The Referral Guy
S5 Episode 7
Episode Title – Mid-Season Wrap
This show is a highlights package of the season so far. From all the material covered, this show will review the four standout points all referral marketers should know and practice to grow their networks and attract referrals.
Of the dozens of topics and sub-topics covered, it is vital you master the four below to maximise your ROI in your referral group.
To reinforce knowledge already transferred because repetition is one of the most powerful teaching tools.
We will rediscover the critical elements of –
Below is a brief expansion on these 4 factors. Familiarise yourself with these so your referral group experience is one that gives you the ROI you expect.
Believe it or not, accountability in referral groups is the glue that makes all other aspects bond together. For accountability to be part of your referral group, you’ll first need to set the group goals and member standards which need to be attained. Then you need to ascertain the consequences for non-compliance with the standards and finally who is responsible for administering those consequences.
A group meeting is required to determine the goals around –
To achieve those goals, what standards of member activity must be set in relation to –
If the standards are not met, goals will not be achieved and members will not receive the benefits they want. Consequently, the group will slowly disintegrate. As members leave, confidence continues to deteriorate amongst the remaining members. So confidence needs to be restored by upholding the standards the group set.
So, in relation to each of the standards, what are the consequences for not meeting the standards the first time? The second time? The third time?
Is it –
This is where Strategic Referral Teams have significant advantages over referral groups from the well-known networking organisations. SRTs set their own standards so the member buy-in is substantially higher. As members own the standards, compliance is less of an issue.
In the well-known networking organisations, the standards are set by the organisation without consulting the members. As the members don’t own the standards, they feel less inclined to adhere to them. Without adherence, referrals drop and the group’s internal accountability mechanisms are meant to correct this situation. This results in one member, who joined to attract referrals, holding another member, who joined to attract referrals, to account.
In short, this puts member against member… not a great environment for exchanging referrals. After all, who wants to pass referrals to other members who are holding you accountable to a set of standards you had no input in establishing?
Which leads to…
Who Administers the Accountability Consequences?
In referral groups owned and controlled by a larger organisation, the members sometimes feel disenfranchised from the start as they did not set the standards they are expected to meet. Yet they are each expected to take their turn on Leadership Teams handing out the consequences for non-compliance with these standards to the other members. Inevitably, at some point these are the same members they are trying to develop referral partner relationships with. This presents an enormous and unavoidable conflict of interests.
No wonder member turnover is high. Holding members to account and developing a referral partnership with them are two mutually incompatible activities. So people leave. A vacancy is then created and the owner of the franchise/organisation receives income from the next member who gets that seat.
ARTA’s Strategic Referral Teams have the option to outsource the administration of the accountability consequences so members are never put in this uncomfortable and unprofitable position. The leadership team of the group still sets the goals and standards, but an external manager is responsible for impartially ensuring the standards are met. This protects the reasons members joined – to attract referrals for their businesses.
Strategic Referral Teams
SRTs are like no other form of group referral marketing because –
Effective Member Training Delivers Member Results.
The most common reasons members leave is a lack of referrals. Address this by ensuring all your members receive regular group training on the following referral skills –
What You Need to Do
This episode scrapes the surface of these huge topics. To gain a deeper understanding so you’re able to maximize your ROI, contact Steve at firstname.lastname@example.org for further information. Specific training is available for all topics mentioned in this show.
Whatever you do, don’t remain in a group that is not delivering the ROI you expect. Members of a referral groups have a reasonable expectation that they will have these elements under control and delivering benefits to the members. Solutions are available so make contact and address these issues.
Season 5 Show 6 – Retention, You Gotta get this Right in Your Referral Group
Member retention levels are the best indicator of the overall health of your referral group. Low retention levels mean your group is an unattractive place to be and the reverse means members want to stay and invite their networks to the experience.
So it’s vital you understand the 4 key elements that will help keep your group’s retention rate around 80%. This is the sweet spot and indicates 4 out of 5 members have the confidence to renew their membership because of their anticipated ROI.
Season 5 Show 8 – Specialists are Easier to Refer To
In this show, we’ll cover the benefits of specializing and forming a niche you can own rather than a general suite of services referral partners struggle to believe you’re an expert in.
Many business owners make the mistake of telling people they can do everything and their credibility goes out the window as they utter the words. This episode of The Referral Guy will show you the pitfalls of this approach and give you the confidence to specialize.
Your Host and Resource
Hey, I’m Steve Sweeney… The Referral Guy.
Being a Specialist Referral Marketing Trainer provides me with wonderful opportunities to help business owners attract more business by referral. This is one of the most cost-effective methods of marketing as it relies 100% on the quality of relationships you have with people in your network. Once trained, your skills last a lifetime and continue to pay dividends.
The Australian Referral Training Academy (ARTA) exists to teach business owners and sales professionals the art and science of attracting referrals and helps them build their own Strategic Referral Teams (SRT)
Shoot me an email if you’d like to learn more email@example.com
new choice for BUSINESS SEARCH
All IBGR Shows Notes are available for download