Leveraging happy customers to convince and convert new prospects can be one of the most powerful tools in your sales arsenal. However, many companies still rely on unstructured and manual reference processes that are inefficient for sales and can be frustrating and burdening on customers.

In this guide, we’ll walk you through implementing an automated, scalable customer reference program that drives revenue and customer loyalty.

 

Why Customer References Matter

Let’s start by examining why customer references should be a core part of your sales strategy. 

Reference managers know this down pat, but it’s worth raising these points to your cross-functional leaders in sales, marketing and customer success to help secure program buy-in:

• Close Deals Faster – References shorten sales cycles by validating your solution and addressing prospect concerns. Deals with references have higher conversion rates.
• Larger Deal Size – Social proof builds confidence allowing you to land bigger deals. References get prospects comfortable to invest more. 
• Accelerate Expansion – Happy reference customers are great targets for upsell and cross-sell opportunities later on.
• Increase Loyalty – Customers that help recruit new leads end up being more loyal long-term. Active references have higher retention rates.
• Competitive Differentiator – A structured reference program is a huge advantage over letting sales hunt down references manually. 

With numbers behind it, you’ll gain executive support to invest in building a scalable program.

 

Lay the Groundwork with Sales

Partnering with sales is crucial right from the start. Take the time to interview sales leaders and team members to gather insights that will inform your program design.

Key questions to ask:

1. How are references currently handled? What works vs. doesn’t? 
2. What criteria determine if an opportunity is eligible for a reference?
3. What attributes make for a strong reference match? Industry, region, use case, etc. 
4. What reference criteria is must-have vs. nice-to-have? 
5. Are there any emerging needs to address with references?

Record the calls or document all criteria mentioned. Then, follow up with a quick survey that lets your sales team prioritize and rank the factors that matter most for references. This data will help guide your program set-up. 

 

Build Your Technology Foundation 

Leveraging automation and integration will optimize efficiency at scale. Here are the key elements to implement:

• CRM Integration – Connect your customer relationship management (CRM) system directly with your reference solution. This allows the triggering of workflows from systems sales already use like Salesforce. Pre-existing integrations can help automate your process easily.
• Reference Request Form – Create a customizable form to submit references that pre-populates fields from the CRM record. Build in the criteria fields sales said are must-haves.
• Member Profiles – Configure member profile fields to capture the various attributes that aid in matching. Sync these profiles with customer data from your CRM. 
• Segmentation – Set up member groups based on criteria like industry, region, use cases. This facilitates targeting relevant prospects.
• Automated Workflows – Build workflows to route incoming requests, publish to proper member segments, and collect feedback. 

Design the Ideal Member Experience

Along with ease of use for sales, you need to design an experience that incentivizes customers to participate.

Your customer-facing elements should include:

• A Portal – This allows members to view requests, accept opportunities, and provide feedback. Consider gamification elements like points and badges to drive engagement and completion.
• Onboarding Survey – Ask new members for the key attributes you identified with sales that are not already accessible from your CRM. 
• Personalized Requests – When sending a request, always include why the member is uniquely qualified to customize the ask.
• Opportunities for Recognition – Spotlight and thank engaged members both publicly and privately. Consider sending handwritten notes.  
• Rewards – Compensate members for time spent on calls with points, gift cards, or early access to new features. 
• Measurement – Gather feedback and satisfaction scores to continuously improve the reference program experience.

The more value you deliver, the more references will want to stay active members.

 

Train Sales on New Workflows

Once your solution is ready, introduce it to the sales organization through demos and training. Clearly explain the steps they need to take. Here is a common setup for scaled reference programs:

1. Submit a Request – Demo how they now complete a form instead of emailing for references
2. Provide Background and Details – Stress the importance of giving detailed requirements to find the best match
3. Make Introductions – Walk through best practices for connecting the prospect and advocate
4. Give and Get Feedback – Have them rate the reference call and member’s performance afterward. They can also solicit feedback from their prospect to help improve their experience moving forward.

You really need to emphasize how this streamlined process benefits sales by delivering better matches faster without having to chase down references manually. You also need sales leadership to endorse the new program to build buy-in across the teams. Provide job aids and tutorials that reps can reference on how to leverage the solution.

 

Recruit Reference Members 

Now it’s time to recruit customer advocates to join the program. Consider these best practices:

• Target ideal customers – Who do you want to reward? Go after your happiest, low-churn customers to be advocates. You’ll also want to identify potential targets based on criteria sales provided like industry, region, and use cases. 
• Highlight benefits – Position the program as a chance to guide their peers and gain early access to new capabilities. Offer it as a VIP experience with unlocked rewards and opportunities. 
• Promote continuously – Keep the program top of mind with ongoing calls-to-action (CTAs) in newsletters, customer communities, and events.

Make sure you’re building a diverse member base aligned to sales requirements to support a wide range of prospect needs.  

 

Motivate Ongoing Participation 

You need members who not only join but actively participate in taking calls. Use these strategies to drive engagement: 

• Recognize contributions – Thank members publicly when they help and provide gifts or rewards. You should also provide perks like granting member-only access to content and experiences. 
• Create guided journeys – Develop campaigns that guide members through getting started and then progressing to become power advocates. 
• Spotlight advocates – Elevate highly engaged members as champions through titles, features, and events. 
• Make it competitive – Show leaderboards, award badges and status, and host contests around participation. 

Encourage helping behaviors by recognizing, rewarding, and incentivizing members to stay involved. Monitor participation levels and gather feedback on experience.

 

Measure Program Success  

The last critical component is reporting metrics that demonstrate the value delivered and uncover areas for optimization. Track both activity metrics and business impact:

Operational Metrics:

• Number of successful references provided 
• Reference requests fulfilled 
• Time to complete reference requests
• Reference member sign-ups
• Member engagement/participation 

Business Metrics:

• Win rate for opportunities with a reference versus without
• Average deal size for referenced opportunities 
• Expansion/upsell revenue from participating accounts
• Sales cycle compression for referenced deals

Present metrics that tie to revenue won to secure executive support. Contrast referenced deals vs. non-referenced to reveal the sales impact.

 

Tips for Getting Started 

Follow these best practices as you launch your own program:

• Invest upfront in sales alignment and robust systems to scale
• Focus on delivering value to references through personalized experiences
• Start small with a pilot group and expand the member base over time 
• Continuously gather feedback from sales and members to improve
• Support reference members with training and community engagements
• Evolve the program to activate references beyond calls like events and content

With the foundations for success in place, you’ll see your advocates drive growth and boost loyalty. A customer reference program done right is a proven way to accelerate sales cycles, increase deal sizes, and expand key accounts.