The Value of Customer References to Potential Customers in Business Markets

Abstract

The literature on referencing takes a firm stance on the value that vendors derive from marketing customer references. What the literature lacks, however, is empirical work that supports our current understanding of the value of customer references to the potential customer. The present exploratory research aims to demonstrate the value of customer references from the perspective of the potential customer. This goal will be achieved by considering a single case study that provides evidence for the value of customer references to potential customers in business markets. Three theoretical propositions emerge as key conceptual contributions: (a) customer references allow buying companies to establish their suppliers’ competence, assess the buying decision risk and forecast return on investment; (b) customer references deliver value by helping potential customers to identify new business needs and (c) potential customers benefit from being exposed to customer references insofar as they are sources of organizational learning. This work concludes by presenting recommendations for practitioners who wish to reap the full benefits of customer references.