How Better Customer Experience Builds Referrals in B2B Companies — Part 2

In Part 1, we explored how improved B2B customer experience (CX) drives measurable growth—higher retention, greater loyalty, and increased account revenue. But growth doesn’t come from financial results alone. In this follow-up, we look at another key outcome of strong CX: referrals. Our research shows that satisfied customers don’t just buy more—they advocate for your business. In fact, Promoters are your most powerful referral engines, delivering free, high-trust leads that accelerate long-term growth.

In the first blog, I discussed some of the financial benefits arising from improved CX.  Some of the information was obtained from external sources, while one exciting finding emerged from our own research.  Looking back over the years and comparing customer spending with NPS (Net Promoter Score) ratings and revenue revealed something fascinating. For example, customers who rated their likelihood to recommend (NPS) as a 10 had an average annual revenue of $2.9 million.  However, if the customer rated the experience as an 8, the average yearly spend was $1.6 million, or a $1.3 million difference between these two groups of customers.  This difference is enough to get even the most jaded CFO to listen up!  

But there is another significant benefit that we have uncovered.  We found a high rate of referral activity, but it comes only from the most satisfied customers.  Read on to learn more!

Marketing Benefits—They Are There! 

Salespeople always relish receiving a lead that came from a customer referral.  Why?  The customer who referred has some skin in the game, as he essentially co-brands his reputation with the provider’s.  To provide a referral, you must feel confident that doing so will not harm your relationship with that person.  In B2B markets, this is even more true because the products and services are usually more expensive and more complex.   
 
Here is what we have learned from our own data.  When asked whether they had referred a friend or colleague to our clients over the past six months, approximately 35% said yes.  This number has remained relatively consistent over time and across the markets we serve.

Perhaps more interesting is which type of customer is providing referrals.  As the following chart shows, 93% of those giving referrals were Promoters (gave 9s or 10s on the likelihood-to-recommend question).    

Our research clearly shows that your Promoter customers are referral engines for your business. The next question is, what are you doing to capitalize on this free marketing?

Challenge—Capitalize on Your Referral Activity 

I have argued for some time that many marketing departments pay insufficient attention to nurturing referral activity within their customer base.   Here are a few suggestions: 

• When setting up a new customer in your information system, be sure to ask how they chose your company.  If it was from a referral, and they will tell you, send the referring person a “thank you” expression.  It could be a simple note (handwritten, if possible).  You might want to include some merch.  Whatever you choose, a simple thank you goes a long way.  
• If you have a feedback process in place, be sure to include a question about their referral activity.  Make sure your sales force knows which customers are referring so they can (1) say thank you, and (2) find out to whom they referred your company.   
• Nurture your referral activity by making referring customers part of a select group.  Perhaps they receive early information about upcoming new products or services.  Since these customers are already positively inclined towards your company, you make the most of this opportunity!  After all, as salespeople, we all love a warm referral.  

Referral activity is an untapped opportunity for most B2B companies.  Are you making the most of this opportunity at your company?  Let me know what you are doing.