Know your Customer, Know Yourself

July 29, 2011

No two customer reference programs are created equal.  Each is defined by the type of business and the customers served.  Let go of expectations.  Spend some extra time to understand your customer’s needs and where they spend their time, marry that with your unique knowledge of your own business, and you will come away with the most effective reference strategy for your organization.

If you work in a fast paced technology driven industry that derives information from sources such as webinars, YouTube and other online sources think about how to make those references as high profile and impactful as possible.  Focus your energy on technology and work with your marquis reference customers to develop excellent presentations using web technologies and video testimonials.

If you work in a smaller niche industry where buying decisions rely heavily on personal peer interactions, concentrate your reference efforts on direct phone calls and other live discussions such as customer forums and roundtables.

If your company can demonstrate irrefutable results without requiring direct peer conversations, you may want to consider putting an emphasis on the written word.  Case studies, whitepapers, or other types of marketing content can be very effective.  Deliver this type of content to prospects via microsites for a personal yet professional website with built in tracking features.

There is a lot to gain from providing great customer references.  Use your combined knowledge of your business and your customers to come up with the right mix of reference activities.  Consider customizable software solutions to help you stay on track and avoid bottlenecks and distractions.  And finally, remember the importance of metrics, tracking your results allows you to report back on the power of the program and keep it moving in the right direction.

Leave a Comment » | Customer References, Program Tips | Tagged: , , , , , , , | Permalink
Posted by Joshua Horwitz

Guest Post: Customer Reference Tips from Celia Brown of Dell Boomi™

April 20, 2011

We are joined today by Celia Brown, a Marketing Program Manager and Social Media and Community Professional at Dell Boomi.  Celia was responsible for defining customer reference and social media strategies for Boomi before their acquisition by Dell in 2010, and she continues to help evolve these important programs.

Why are customer references important to your business?
Prior to the acquisition, references were especially critical because we were such a small company and as a start up many of our prospects questioned our credibility.  Pointing them towards our references and having reputable customers to offer up was critical.
 
What is your definition of a customer reference?
I think of our customer references as individuals who might be willing to participate in the program in multiple ways.  One may only be available for sales references via phone whereas another might be interested in speaking opportunities or a joint press release.  We take it case by case.
 
What are some of the activities you’ve established for your program?
When I proposed enlisting a solution like Boulder Logic to support our reference program, I created a matrix of priorities.  The basic design was to categorize each customer, for example by size, industry, product, and by the type of activities they might participate in.  We ideally wanted larger companies who had deployed Boomi as an enterprise solution and to involve them in wider reach activities like press releases, case studies, and speaking circuits.  Sales references were definitely a high priority too, but we felt we could make bigger waves for the business overall by focusing these marquee customers on contributing to marketing.  This left smaller customers as sales references or to give us a review on the salesforce.com AppExchange.  This strategy helped us focus our really limited resources.
 
How do you encourage customers’ organizations to encourage customer participation?
I think our reference program became much more successful once we were able to showcase some of our customers that participated in the past.  Beyond that, I think it’s important to learn about the individual contact within the customers’ organization, understand their business goals and personal goals as well.  We’ve found that a number of our customers have a personal agenda that we can help to support through our reference program.  They may be interested in getting more public speaking experience or providing thought leadership within their field.  A lot of our smaller company customers were especially interested in getting branding exposure on our Website.  They get very excited about that.  So I encourage folks to inquire about the goals of the individual as well as the company.
 
How would you advise somebody just getting a reference program started?
I would recommend that they enlist a solution that is easily accessible by both sales and marketing. Making it friendly for sales is most important because they are typically less motivated to participate if it’s not convenient to them.  So that was one of the big reasons that we picked Boulder Logic because it is integrated with salesforce.com which is a tool that our sales team lives in on a daily basis.
 
