Customer Reference Program (CRP) - Meaning & Definition

Published in Marketing and Strategy Terms by MBA Skool Team

What is Customer Reference Program (CRP)?

Customer reference program or CRP is an organized program strategically aimed at building a long term relationship with the existing customers who can promote the company through positive references and recommendations. Its purpose is to mobilize the happiest customers in the market and turn them into brand advocates who promote the company.


Why CRP?

In today's competitive market when other modes of promotion are repetitive and saturated, strong customer references and evidences is the differentiating factor for the company.

Reference customers are asset for any company or organization. Buyers generally seek advice from their peers before buying any product or service. The reference customers are the ones who create buzz in the market about the company. These referrals and advocates have the potential to find new customer base, promote the company through media and improve ratings done by industry analysts and most importantly build confidence with the prospects through word of mouth.

Customers create noise about the company when they are not happy with the product or service but generally it does not happen the other way. Hence it is vital for the company to motivate these happy customers to talk positive about the company. CRP is conducted with this objective.


Points to keep in mind for effective CRP

Customer Centric: The customer is not liable for reference. He/ She is a volunteer with or without any personal motives. So, the CRP should be designed to make it easy for the customers. It should be sensitive to their needs, privacy and fears.


Early Move: It would be much easy to convince a customer to be a reference if they are well informed beforehand. They should be made aware that they can used as reference if required but it should not be a compulsion.


Coordination with Sales Team: The CRP should be designed keeping in minds the needs of the sales team. They are the ones using the customer evidence to close deals and acquire new customers.

Hence, this concludes the definition of Customer Reference Program (CRP) along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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