- Section 1: Introduction to B2B Referral MarketingExplaining the Concept of B2B Referral MarketingBenefits of B2B Referral Marketing for Business GrowthSection 2: Building a Referral Program1. Define your goals2. Identify your target audience3. Create compelling incentives4. Develop clear referral guidelines5. Enable easy sharing and tracking6. Nurture and reward your referrersSection 3: Identifying Referral Sources1. Tap into your existing network2. Attend industry events and networking functions3. Ask for referrals from satisfied clients4. Research industry influencers and thought leaders5. Collaborate with complementary businesses6. Leverage online platforms and directoriesSection 4: Incentivizing Referrals1. Customer Incentives:2. Partner Incentives:3. Employee Incentives:4. Bonus Incentives:Section 5: Encouraging Referrals1. Establish a Referral Program2. Provide Incentives for Referrals3. Cultivate Strong Relationships4. Utilize Referral Marketing Tools5. Encourage Social Sharing6. Offer Referral Bonuses7. Keep the Referral Process SimpleSection 6: Tracking and Monitoring ReferralsTools for Referral TrackingTechniques for Referral Monitoring1. Set Clear Goals and Metrics2. Use Customizable Dashboards3. Regularly Analyze Performance Metrics4. Conduct A/B Testing5. Seek Feedback from Referrers and RefereesSection 7: Nurturing Referral Relationships1. Establishing Initial Contact2. Building Trust and Credibility3. Providing Mutual Benefits4. Maintaining Regular Communication5. Recognizing and Rewarding Referral Partners6. Tracking and Analyzing ReferralsSection 8: Scaling Your Referral Program1. Set Clear Goals and Objectives2. Optimize the Referral Experience3. Incentivize and Reward Referrals4. Leverage Technology and Automation5. Provide Ongoing Support and Communication6. Analyze Data and Optimize Performance7. Foster a Culture of ReferralsSection 9: Case Studies and Success StoriesCase Study 1: BrexCase Study 2: GorgiasCase Study 3: RampCase Study 4: NorthbeamSection 10: Tips for Success1. Build Strong Relationships with Your Customers2. Offer Incentives3. Make the Referral Process Easy4. Personalize Your Outreach5. Track and Measure Results6. Show Gratitude and Reward Referrers7. Continuously Promote Your Referral ProgramSection 11: ConclusionKey Takeaways:The Importance of Implementing Referral Marketing StrategiesHow ExactBuyer Can Help You
Section 1: Introduction to B2B Referral Marketing
B2B referral marketing is a strategy that involves leveraging existing relationships and connections to acquire new customers or clients through recommendations and referrals. It is a powerful and cost-effective way to grow your business by tapping into the trust and credibility of your existing network.
Explaining the Concept of B2B Referral Marketing
In B2B referral marketing, you encourage your satisfied customers, partners, and other contacts to refer your products or services to their own networks. This word-of-mouth marketing approach takes advantage of the trust and credibility that already exists between the referrer and their connections. When someone receives a recommendation from someone they trust, they are more likely to consider and engage with the referred business.
Referral marketing is based on the principle that people are more likely to trust recommendations from individuals they know and trust, rather than traditional advertising or marketing messages. By incentivizing and empowering your network to refer your business, you can tap into a powerful source of high-quality leads and conversions.
Benefits of B2B Referral Marketing for Business Growth
Implementing an effective B2B referral marketing strategy can yield several benefits for your business:
- Increase in High-Quality Leads: Referrals from trusted sources are more likely to convert into qualified leads, resulting in higher conversion rates and better sales outcomes.
- Built-in Trust and Credibility: When a customer or partner refers your business, they are vouching for your reliability, expertise, and quality. This built-in trust helps to overcome skepticism and can accelerate the sales process.
- Cost-Effective Marketing: Referral marketing relies on leveraging existing relationships, which reduces the need for costly advertising campaigns. It is a highly efficient and cost-effective approach to acquiring new customers.
- Improved Customer Lifetime Value: Customers acquired through referrals tend to have higher lifetime value as they already have a positive impression of your business and are more likely to become loyal, repeat customers.
- Expanded Network Reach: Referral marketing allows you to tap into the networks of your existing customers and partners, helping you reach a wider audience that may have been difficult to access through other marketing channels.