Can you comment on the process of deploying your customer reference solution?
Anyone who is tech savvy and has been a database administrator of some sort in the past could probably set up Boulder Logic successfully in just a matter of hours because it is very easy to customize and configure and there is no coding required.  Once our client services manager showed us the basics, we just dove right in.  The solution is very flexible, so I feel confident that anytime I need to reconfigure, I can go in and revise and modify without too much hassle and without causing any problems with what we have set up already.
 
How has your reference program changed in the last year?
Since the acquisition by Dell, you could say we have a lot more chefs in the kitchen!  In addition to our sales, marketing, and customer success teams, we also have various parties from Dell headquarters that are interested in taking advantage of our sales references and reusing our case study content.  So it’s been incredibly valuable to have a centralized source of information.  I think it’s definitely increased our visibility at Dell and our credibility internally because we are clearly very organized.
 
What are your next steps?
So the good news is we are staffing up to some extent.  We’re doubling our marketing team from two to four – allowing us to be able to focus on customer success.  Right now I’m spending 5 to 10 percent of my time on that and I’m hoping to double that in the near future, so I’m excited.  I love the Boulder Logic tool and have had no issues with it.  The features seem just right for our needs.

Leave a Comment » | Customer References, Guest Post, Program Tips | Tagged: , , , , | Permalink
Posted by Joshua Horwitz

Check Out Our Guest Post on The Savvy B2B Marketing Blog

January 24, 2011

There’s a wealth of information at our fingertips these days – all we have to do is log on. We subscribe to a number of different blogs to get tips and tricks, learn from our colleagues, and keep current on what’s important to us. One of our favorites is the Savvy B2B Marketing Blog, it’s chock full of great information. So, it goes without saying that we were super excited when the sisters invited us to write a guest post for them.

These six gals have a little something for everyone. So check them out here and subscribe to their blog for great pieces on B2B and content marketing as well as their weekly picks for the best reads on the web.

Click here for our Savvy guest post…… Getting Personal With Customer References: Matchmaking That Works

Leave a Comment » | Customer References, Guest Post, Program Tips | Tagged: , , , , , | Permalink
Posted by Joshua Horwitz

ROI and your Customer Reference Program

January 5, 2011

It’s January and the New Year brings renewed energy, sales and marketing objectives, and of course, budgets.  If one of your goals in 2011 is to create or enhance a customer reference program it will be critical to demonstrate why precious dollars should be allocated to this effort rather than some other sales or marketing initiative.

Even though sales people and senior executives generally understand that there is value in customer references, they often cannot quantify the financial return.  So by demonstrating the ROI that a customer reference program brings, you will be able to justify the value and build a better and more productive program right from the start.

To avoid initial doubt your team members, sales organization and most importantly executive management may have about a program they are unfamiliar with it will be important to be strategic in presenting the rewards and financial gain.

Here are some tips for how to present your case in a compelling and engaging way:

1) Start early and let the numbers do the talking: Demonstrate financial value at the beginning of the year and set expectations.  Use recent examples of noteworthy and high profile deals that the company is proud of.  And be sure to create an exciting and fun presentation that has a wow factor punctuated by financial growth and resource savings.

2) Remind your audience: Send monthly or quarterly updates to the organization and management team to remind them of the work you are doing and the financial value it is bringing to the company.  Using real dollar figures will be the key to your message.  Make your communications succinct and readable.

3) Show them the money: Enlist an executive’s support by showing concrete financial value of the program.  An executive sponsor lends credibility and influence throughout the organization.  Find someone who shares your vision and enthusiasm to be your evangelist.

4) Deliver the Data: Create detailed reports that analyze data in a variety of ways that show you understand all angles of the financial impact of the program.  Analyze impact on sales margin, sales cycle time, time spent on core sales activity, resources utilized, etc.

5) Chart a course for the future:  Identify and cast light on areas that need improvement and make projections for the financial value of these improvements.

