What strategies can businesses use to leverage the power of referrals and increase their sales success rates?
84% of B2B buyers start the purchasing process with a referral
Referrals are becoming an increasingly important part of the B2B sales process. According to a study by Harvard Business Review, 84% of B2B buyers start the purchasing process with a referral, not with a salesperson. This means that referrals have become one of the most effective ways for businesses to generate new leads and increase their sales.
So why are referrals so powerful in the B2B sales process? The answer lies in the trust that is built between the referrer and the buyer. When someone refers a business to a friend or colleague, they are essentially vouching for the quality of that business. This builds trust and credibility, which can be difficult to achieve through traditional sales methods.
In addition to building trust, referrals also have a much higher conversion rate than other types of leads. According to the same Harvard Business Review study, referred customers have a 16% higher lifetime value than customers acquired through other means. This means that not only are referrals more likely to convert into customers, but they also tend to be more valuable customers in the long run.
So how can businesses capitalize on the power of referrals in their B2B sales process? One way is to actively encourage and incentivize referrals from their existing customer base. This can be done through referral programs that offer discounts or other rewards to customers who refer new business.
Another approach is to build strong relationships with existing customers and cultivate a network of advocates who are willing to refer their business to others. This can be done by providing exceptional customer service, regularly following up with customers to ensure their satisfaction, and staying top-of-mind through regular communication and engagement.
Ultimately, referrals have become a critical part of the B2B sales process, and businesses that fail to leverage the power of referrals are likely missing out on a significant source of new leads and revenue. By actively encouraging and incentivizing referrals and building strong relationships with existing customers, businesses can tap into the trust and credibility that comes with a strong referral network and drive meaningful growth for their business.