Overall, B2B referral marketing is a valuable strategy for businesses looking to grow their customer base, increase sales, and improve customer loyalty. By harnessing the power of trusted recommendations, you can unlock a powerful source of business growth.
Section 2: Building a Referral Program
In this section, we will explore tips and strategies for creating an effective referral program in a B2B setting. Referral marketing can be a powerful tool for generating new leads and expanding your customer base. By leveraging existing relationships and word-of-mouth, you can tap into a network of trusted connections who can recommend your products or services to others.
1. Define your goals
Before building a referral program, it's essential to have a clear understanding of your goals. Determine what you want to achieve with your program, whether it's increasing sales, acquiring new customers, or expanding into new markets. By setting specific and measurable goals, you can tailor your program to align with your objectives.
2. Identify your target audience
Next, identify the specific audience you want to target with your referral program. Consider the characteristics and demographics of your ideal customers and determine what kind of referrals are most likely to convert into paying customers. This will help you develop personalized messaging and incentives that resonate with your target audience.
3. Create compelling incentives
Incentives are a crucial component of any successful referral program. Offer rewards that are valuable and desirable to both the referrer and the person being referred. This could include discounts on products or services, exclusive access to events or content, or even monetary rewards. The key is to provide an incentive that motivates people to take action and refer your business to others.
4. Develop clear referral guidelines
To ensure a smooth referral process, create clear guidelines for your referrers to follow. This should include instructions on how to make a referral, what information to provide, and any specific criteria for a referral to be considered valid. By providing clear guidelines, you make it easier for your customers or partners to refer others and increase the chances of successful conversions.
5. Enable easy sharing and tracking
Make it simple for your referrers to share your company's information and track their referrals. Provide easy-to-use tools, such as shareable links or social media buttons, that allow referrers to quickly spread the word about your business. Additionally, implement a tracking system that allows you to monitor the progress of each referral, track conversions, and reward referrers accordingly.
6. Nurture and reward your referrers
Don't forget to nurture and reward your referrers. Show your appreciation for their efforts by acknowledging their referrals and providing regular updates on the progress of those referrals. Consider implementing a tiered reward system that offers additional incentives for referrers who consistently bring in high-quality leads. By maintaining a positive relationship with your referrers, you can encourage ongoing referrals and build a loyal community around your brand.
By following these tips and strategies, you can create an effective referral program in a B2B setting. Referrals can be a valuable source of leads, helping you reach new customers and grow your business. Take the time to define your goals, identify your target audience, and provide compelling incentives to encourage referrals. With a well-executed referral program, you can leverage the power of word-of-mouth marketing to drive business success.
Section 3: Identifying Referral Sources
In this section, we will discuss methods to identify potential referral sources within your existing network and industry. Building a strong network of referral partners can greatly benefit your B2B referral marketing strategy. By harnessing the power of word-of-mouth recommendations, you can generate high-quality leads and increase your chances of closing deals.
1. Tap into your existing network
- Reach out to current customers and clients who are satisfied with your products or services. They are often willing to refer you to their network.
- Contact your professional connections, such as colleagues, partners, or vendors, who may know potential referral sources.
- Utilize social media platforms like LinkedIn to connect with individuals who can refer you to their contacts.
2. Attend industry events and networking functions
- Participate in conferences, trade shows, seminars, and other industry events where you can meet professionals who might become valuable referral sources.
- Join industry-specific networking groups and associations to expand your network and establish relationships with potential referral sources.
3. Ask for referrals from satisfied clients
Reach out to your current clients and customers who are satisfied with your products or services and ask if they know anyone who could benefit from your offerings. Offer incentives, such as discounts or rewards, for successful referrals to encourage participation.
4. Research industry influencers and thought leaders
Identify influential individuals within your industry who have a large following or are considered experts in their field. Connect with them and establish a professional relationship. If they believe in your products or services, they may be willing to refer you to their audience.
5. Collaborate with complementary businesses
Look for businesses that offer complementary products or services to yours. Partnering with them can create opportunities for mutual referrals. For example, a web design agency could collaborate with a digital marketing agency to refer clients to each other.
6. Leverage online platforms and directories
Utilize online platforms and directories relevant to your industry to find potential referral sources. Many platforms allow businesses to establish partnerships and referral networks, making it easier to connect with relevant professionals.