Now that we know how to present your case, here comes the tricky part – actually calculating the ROI.  Determining financial impact requires consideration of several factors that will be unique to each organization.  Top-notch customer reference management service providers will have quantifiable data and formulas to help you determine and demonstrate ROI.  When evaluating customer reference management partners, make this the first question you ask, as the answer will lead you to the solution that works best for your organization.

Leave a Comment » | Customer References, Program Tips | Tagged: , , , , , , , , , , | Permalink
Posted by Joshua Horwitz

Executive Viewpoints – Running an Enterprise Global Customer Reference Program

November 17, 2010

We recently had a chance to sit down with some seasoned Customer Reference Program executives to discuss what it’s like to run large scale enterprise customer reference programs.  Eileen D’Ippolito from Citrix and Siemens’ Karen Newman have both been working in this space for a long time and understand the challenges and the benefits that go along with running global reference programs.

As technology companies, both Citrix and Siemens had the ability to build their own solutions for reference management but they both selected an out of the box solution.  Check out both their interviews here to learn more.

Leave a Comment » | Customer References, Program Tips | Tagged: , , , , , , , , | Permalink
Posted by Joshua Horwitz

Proactive vs. Reactive Approach to Customer Reference Management

October 12, 2010

Clearly we believe a proactive approach is the way to go.  Yet so many companies out there continue to struggle with the reactive approach to customer reference management.  Waiting for reference requests to come in before seeking out customers to speak with works occasionally.  However, we are certain that in almost all cases a proactive approach yields better results.  Let’s take a look at both scenarios:

Reactive approach: In this scenario the function of customer reference management generally falls under a marketing group or perhaps sales operations, but often it is just one small subset of the group’s responsibilities.  As a result, it often falls low on the list of priorities and may even be inconsequential when it comes to performance reviews.  When a reference request comes in, it is handled by using whatever tools are at the individual’s disposal to find and coordinate an appropriate reference.  This typically ad hoc approach is disorganized and time consuming and results in a subpar match.

Proactive approach: In this scenario there is typically a customer reference manager who has specific responsibilities pertaining to the success of this function.  He or she has a vested interest in ensuring that a healthy selection of customer references are quickly available when needed.  This approach encourages regular and proactive development of new customer references in order to grow the pool of testimonials.  When reference requests come in, they are directed to the proper individual who can coordinate the best customer for the prospect to speak with.  That individual is armed with the most current information available.  The result is a fast response with fresh customers standing by to participate. 

In addition to being prepared and ready for requests, proactively managing customer references makes quantifying the value of the program possible.  The ability to demonstrate return on investment and the financial value of using and growing customer references will support sales efforts and in the end drive the growth of the business.  We regularly encourage companies to take a good look at the way they approach such a valuable business function and consider the benefits and consequences of their strategy.  Changing from a reactive to proactive approach for customer reference management can make all the difference.

Leave a Comment » | Customer References, Program Tips | Tagged: , , , , , | Permalink
Posted by Joshua Horwitz

Gartner on Customer Reference Management

May 26, 2010

If you’re contemplating a customer reference initiative, you might want to check out Gartner’s recent press release on how to create a program. They’ve broken it all down in just three steps: 1) Set your goals, 2) Develop a recruiting strategy to encourage customers to act as references, 3) Manage the day-to-day tactics of the customer reference program. We like how this model keeps it simple while highlighting what’s most important, and appreciate the notion that this isn’t something that can happen ad hoc:

“Customer references should be managed with the same discipline as any marketing program by putting someone in charge. This doesn’t have to be a full-time role, nor does it have to happen from Day 1, but in order to maximize return on investment in the program, this commitment must be made.”

Gartner’s perspective on customer reference management is particularly interesting. They are in the position to validate their recommendation with successful marketers and also comment based on their own experience. Their analysts regularly rely on and evaluate vendors based on the references they receive.

Those interested in more of Gartner’s perspective on Customer References may want to download their recent report “Marketing Essentials: How to Manage a Customer Reference Program.”

