26why Enterprise Brands use
Referral Automation to
Generate New Business &
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When we talk to
enterprise B2B and
B2C CMOs, Sales
Marketing only has so
much to spend and we
have to generate high-
quality leads so sales
can do their job.
I don’t know. Won’t
we get referrals
without running an
I know we need to tap
into our brand
advocates for referrals,
so we’re going to
consider it in 2020.
about whether a
referral program will
work for them.
And we’re marketers and sales people too, so we get it.
When in doubt, we ﬁnd this request usually brings some clarity:
Sometimes that’s all it
marketers and sales
people that an automated
referral program might be
PRETTY SMARTafter all.
And if that doesn’t convince them that they’ve got customers,
partners and employee advocates who are just waiting to help them
generate loads of new business….. then we offer them more proof.
we offer them
does the job.
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If we assume that your happy customers are
savvy enough to recommend you to the right
potential customer then you are well on your
way to establishing a valuable conversation
and a new business win.
- Peter Levitan, Business-to-Community
A REFERRAL IS A
gain a competitive advantage, with 43% of those
who use referrals acquiring more than 35% of new
clients through the program. The most obvious
beneﬁts of a well-executed client referral program
include higher close ratios, shortened sales cycles,
and overall client retention.
are an effective way to attract higher quality
customers. “They are an old idea that’s getting
more traction these days, and we now have solid
evidence of their ﬁnancial beneﬁts.”
- Christophe Van den Bulte, Wharton School
study ever published on the ﬁnancial evaluation of
customer referral programs. “We actually have
hard ﬁnancial numbers, not vague feel-good
stories or abstract statistical coefﬁcients. Our
ﬁndings and methodology are something that
ﬁnancial managers can actually understand and
- Forbes with Wharton School
THIS IS THE FIRST
04Image courtesy of adamr at FreeDigitalPhotos.net
and higher retention than other customers,
making them more valuable in both the short
and long run.
-B2B News Network
ARE ONE OF THE MOST
BUSINESS CAN OBTAIN.
we’ve already talked about funnels and acquiring customers
and Facebook ads. All these things work together with
customer referrals. As we said, it was one of the most
underutilized channels. I believe that because often we focus
on the front of the funnel and converting people but, let’s
see here, the end of the funnel is just as important as the
beginning. Once you acquire a customer that’s kind of
where the second part of the journey begins and you’re able
to get people to turn your best customers into your best
salespeople. I truly believe this is possible for most
businesses out there.
- Smart Marketer, Austin Brawmer
I’M SUPER EXCITED BECAUSE
to get word out about your small business can be enough to
bankrupt a small company—especially if you’re competing against
much larger competitors. Comparatively, paying for referrals is often
a far more affordable marketing strategy. And considering that a
referred lead is six times more likely than an ordinary lead to end in a
sale, offering compensation for referrals can be money well spent.
- Funding Gates
THE COST OF TRADITIONAL
MARKETING AND ADVERTISING
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and customers who were referred by loyal customers
have a 37% higher retention rate.
1 IN 3 PEOPLE COME TO
A BRAND THROUGH
generates over twice the sales of paid
advertising in categories ranging from
skincare to mobile phones.
WORD OF MOUTH
begin their purchase journey with a referral from their
network. With a referral in hand, buyers control the
rest of their purchase journey, trusting validation and
messaging from their network signiﬁcantly more than
- Forrester, Sheryl Pattek
UP TO 80% OF TODAY’S
executive buyers tell us that referrals are far more
effective than other approaches for gaining access
to them. Yet the referral strategy is ignored in most
corporate sales organizations. If you want your
salespeople to have greater success accessing
executive buyers, then it’s time to consider this
important yet forgotten strategy.
- Mark Lindwall, Forrester
In our research
12Image courtesy of stockimages at FreeDigitalPhotos.net
have never been trained in what referral marketing is, nor
how to effectively conduct referral marketing in their
territories or accounts. They are clueless as to how to
professionally develop referrals to new opportunities. This
lack of training not only precludes an effective gain-access
strategy, it also perpetuates sales behaviors that undermine
additional customer referrals from those who give them.
