The great recession has changed the way that buyers purchase goods and services. In general, there is more scrutiny on and consensus must be reached with a larger group of people before a purchasing decision is approved. This is evidenced by recent research from the Corporate Executive Board and Google that shows that the average B2B buyer completes 57% of their purchasing process before ever engaging with a salesperson.

Yet many still use outbound lead generation techniques like cold calling and spam e-mail blasts in the hopes of generating business. Can anyone tell me who owns the phone number (415) 762-1722? This phone number has called me 5 times in the last week. They don't bother to leave a voicemail, but continue to mindlessly dial my number on a daily basis. My reaction is the same as most busy people - I might have listened to their voicemail, but now I don't want to have anything to do with them. Dialing for dollars is so 1985.

Small businesses who are growing successfully use revenue-generation tactics that involve some form of social proof. Social proof is the concept that the endorsement of friends, colleagues or even strangers makes people more likely to buy or otherwise use the product or service being endorsed. I read a very positive review this morning of the new David Bowie album and immediately downloaded it from Amazon.com. This is an example of social proof. If I got a phone call from someone trying to sell me the new David Bowie album, I would most likely not buy it until someone I trusted recommended it to me.

Here are three small business growth strategies that incorporate the concept of social proof.

Referral Selling

What's more powerful than a recommendation from a trusted friend, colleague or adviser? Growth-oriented small business have strategies to maximize referrals from satisfied customers and business partners. Here are 3 ways to generate referrals.

1. Ask for referrals as part of your customer service review process. Many businesses have a formal process to measure customer satisfaction. When conducting customer satisfaction reviews, add this question to your process: do you know of anyone who could benefit from our product/service? What better time to ask for a referral than when someone is telling you that they have had a good experience with your company. Be smart about this, don't ask the question of someone who had a bad experience with your company.
2. Create a formal referral program. Offer discounts, free upgrades or some other form of recognition to clients and business partners that refer business to you. If you don't have a formal referral program, make sure to take the person who referred business to you to lunch or give them something that shows your appreciation for the referral. Even if their corporate policies prevent them from accepting the gift, they will appreciate your offer. More importantly, make sure to do an outstanding job for their referral to encourage them to repeat the gesture.
3. Refer business to your business partners. We are firm believers in the "give to get" philosophy. If you refer business to people you like and trust, they will likely return the favor.

Referrals are the most powerful form of social proof - look for ways to maximize them.

Inbound Marketing

Inbound marketing is a coordinated series of tactics designed to sell with your websites, social media networks and opt-in email lists. Here is inbound marketing software provider HubSpot's description of the inbound marketing process.

Remember the Google/CEB research that showed that the average B2B buyer completes 57% of their purchasing process before interacting with a salesperson? Inbound marketing helps them find you when they're doing research, converts them to leads with premium content offers and nurtures them until they're ready to buy. When done properly, inbound marketing helps create an outstanding customer experience that creates promoters of your company. What better social proof of your company's value than a satisfied customer singing your praises on their social media networks?

Leads generated from inbound marketing have already expressed an interest in your products and services. Compare this to cold-calling, where your hassling people who may or may not have a slight interest in what you're selling.

Networking

Networking is another great way to develop potential revenue opportunities. Find opportunities to meet like-minded people at trade association, chamber of commerce and other networking events. When networking, look for opportunities to develop deeper relationships after the event. Invite potential referral partners to coffee or lunch so that you can learn more about them and their companies. The best networking follows the "give-to-get" philosophy - help people out so that they will want to help you. You never know where that great introduction will come from. It could be from the person you meet networking or it could be one of their friends or colleagues. You can never have too many friends.

Use social networks like LinkedIn to supplement your face-to-face networking. Make sure to invite new people to your LinkedIn network. Don't use the standard LinkedIn introduction!! Edit the invitation to provide context that will make sure the person remembers you. Here's an example: Hi Mary, it was great meeting you at the NVTC small business event this morning. I'd like to learn more about you and your company. Let's connect on LinkedIn!

Summary

The traditional outbound ways of generating revenue opportunities are becoming increasingly ineffective. Using the concept of social proof in your revenue-generation to create sales opportunities that have a a higher probability of closing. By incorporating referral selling, inbound marketing and networking into your lead generation activities, you will create more and better opportunities to develop profitable revenue.

Author:  John Beveridge is the President of Rapidan Strategies, an inbound marketing and social media agency and HubSpot certified partner located in Fairfax, VA.  Please feel free to contact John at john.beveridge@rapidanstrategies.com with any questions on this article or any other inbound marketing and social media issues.