Leave a Comment » | Customer References, Reactions, What's happening | Tagged: , , , | Permalink
Posted by Joshua Horwitz

Is There Consistent Acknowledgement That References Are Valuable?

February 1, 2010

Whether you are building a new program or already have a program underway, it’s important to know the answer to this simple question. Does your company acknowledge that references are valuable to sales and marketing? We’ve seen too many customer reference managers focusing on process best practices, automation tools and creative deliverables without first securing confirmation on this important question. Customer reference tactics are important, but if your organization doesn’t have real appreciation and active recognition that customer references drive revenue, then your efforts will be undermined or encounter friction along the way. So this is the place you need to begin. If there is partial acknowledgement but you hear qualifications in the answer you receive, then you need to refocus the discussion back to this fundamental question.

If your immediate management team appreciates the value, then you are off to a good start. Expand by taking the pulse of your executives, sales staff, marketing department as well as PR and Investor Relations. If there is still general agreement that references do hold value, then you can move on to defining and communicating the goals that will maximize your program efforts.  

We suggest that your goals be as specific and measurable as possible so that you will have solid data with which to report ROI as the program develops. Some examples of customer reference program goals are below:

  • Increasing the frequency of reference use (greater use of references adds greater value)
  • Increasing the coverage of your portfolio (greater match is more effective)
  • Increasing the longevity of references (reduced effort to obtain, demonstrated effectiveness)
  • Reducing the turn-around time to provide better experience for prospect and less time wasted
  • Reducing the amount of distraction of sales to obtain (more benefit with less cost)

If however, your organization does not value customer references then you must do some homework to demonstrate it to your key constituents. Look for a champion in the Sales department. He or she will help create the positive perception and momentum you will need to carry the program forward. Also, look at your competitors and compare what they are doing to your process. Look for opportunities to point out areas of improvement or to validate your own activity in customer references. It is also very helpful to use third party research to prove your case on the value of customer references. There are industry analysts and groups that provide updated statistics and projections on the future importance of this discipline. Finally, enlist an executive sponsor for your program. Executives can effectively communicate your message and instill its importance to the company overall. 

This post is part of our checklist for a successful customer reference program. 

1 Comment | Customer References, Program Tips | Tagged: , , , , , | Permalink
Posted by Joshua Horwitz

Boston Area Customer Reference Professionals Quaterly Meeting

December 10, 2009

We would like to take a minute to invite you to attend the next meeting of the Boston Customer Reference Professionals. These meetings are super informative and a great way to connect with other professionals in the reference community.

The next Boston Customer Reference quarterly meeting will be held at The MathWorks located in Natick, MA on February 5th from 12:30-3:30.

The topics of discussion will be “Running a Global Reference Program”, and “Permission for leveraging reference activities from a contractual perspective”. 

If you are interested in attending please contact Kara Manfredi at karamanfredi@deltek.com. If you are not located in the Boston area and still would like to attend please let Kara know as there are several members located outside of MA. Kara will provide dial in and webex details.

Happy Holidays !

2 Comments | Customer References, What's happening | Tagged: , , , | Permalink
Posted by Joshua Horwitz

Getting the Most Out of Your Customer References

November 18, 2009

We all know that getting positive references from a customer can be a challenge, no matter how great the relationship may be. Because of this fact, we try to maximize existing material to get the most out of each reference. To do this, we recommend using the 4 Rs: Reconnect, Repurpose, Recycle, and Reward.

A well managed reference program can help unify an organization and enhance relationships with customers while conserving internal resources. We invite you to check out our recent article in Chief Marketer and learn more on how remembering the 4 Rs can help you get maximum results from your reference efforts.

Leave a Comment » | Customer References, Program Tips | Tagged: , , , | Permalink
Posted by Joshua Horwitz

« Previous Entries
Follow

Get every new post delivered to your Inbox.