One of the most powerful selling tools is a customer reference. Customers like nothing better than networking and identifying successful solutions being offered to similar organizations. Putting a customer reference on a website, or providing references to existing prospects, is a smart thing to do. Obtaining customer references to prospect and identify new opportunities should be a part of any sales plan.
It is time well spent developing customer references
Most printing companies are facing changing market conditions. Differentiation is difficult and price pressures are intense. Gaining opportunities to separate from the competition to build trust and credibility with their customers is a key to success. We define a good customer reference as an advocate who has a set of products and/or services that has solved a specific problem or generated a significant opportunity in a specific market.
We are finding many print providers may have forgotten this proven marketing method to develop new sales opportunities. Research has shown that customer references help companies attract new customers and shorten sales cycles.
The best salesperson is a satisfied customer
Why would a prospect buy a high cost and high risk solution from a company that can’t produce a genuine customer reference? Sharing with potential prospects how a specific print-based offering has solved a problem that generated great results is a powerful selling tool. Not only will customers gain confidence in a particular solution, but salespeople will also build their own credibility and confidence with their prospects.
Customer references should be part of a company’s marketing strategy
Almost all salespeople agree that using customer references increases their chances of closing more business. The problem is that individual salespeople often guard their references. Then when there is a need for a reference everyone is scrambling. This usually does not end well.
What makes a great reference?
The value of a great reference can be substantial. For instance, a great reference would be an insurance client who is soliciting customers through direct mail. The problem is that they are getting a very low response rate. The print provider helps develop a direct mail piece that includes personalized content. The result is that the client gained a much higher response rate and subsequently gained 12% in sales revenue.
To capitalize on references, we recommend companies approach references in an organized way.
Set a guideline and target
You should look for clients that have had a business issue or opportunity which was solved by using a print solution that resulted in a great ROI. The sales team should have a specific type of client they are targeting for a reference. This should include the size of an account, type and size of offering, the market, the problems solved or opportunities created. It is best to have a specific format for them to follow.
Ask them for a reference
Most satisfied customers are happy to provide a great reference. Sometimes customers will not have the time to provide a written reference. A good practice in these situations is to draft one for the customer and then get their approval. Occasionally larger clients do not want their successes publicized outside the company due to fear of competitors getting a good idea. We find getting a good reference is part of good selling. Great salespeople get great references.
Document each reference in a consistent format
We recommend a simple but well-branded three part approach: what was the problem or opportunity faced by the customer, what was the solution provided by the print provider and what were the results generated for the customer. Having some information about the client such as industry, type of services, location, size will make the reference that much more powerful.
Market your references
How a reference is presented and displayed makes a difference. The reference should be branded, designed and part of an overall marketing strategy. It should be created to potentially be used in case studies, websites, printed collaterals, social media, PR and sales presentations.
Integrate them into the sales process
Once the customer references are obtained and completed, then it is time to ensure that they are used within the sales process at the appropriate time. Don’t wait until a customer asks for a reference. Use these to develop new markets and prospects. They attract attention and interest of clients.
For some, it requires closing the first deal and gaining a reference that can open the door to a new market segment. For others, they already have great customers that just need to be asked. Printing is a relationship business built on trust. Customer references have traditionally been an integral part of the selling process.
Using satisfied customers is essential to managing new opportunities and overcoming competition. Print providers selling large and complex programs, products and services are missing a big opportunity if they don’t use references from satisfied customers.
Joe Rickard is the founder of Intellective Solutions. Intellective Solutions (www.intellectives.com) works with printing and technology organizations to improve their sales, marketing and operational effectiveness.