By implementing these strategies, you can identify potential referral sources within your existing network and industry. Remember to maintain strong relationships with your referral partners and provide exceptional service, as this will encourage them to continue referring prospects to your business.
Section 4: Incentivizing Referrals
Welcome to Section 4 of our blog series on B2B referral marketing strategies. In this section, we will explore the different ways businesses can incentivize and reward their customers, partners, and employees for making referrals. By offering incentives, you can motivate and encourage individuals to refer your products or services to others, ultimately driving more leads and sales for your business.
1. Customer Incentives:
One effective way to incentivize your customers for making referrals is by offering them rewards or discounts for each successful referral they bring. This could include percentage-based discounts on future purchases, freebies, or even exclusive access to new products or features. By providing a valuable incentive, you increase the likelihood of your customers spreading the word about your business to their networks.
2. Partner Incentives:
When it comes to cultivating partnerships and alliances, incentivizing your partners to refer new clients or customers can be extremely beneficial. Consider offering commission-based rewards or a referral fee for every successful referral that results in a sale. This can motivate your partners to actively promote your products or services, as they have a financial incentive to do so.
3. Employee Incentives:
Your employees can be powerful advocates for your business, leveraging their networks and relationships to make valuable referrals. To encourage employee referrals, you can implement a rewards program where employees earn points or bonuses for referring new leads or customers. Additionally, consider recognizing and celebrating top referrers through internal communication channels or even monetary incentives.
4. Bonus Incentives:
In addition to the individual incentives mentioned above, you can also consider running special referral contests or promotions that offer bonus rewards for achieving specific referral milestones. For example, you could offer a cash bonus or a luxurious vacation package to the individual who brings in the highest number of successful referrals within a certain time frame. These bonus incentives can create excitement and encourage healthy competition among referrers.
By implementing these different types of incentives, you can create a culture of referral marketing within your business. Remember to choose incentives that align with your target audience and are valuable enough to motivate action. Regularly evaluate the effectiveness of your referral program and make adjustments as necessary to optimize its impact on your overall marketing strategy.
Section 5: Encouraging Referrals
Encouraging referrals is an effective strategy for boosting your business growth. By motivating your referral sources to actively refer your company, you can tap into new opportunities and expand your customer base. In this section, we will explore proven tactics to encourage and incentivize referrals.
1. Establish a Referral Program
Creating a structured referral program is key to generating a consistent stream of referrals. Design a program that rewards both the referrer and the referred customer. This could include offering discounts, incentives, or exclusive perks for successful referrals.
2. Provide Incentives for Referrals
Motivate your existing customers, clients, or business partners to refer your company by offering attractive incentives. These can range from cash rewards, gift cards, or even special access to exclusive events or experiences.
3. Cultivate Strong Relationships
Build strong relationships with your customers, clients, and partners. When you establish a deep level of trust and loyalty, they will be more inclined to refer your company to others. Provide exceptional customer service, personalized experiences, and go above and beyond to exceed expectations.
4. Utilize Referral Marketing Tools
Take advantage of technologies and platforms that can streamline and enhance your referral marketing efforts. Tools like ExactBuyer provide real-time contact and company data, allowing you to target potential referral sources more effectively.
5. Encourage Social Sharing
Leverage the power of social media by encouraging your customers to share their positive experiences with your company. Implement social sharing buttons or widgets on your website or emails, allowing satisfied customers to easily spread the word about your business.
6. Offer Referral Bonuses
Consider offering referral bonuses to your employees or team members. By incentivizing your internal staff to refer new customers or clients, you can tap into their networks and increase the chances of getting high-quality referrals.
7. Keep the Referral Process Simple
Make it easy for your referral sources to refer your company. Provide clear instructions, simple forms, and convenient ways to submit referrals. Minimize any barriers or complexities that may discourage potential referrers from taking action.
By implementing these proven tactics to encourage and motivate referral sources, you can leverage the power of word-of-mouth marketing and drive significant growth for your B2B company.
Section 6: Tracking and Monitoring Referrals
In this section, we will discuss various tools and techniques that can be used to track, measure, and analyze the success of your referral program. By implementing effective tracking and monitoring strategies, you can gain valuable insights into the performance of your program and make data-driven decisions to optimize its effectiveness.
