Referral marketing: a term often associated with B2C strategies, yet its impact in the B2B sector, particularly in Japan, cannot be understated.many of you may have this question: Are referrals in B2B effective?The simple answer is "YES". Referral marketing can be a powerful tool for B2B businesses in Japan, and here’s why.The Rising Power of Information in Buyer-Side CompaniesIn the B2B sector, the buyer's ability to gather information has significantly increased. This means that the decision-maker at the buyer's company often leans towards a "buy" or "don't buy" decision before even meeting with a salesperson. The key to influencing this decision? Early contact and relationship-building with the buyer. This early-stage engagement is crucial in the Japanese market, where trust and relationships are foundational to business dealings.Challenges in B2B marketing are lead generation and lead nurturingWarning: 48% of B2B Buyers Bored by Most Marketing They See Right Nowhttps://smallbiztrends.com/2019/03/b2b-marketing-statistics.htmlLead generation and nurturing remain paramount challenges in B2B marketing. A staggering 48% of B2B buyers find most marketing efforts unengaging, highlighting the need for strategies that resonate more effectively with the target audience.When you have no leads that might be your customers, you may be think of engage cold calls.In fact, a recent survey found that connecting with a prospect now takes 18 or more phone calls, callback rates are below 1%, and only 24% of outbound sales emails are ever opened.https://hbr.org/2016/11/84-of-b2b-sales-start-with-a-referral-not-a-salespersonIt's being said that only 2% of cold calls lead to MTG appointments.Both sellers and buyers consider word-of-mouth to be important information.Let's look at survey data on word-of-mouth communication in B2B business. The results of all the surveys naturally emphasize the importance of word-of-mouth communication.92% of consumers trust recommendations from friends and family over all forms of advertisinghttps://www.thesocialmediahat.com/blog/the-science-behind-the-effectiveness-of-word-of-mouth/The top industries where consumers see business reviews as most important are: Healthcare, Automotive Services, and Service Businesses/Tradespeople.76% of consumers “regularly” read online reviews when browsing for local businesses, compared to 77% in 2021.72% say reading a positive customer reviews increase their trust in a business; it takes, on average, 2-6 reviews to get 56% of them to this point.https://www.brightlocal.com/research/local-consumer-review-survey/Why B2B Referral Marketing is strongly valued73% of B2B buyers prefer to work with sales professionals who have been referred to them by someone they know76% of B2B buyers prefer to work with vendors that have been recommended to them by someone they knowhttps://business.linkedin.com/content/dam/business/sales-solutions/global/en_US/c/pdfs/idc-wp-247829.pdfBuyers place great trust in their professional networks. A recommendation from a trusted source vastly outweighs any direct marketing effort.These surveys show B2B buyers tend to be very interested in meeting people via referrals and naturally emphasize the importance of word-of-mouth.Concluding Thoughts and What’s NextReferral marketing holds a significant place in the B2B marketing toolbox, especially in Japan. Its ability to build trust, generate high-quality leads, and overcome the challenges of traditional marketing methods makes it an indispensable strategy.In this article, we explained the importance of referral marketing in B2B businesses. In our next article, we will dive deeper into implementing a successful B2B referral marketing strategy, specifically tailored for the unique landscape of the Japanese market.