Every business can gain from referrals. However, there is a big difference between referrals from regular consumers in business-to-consumer (B2C) situations and referrals from business decision-makers in business-to-business (B2B) transactions.
B2B referrals are more trusted than traditional B2C referrals. This trust can lead to quicker sales and higher customer value over time. When a reliable business client or partner recommends your brand, it can help you convert leads more easily and at a lower cost.
Organic referrals can be rare and unpredictable. To encourage more referrals from your clients, consider creating an effective referral program. It means you need to understand what referral marketing is and how to design a clear plan for it.
Here are some tips for B2B referral marketing to help you decide if referrals could be a valuable strategy for your business.
Included in this blog:
What Is Referral Marketing?
3 Benefits of a B2B Referral Marketing Plan
Building a Strong Foundation Before Implementing Your Marketing Referral Program
5 Referral Marketing Tips: Designing an Effective Referral Marketing Strategy
Utilizing Referral Software: How Thrive Local Can Streamline Your Referral Program
Referrals use recommendations from your current clients to attract new clients. For B2B businesses, referral marketing is more than just asking happy clients to share your brand or hoping for referrals to happen naturally. It involves creating a formal program where you provide unique links for clients to share with others. It helps you track your referral efforts while encouraging clients to refer others in their network.
Some happy clients might recommend your business to others without any incentive. However, relying on these organic referrals can be challenging for several reasons. First, organic referrals are unpredictable; you can't know when or if your clients will refer your business. Also, it's challenging to track organic referrals, which makes it hard to record all referrals and determine which ones are leads.
A B2B referral program helps your clients easily share your brand with their network. It also helps your business keep track of referral marketing efforts. This approach generates high-quality leads that are more likely to convert into sales.
Well-planned B2B referral marketing strategies bring in valuable leads.
About 91% of B2B decision-makers are influenced by word-of-mouth marketing. When business leaders recommend your company, others who know or trust them are more likely to choose you. Here are some key benefits of having an effective referral marketing strategy:
Referrals differ from traditional marketing in that they are often trusted more. When someone refers you, it shows that they recommend you based on their trust in another person. It gives you more credibility.
Obtaining referrals early on helps you identify better leads who are more likely to make a purchase. Clients who come from referrals need less persuasion, nurturing, and negotiation. It also helps you build strong, long-lasting relationships with your clients.
Referral marketing can help reduce costs and drive revenue through two key ways:
Reduce Customer Acquisition Costs: Most paid advertising and marketing require ongoing investment to find new leads. With referrals, your clients bring you leads.
Improved ROI: Clients gained through referrals usually cost less to acquire. They also last longer, which increases their overall value. It means that your efforts in referral marketing will bring a better return.
Trust is essential in B2B sales. Just like individual customers, B2B decision-makers are influenced by people they trust. Referrals result in more confidence in your business than regular leads, which can aid in informed decision-making and strengthen business relationships.
Satisfied clients who refer others provide social proof that can boost your reputation. Gathering client testimonials and reviews can build trust in your brand and attract more high-quality referrals over time.
Before launching a B2B referral marketing program, it's essential to prepare your existing clients. To build a strong relationship with them, you will need the following:
No business owner or decision-maker will risk their online reputation by recommending a brand they are not happy with. They need to be truly satisfied with your product or service before they are likely to recommend it to others.
Your clients’ satisfaction goes beyond just your products or services. How you support customers and respond to feedback can make them more likely to recommend your business.
Building brand loyalty means creating lasting relationships with clients. You can nurture these relationships by maintaining open and personal communication, tailoring interactions to each individual, and providing ongoing support after the sale. This approach helps strengthen professional bonds. When combined with great products or services, it makes clients more likely to recommend your brand to others.
If you want to measure how likely your clients are to become your brand advocates, use Net Promoter Score (NPS) surveys. These surveys ask clients how likely they are to recommend your business on a scale from 0 to 10. It helps you understand client satisfaction.