Tools for Referral Tracking
When it comes to tracking referrals, there are several tools available that can simplify the process and provide accurate data. These tools help you keep track of the referral source, the number of referrals generated, and their conversion rates. Some popular referral tracking tools include:
- Google Analytics: This free tool allows you to track and analyze website traffic, including referrals. It provides detailed insights into the performance of your referral program.
- GrowSurf: An all-in-one referral marketing platform that provides comprehensive tracking and reporting features. It allows you to monitor referral activities, analyze performance metrics, and optimize your program.
- Refersion: A popular referral tracking software that enables you to track and manage your referral program effectively. It provides real-time tracking, analytics, and automation to streamline your referral process.
Techniques for Referral Monitoring
Monitoring the progress and success of your referral program involves analyzing key performance metrics and identifying areas for improvement. Here are some techniques to effectively monitor your referral program:
1. Set Clear Goals and Metrics
Define specific goals for your referral program, such as the number of referrals, conversion rates, or revenue generated. Establish relevant metrics to track these goals, ensuring that they align with your overall business objectives.
2. Use Customizable Dashboards
Utilize customizable dashboards provided by tracking tools to visualize and monitor your referral program's performance. Create charts, graphs, and reports that display key metrics and progress over time.
3. Regularly Analyze Performance Metrics
Review and analyze performance metrics, such as referral conversion rates, customer acquisition costs, and lifetime value of referred customers. Identify trends, patterns, and areas of improvement to optimize your program's effectiveness.
4. Conduct A/B Testing
Test different variations of your referral program, such as incentive structures, referral messaging, or program landing pages. Measure the performance of each variation to identify the most effective strategies.
5. Seek Feedback from Referrers and Referees
Gain insights from both referrers and referees by collecting feedback through surveys or interviews. Understand their experience with your referral program and address any concerns or suggestions they may have.
By implementing these tracking and monitoring techniques, you can ensure that your referral program is effectively driving referrals and achieving your desired outcomes. Continuously analyze and optimize your program based on the insights gained, improving its effectiveness and maximizing its impact on your business.
Section 7: Nurturing Referral Relationships
In this section, we will provide guidance on how to maintain strong relationships with referral sources and maximize their potential. Building a network of trusted referral partners can greatly benefit your business, as these partners can refer qualified leads and help you expand your customer base.
1. Establishing Initial Contact
When reaching out to potential referral sources, it's important to personalize your communication and explain the value that a partnership with your business can bring. Clearly articulate the benefits of working together and demonstrate how your products or services complement each other. Additionally, be sure to highlight any mutual connections or shared goals that can help to build rapport.
2. Building Trust and Credibility
Trust is the foundation of any successful referral relationship. To build trust with your referral sources, always deliver on your promises and provide exceptional service to their referred clients. Regularly communicate and provide updates on the progress of referrals, and be responsive to any questions or concerns they may have. By consistently demonstrating your reliability and expertise, you will strengthen the trust and credibility between you and your referral partners.
3. Providing Mutual Benefits
A referral relationship should be mutually beneficial. Look for opportunities to reciprocate referrals and support your referral partners' businesses whenever possible. This can be done by sharing their content, recommending their services to your network, or collaborating on joint marketing initiatives. By actively promoting and supporting your referral partners, you are more likely to receive the same level of support in return.
4. Maintaining Regular Communication
Regular communication is key to nurturing referral relationships. Stay in touch with your referral partners through email, phone calls, or in-person meetings. Use these interactions to provide updates on your business, share success stories of referred clients, and discuss potential opportunities for collaboration. By staying top-of-mind and fostering open lines of communication, you can strengthen the bond with your referral partners.
5. Recognizing and Rewarding Referral Partners
Show appreciation for your referral partners by recognizing and rewarding their efforts. This can be done through thank you notes, referral incentives, or public recognition on your website or social media platforms. By acknowledging the value they bring to your business, you demonstrate your gratitude and encourage continued collaboration.
6. Tracking and Analyzing Referrals
Track and analyze the effectiveness of your referral relationships to identify what strategies and partnerships are driving the most successful referrals. Use analytics tools and customer feedback to evaluate the quality of referrals and make data-driven decisions on how to optimize your referral program.
