Understanding Your Referral Group’s Culture - Steve Sweeney

The Referral Guy
S5 Episode 2
Episode Title – Understanding Your Referral Group’s Culture

Introduction
There are five stages of referral groups. Each stage has different characteristics, language patterns and behaviours denoting which stage the group is in. These stages have an enormous influence on the ROI members derive so when choosing a group, it’s important to be able to identify which stage the group is in to maximise your chances of success.

Show Objectives
This show outlines the five stages of referral groups.

​What You Need to Know 
At any point, there may be some members trying to operate in a different stage. However, it is highly likely a single overall culture will be prominent. Sadly, in my observation, the vast majority of groups operate at the lower and middle stages, a lesser proportion in the upper half. Each of the stages has its own language… the sense in which they articulate their views about how the group functions. 

Stage 1

• Dominated by a powerful inner circle for which the group delivers value
• Very low retention levels outside this inner circle. 30% retention or less.
• “This group sucks!”
• About 1/3 of members feel alienated
• New members ‘smell’ something is wrong soon after joining
• Can be salvaged if the elephants in the room are addressed but, frankly, no one can be bothered so these groups usually fade away.

Stage 2

• Slight improvement on Stage 1.
• 40% Retention.
• More members engaged but still a general lack of organisation.
• No reliable stats gathered so no reliable management tool exists.
• Members feel constrained by the system…
  • Lack of training 
  • Don’t know the whys behind the standards
  • Low accountability
  • The problem feels too big to solve.
• The solution – an overhaul beginning with training
  • Back to basics training – group rules and referral generation skills

Stage 3

• Moderately successful for a short period.
  • 20-30 members
  • 50% retention
• Often dominated by a small number of givers who – 
  • Do not possess the skills to galvanise the group
  • Complain when others don’t get involved and take on the load
  • Come across as school teachers of naughty children
  • Gossip about under-performers
  • Leaders don’t engage in training as they have all the answers
  • Don’t use the tools to manage the group effectively
  • View themselves as saviours
  • Issue accountability but not evenly and not effectively
• Other members have little affection for the saviours.
  • Regard them as being power hungry, idealists
• The solution involves moving the saviours on or waiting until they go themselves. Then…
  • The selection of competent leaders who are trainable in group dynamics and how to galvanise people to inspire action and teamwork.

Stage 4

• These guys see that large accomplishments are never achieved alone.
• Often, the leaders here have witnessed the mistakes of previous leadership members and vowed not to make the same mistakes.
• They – 
  • Galvanise the group
  • 80% retention
  • Spread the load
  • High levels of accountability fairly applied
  • Excellent communicators
  • Regular group training sessions
  • Regular management meetings and strategy sessions
  • 98% Attendance
  • Regular referrals exchanged leading to high ROI/member

Stage 5
Contact me and I’ll give you the rundown of stage 5 groups.

What You Need to Do
If not properly managed, referral groups can be fickle. The structure and mechanisms for success need to be established and respected so they are followed and members ROI will be a natural consequence.
Accountability is another of the cornerstones and this is best administered externally so the members can concentrate on exchanging referrals without being caught up in the management of the group.

There are a hundred moving parts in these groups so seek expert help if you have any questions.

Contact Steve at info@referralacademy.com.au for further information.

Previous Show
Season 5 Show 1 – Beginning Your Own Strategic Referral Team 
Strategic Referral Teams are a thing of beauty when they are working well. Learn what you need to to being your own by listening to this podcast. It covers all the basics but you’ll still need some guidance beyond this so drop me an email and let’s get your group underway.

Next Show
Season 5 Show 3 – Leadership, it Matters!
Leadership is often underestimated when it comes to referral groups. In this show, we’ll go deep so you understand good leadership, not-so-good leadership and the effects each has on your referral group.
We’ll also explore the benefits of training leaders correctly so they can perform their roles and minimise the time they need to spend on this sometimes onerous task.

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 info@referralacademy.com.au

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