Customers who give ratings of 10 or 9 are delighted and likely to promote your brand. Customers who rate you with a 8 or 7 are content but need some encouragement or benefits to become advocates.
A good referral program helps you attract high-quality leads and provides a satisfying experience for both your current and new clients. Here are some tips for referral marketing to make sure you achieve strong results:
Verify if you have clients who are likely to participate in your referral program. Clients who may promote your brand include those who:
Score high on NPS surveys.
Have been loyal clients for a long time, especially those with the longest history with you.
Left a positive review online.
Have recommended your business to others in the past.
B2C incentives often include discounts or cashback. While these can be effective for some B2B businesses, they may not be suitable for larger companies. It is because decision-makers who make referrals may not directly benefit from them. Some appealing incentives can include:
• Gift cards
• Free upgrades
• Access to exclusive products or services
• Tangible gifts
Additionally, consider offering tiered rewards where referrers receive higher-value rewards for multiple successful referrals.
Loyal customers are happy to promote your brand, but a complicated referral program can make them less likely to join in. Here are some ways to make your referral program simpler:
Establish Simple Rules: Your clients want to know three things: what you want them to do, what they will get in return, and how to achieve it. If you need more than three or four steps to explain your referral program, it might be too complicated.
Use Referral Links: Create unique referral URLs for your clients. These links will be shared with the people they want to refer. This approach is beneficial for everyone: clients can easily share the link, and you can track referrals using these URLs.
Automate Your Process: You can use automated emails, tracking tools, and other technology to make your marketing referral program easier and more efficient. It will help reduce friction in the process.
Even the best referral programs won’t work if clients and partners are unaware of them. Promote your program through email, social media, and direct client interactions. Use clear messages and a strong call to action to encourage engagement.
After you launch your program, you will start to get new referrals. Next, you can measure these referrals and take steps to develop these leads.
Monitor your referral program's performance by reviewing key metrics, including conversion rates, customer acquisition costs, and return on investment (ROI). Additionally, consider revising your referral process if necessary.
Gather feedback from participants to improve the referral experience. In addition to the NPS, monitor these other key metrics:
Referral Rate: The referral rate shows the percentage of clients or partners who recommend others to you. A high referral rate means that customers are satisfied and engaged. It suggests they are happy to promote your services.
Conversion Rate: This is the percentage of referred leads that become customers. A high conversion rate indicates that you are receiving quality referrals, as your referral marketing strategies effectively attract interested individuals.
Customer Acquisition Cost (CAC): Referrals usually cost less to get new customers than traditional advertising. It is because customers trust each other more than advertising.
Compare the customer acquisition cost (CAC) of your referred customers with that gained through traditional marketing. It will help you see if your referral efforts are more cost-effective.
A streamlined referral program is one of the most effective ways to bring high-quality customers to your business. At Dimaus Consulting, we help you simplify, launch, and scale powerful referral marketing strategies without the complexity of managing it all alone.
Our team specializes in designing referral programs that integrate seamlessly with your existing tools—whether you use Salesforce, HubSpot, or other CRM platforms—so your referral marketing aligns perfectly with your broader sales and marketing efforts.
When you partner with Dimaus, you can:
Launch customized referral campaigns with compelling messaging and creative assets that reflect your brand.
Set up automated, trigger-based referral workflows so customers are invited to refer at precisely the right moment—after a purchase, positive review, or key milestone.
Streamline communications and follow-ups with referred leads, keeping everything organized and consistent.
Access clear, actionable reports on referral performance, helping you make confident, data-driven decisions to improve results over time.
Ready to see how a well-crafted referral program can fuel your
growth? Let Dimaus Consulting be your partner in building a referral marketing strategy that delivers.
Interested in Implementing a B2B Referral Program? Let Dimaus Help
A well-designed B2B referral program can help you generate high-quality leads and establish trust, ultimately reducing customer acquisition costs. To maximize the value of your existing clients, having a robust referral marketing strategy is crucial.
With Dimaus, you can simplify the process and launch a successful referral marketing program. Contact us today to schedule a free demo and discover how our software can help you expand your referral network.