In conclusion, nurturing referral relationships is a critical aspect of referral marketing strategy. By establishing strong connections with referral sources, building trust, providing mutual benefits, maintaining regular communication, recognizing and rewarding partners, and analyzing referral data, you can maximize the potential of your referral network and drive business growth.
Section 8: Scaling Your Referral Program
Referral programs can be a highly effective way to generate new leads and grow your business. As your business expands, it becomes crucial to scale and expand your B2B referral program to maximize its impact. In this section, we will discuss strategies that will help you efficiently scale your program and take it to the next level.
1. Set Clear Goals and Objectives
Before you start scaling your referral program, it's important to define clear goals and objectives. Determine what you want to achieve with your program – whether it's increasing sales, expanding your customer base, or improving brand awareness. Having measurable goals will guide your scaling efforts and ensure that you stay focused on your objectives.
2. Optimize the Referral Experience
To scale your referral program successfully, you need to provide an excellent experience for both your existing customers and the referred prospects. Simplify the referral process by creating user-friendly landing pages, personalized referral links, and clear instructions. Streamline the experience to encourage more referrals and make it easy for your customers to participate.
3. Incentivize and Reward Referrals
One of the most effective ways to encourage referrals is by offering incentives and rewards. Develop a reward system that incentivizes both the referrer and the referred prospect. Consider offering discounts, gift cards, exclusive access, or even financial incentives. The more enticing the rewards, the more motivated your customers will be to refer your business.
4. Leverage Technology and Automation
As your referral program scales, manual management can become overwhelming. Invest in referral marketing software that can automate the process, track referrals, and provide analytics. These tools can help you streamline your program, save time, and ensure accurate tracking and reporting.
5. Provide Ongoing Support and Communication
Continual support and clear communication are essential for the long-term success of your referral program. Keep your referrers well-informed about their progress, the status of their referrals, and any updates or changes to the program. Promptly address any questions or concerns they may have to maintain their engagement and motivation.
6. Analyze Data and Optimize Performance
Regularly analyze the data and performance of your referral program to identify areas for improvement. Track important metrics such as referral conversion rates, revenue generated, and customer lifetime value. Use this data to identify successful strategies, optimize underperforming areas, and refine your program for better results.
7. Foster a Culture of Referrals
Scaling your referral program goes beyond just implementing tactics – it's about creating a culture of referrals within your organization. Encourage and empower your entire team to actively participate in the program. Provide training and resources to help them understand the benefits of referrals and how to effectively promote your business.
By following these strategies, you can effectively scale your B2B referral program and harness the power of word-of-mouth marketing to drive exponential growth for your business.
Section 9: Case Studies and Success Stories
In this section, we will explore real-life examples of B2B companies that have achieved significant growth through referral marketing. These case studies and success stories will provide valuable insights into the strategies and tactics employed by these companies to leverage the power of referral marketing in their business.
Case Study 1: Brex
By implementing a robust referral marketing program, Brex, a financial technology company, experienced a 40% increase in booked demos. Their referral program incentivized existing customers to refer new businesses, resulting in a substantial boost in qualified leads and ultimately, increased sales.
Case Study 2: Gorgias
Gorgias, a customer support software provider, leveraged referral marketing to achieve a 55% increase in qualified deals. By encouraging their satisfied customers to refer other businesses in similar industries, Gorgias expanded its customer base and improved revenue growth.
Case Study 3: Ramp
Ramp, a corporate card and spend management platform, witnessed a 70% surge in positive replies through their referral marketing initiatives. Their referral program empowered customers to refer colleagues and business partners, leading to increased brand awareness and a higher conversion rate.
Case Study 4: Northbeam
Northbeam, a B2B marketing agency, reduced the time spent on list building by 95% using referral marketing. By incentivizing their network to share potential leads, Northbeam was able to quickly identify and connect with qualified prospects, saving valuable time and resources.
These case studies demonstrate the immense potential of referral marketing in driving growth for B2B companies. By harnessing the power of customer advocacy, these businesses were able to expand their customer base, increase sales, improve brand awareness, and save time on lead generation.
If you're looking to achieve similar success through referral marketing, consider exploring ExactBuyer's real-time contact and company data solutions. ExactBuyer offers AI-powered search capabilities, audience intelligence, and integrated hubspot and salesforce integrations to help you build more targeted audiences and drive referral marketing success. You can learn more about ExactBuyer's offerings and pricing here.
