider of cloud-based accounting software for small businesses and freelancers.
Surprisingly, this brand implements a discount reward system for its program. Both parties receive a 10% off the monthly membership charge.
You might wonder how FreeAgent can drive participation with this incentive. In fact, they offer stackable discounts for each successive referral. It means that a customer who refers 10 new customers who remain subscribed would receive a total discount of 100%,. In other words, they make their FreeAgent subscription free to use.
The prospect of increasing discounts motivates customers to actively engage in the referral program. FreeAgent aims for long-term engagement, not just short-term acquisition.
This software company also facilitates a smooth participation process. Customers can find their referral link on the desktop version of FreeAgent or the Android mobile app. There are different ways to share these links, including social media and email.
Hilti
Last but not least on our list of motivational B2B referral program examples is Hilti. Let’s see what this top supplier in the construction sector offers!
Hilti’s referral program is for their ON!Track asset management software. They craft a unique approach that fosters partnership-building between the company and its customers.
Participants will recommend ON!Track to other businesses by sending a referral link through the Hilti website. They’ll receive a form to request a free consultation about ON!Track. If the consultation leads to a signed contract, the referring customer gets a one-month free subscription to ON!Track.
Hilti’s program might not offer immediate financial rewards for referrals. However, it emphasizes the importance of building strong relationships. This approach is valuable for businesses seeking to cultivate long-term customer loyalty and achieve sustainable growth.
As you might realize, the program’s success likely relies on the quality of its consultations. Thus, ensuring a valuable consultation experience is crucial for lead conversion.
This program is a good reference for businesses in the same industry. For an additional touch, consider offering different types of rewards based on the size of the contract.
FAQs:
- How do referral programs work in B2B?
B2B referral programs offer a valuable tool for businesses to leverage existing customer satisfaction. They offer customers compelling incentives. In return, these customers help them expand their business’s customer base and increase revenue.
- What are effective ways to ask for B2B referrals?
Don’t ask randomly. Instead, prioritize requesting referrals from satisfied customers. Consider the customer’s preference to choose the right communication channel. It might include mail, messaging, or even a face-to-face meeting. Plus, explain the referral program and enticing benefits.
- When is the best time to ask for B2B referrals?
There are some ideal moments that create a more favorable environment for your request to be well-received. The first is right after delivering exceptional services. The second is during customer success or account management interactions (e.g., regular check ins). Reaching out to them after receiving positive feedback or testimonials is another great option.
- What types of businesses can most benefit from B2B Referral Programs?
Some specific types of businesses tend to see greater benefits from referral marketing. They are those operating in niche markets with a more defined target audience. B2B Companies offering complex solutions or high-ticket items also capitalize on referrals. Plus, those with strong customer relationships are also well-positioned for successful referral programs.
- How can I ensure my B2B Referral Program remains compliant with relevant laws?
First, research and familiarize yourself with relevant laws and regulations. This may include consumer protection laws, anti-bribery laws, and data privacy laws.
Then, outline the clear terms and conditions of your referral program. Ensure they comply with applicable laws and provide adequate disclosure to participants.
- How to choose the right incentives for a B2B referral program?
It’s essential to understand the preferences of your target audience. Consider choosing incentives that provide real value to them, such as gift cards or credits. In addition to monetary rewards, consider non-monetary ones. Recognition, status, or experiences might be appealing to participants.
- How to meet B2B referral program legal requirements?
There are several notices for this aspect. Ensure that your referral program does not involve unlawful payments, kickbacks, or incentives that violate anti-bribery regulations. Provide clear disclosures to participants regarding the referral process and incentives. Plus, be transparent about data collection, usage, and storage practices.
- What makes a B2B referral program?
A B2B referral program relies on satisfied customers to recommend your product or service to their network. You’ll motivate participation through rewards like cash bonuses, credits or non-monetary benefits. And this campaign aims for long-term value creation and foster brand loyalty.
Conclusion
Wrapping up, the power of trusted recommendations holds the key to unlocking lucrative opportunities in the competitive B2B landscape.
This article has uncovered the strategic importance of cultivating and nurturing relationships with referrers. Remember, your most powerful sales team might already be sitting in your client base.
As you get started, capitalize on the resources and tools mentioned. They’ll help you build a profitable B2B referral program that turns your customers into brand champions.
Now, prepare a well-designed plan to activate the power of referrals!
