1. The Value of the Business Reference
David Goyette

2. The Study
• Defining, Measuring, and
Managing Business Reference
Value by Kumar, Petersen, and
Leone.
• Published in the AMA Journal of
Marketing in January 2013
• Defined the reference
characteristics valued by
prospect accounts and their
ability to positively influence
these prospects.
• The factors chosen and valued by
sellers and prospects are
relatively the same.
Relationships Matter.

3. Influential Factors Identified
1. Client Size – Defined by both number of employees and annual
revenue. The more employees and revenue, the higher the value
of the reference.
2. Length of Client Relationship – The longer the client has been
with the seller firm, the higher its reference value.
3. Reference Congruency – The more similar a client reference’s
products/services, industry, and role are to the prospect, the more
valuable the reference.
4. Reference Media Format – References that use richer media
formats are more valuable. Video testimonials > Audio testimonials
> Written testimonials > Case Studies/White Papers.
Relationships Matter.

4. Variation to Business Reference Value
Client Size &
Unaccounted for Length of
Effects 29% Relationship
31%
Other
Accounted for
Effects 9%
Reference
Media Format Congruency 17%
14%
Relationships Matter.

5. The Take-Away
1. Ditch the Boilerplate Reference List
• Choosing the right references has a significant effect on sales
outcomes. If the client is asking for
references, congratulations, you are in the final stages of the
sales process.
• Don’t use the same-old reference list – chose your references
carefully.
• Save yourself the embarrassment of providing a reference to
someone who has left their job or who has lost love for your
firm.
Relationships Matter.

6. The Take-Away
2. Go for Alignment
• Choose references that have something in common with your
sales prospect.
• Similar products and services have the greatest effect on
reference value, followed by similar industry and similar
organization roles.
3. Bigger is Better
• Reference value is positively affected by the number of
employees a reference has.
• Revenue has a similar effect.
Relationships Matter.

7. The Take-Away
4. We Go Way Back
• Client references with longer tenures are more valuable as
references.
• This is valid to a point however, as clients with very long tenures
may have institutionalized the seller’s product and are not aware of
other options available.
• Chose reference clients that have had time to integrate your
product and service successfully and have lots of enthusiasm to
share about your firm.
5. Put Your Best Foot Forward
• References delivered using rich media have the greatest impact.
• Use the richest media available – not only is it the most effective
strategy, it also allows you to exert some control over the message.
Relationships Matter.

8. The Take-Away
6. Keep the Fires Hot
• Good references are a valuable asset – keep them happy.
• Keep the lines of communication open
• Take the time to quickly brief your references for each prospect
that may contact them.
• Most reference clients consider it an honour to be reference, not
a burden. Don’t be shy in asking for references.
Relationships Matter.

9. References
Kumar, V., Petersen, J. A., & Leone, R. P. (2013).
Defining, Measuring, and Managing Business Reference Value.
Journal of Marketing , 77, 68-86.
Relationships Matter.