Section 10: Tips for Success
In this section, we will provide you with practical tips and best practices to ensure the success of your B2B referral marketing efforts. Referral marketing is an effective strategy for generating high-quality leads and growing your business. By leveraging your existing customers and contacts, you can tap into a network of potential new customers who are more likely to trust and engage with your brand.
1. Build Strong Relationships with Your Customers
The key to a successful referral marketing campaign is building strong relationships with your existing customers. Make sure you provide exceptional service and regularly communicate with your customers to understand their needs and address any concerns. When your customers feel valued and satisfied, they are more likely to refer your business to others.
2. Offer Incentives
One way to encourage your customers to refer others to your business is by offering incentives. This can be in the form of discounts, rewards, or even cash incentives. By providing a tangible benefit to your customers for referring new leads, you increase their motivation to actively participate in your referral program.
3. Make the Referral Process Easy
Simplify the referral process for your customers by providing clear instructions and easy-to-use referral tools. This can include a referral link or a shareable content that they can easily pass on to their network. The easier it is for your customers to refer others, the more likely they are to do so.
4. Personalize Your Outreach
When reaching out to potential leads through referrals, personalize your message and explain how you obtained their contact information. This creates a sense of trust and shows that you value their connection. Personalized outreach also increases the chances of a positive response and engagement from the referred leads.
5. Track and Measure Results
Implement a tracking system to measure the success of your referral marketing efforts. Monitor the number of referrals, conversion rates, and customer acquisition costs. This data will help you identify which referral sources are most effective and allow you to refine your approach to maximize results.
6. Show Gratitude and Reward Referrers
Show your appreciation to customers who refer others to your business. Send them a thank-you note or offer them exclusive rewards or discounts. By acknowledging and rewarding their efforts, you strengthen their loyalty and encourage them to continue referring new leads in the future.
7. Continuously Promote Your Referral Program
Make sure to consistently promote your referral program across different channels, such as social media, email newsletters, and your website. Highlight the benefits of your program and showcase success stories to generate excitement and encourage more participation from your customers and contacts.
By following these tips and implementing best practices, you can effectively leverage referral marketing to expand your customer base and increase sales. Remember, building strong relationships, offering incentives, simplifying the referral process, personalizing outreach, tracking results, rewarding referrers, and continuously promoting your program are crucial steps for B2B referral marketing success.
Section 11: Conclusion
In this section, we will sum up the key takeaways from this article on B2B referral marketing strategies and emphasize the importance of implementing these strategies in your business.
Key Takeaways:
- B2B referral marketing is a powerful strategy for generating high-quality leads and driving business growth.
- Referrals have a higher conversion rate and a shorter sales cycle compared to other lead generation methods.
- Building strong relationships with your existing customers and business partners is crucial for generating referrals.
- Implementing a structured referral program with incentives and rewards can encourage your customers and partners to refer your business.
- Tracking and measuring the success of your referral program is essential for optimizing its performance and making necessary adjustments.
By following these key takeaways, you can leverage the power of referral marketing to expand your customer base, increase sales, and enhance brand credibility.
The Importance of Implementing Referral Marketing Strategies
Referral marketing is not just a nice-to-have strategy; it is a must-have for any B2B business looking to thrive in today's competitive market. Here are some reasons why implementing referral marketing strategies is crucial:
- Trust and Credibility: Referrals come from trusted sources such as satisfied customers and business partners, which automatically increases trust and credibility in your brand.
- Higher Conversion Rate: Referred leads have a higher likelihood of converting into customers compared to leads from other sources. This translates into more revenue and better ROI.
- Cost-Effective: Referral marketing is a cost-effective way to acquire new customers. Instead of spending large amounts on advertising and lead generation campaigns, you leverage your existing network to obtain high-quality leads.
- Shorter Sales Cycle: Referred leads tend to have a shorter sales cycle since they are already familiar with your brand and have a level of trust. This means quicker deal closures and faster revenue generation.
- Long-Term Customer Relationships: Referrals often result in long-term customer relationships as they are more likely to be satisfied with your product or service. These customers can become brand advocates and provide recurring business.
By implementing effective referral marketing strategies, you can tap into a powerful source of growth for your B2B business. Remember to consistently nurture and reward your referral network to maintain its momentum and maximize results.
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