THE VAST MAJORITY of
with responsibility for achieving your company's
revenue goals, you are missing huge opportunities
to share your company's success by ignoring the
art of referrals.
- Norbert Kriebel with Scott Santucci, Bradford J. Holmes, Michael Shrum
IF YOU ARE A SALES,
OR OTHER LEADER
say a positive referral from a Facebook friend would
make them more likely to buy from or visit a retailer,
this is clearly something all marketers need to ﬁgure
- Altimeter Group
Considering that 68%
Of consumers with a
78 percent of marketers
singled out referral marketing
(also known as “advocate
marketing”) as producing
“good” or “excellent” leads.
- Software Advice Study of 200 Senior Level
WHEN EVALUATING THE
QUALITY OF LEADS BY
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should be moving towards the top of the heap
in terms of marketing investments.
57% use customer referral programs. This data shows us
how powerful referral programs can be for companies with a
large and established customer base. The more customers
you have, the more opportunity there is for successful referral
marketing campaigns as well as the more time, resources
and budget you can dedicate to the project. Large
companies are dedicating close to 10 employees to their
customer marketing efforts.
- Demand Metric study
OF THE COMPANIES
to attract patients, hospitals can deploy technologies that will
help them secure and keep those patients as loyal consumers
of their system. More importantly, these new practices will help
organizations start to build their health systems as referral
destinations within their communities, protecting their referral
bases and signiﬁcantly growing revenue, which ultimately
makes marketing dollars exponentially more valuable.
- Jamie Gier, Chief Marketing Ofﬁcer, SCI Solutions
FOR A SMALL FRACTION OF
WHAT CMOS SPEND MONTHLY
roughly 30% better than leads generated from
other marketing channels.
- Tony Nissen, R&G Technologies
REFERRAL LEADS CONVERT
is 50% more inﬂuential than an average
- Rob Ruggetta, author of Brand Advocates
A BRAND ADVOCATE
have a 37 percent higher retention rate.
CUSTOMERS WHO WERE
77% of the emails were collected via referral, meaning
about 20K people referred about 65K friends.
- Jeff Raider, Co-Founder and Co-CEO of Harry’s
THE REFERRAL MECHANICS
By incorporating tracking on the brand and partner
sites, the brand gains full visibility of sales from click to
point of sale. It can use this data to inform sales and
marketing of popular offers, set realistic sales targets
and reproduce the offers in other advertising channels.
- Rob Durkin, Co-Founder and Head of Innovation at FusePump
THIS, FOR ME, IS THE
HIGHLIGHT OF REFERRAL
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Recent data shows that search marketing spend continues to grow, but its overall budget share
is declining. What this means is that marketers are looking for more cost eﬀective ways to
acquire better customers. And not just any customers, but customers with high lifetime values
(LTV), high brand loyalty, low attrition rates, and a willingness to tell their friends about your
brand, products, or services.
Enter the third acquisition channel, referral marketing. No longer the stepchild, referral marketing
has stepped into the spotlight as marketing’s Cinderella. It helps brands acquire new customers
at scale by rewarding their existing customers. Because these customers are marketing on a
brand’s behalf, the messages are trusted and result in acquisitions. The data backs it up. The
AMA claims referral marketing generates customers who have higher LTVs, are more loyal, and
contribute higher margins per year than other customers.
LET’S TAKE A LOOK AT THE
MOST COMMON ACQUISITION
CHANNELS, SEO AND SEM
lies in understanding the “Customer Referral Cycle”—the
way customers refer others to your company who, in
turn, generate even more referrals. Businesses can
ensure a healthy referral cycle by moving customers and
prospects along the path of Know, Like, Trust, Try, Buy,
Repeat, and Refer. If everyone in an organization keeps
this sequence in mind, your business will generate
referrals like a well-oiled machine.
- John Jantsch
THE SECRET TO GENERATING
Ampliﬁnity’s referral ampliﬁcation software turns
customer, employee and partner advocacy into
revenue. Our platform provides complete referral
tracking and management with 100% accuracy
so none are missed. Enterprises like ADP and
DirecTV trust Ampliﬁnity to enable high-quality
acquisition while providing an engaging, fully-
branded experience for their advocates. !