Forget 20%, I want $1M in TIPS

In the world of startup sales, there’s no greater gift than a stellar customer reference…one that results in this:

A well-executed customer reference can be the deciding factor in closing your next big enterprise deal. Let's unwrap the art and science of customer references.

Customer References @ Start-Ups

Enterprise buyers, naturally risk-averse, seek validation before adopting new technology. In start-up sales, taking a leap of faith is like long-jumping across a 5-foot wide gap - if you miss, you'll fall 30 ft. You might survive, but you'll break bones.

Customer references de-risk the purchase, but don't make a rookie mistake here. Customer references shouldn’t be a “check-the-box” item. When done right, they create surround sound with your buyer to push a deal over the finish line (or qualify out faster).

To nail this, I created the "TIPS" framework: (1) Time, (2) Identify, (3) Prepare, and (4) Sustain

T - TIME

Knowing when to deploy your references is crucial. While most AEs think references belong at the deal's end ("reactive"), sometimes a well-set up reference before the PoC can be a game changer (“proactive”). For example, I’ve used proactive references to plant unique differentiators into the prospect’s evaluation criteria that weren't originally considered, reshaping the competitive landscape in our favor.

I - IDENTIFY

When picking references, focus on four critical dimensions:

• Prospect Goals: What do they want to learn (Implementation experience? Partnership approach? Technical depth?) and from who (CTO? PM? Engineering?) Always press on WHY and be ready to challenge assumptions.

• Company Match: Align on maturity/size/vertical. No perfect match? Ask your prospect what matters most - maturity or industry?

• Your Goals: Especially crucial for proactive references in emerging categories. Choose a champion who gets your vision to help evangelize unique differentiators.

• Referencability: Work with post-sales teams to identify truly referenceable customers. Not everyone is ready to be a reference.

P - PREPARE

Make it easy for your reference customer…

Create a one-page prep document:

• Deal Context: 1-2 sentences

• Prospect Personas: LinkedIn + brief role description

• Expected Topics: 3-5 questions with key talking points

• Suggested Points: Areas to emphasize (if they're comfortable)

Schedule a 15-minute prep call:

• Frame the value of references for product reinvestment

• Review the prep doc

• Temperature check their feedback points

• Discuss rebuttals for potential concerns

• Explore future reference availability

S - SUSTAIN

In the spirit of holiday giving, always send a thoughtful “Thank You” gift with a personal note after the reference call is complete. Never before - that feels like a bribe. Your customer is doing you a favor. Show genuine appreciation.

CONCLUSION

Great customer references don't happen by accident – they require planning, preparation, and authentic gratitude. If you master this process, you'll create a flywheel that not only helps acquire new customers but builds deeper trust with existing ones.

Bisous,

Julian